Is Boulder Designs Franchising, LLC required to provide franchisees with any assistance beyond what is explicitly listed in Item 11?

STEMS, AND TRAINING**

Except as listed below, Boulder Designs Franchising, LLC is not required to provide you with any assistance.

Before you begin operating the Boulder Designs Business, we will:

• 1. Designate your true Territory, as further described in Item 12; (Franchise Agreement, Section 2.4) (all home-based sites are automatically approved, provided that they are within a reasonable distance of the assigned territory and comply with local rules).
• 1. Provide an initial training program and provide a re-boot training program. These training programs are described in detail later in this Item; (Franchise Agreement, Section 8.1, Section 8.2).
• 1. Provide to you, on loan, one copy of the Boulder Designs Business Operations Manual(s), either in electronic or paper form. The Table of Contents of the Operations Manual(s), along with the number of pages devoted to each section, is described in detail later in this Item; (Franchise Agreement, Section 9.1)

After you begin operating the Boulder Designs Business, we will:

• 1. be available to render advice, discuss problems and offer general guidance to Franchisee by telephone, e-mail, newsletters, webinars and other methods with respect to planning, opening and operating the Franchised Business as Franchisor deems appropriate, in its sole discretion. (Franchise Agreement, Section 14.1);
• 1. make available to you changes and additions to the System as generally made available to all franchisees; (Franchise Agreement, Section 10.2 and 14.4);
• 1. periodically, provide advertising and promotional materials including ad-slicks, brochures, fliers, and other materials for your use or purchase; (Franchise Agreement, Section 14.5);
• 1. maintain our websites located at www.boulderdesigns.net and continue to promote Boulder Designs Businesses through the Internet. We will prepare and maintain an interior page to our site promoting or giving information about your Franchised Business, whose leads will be directed solely to you; (Franchise Agreement, Section 11.3 and 11.4);
• 1. maintain our Social Media sites and applications such as: Twitter, Facebook, LinkedIn and other sites and applications that we may establish. We do allow you to utilize Social Media sites or applications for business purposes with the caveat that all content must be approved by us prior to use those created by us for your use. Further, any representations from you, or your employees regarding your profits or earnings made on any Social Media site or application, even if made from a personal Social Media account, is deemed a breach of Confidential

Information under the Franchise Agreement, and you will be responsible for all costs including legal costs for any required fines or legal actions as a result of your postings; (Franchise Agreement, Section 11.3 and 11.4);

• 1. provide you administrative bookkeeping and accounting control procedures as needed; (Franchise Agreement, Sections 12.1 to 12.5);
• 1. we may assist or require you to establish the maximum and minimum prices that you are offer to your customers to the extent permitted by law (Franchise Agreement, Section 14.2); and
• 1. Assist with setting up your shop and beginning production within 90 days following completion of initial training (Franchise Agreement, Section 8.11).

Site Selection

You must promptly select a site for the Franchised Business in your Territory and notify us of such selection by submitting our Site Selection form and other required documents. If we approve the selection, the site is designated as the Approved Location. If we do not approve of such selection, you may select and notify us of new sites until we approve a site for the Franchised Business. We have the right to approve or disapprove a proposed location based on such factors as it deems appropriate, including, the condition of the premises; demographics of the surrounding area; proximity to other Boulder Designs Businesses and competitors; lease requirements; and overall suitability. We will not unreasonably withhold our approval; however, if we cannot agree on a location for the Franchised Business, we may in our sole discretion allow more time for site selection or terminate the Franchise Agreement. If your Franchise Agreement is terminated you are not entitled to any refund of your initial franchise fee or other deposits paid to us. We may notify you of our approval or disapproval of a proposed site within 30 calendar days after we receive all information submitted from you. If we fail to respond in writing to the Selection of Site request within 45 calendar days, the site is deemed approved. If you are operating from your home, the site will be deemed automatically approved upon submission to us, as long as the site is located in your Territory. You must obtain written permission from us to locate your office (including a home office) outside of your Territory.

Your site should include a minimum of 1,000 square feet of production space, which includes a 10 foot tall doorway that is also 10 foot wide. This space should also have access to water and a minimum of 150 amp single phase electric service.

Once we approve your location (and if the site is to be leased or purchased), you must execute a lease for, or a binding agreement to purchase, the Approved Location, the terms of which must have been previously approved by us in writing.

Your failure to begin operating the Franchised Business within 180 days from the Effective Date on the Franchise Agreement may result in the termination of the Franchise Agreement.

Advertising and Promotion

All advertising and promotions must be approved in writing by us in advance. We have 30 days to approve the submission. If we do not approve the advertising or promotions you submit within 30 days, they are deemed denied and you may not use them.

We highly recommend you spend at least 10% of Annual Gross Revenue on Local Advertising that conforms to our standards. On the 31st day of January of each year, you must furnish to us an accurate accounting of the expenditures on Local Advertising for the preceding calendar year regardless of how much was spend in the previous year.

Your business will be listed in or on Google Places (or similar online directory), Facebook, print and radio advertisements, and other online search engines and directories. All online or Internet-based requirements will be completed by our marketing agency, you will be responsible for the costs associated with this online

Marketing Fee

We have the right to operate a marketing program that we will administer, for the general benefit of the Boulder Designs System. Currently the monthly Marketing Fee is $0; however, when implemented, we have the right to increase the Marketing Fee up to $200 per month. We will provide 30 days' prior notice before imposing any increases to the Marketing Fee.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–32)