What happens before the Bambu shoppe's opening?

steps necessary to ascertain whether such location and lease are acceptable to you.

Schedule for Opening

We estimate that the typical length of time between the date you sign the Franchise Agreement and the date your shoppe opens will be approximately three to 10 months based on our buildout requirements and delivery date of the premises by your landlord. The factors which may affect this time period are you locating a satisfactory site, complying with local ordinances and zoning, securing financing, and obtaining a lease, as well as the extent to which an existing location must be upgraded or remodeled, the delivery schedule for equipment, recruiting and hiring, purchasing products and supplies, and completing your training. We will conduct a preassessment review of your shoppe approximately one to two weeks prior to your soft opening to determine if onsite training can be scheduled. You must obtain our prior written approval before opening the shoppe. You must open the shoppe no later than one year after signing the Franchise Agreement unless we determine that circumstances warrant granting you an extension of time. In our preassessment review, we will provide you with a written list of anything that must be done or changed before opening or promptly after opening. You will not be permitted to open the shoppe until you have furnished the shoppe, purchased inventory, fully stocked the shoppe with menu items, and trained your employees. We reserve the right to perform a further walk-through of the location for your shoppe after you notify us that you are ready to open for business, at which time we may issue additional requirements for compliance before opening. You are deemed to have commenced operations and opened at the time that you have complied with all pre-opening obligations in the Franchise Agreement and your Bambū shoppe is first open to any paying customers.

Training Program

Upon payment of the final installment of your Initial Franchise Fee, we will schedule your opening training program (the "Training Program"). Three individuals designated by you to assume primary responsibility for operating the Bambū shoppe and approved by us as "Bambū Certified Team Leaders," are required to attend and successfully complete to our satisfaction the Training Program, which is conducted in part by us at the Franchised Location. All individuals designated for Bambū Certified Team Leaders must attend and participate in the entire Training Program, including the onsite training program. Only individuals who will be serving as Bambū Certified Team Leaders, or the individual with full-time management responsibility for the Bambū shoppe, may attend our Training Program. The Training Program may include verbal, written, online, video conferencing or audiotaped classroom training and on-the-job training for the front and back of the shoppe (including, but not limited to, customer service, cooking, ingredients and drink

preparation), and shoppe maintenance. If there are more than three individuals in the training Program, we may charge our then current additional training fee to train such additional persons. You are responsible for any and all traveling, lodging, and meal expenses, and wages incurred by you and your employees in connection with attendance at the Training Program. Training participants will not receive any compensation from us while attending Bambu's training.

The Training Program consists of approximately 88 hours over a combination of approximately 11 combined days of pre- and post-opening training and consultation, and seven days of opening training that will be scheduled to start after we have conducted a successful site review and pre-opening assessment. You must notify us when you have passed your Environmental Health Department Inspection, which typically takes place as the buildout of your Bambū shoppe nears completion or you have received other temporary rights to bring products and ingredients into the shoppe and are allowed to prepare food items, so we can schedule the opening training.

In addition to the opening training, and approximately two months prior to the estimated date of the opening training, you and one other designated Bambu Certified Team Leader must attend a two day preopening owner operations orientation and training program conducted at the Bambū shoppe located in Grand Prairie, Texas, or at an alternative location approved by us.

If we determine, in our sole reasonable discretion, that the individuals designated as your Bambū Certified Team Leaders are not able to operate the shoppe in accordance with our standards and specifications, we will require you to make any necessary changes and reschedule the Training Program. You will be required to pay us the cost of rescheduling including transportation, lodging and meals of our training staff.

We require at least one Bambū Certified Team Leader, which may be you, to be responsible for the management of your shoppe on a full-time basis.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–38)