le, designated or approved supplier in the future.

You must purchase or lease certain Approved Items only from our designated or approved suppliers, which may include our affiliates or us. The Operations Manual will contain a list of approved suppliers and a list of approved items we deem necessary to operate your Business. These lists may include suppliers from which you must purchase certain items, or specific brands or types of items that you may buy from any source provided that the items conform to the standards and specification we designated. Approved suppliers, specifications, and standards are determined based on the current needs for operating Businesses, and we may make changes in the Operations Manual.

We consider a variety of factors when considering which suppliers we will deem as approved suppliers, such as price, service, quality, warranty, delivery terms, ability to provide products and services that meet our specifications, responsiveness, and other commercially reasonable benchmarks. If you want to use a material, supply, equipment, product or sign that we have not yet approved, or you want to purchase any items from any supplier that we have not approved, you must first notify us in writing and must submit to us, at our request, sufficient information, specifications, and samples for us to determine whether the services, material, supply, equipment, product or sign complies with our specifications and standards, or whether the supplier meets our approved supplier criteria. We reserve the right to approve or disapprove without any obligation to provide an explanation of the approval criteria to you. Within 90 days of receiving your request, we will either accept or reject the proposed item or supplier. You will not distribute or offer for sale any products or services of the proposed supplier until you receive our written approval. We do not charge a fee to evaluate alternative supplier or items. We may revoke our approval of any supplier or item with 30 days' prior written notice to you. Upon receipt of written notice of such revocation, you must cease to purchase from the disapproved supplier(s) or to purchase the disapproved item(s).

Revenues and Rebates

We and our affiliates have the right to receive, collect and retain payments, manufacturing allowances, marketing allowances, rebates, credits, monies, or benefits (collectively, "Allowances") offered by our suppliers to you or to us or our affiliates based upon your and/or other Affiliates' purchases of products and services. These Allowances may be based on individual or network-wide purchases of products and services. You assign to us or our designee all of your right, title and interest in and to any and all such Allowances and authorize us or our designee to collect and retain any or all such Allowances without restriction (unless otherwise prohibited by the supplier). We may use all amounts so received for any purpose we and our affiliates deem appropriate.

During our last fiscal year that ended December 31, 2024, we did not receive any Allowances from the sale of required products and services to our Affiliates.

Miscellaneous

One or more of our officers listed in Item 2 of this disclosure document have an ownership interest in us and our affiliates Proper Rate, OriginPoint, and At Development, Suburban Jungle, and Konverse.

We estimate that required purchases described above will be approximately 50-70% of all purchases and leases by you of goods and services to establish your Business, and approximately 30-50% of your total cost of operating the Business.

We do not have any purchasing or distribution co-operatives as of the issuance date of this Franchise Disclosure Document. We may negotiate purchase arrangements with designated and approved suppliers for the benefit of our Affiliates.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)