What are the potential benefits and drawbacks of investing in a Boulder Designs franchise, considering the initial investment (Item 7), ongoing fees (Item 6), and the franchisor's obligations (Item 11)?

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

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).

[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT SINGLE FRANCHISE]

Note 1. All payments are payable to us and are nonrefundable unless otherwise stated.

Note 3. When you sign the franchise agreement, you will also pay us $12,000 for You and your initial manager to attend and complete one level of training (Initial Training) over the course of approximately five business days. See Item 11 for more details on Initial Training. Initial Training amount is fully earned and nonrefundable upon completion of your training. If you do not successfully complete the initial training, we reserve the right to deduct any amount from your Initial Training Fee to cover our expense and the cost of providing the initial training course in addition to you paying us the On-Site Training Cancellation Fee. If you purchase two Boulder Designs franchised business, you will only need to attend the training once so long you have not appointed a new Internal Manager. If you transfer controlling interest to a new owner, and/or you appoint a new Internal Manager, you are subject to additional training costs associated with training such new owners and/or internal managers.

Note 5. The list of required and optional equipment is set forth in Schedule 1 of the Key Terms Page Exhibit 1 to the franchise agreement that is Exhibit D of this disclosure document Any upgrades and related costs must be paid before signing the franchise agreement. The purchase price does not include shipping costs, which are your responsibility. The shipping costs range from $0, if you transport the equipment yourself, to $5,500 if you use a third-party shipping service. If you are purchasing two franchises at the same time, you will only need to purchase one equipment and supplies package initially to service both franchises until such time as volume necessitates the need to purchase a second equipment and supplies package.

Note 15. In our sole discretion, if you meet our credit standards, we may finance up to 50% (if new) or 75% (if used or refurbished) of the equipment and supplies package for a maximum period of 42 months at an interest rate of 8.5% per year. The first monthly installments will be equal payments of principal and accrued interest and the 42nd installment will be for all outstanding principal and unpaid accrued interest. Please refer to Item 10 for further details regarding financing.

Note 6. These are estimated lease payments, monthly finance payments, security deposits, and down payments for a new or used truck. You will need to have a ³/₄-ton (or larger) pickup truck to pull your equipment trailer. Leasing is the preferred option, but you may also own or finance your truck. The truck may be no more than seven years old and must be in good mechanical and aesthetic condition, with an

exterior having minimal cosmetic blemishes (no dents, broken/cracked glass, missing panels, rust, etc.). If you choose to purchase a new or used truck, the overall cost of a ¾-ton pickup will vary based on its age, mileage, and its equipped features and amenities, among other factors, which could exceed $50,000. You will be required to display on each side of the vehicle the Boulder Designs logo, Boulder Designs website, and your local business telephone number. The logo and telephone number must be professionally painted or affixed with professional vinyl lettering or be present on a removable vehicle display magnet. We will provide you with proofs and/or sample layouts to be used. We can provide this service to for an additional charge depending upon your location.

Section 3.5 Technology Fee

Franchisee shall pay to Franchisor its then-current technology fee ("Technology Fee") on the first of every month, which is currently defined on the Key Terms page or as otherwise identified in Exhibit 1, as attached to this Agreement as of the Effective Date. Franchisor has the right to increase this fee at Franchisor's discretion upon providing Franchisee 30 days' notice of their intent to increase to the current monthly Technology Fee.

1. Item 12 is supplemented by the following:

You will not receive an exclusive territory. You may face competition from other franchisees, from businesses that we own, or from other channels of distribution or competitive brands that we control.