You must operate your Beauty Bungalows Franchise in accordance with our standard business operating practices and sign our standard franchise agreement ("Franchise Agreement"), which is attached to this Disclosure Document as Exhibit B. In the Franchise Agreement we grant you the right, and you undertake the obligation, to develop and operate one Beauty Bungalows franchise location at a mutually agreed upon site (the "Site") with an area (the "Site Selection Area") that we will specify in the Franchise Agreement. You will have no obligation, nor any right, to open any additional locations other than the Site or to use the Marks or the System in any wholesale, e-commerce, or other channel of distribution.

Multi-Unit Development Business

We also offer, to qualified applicants, the opportunity to develop additional units by purchasing the rights to develop multiple Beauty Bungalows Franchises in a defined geographical area (the ("Development Area") in accordance with a specified business development schedule ("Development Schedule"). You will be required to sign our area development agreement ("Area development agreement" or "ADA") at the same time you execute the Initial Franchise Agreement, and you will be required to develop these additional units within a fixed time period. The Initial Franchise Agreement will count as the first unit developed as part of your ADA. You must sign our then-current franchise agreement for each additional unit opened under the terms of the ADA. These franchise agreements may not be the same as the initial Franchise Agreement that you will sign for your first Franchise ("Initial Franchise Agreement").

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–9)