[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]

Except as listed below, we are not required to provide you with any assistance.

Pre-Opening Obligations

Before you open your Beauty Bungalows Franchise, we will:

1. Designate your Protected Territory in writing and approve, if it meets our standards and specifications for approval, the location selected solely by you to be used for the operation of the Beauty Bungalows

Franchise. If your site is not already known and approved by us when you sign your franchisee agreement, then we will specify in your franchise agreement the Site Selection Area in which you must select a Site. Upon selection of an approved site, we will designate your Protected Territory based upon our then-current methods of territory determination set forth in the Manuals. (See Sections 4 and 10 of the Franchise Agreement).

Provide you with access to an electronic copy of our confidential operating Manual, which contains mandatory and suggested specifications, standards, operating procedures, and rules.

The Manual is confidential and remains our property.

We may modify the Manual from time to time, but the modification will not alter your status and rights under the Franchise Agreement. (See Section 7.04 of the Franchise Agreement).

We have included a copy of the Table of Contents of our Manual as Exhibit F to this Disclosure Document.

The Manual currently contains 188 pages.

Provide advice about selecting and analyzing a Site for the Franchise.

Your Site must meet our minimum requirements as set forth in the Manuals for square footage, layout, visibility, and other factors that we may determine from time to time.

Site selection is your responsibility, but we will assist you in the site selection process by considering population density, traffic patterns, and proximity of the proposed site to other Beauty Bungalows or any other reasonable criteria.

You must secure a Site that we have approved by signing a lease or purchase agreement within ninety (90) days of the date of this Agreement.

We may extend the deadline for acquisition of a Site by 90 days in our sole discretion, and we may require you to pay a $2,500 extension fee and execute a general release as a condition of us agreeing to grant such extension. [Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]

Real Estate Requirements

You must obtain our prior written approval of your proposed business site and we must approve certain terms of the lease between you and your proposed landlord. Your lease must include our standard form lease rider which is attached as an exhibit to your Franchise Agreement. We approve locations on a caseby-case basis, considering factors such as size, appearance, and other physical characteristics or the site, demographic characteristics, traffic patterns, competition from other businesses in the area (including other Beauty Bungalows locations) and other commercial characteristics such as purchase price, rental obligations, and other lease terms. We will assist you with a list of site criteria to help you locate a suitable site.

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]

Upon your request, provide you advice about the negotiation of the lease or purchase of a location for your Beauty Bungalows Franchise, which will be leased or purchased by you from independent third parties.

We do not own premises that are then leased to you.

We are not acting as your direct representative or attorney in lease negotiations and our assistance in no way constitutes a representation or warranty with respect to the lease or purchase. (See Section 8.02 and 10.01 of the Franchise Agreement)

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 22–23)