aining funds have been spent.

Other than administering the Brand Fund as described above, we do not have an obligation to conduct advertising on your behalf.

Referral Programs. As of the date of this disclosure document, we offer two referral incentive programs:

A. Standard Referral

Our affiliate, AB Inc., is sponsoring a referral incentive program that began on February 24, 2025. The referral incentive program pays $15,000 to an existing franchisee of ours or any of our affiliated brands who first directly refers a candidate who: (a) has not previously been referred to us by another source or otherwise been in contact with and/or engaged with us, our affiliates or third party consultants or agents; (b) has not previously signed a Franchise Agreement with us or any of our affiliated brands; (c) who meets our qualifications for becoming a franchisee; (d) signs a Franchise Agreement in a new location on or before February 26, 2027 or up to the business day before our bi-annual convention which we anticipate being February 28, 2027 (the "2025 to 2027 Referral Period"); and (e) pays the Franchise Fee and any applicable Additional Population Fee in full at the time of signing the Franchise Agreement. The incentive payment is only paid with respect to the first Territory licensed from us by the candidate, regardless of the total number of Territories licensed in a single transaction. In addition, all existing franchisees who receive a referral incentive payment as described above may be eligible to win a sweepstakes prize in the amount of the grand total of the $5,000 per referral we and any of our affiliated brands received during the 2025 to 2027 Referral Period. We anticipate that the referral sweepstakes will be scheduled to end at 11:59 PM ET on February 26, 2027, but this may change at our sole discretion. An "Existing Franchisee" is the person or entity defined as "Franchisee" in the Franchise Agreement governing the referring Franchised Business. We reserve the right to apply incentive payments to any outstanding balances or past due amounts due to us by an Existing Franchisee. Additional terms and conditions may apply.

B. Conversion Referral Program

We offer a referral incentive program that pays ongoing incentive payments for up to three years ("Incentive Period") to an Existing Franchisee (as defined above) of ours or any of our affiliated brands, subject to certain conditions, who first directly refers a candidate who: (a) has not previously been referred to us by another source or otherwise been in contact with and/or engaged with us, our affiliates or third party consultants or agents; (b) has not previously signed a Franchise Agreement with us or any of our affiliated brands; (c) who meets our qualifications for becoming a franchisee under the Conversion Incentive Program; (d) signs a Franchise Agreement with our standard terms in a new location on or before March 31, 2026; and (e) pays the Franchise Fee and any applicable Additional Population Fee in full at the time of signing the Franchise Agreement ("Conversion Referral"). The incentive payment is only paid with respect to the Franchised Business(es) first signed with us in a single transaction, regardless of if additional Territories are acquired by the Conversion Referral during the Incentive Period. The incentive payments are paid by check to the Existing Franchisee within forty-five (45) days of the end of the quarter of the current calendar year, according to the Conversion Referral's Royalty Fee payments made to us ("Royalties Paid"). The incentive payments will be calculated and paid according to the following schedule: (a) During the first twelve months following the Original Opening Date: 30% of Royalties Paid; (b) Months 13 through 36 following the Original Opening Date: 15% of Royalties Paid. "Original Opening Date" means the date on which you or any prior owner or predecessor operator of the Franchised Business first opened the Franchised Business. We may require the Conversion Referral and the Existing Franchisee to sign a separate agreement acknowledging and agreeing to the terms of this program for eligibility purposes. We reserve the right to apply incentive payments to any outstanding balances or past due amounts due to us by an Existing Franchisee. Additional terms and conditions may apply.

We may change or eliminate the referral incentive programs at any time without notice. Franchisees participating in the referral programs a

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)