Before opening a Bb.Q Chicken Franchised Business, what site selection assistance does Bb.Q Chicken provide?

Before the opening of a Franchised Business, we or our area representative, if there is one for your area, will provide the following assistance and services:

1. Our written site selection guidelines and the site selection assistance we deem advisable. (Franchise Agreement, Section 5.1.) We will also describe your designated territory when you sign the Franchise Agreement or we have accepted your proposed location, whichever occurs later.

You must assume all costs, liabilities, expenses and responsibility for locating, obtaining and developing a site for the Restaurant and for constructing and equipping the Restaurant or Food Truck at the

accepted site. You will select the site for the Restaurant subject to our acceptance and using our site selection criteria. Before you lease or purchase the site for the Restaurant, you must locate a site that satisfies our site selection guidelines. If we deem it necessary, we will conduct one on-site evaluation, but before we conduct the evaluation you must submit to us in the form we specify a description of the site, including evidence that the site satisfies our site selection guidelines, together with other information and materials that we may reasonably require, including a letter of intent or other evidence that confirms your favorable prospects for obtaining the site. We have the right to approve deviations from our site selection standards based on the individual factors and components of a particular site.

You must submit to us information and materials relating to the proposed site for our review no later than 60 days after you have signed the Franchise Agreement. We will have 30 days after we receive this information and materials from you to accept or decline the proposed site as the location for your Franchised Business. If we do not provide our specific acceptance of a proposed site, the site is deemed not accepted. We do not warrant or guarantee that your Restaurant will be successful at any site that we accept. Our acceptance only means that the site meets our minimum requirements for a Restaurant, subject to any deviation from our standards as we may permit.

In the event we do not approve a proposed site by written notice to you within 30 days, such site will be deemed disapproved by us. If we cannot agree on a proposed site, we may elect to terminate the Franchise Agreement and keep the entire initial franchise fee.

We will provide you with our current written site selection guidelines and any other site selection counseling and assistance we think is advisable. Our criteria for site selection include location of the site and its setting (free-standing building, shopping center, downtown location, etc.); availability of parking; visibility from main roads; availability, size and placement of signage; co-tenants in the shopping center or immediate area; accessibility to the site; condition of the premises and how much build-out or construction it will need; proximity to competitive businesses; and availability of utilities. We will use these and other factors in determining the suitability of your proposed site for Franchised Business. Once the location for your Restaurant has been determined, your Restaurant may not be relocated without our prior written consent. There are no fees for relocating your Restaurant, unless you request to relocate outside of your designated territory. You must provide us with a copy of the signed lease for your Restaurant location within 90 days after you have signed the Franchise Agreement, failure to do so may result in the termination of your Franchise Agreement.

Multi-Unit Operator Agreement: Under the Multi-Unit Operator Agreement, we or our area representative, if there is one for your area, will provide you with the following assistance:

• 1. We will review the information regarding potential sites that you provide to us to determine whether the sites meet our standards and criteria for a Restaurant and, if the site meets our criteria, accept the site for a Restaurant (Multi-Unit Operator Agreement Section 8.1).
• 1. We will provide you with standard specifications and layouts for building and furnishing the Franchised Business (Multi-Unit Operator Agreement Section 8.2).
• 1. We will review your site plan and final build-out plans and specifications for conformity to our standards and specifications (Multi-Unit Operator Agreement Section 8.3).

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 33–41)