What are the pre-opening obligations for a Casiola franchisee, combining information from Items 9 and 11?

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

Pre-Opening Obligations

Grant of Franchise We will grant to you the right to operate the Franchised Business within a designated Operating Market. (Franchise Agreement, Article 2);

Site Review and Approval of Operating Market At the time of signing your Franchise Agreement you will have selected and we will have approved of the Operating Market within which you will operate the Franchised Business. (Franchise Agreement, Article 2).

If permitted by law, you may manage your Casiola Business from a home based administrative office.

If you elect to lease a back-end administrative office and/or operations center, your administrative office and/or operations center must be located within your Operating Market and be approved by us;

Manuals We will provide you with access to our confidential and proprietary Manuals.

You must operate the Franchised Business in accordance with the Manuals and all applicable laws, rules and regulations.

At all times, we reserve the right to supplement, modify and update the Manuals. (Franchise Agreement, Article 4.C.).

The operations manual as of the Issuance Date of this Disclosure Document currently consists of 850 pages and the table of contents to the operations manual is attached as Exhibit C to this Disclosure Document (Franchise Agreement, Article 4).

Major subjects contained in the operations manual consist of establishing, developing, marketing and operating the Franchised Business;

Approved Suppliers and Distributors We will provide you with a list of our approved suppliers and distributors, to the extent that we have designated them, either as part of the Manuals or otherwise in writing. (Franchise Agreement, Articles 3, 4, and 7.F.);

Signs and Equipment We will provide you with a list of our approved signage and equipment to the extent that we have designated them, either as part of the Manuals or otherwise in writing and we will review and approve, in our discretion, your proposed signage and equipment.

We do not provide assistance in delivering or installing signs and equipment. (Franchise Agreement, Articles 3 and 4);

Advertising

• 1. Generally All advertising, marketing, marketing materials and all marketing mediums used by you in the marketing and promotion of the Franchised Business must be pre-approved by us in writing and conform to our standards and specifications. You may only use those advertising and marketing materials and mediums that we designate and approve in writing. In our discretion we may make available to you approved marketing templates comprised of pre-approved ads, ad copy and digital media that you may utilize at your own expense. If you wish to utilize marketing materials and/or marketing mediums that are not currently approved by us in writing, you may submit a written request requesting permission and we will approve or disapprove of your request within 15 days of your submission of the written request and sample marketing materials. We are not required to conduct any advertising or spend any amount on your behalf on advertising in your Operating Market. (Franchise Agreement, Article 9);
• 1. Franchisee Directed Local Marketing You are not authorized to engage in any marketing unless it is preapproved by us, in our discretion. (Franchise Agreement, Article 9.B.). You are required to engage in local marketing and you are required to commit specific minimum amount of funds to your local marketing efforts. We will make available to you and provide you with access, in the form of a source document, to our approved marketing campaigns, media, and messaging that may be used by you. In those instances where we provide you with access to our marketing campaigns, we provide you with the source designs, copy, and design specifications. However, you will incur the direct costs associated with customizing, duplicating and using such marketing campaigns and having them printed, distributed and placed with media sources. (Franchise Agreement, Article 9);
• 1. Digital Media and Website All digital media and marketing must be approved by us. We will designate for your Operating Market information about your Casiola Business on the www.casiola.com website or such other websites as we may designate for the System. (Franchise Agreement, Article 9.F.);

Within 30 days of our written receipt and submission of all information and documentation that we may request, we will respond to your proposed request for our approval or disapproval of the proposed location of your administrative office. Factors taken into consideration include characteristics of the proposed site, whether or not the proposed site meets our criteria for non-retail back-office operations, and the location of your proposed site relative to your overall Operating Market and proximity to other franchisee operating territories.

Time to Open

You may not open your Casiola Business until you have completed our initial training requirements, obtained the necessary licensing and authorization from state and regulatory agencies within your Operating Market and have obtained and provided us with written proof of the required insurance. Within 120 days from the signing of your Franchise Agreement you must open and offer services and products of your Casiola Business to the customers within your Operating Market. We estimate that the length of time between the signing of your Franchise Agreement and opening your Casiola Business to be one to three months. Factors that may affect this estimated time period include the length of time undertaken by you to satisfactorily complete our initial training program, obtaining third party lender financing, if necessary, obtaining the necessary licenses, and training staff.