What is the Browns Chicken Prospective Franchisee's obligation regarding site location after executing the Preliminary Agreement?

ELIMINARY AGREEMENT**

| CURRENT ASSETS: | | | |---|---|---| | Cash and Cash Equivalents | $ 37,437 | $ 78,676 | | Cash - VIE | 20,532 | 65,330 | | Accounts Receivable (Net of Allowance for Doubtful | | | | Accounts of $0 in 2024 and $7,999 in 2023) | 21,293 | 43,420 | | Accounts Receivable - VIE (Net of Allowance for | | | | Doubtful Accounts of $0 in 2024 and $0 in 2023) | 14,423 | 24,810 | | Uniform & Equipment Inventory | 4,625 | 4,968 | | Prepaid Expenses | 4,350 | 6,750 | | Total Current Assets | 102,660 | 223,954 | after execution of this Preliminary Agreement, a site suitable for the operation of a Store acceptable to

BROWN within the following area: _______________________________ (the "Area").

1. It shall be the obligation of PROSPECTIVE FRANCHISEE to locate, within sixty (60) days

• a. The Area is not exclusive or protected either during the term of this Agreement or in the event a franchise is granted. BROWN has the right to offer and grant a franchise to any other party within the Area. In the event BROWN grants a franchise to another party within the Area during the term of this Agreement, PROSPECTIVE FRANCHISEE may terminate this Agreement and obtain a refund of the Deposit as provided in Paragraph 6 below.
• b. BROWN shall not unreasonably withhold approval of sites that meet its standards for general location, physical and demographic characteristics of the neighborhood, traffic pattern, parking, competition, proximity to other businesses (including other Stores), the nature of other businesses in proximity to the site, layout and other physical characteristics, rental, lease duration and other lease terms and conditions for the Store.
• c. Upon execution of this Agreement, BROWN will furnish PROSPECTIVE FRANCHISEE in writing criteria for site selection, which materials must be returned to BROWN upon termination of this Agreement.
• d. If PROSPECTIVE FRANCHISEE shall be unable to locate an acceptable site within the time above specified, BROWN may, at any time thereafter, terminate this Preliminary Agreement provided it shall refund a portion of the Deposit as provided in Paragraph 6 below.
• e. PROSPECTIVE FRANCHISEE acknowledges and agrees that BROWN's approval of the premises for the Store and any information communicated to PROSPECTIVE FRANCHISEE regarding the premises for the Store do not constitute a representation or warranty of any kind, expressed or implied, as to the suitability of the premises for a Brown's Store or for any other purpose. BROWN's approval of the premises indicates only that BROWN believes that the premises falls within the acceptable criteria established by BROWN as of the time period encompassing the evaluation. Both PROSPECTIVE FRANCHISEE and BROWN acknowledge that application of criteria that have been effective with respect to other sites and premises may not be predictive of potential for all sites and premises and that, subsequent to BROWN's approval of a site and premises, demographic and/or economic factors, including competition from other businesses, included in or excluded from BROWN's criteria could change, thereby altering the potential of a site and premises. The uncertainty and instability of such criteria are beyond BROWN's control and PROSPECTIVE FRANCHISEE agrees that BROWN shall not be responsible for the failure of a site and premises approved by BROWN to meet PROSPECTIVE FRANCHISEE's expectations as to potential revenue or operational criteria. PROSPECTIVE FRANCHISEE further acknowledges and agrees that his acceptance of a Franchise for the operation of a BROWN Systems Store at the premises is based on his own independent investigation of the suitability of the premises.
• 1. Unless PROSPECTIVE FRANCHISEE withdraws his application for a Franchise as hereinafter provided, PROSPECTIVE FRANCHISEE agrees that within ten (10) days of approval by BROWN of a site for PROSPECTIVE FRANCHISEE's Store, PROSPECTIVE FRANCHISEE will execute BROWN's Franchise Agreement, in the form delivered to PROSPECTIVE FRANCHISEE.

Source: Item 23 — RECEIPT (FDD pages 43–202)