What are the requirements for a Bang Cookies Bakery Location?

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Because our Shops offer homemade cookies, cakes, and other baked good menu items, the initial Shop that you establish must be a bakery location that includes full production facilities, including a convection oven and kitchen capable of producing, on-site, dough for all of our homemade cookies and most of our baked menu items (a "Bakery Location"). If you maintain and operate a Bakery Location and you elect to establish

and operate additional Bang Cookie Shops located within a close geographic range to your Bakery Location, up to two additional Shops, depending on the production capacity of your Bakery Location may, if approved by us, be established as satellite locations (each, a "Satellite Location") each, with a smaller kitchen, preparation, and baking area that is limited to baking cookies and other baked goods that are baked from dough and other baking items that are partially prepared at your Location and delivered to your Satellite Location. A Bakery Location must be located at a retail location comprising approximately 1,500 to 2,500 square feet with approximately 600 to 700 square feet dedicated to your kitchen and baking facilities. A Satellite Location must be located at a retail location comprising approximately 800 to 1,000 square feet with approximately 600 to 800 square feet dedicated to your limited kitchen preparation and baking facilities.

Whether or not a Shop qualifies as a Bakery Location and the type, number, and location of Satellite Locations that a Bakery Location may support, requires our written approval. If you are granted the right to establish multiple Shops, there is no obligation to establish your additional Shops as Satellite Locations. Unless you sign a multi-unit development agreement, there is no guarantee that we may approve or award you the right to enter into any additional Franchise Agreements. You must assume that every Shop Location that you establish (subject to our Franchise Agreement and, if applicable, multi-unit development agreement) must be established as a Bakery Location unless we, in writing, otherwise approve of a Shop qualifying as a Satellite Location. Unless otherwise noted, the disclosures contained in this Disclosure Document apply whether or not your Shop qualifies as a Bakery Location or Satellite Location.

Franchise Agreement

You may enter into a Franchise Agreement in the form attached to this Disclosure Document as Exhibit E to develop and operate one Shop from a single Shop Location within a designated territory. If you sign a Franchise Agreement, you will be required to develop and operate the Franchised Business in conformity with the requirements of our System and at a Shop Location that we approve in writing. A Shop will, ordinarily, be located in high traffic retail commercial locations, including strip shopping centers. Your Shop must be established as a Bakery Location unless you already own and operate a Bakery Location and if we approve your development of a Satellite Location. If you do not have an approved site for your Shop Location you must select a site in accordance with the Franchise Agreement and obtain our written approval of the Shop Location. Your rights in the System will be limited to the establishment and operation of a single Shop offering, selling, and/or providing only our Approved Services and Products from your approved Shop Location and using only our System Supplies. Your Shop must conform to the requirements of our System.

Multi-Unit Development Agreement

If we approve your request, you may have the option, in addition to signing a Franchise Agreement in the form attached as Exhibit E, to sign the Multi-Unit Development Agreement attached to this Disclosure Document as Exhibit F, to develop and operate multiple Shops. The total number of Shops that you will be required to develop and operate under a Multi-Unit Development Agreement will vary from three to five Shops, as negotiated at the time of signing the Multi-Unit Development Agreement. Each Shop must be developed by you within a designated geographic area (the "Development Area") and each Shop must be developed and operated under the terms of our then current individual unit Franchise Agreement which may differ from the Franchise Agreement included with this Disclosure Document. Your Multi-Unit Development Agreement will include a development schedule (the "Development Schedule") containing a deadline by which you must have each Shop open and operating. Your Development Schedule may vary depending on your Development Area and the number of Shops that you are required to develop.

Unless otherwise specified, the information contained in this Disclosure Document applies to single unit development under a Franchise Agreement and multi-unit development under a Multi-Unit Development

Agreement. If you are not contracting for the right to develop multiple Shops, you will not be signing a Multi-Unit Development Agreement.

Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–11)