What constitutes a 'Franchise' according to the Boulder Designs Franchise Agreement?

WHEREAS, Franchisor grants to qualified persons and business entities the right to own and operate BOULDER DESIGNS Businesses using the System and the Marks; and

WHEREAS, Franchisee desires to operate a BOULDER DESIGNS Business, has applied for the Franchise and such application has been approved by Franchisor in reliance upon all of the representations made herein and therein; and

WHEREAS, Franchisor is willing to grant Franchisee a license under the System and the Marks to operate a Franchised Business, subject to Franchisee's strict compliance with the terms and conditions of this Agreement and in reliance upon Franchisee's representations made in this Agreement and in Franchisee's application to become a franchisee under the System.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows:

ARTICLE 1 - DEFINITIONS

Whenever used in this Agreement, the following words and terms have the following meanings:

• "Affiliate" means any business entity that controls, is controlled by, or is under common control with Franchisor;
• "Agreement" means this franchise agreement and all exhibits hereto and amendments hereof;
• "Approved Location" means the site for the operation of the Franchised Business selected by Franchisee and approved in writing by Franchisor;
• "Approved Supplier(s)" means only those companies, and vendors who provide the services, product items, supplies, signs, equipment and other items and services Franchisor from time to time approves (and which are not thereafter disapproved) and that comply with Franchisor's specifications and quality

Boulder Designs® 1 Franchise Agreement | 2025

standards. Franchisor shall provide Franchisee, in the Manual or other written or electronic form, with a list of Approved Suppliers. Further description and requirements can be found in the terms contained in Article 13;

• "Business Entity" means a corporation, limited liability company, limited partnership or other entity created pursuant to statutory authority.

Source: Item 22 — CONTRACTS (FDD page 50)