What standards and specifications does Burger King establish for goods and services used in Restaurant operations?

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ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES

We establish standards and specifications for most of the goods and services used in the development, improvement, and operation of Restaurants, and for the direct and indirect sources of supply of most of those items. These requirements help assure the quality, safety and consistency of the goods and services provided by Restaurants, and protect and enhance the image of the BURGER KING brand.

You must construct, improve and operate your Restaurant in accordance with our standards and specifications. The Restaurant's fixtures, signage, improvements, décor, supplies, food, beverages, insurance, paper products, packaging, cleaning tools and supplies, promotional items, and certain other supplies, products, services and equipment, including computer and point of sale hardware and software, digital menu boards, network services, and other technologies, must meet our standards and specifications. In most cases, you must obtain these items from our approved suppliers or distributors.

The Double Drive Thru is required for all facility types except food courts, in-lines, indoor MRS, Big Box Retail facilities and delivery facilities (e.g., ghost kitchens). Under certain programs, you must choose an architect from our list of approved architects. You must provide ordering and delivery services that permit customers to order food for delivery or pickup at the Restaurant via third party delivery providers' apps and websites that we approve, as well as the BURGER KING® mobile app and website. All third-party delivery providers must be approved by us. You must also provide customer loyalty program services that we require via the technology platforms we require. These technology platforms are the same platforms that enable ordering and delivery via the BURGER KING® mobile app, website or in Restaurant orders by using the 6-digit code located in the member's account or using a credit card linked to the member's account. We or our affiliates are the sole supplier of these technology platforms.

We have sole suppliers for various items including: network services, digital menu boards, Gift Card services, cashless payments processing, quality assurance inspection services, food, beverages, cleaning supplies, packaging and certain equipment. Purchases from approved suppliers or those that meet our specifications represent approximately 65% to 90% of the costs to establish a Restaurant and approximately 30% to 60% of the non-occupancy expenses to operate a Restaurant. We are the sole supplier of the technology platforms that enable you to provide ordering, delivery and loyalty program services via the BURGER KING® app and website. We reserve the right to offer help desk and support services and to charge a fee for these services.

We develop and modify our specifications and standards internally, and may, but are not obligated to, consult with suppliers, professionals, and others in doing so. We communicate the standards, operating specifications and procedures for the operation of a BURGER KING Restaurant in the Manual of Operating Data ("MOD Manual") as described in Item 11 of this disclosure document. We provide specific standards for items that you may purchase from any approved source. We provide suppliers and potential suppliers with specifications and standards for items that must be purchased from approved suppliers. Suppliers must keep these specifications confidential. We do not provide that information to you.

You must purchase and maintain insurance that meets our standards. Currently, you must maintain the following types of insurance in the following amounts: (i) commercial general liability insurance with a primary and excess limit of not less than $5,000,000 per occurrence, with the annual aggregate liability limit to be maintained on the commercial general liability insurance based on the number of Franchised Restaurants you and your affiliates own as follows: (a) for 1-10 Restaurants, an annual aggregate liability limit of not less than $5,000,000 per year, (b) for 11-50 Restaurants, an annual aggregate liability limit of not less than $10,000,000 per year, and (c) for more than 50 Restaurants, an annual aggregate liability limit of not less than $20,000,000 per year; (ii) automobile liability insurance on all owned and/or leased

vehicles, with a combination of primary and excess limits of not less than $1,000,000.00; (iii) all risks property insurance, (including business interruption coverage with an indemnity period of at least 12 months), on the Restaurant premises and property owned by you or for which you are liable, or which is installed at the Restaurant, in an amount not less than the full replacement cost of the items or an amount in excess of this as required in the terms of the landlord's head lease; and (iv) broad form Boiler and Machinery insurance covering all boilers, pressure vessels and HVAC equipment within the Restaurant in an amount not less than the full replacement cost of the items. You must also maintain workers compensation insurance in the amounts required by applicable law.

Approved food, packaging and equipment suppliers must meet required specifications and maintain certain standards and satisfy other criteria on an ongoing basis, and are subject to ongoing review. They must also participate in quality assurance programs we require and make payments to third party vendors operating these programs. Approved and proposed suppliers pay for the testing, audit and other costs associated with the evaluation and monitoring of the supplier, its products and services. These costs may instead be paid by us, to be determined on a case-by-case basis. We consider a number of criteria in evaluating existing and potential suppliers. Those criteria, which may change from time to time, include:

• Ability to produce goods or services that consistently meet our standards and specifications.
• Ability to deliver goods/services on a timely basis and in the required quantities.
• Adherence to all applicable health and safety regulations and standards and applicable laws.
• Verified compliance with applicable sanitation standards and good manufacturing practices.
• Financial condition and business reputation.
• Ability to provide value through pricing, support of initiatives to enhance quality and competitive attributes, commitment to innovation and other methods.
• Ability to maintain the confidentiality of our information and to comply with our terms and conditions.
• Verified compliance with our social and environmental responsibility standards.
• Information technology capabilities.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 54–57)