What is the relationship between the trademarks licensed to Chatime (Item 13) and the franchisee's ability to leverage the brand's reputation to attract customers?

Your Franchise Agreement gives you the non-exclusive right to operate your Chatime Store under the Trademarks. You may also be authorized to use other current or future trademarks to operate your Chatime Store.

We have a license from La Kaffa to use and to sublicense the use of the Trademarks in the

continental United States, Hawaii and Guam. This license is set forth in a certain Trademark License Agreement dated September 23, 2022, between La Kaffa and our parent company Chatime Global (including its subsidiaries). It has a term of thirty years and a renewal term of an additional ten years unless terminated earlier by us upon 90 days' notice to La Kaffa. It grants us the right to freely use and display the Trademarks in connection with the operation of our business in the continental United States, Hawaii and Guam. The license may not be assigned by us. All rights in and goodwill from the use of the Trademarks accrue to us and our affiliates. There are no other agreements that significantly limit our right to use or license the use of the Trademarks.

Except as otherwise noted, the Trademarks and service marks listed below are filed or registered on the Principal Register of the United States Patent and Trademark Office (the "USPTO") on the date shown and all affidavits required to preserve and renew these Trademarks have been timely filed.

Business System means the: (a) distinctive image (including characteristics, features presentation and image of a member of the network as portrayed in advertising, marketing and promotions), visual appearance, reputation and presentation of the Franchisor and franchisees in the market; (b) Franchisor name, the Intellectual Property, and the brand names, logos and slogans associated with the Franchisor; (c) goodwill and the business reputation established in the Intellectual Property; (d) business procedures and systems developed by the Franchisor for the operation of the Franchised Business and concerning a consistent high quality approach to customer service, uniform operating techniques and business management generally, including the methods and quality systems included in the Manual; and (e) any other innovations, products or services that the Franchisor may introduce to the Franchisor's franchisees from time to time.

Franchisor grants to Franchisee and Franchisee accepts the right to use the Intellectual Property in the conduct of the Franchised Business at the Premises for the Initial Term, subject to the terms and conditions of this Agreement.

During the term of the Franchise, we will not establish or operate, or grant any person other than you the right to establish or operate, a Chatime Store at any location in the Territory, except as may be provided in Section 2.3.

Franchisor, on behalf of itself and its Affiliates, retains all rights with respect to Outlets, the Intellectual Property and the sale of Raw Materials and other Products and any other products and services, anywhere in the world including, without limitation, the rights to:

• (a) operate or grant others the right to operate Outlets under or in association with the Marks or any other trademarks or service marks at such locations outside the Territory, and on such terms and conditions as Franchisor, in its sole discretion, deems appropriate;

• (b) provide, franchise, license, sell, distribute and market any services or products (under any brand, including but not limited to our Marks) through any Special Distribution Channels, in or outside your Territory, including, without limitation, through airports, train stations, hotels, convention centers, sport complexes, hospitals, or festivals.

• (c) provide, franchise, license, sell, distribute and market any services or products (under any brand, including but not limited to our Marks) through any Alternative Methods of Distribution in or outside your Territory, including, without limitation, through retail establishments or via the internet;

If it is the owner of any intellectual property (e.g., business or corporate names, trademarks, domain names) similar or identical to the Intellectual Property in the Territory, immediately upon execution of this Agreement, take all steps necessary to transfer ownership of that intellectual property to Franchisor at Franchisee's cost;