chise Agreement, Section V.C).

Site Selection and Construction

You must identify and secure a site for your Card My Yard business within a non-exclusive Designated Search Area (or at a site within your Protected Area if such area has been agreed upon before you sign your Franchise Agreement). We anticipate that your site will be your home. In reviewing your proposed site, we consider various factors, including the condition of the site, the location of the site, population, and other demographic factors. We must accept the site as meeting our minimum standards (at least 18 feet of wall space with walls at least 8 feet high) before you may begin any construction or renovations or use such site for your Card My Yard business. You cannot place a Card My Yard business at a site we have not first accepted in writing. We anticipate that your site will be your home, so we do not provide franchisees with written site selection guidelines, but if you request (or we deem it appropriate) we will assist you in selecting a site that meets our minimum site standards (at least 18 feet of wall space with walls at least 8 feet high). We generally do not own any premises at which our franchisees operate. (Section III.A. of Franchise Agreement)

If you identify a proposed site for your Card My Yard business that is not your primary residence then you must submit to us in writing a description of the site, evidence that the site satisfies our minimum standards and any other information we may require. We have 15 days after we receive all required information to review and accept or not accept your proposed site and notify you of such acceptance or rejection. If you obtain rights to a site other than your home, you must also obtain our written approval of the final, complete lease or contract for sale for your site prior to your signing, and such document must include a rider in substantially the form of Exhibit G to the Franchise Agreement. If we accept multiple sites, you must notify us within 5 days of our acceptance of the sites of the site that you intend to acquire for the Card My Yard business. Our acceptance of a site does not guarantee

that a Card My Yard business will be profitable or successful at that site. (Section III.A. of Franchise Agreement)

You are solely responsible for locating and obtaining a site for your Card My Yard business that is acceptable to us, and you must do so within 30 days after signing the Franchise Agreement. We have 15 days after we receive all required site information from you to review and approve or reject your proposed site and notify you of such approval or rejection. If you are not able to locate a site that is approved by us within 30 days after signing the Franchise Agreement then you will be in default under the Franchise Agreement, and we may, at our option, terminate such agreement.

Promptly following our acceptance of the site, you must enter into a lease or contract of sale for the site if you are not residing at such site. You must provide us with a copy of the signed lease or contract of sale within 10 days of signing it unless your site is your home. (Section III.A. of Franchise Agreement)

You are responsible for obtaining all zoning classifications and clearances which may be required by any laws, ordinances, regulations, or restrictive covenants relating to the construction and operation of the Card My Yard business, and you must conform the Card My Yard business premises as needed to comply with any local ordinances and building codes at your expense. (Franchise Agreement, Section III.C.) Before beginning construction of the Card My Yard business, you must (i) obtain all approvals, clearances, permits, licenses and certifications required for the lawful construction or remodeling and operation of the Card My Yard business, and (ii) certify in writing to us that they have been obtained and that the insurance coverage required under the Franchise Agreement is in full force and effect. (Franchise Agreement, Section III.C.)

If applicable, you must obtain, at your expense, any architectural, engineering, design, construction and other services you deem necessary for the construction of the Card My Yard business. The architect(s) and engineer(s)selected to plan and oversee construction of your Card My Yard business must be approved by us before beginning their work on the Card My Yard business. We may, but are not obligated to, provide you a list of approved architect(s) and engineer(s).

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 34–43)