Is Better Blend required to provide franchisees with any assistance?

MPUTER SYSTEMS, AND TRAINING**

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

Our Pre-Opening Obligations

Before you open your business:

• A. Your site. We will review and advise you regarding potential locations that you submit to us. (Section 5.2). If you sign a Multi-Unit Development Agreement, we will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. We are not obligated to further assist you in locating a site or negotiating the purchase or lease of the site.
  • (i) We generally do not own your premises and lease it to you.
  • (ii) If your site is not already known and approved by us when you sign your franchise agreement, then we and you will specify in your franchise agreement the area in which you must select a site (Franchise Agreement, Summary Page). We do not select your site. You must find a potential site and submit your site to us for

• approval, together with all information and documents about the site that we request. When we accept a site, we will issue a Location Acceptance Letter (in the form of Attachment 2 to the Franchise Agreement).
• (iii) The factors we consider in approving sites are general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms.
• (iv) The time limit for us to approve or disapprove your proposed site is 30 days after you submit all of our required documents and information. (Section 6.1). If we and you cannot agree on a site, you will be unable to comply with your obligation to develop and open the franchise by the deadline stated in the franchise agreement. Unless we agree to extend the deadline, you will be in default and we may terminate your franchise agreement.
• (v) We are not obligated to assist you in conforming the premises of your site to local ordinances and building codes and obtaining any required permits. This will be your responsibility.
• B. Constructing, remodeling, or decorating the premises. We will advise you regarding the layout, design, and build-out of your business. (Section 5.2)
• C. Hiring and training employees. Our opening support (as described below) includes assisting you in training employees. All hiring decisions and conditions of employment are your sole responsibility. (Section 7.5)
• D. Necessary equipment, signs, fixtures, opening inventory, and supplies. We will provide you a list of our specifications and approved suppliers for equipment, signs, fixtures, opening inventory, and supplies necessary to open your business. (Section 5.2) We do not provide these items directly; we only provide the names of approved suppliers. We do not deliver or install these items.
• E. Brand Standards Manual. We will give you access to our Brand Standards Manual in such format as we deem appropriate. (Section 5.1).
• F. Initial Training Program. We will conduct our initial training program. (Section 5.2). The current initial training program is described below.
• G. Business plan review. If you request, we will review your pre-opening business plan and financial projections. (Section 5.2)
• H. Market introduction plan. We will advise you regarding the planning and execution of your market introduction plan. (Section 5.2)
• I. On-site opening support. We will have a representative provide on-site support for at least three days in connection with your business opening, at our expense (Section 5.2). We are not obligated to provide opening support for your third or additional locations.

Length of Time to Open

The typical length of time between signing the franchise agreement and the opening of your business is six to twelve months. Factors that may affect the time period include your ability to obtain a lease, obtain financing, develop your location, obtain business permits and licenses, and hire employees.

Our Post-Opening Obligations

After you open your business:

• A. Developing products or services you will offer to your customers. Although it is our intent to refine and develop products or services that you will offer to your customers, the franchise agreement does not obligate us to do so.
• B. Hiring and training employees. All hiring decisions and conditions of employment are your sole responsibility. (Section 7.5)
• C. Improving and developing your business; resolving operating problems you encounter. If you request, we will provide advice to you (by telephone or electronic communication) regarding improving and developing your business, and resolving operating problems you encounter, to the extent we deem reasonable. If we provide in-person support in response to your request, we may charge a fee (currently $600 per day) plus any out-of-pocket expenses (such as travel, lodging, and meals for our employees providing onsite support). (Section 5.3)
• D. Establishing prices. Upon your request, we will provide recommended prices for products and services (Section 5.3). We have the right to determine prices charged by our franchisees for goods and services (but only to the extent permitted by applicable law) (Section 7.4).
• E. Establishing and using administrative, bookkeeping, accounting, and inventory control procedures. If you request, we will provide you our recommended procedures for administration, bookkeeping, accounting, and inventory control (Section 5.3). We may make any such procedures part of required (and not merely recommended) procedures for our system.
• F. Marketing Fund. We will administer the Marketing Fund (Section 5.3). We will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of our fiscal year and will provide the financial statement to you upon written request. (Section 9.3)
• G. Website. We will maintain a website for the Better Blend brand, which will include your business information. (Section 5.3)

Advertising

Our obligation. We will use the Marketing Fund only for marketing and related purposes and costs. Media coverage is primarily local. We use outside vendors and consultants to produce

advertising.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 21–27)