What kind of advice does Byrider Franchising Partners give me about operating my Byrider Business?

. (Franchise Agreement – Article 6.6)

1. Periodic Inspection. Periodically, Byrider Franchising Partners inspects the Business as Byrider Franchising Partners considers necessary, and Byrider Franchising Partners gives you advice about operating your Business. Byrider Franchising Partners also provides information to you about changes and modifications to the System and/or the Manual, guides you in advertising and marketing and gives you forms for required reports you must submit to Byrider Franchising Partners. Periodically, at your request, Byrider Franchising Partners' staff at its principal office will provide you with guidance. You should expect to be audited once annually to ensure compliance with Byrider operations standards; audits are designed to assess compliance with state and federal laws and to review those practices that affect the Byrider brand (Franchise Agreement - Article 6.9).

Periodically, as Byrider Franchising Partners considers necessary, Byrider Franchising Partners inspects your vehicles, supplies, merchandise, methods of service and merchandising and speaks with you and your employees to ensure you are complying with the Franchise Agreement and the standards, established for the System (Franchise Agreement - Article 6.10).

• 1. Approval of New Products and Services. Byrider Franchising Partners considers for approval the products and/or services you submit for approval for use in your Business. (Franchise Agreement Article 7.7).
• 1. Indemnification. Byrider Franchising Partners will indemnify you against claims and for actual costs associated with defending or participating in a suit or proceeding that arises from your authorized use of the Marks or from Byrider Franchising Partners' gross negligence or willful misconduct or from any mandatory specification, standard or procedure contained in the Manual that is determined to be unlawful. To be indemnified and held harmless by Byrider Franchising Partners, you must give Byrider Franchising Partners timely notice of any suits or proceedings as described above that are pending against you, and you must be in compliance with the Franchise Agreement. Byrider Franchising Partners has the right to participate in and control the suit, proceeding or litigation to the extent Byrider Franchising Partners considers necessary. (Franchise Agreement Article 11.3).
• 1. Advertising Requirements, Guidance and Approval. Periodically Byrider Franchising Partners provides you with advertising plans, materials and advice on advertising, promotional and public relations matters. (Franchise Agreement Article 6.9 E).

In addition, Byrider Franchising Partners has the right to approve or disapprove of all advertising and promotional materials you propose to use. (Franchise Agreement - Article 10.1) Advertising is explained in more detail below.

• 1. Annual Meetings. Byrider Franchising Partners holds one to three annual meetings at which you must be represented. Byrider Franchising Partners notifies you of the dates and locations of these meetings, and you are responsible for your own transportation and traveling expenses and your pro rata share of the meeting expenses that are associated with attending these meetings, which typically ranges between $599 and $1,499 for each meeting. Byrider Franchising Partners reserves the right to increase or decrease the number of meetings. (Franchise Agreement Article 6.11).
• C. Advertising Funds. Advertising through your efforts is placed in television, radio, magazine and newspaper media. You will participate in advertising in local and regional areas. In the future, Byrider Franchising Partners may establish, maintain and administer a National Advertising Fund to expand advertising efforts to national coverage. When and if Byrider Franchising Partners creates this fund, you must contribute to the fund as required by Byrider Franchising Partners. However, your contributions to any National Advertising Fund (if established) and your Local Advertising Requirement (as defined below) will not collectively exceed 4% of your Gross Sales (Byrider Vehicle Sales) (collectively, the "

Source: Item 11 — (FDD pages 42–50)