Does the FDD specify the criteria for becoming an Approved Supplier for Bananas Smoothies Frozen Yogurt?

needs promptly and reliably.

We maintain a list of approved suppliers for the Franchised Business and that list may be modified from time to time. If you send us a written request, we will send you and your suppliers a set of System standards and specifications for items which must be purchased or leased in accordance with our standards and specifications. We may, from time to time, change and revise the System standards, and specifications, and you and approved suppliers must comply with the new or changed standards and specifications.

If you desire to purchase or lease from an unapproved supplier, you must submit a written request for approval to us, or request the supplier itself to do so. We will have the right to require that our representatives be permitted to inspect the supplier's facilities, and that samples from the supplier be delivered for testing, at our option, either to us or to an independent, certified laboratory designated by us. You, or the suppliers, will be required to pay a charge not to exceed the reasonable cost of any inspection conducted and the actual cost of any testing undertaken. We reserve the right, at our option, to re-inspect the facilities and products of any such approved supplier and to revoke our approval on the supplier's failure to continue to meet any of our criteria for approval. We may consider compliance with purchasing requirements through the operational review process in determining whether to renew or grant additional franchises.

When you make a written request to use an alternate supplier, we will notify you in writing of the approval or disapproval of a proposed supplier within 90 to 120 days of a request for approval. If an inspection of the facilities or products of any previously approved supplier results in its disapproval, we will give you written notice within a reasonable time of the inspection, and we will provide you with a reasonable time to obtain an alternate supplier, if necessary.

We and our affiliates are presently the only approved supplier for the following items: frozen yogurt mix and pretzel dough. In addition, we and our affiliates may be approved suppliers for certain food items, and

equipment (for each of which there is at least one additional approved supplier). Neither we nor our affiliates are approved suppliers for other products, equipment or services.

We do not provide material benefits (e.g., renewal or additional franchises) to a franchisee based on his or her use of designated or Approved Suppliers. If you want to use another supplier, you must make a written request to us for approval, which approval will not be unreasonably withheld. You must obtain approval in writing.

There are no franchise purchasing or distribution cooperatives.

There are no approved suppliers in which any of our officers owns an interest.

We currently require that in order to qualify as an approved supplier of architectural and engineering services, the architectural and engineering firm selected by you must meet the following criteria:

• 1. must have a minimum of 5 years experience in commercial architecture with an emphasis on food service and restaurant design;
• 1. provide us with a minimum of 3 letters of recommendation from other national food service retail clients;
• 1. hold an architectural/engineering license in the respective state of the project;
• 1. must agree to meet the following drawing submission time frames:
  • a. Kitchen Equipment Floor Plan Development 3 working days from receipt of conceptual sketch from us;
  • b. Final Working Drawings Preparation 10 working days from receipt of final approved kitchen equipment floor plan from us; and
• 5*.* must have competency and familiarity with all applicable federal, state and local laws, codes and ordinances.

We have the right to approve the terms of any lease or sublease for the premises of your franchise. Typically, one of our affiliates will execute a mutually satisfactory lease, and you may execute a sublease on substantially the same terms. Sometimes we may authorize you to execute a lease with the owner of the premises that is acceptable to both you and us, along with an Addendum to Lease in favor of us or one of our affiliates. Any lease that you sign must be exclusively for the operation of a franchised restaurant, and must provide that upon termination or expiration of the franchise, for any reason, the Franchisor or one of its affiliates will have the right, but not the obligation, to assume the lease, and replace you as tenant. If we exercise that right, we will fully indemnify you from all liability for future rent and all other future obligations under the lease (though not from any liability for unpaid rent or any then-existing liabilities or obligations under the lease). You must agree to sign any documents required to assign the lease to us or our designee.

In order to assure uniform reporting of financial information throughout the System, we reserve the right to require you to obtain computer hardware and software for maintaining your accounting books and records. Such computer hardware may include point of sale and telecommunications devices, and may be a single program or set of programs (see item 11).

Advertising by Franchisee

You may not engage in any advertising program or use any other advertising, including local advertising placed on television, print or any other media (including but not limited to websites, online advertising, social media marketing or presence, digital marketing and sponsorships), or prepare or use any marketing materials, unless We have approved it in writing.

Insurance

You must maintain in force, naming us as an additional insured, at a minimum the following insurance:

• 1. Property insurance on a "Special Form" perils basis, covering the full replacement value of the Franchised Restaurant (Improvements and Betterments) and all of its Business Personal Property. Policy shall carry a Replacement Cost Valuation, a prescribed Amount endorsement, (no coinsurance) and a deductible not to exceed $2,500. Amount of coverage shall be not less than the full replacement cost of all such property. We may request, from time to time, a reasonable increase in the amount of such property insurance in order to account for inflationary trends.
• 1. Equipment Breakdown covering the full replacement value of the Franchised Restaurant equipment, including business interruption and Spoilage resulting from such breakdown.
• 1. Business Interruption insurance, in sufficient amount to cover net profit plus continuing expenses (including payments to us for loss of royalties, advertising fees and other required remittance due under our Franchise Agreement for a period of six months) for a period of at least one year, as a result of any insurable interruption in Franchisee's business operations.
• 1. Crime insurance, to include Employee Dishonesty, Money & Securities, Counterfeit Currency and Forgery & Alteration.
• 1. Comprehensive General Liability insurance, including premises/ operations, products/completed operations, liquor liability if applicable, contractual liability, and liability for the acts of independent contractors, with Bodily Injury/Property Damage Liability limits of not less than One Million Dollars ($1,000,000) Per Occurrence and Two Million Dollars ($2,000,000) Per Location Aggregate. Employee Benefit Liability to be included.
• 1. Workers' Compensation/Employer's Liability insurance, with limits of not less than One Million Dollars ($1,000,000), as well as such other insurance as may be required by statute or regulation of the state or locality in which the Franchised Restaurant is located and operated.
• 1. Comprehensive Automobile Liability insurance covering both owned and non-owned vehicles owned and/or operated by Franchisee, with limits of not less than One Million Dollars ($1,000,000) Bodily Injury/Property Damage liability or, in the alternative, One Million Dollars ($1,000,000) Bodily Injury and Two Hundred Fifty Thousand ($250,000) Property Damage Liability.
• 1. Commercial Umbrella Liability insurance, with limits of not less than Two Million Dollars ($2,000,000) Per Occurrence and Two Million Dollars ($2,000,000) Aggregate, and arranged to cover over all above primary underlying coverages without gap (General Liability, Liquor Liability (if applicable), Employee Benefit Liability, Employers Liability, and Automobile Liability).
• 1. Contractor's Insurance. In connection with any construction, renovation, refurbishing, or remodeling of the restaurant, Franchisee will cause the general contractor to maintain Comprehensive General Liability insurance

(including products/completed operations and independent contractors coverage) with limits of at least One Million Dollars ($1,000,000) Per Occurrence and Two Million Dollars ($2,000,000) Aggregate, naming FRANCHISOR as an additional insured; Comprehensive Automobile Liability; Workers' Compensation;

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–36)