What right does Casiola grant to the franchisee regarding the operation of the Franchised Business?

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Pre-Opening Obligations

• 1. Grant of Franchise We will grant to you the right to operate the Franchised Business within a designated Operating Market. (Franchise Agreement, Article 2);
• 1. 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;
• 1. 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;
• 1. 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.);
• 1. 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);
• 1. Website and Digital Media We will identify and locate your Casiola Business on our website. We strictly control how you may or may not use websites and digital media and you must assign all website media and digital media accounts to us. (Franchise Agreement, Articles 3.G. and 9); and
• 1. Initial Training Not less than 20 days prior to the opening of your Casiola Business you or your Managing Owner and one management level employee or Owner must attend and complete our initial training program. We will provide you (and up to three of your designated managers) with training in accordance with our initial training program. (Franchise Agreement, Article 4). Our current training program is to be attended by you, or if you are a Corporate Entity, your Managing Owner and one Operating Manager at our training facility located in Orlando, Florida. The training program takes place over an approximate 10 day period and is described below in this Item 11 in more detail.

Site Selection

If permitted by local law, you may operate your Casiola Business from a home based administrative office. Otherwise, you are responsible for selecting a site for your administrative office and must obtain our approval of your selected location. If you elect to establish an operations center comprised of a non-retail back-office facility to support the operations of your Casiola Business, including maintaining inventory, staging service visits, you are

responsible for selecting and securing a site within your Operating Market. We do not typically own or lease the real property that will serve as your administrative office and/or operations center and you are responsible for all costs and expenses in locating and evaluating proposed sites for your administrative office. We will provide you with site selection guidelines.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–30)