What must a Bambu franchisee do to establish, maintain, and operate their Bambu shoppe?

ITEM 8

RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES

Operations

You must establish, maintain and operate your Bambū shoppe in compliance with your Franchise Agreement. You must comply with the mandatory standards and specifications contained in our confidential Owner Operations Manual and policy releases, which are available through our Franchisee Resource Center ("FRC"). After you sign the Franchise Agreement, you will be given login credentials and access to the FRC at www.bambufrc.com. In addition to our Owner Operations Manual, the FRC contains Training Materials, our FRC Blog, FRC Forum, notices, marketing materials, art work, health compliance plan and information, and ordering platform, as well as other manuals, technical and news bulletins, and other written or electronic materials for operating a Bambū shoppe (collectively, "FRC Materials"). We may modify the FRC Materials in our discretion. We provide you with our mandatory and suggested standards and specifications for the menu items and retail products and related programs offered at or through your Bambū shoppe. Mandatory items include menu items and nutritional information, finishes, counter, POS/merchant service system, loyalty rewards program equipment, logoed paper products, uniforms, insurance, advertising materials, equipment, certain supplies and reports. You must obtain our prior written approval of your final plan, signage, and interior design. The FRC Materials are designed to protect our reputation, and promote the brand and goodwill of the Marks; they are not designed to control the day-to-day operations of your Bambū shoppe. You must comply with these standards and specifications, including the terms of any mandatory product recall promptly upon receipt of notice from us of such recall.

One of our primary methods of communication with our franchisees is by small message service via email, text messages, or other electronic methods ("SMS"). Any standards and specifications communicated by SMS are deemed part of the FRC Materials, and you are required to comply with them.

Shoppe Lease and Build-Out

We will assist you with negotiations of the LOI for the lease for your Franchised Location and in the lease negotiations and review. Our assistance involves suggestions and recommendations concerning the terms and conditions of the LOI and the lease provisions. It ultimately is your responsibility, however, to negotiate and accept the final terms of these documents. We will review and provide our suggestions to any lease or sublease ("Lease") for the Franchised Location of your shoppe before you sign the Lease. In particular, the Lease must include a use clause acceptable to us and signage criteria that provides for adequate branding of the Bambū name. Our involvement in the negotiation and approval of the lease for the Franchised Location does not constitute a recommendation, endorsement or guarantee by us of the suitability or profitability of the location or the lease, and you will need to take any additional steps necessary to

ascertain whether such location and lease are acceptable to you, which may include engaging your own legal counsel. A copy of any signed Lease must be delivered to us within 15 days after you sign it.

Once a lease is signed, you will need to obtain permits and begin construction of the shoppe as quickly as possible in order to avoid paying rent before your Bambū shoppe is open for business. This will require, in most instances, retaining an architect and general contractor at or before the lease is signed. You must obtain our prior written consent of your architect and general contractor. We will not withhold our approval of the architectural firm or general contractor provided they can demonstrate they have sufficient expertise in commercial retail design work to ensure that the plans, approvals and permits are obtained and overview of the project is accomplished. If we do not approve your designated architect or general contractor, we may require that you engage an architectural firm or general contractor designated by us.

We will assist you in development of a required kitchen workflow design, including the specific equipment specifications required for use in your shoppe. We will also provide a style guide of recommended finishes and colors, materials, furniture, fixtures, counter and décor for you to use in designing the layout for the Franchised Location. You are required to obtain our approval of your choice of colors and furniture. We will provide you a rough shoppe workflow layout and equipment schedule after you have entered into the letter of intent ("LOI") for your Franchised Location at or about the time you sign the lease, provided that you have entered into the Franchise Agreement prior to signing the lease and we are provided with sufficient information about the space to assist with creating a layout of the space. You must consult with us, and we must approve your shoppe layout, equipment layout, mechanical drawings, and construction documents, which cannot be changed without our prior written approval. You must, at your expense, construct, convert, design, decorate and furnish the Franchised Location in accordance with the final plans and specifications we have approved. You are required to prepare final architectural drawings for our approval based on our standards and specifications. We must approve the drawings prepared by your selected architect submitting to us the final drawings of the layout and proposed improvements to the Franchised Location for our review and approval before those materials are submitted for permitting and construction begins. The approval by us of drawings, layout, or other construction documents related to the Franchised Location does not constitute a recommendation, endorsement or guarantee by us of the suitability or profitability of the location, layout, or design of your Franchised Location. You cannot change the plans once we approve them, without our prior written approval. If you change the plans or the construction of your shoppe without our knowledge or prior written approval, we may require you to conform your shoppe to the approved plans before you can open the shoppe for business to the public. We may require you to use the services of a company that will supervise the buildout of your Bambū shoppe if, in our sole discretion, we determine that the architect or contractor that you intend to use has insufficient knowledge and experience to build a Bambū shoppe.

If you have already signed a lease or sublease, you have already purchased a location for your shoppe, or you are upfitting or adding a Bambū shoppe to a current restaurant location when you sign the Franchise Agreement, our execution of the Franchise Agreement does not imply that we approve of any particular location.

Programs and Reports

Unless we approve your use of a similar application, you will be required to use the QuickBooks accounting application. These applications have payroll services and direct deposit capability for your employees. You will be required to provide us with monthly financial statements, including a monthly Profit and Loss Statement and Balance Sheet, and sales, labor and inventory reports. We will review your financial statements with you each month. You will be required to use a scheduling application for your employees. Unless we approve your use of a similar application, you will be required to use the Homebase human resource application.

POS System, Merchant Service, Software and Other Technology

You are required to purchase a point-of-sale system, including hardware to service our loyalty rewards program, that meets our specifications. The point-of-sale system that we currently require is the Square bundled system (defined in Item 11 as the "POS System"). It contains the required supporting hardware and software applications, which has the capability of facilitating our system-wide customer loyalty rewards program and has built in merchant software for both shoppe and hands-free online ordering credit card processing and customer tipping. You will pay the provider of the POS System monthly fees for maintenance and updates. Currently, we derive no revenue from your purchase of the POS System, although we reserve the right to derive revenue from your purchase and license of the POS System or any proprietary software, if and when we develop our own proprietary system or software and license them to you. See Items 7 and 11. We may require you to use a new or different point-of-sale system in the future, in which case you must convert your POS System to the new system. You must own a smartphone or other mobile device with access to the Internet enabling you to communicate via SMS. Additionally, we require that you login to, regularly access, and fully participate in our FRC, which includes communicating with other franchisees and with us. We may also require you to purchase additional hardware equipment, software and possible subscriptions to online applications meeting our minimum specifications in the future at your expense. Your participation and your communications on our FRC are governed by the standards, specifications and guidelines we establish from time to time. See Items 7 and 11.

Social Media

You will also be provided with a social media platform called Rallio for posting to Instagram and Facebook as well as for connections to Yelp and Goggle Bambu pages. You will be able to use Rallio to respond to comments on Yelp and Goggle and to provide information on views of social media postings. The fee for Rallio is paid through the Marketing and Technology Fee. At your election and for an additional fee that you will pay directly to Rallio, you can use Rallio for other social media marketing.

Purchases From Designated or Approved Sources

In order to maintain the quality and uniformity of Bambū shoppe products and certain of the programs you offer, you must purchase all products including raw and prepared ingredients, food items, shoppe supplies, and programs offered, used, sold or leased through your Bambū shoppe or otherwise required for the operation of your Bambū shoppe from suppliers or distributors designated or approved by us.

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)