Which items in the Cicis Disclosure Document relate to pre-opening purchases/leases?

This includes the costs of legal fees and architectural and/or engineering plans as well as the costs of prepaid rent, a lease deposit, utility deposits, and up to $4,000 in expense reimbursement to us for lease review (See Item 5).

The prepaid rent and the lease deposit are estimated to be one month of rent charges.

Pre-Opening Obligations under the Franchise Agreement

Before you open your Cicis Restaurant, we will:

• 1. Review and, at our discretion, accept the proposed site for your Cicis Restaurant. Our determination to accept or not accept a site may be based on various criteria (such as demographics, proposed rental rates, neighborhood and nearby business counts and characteristics, nearby residential populations, traffic count, accessibility, parking, visibility, signage, and competition) which may change in our discretion. We typically accept or reject the proposed site within 30 days of your providing us all required information. It is your responsibility to secure our approval of the proposed site for your Cicis Restaurant within 120 days following the execution of the Franchise Agreement, and if you fail to do so we may terminate the Franchise Agreement. We do not lease Cicis Restaurant premises to our franchisees. (Franchise Agreement, Section 1.B.)
• 1. Review and accept, in our discretion, any proposed modification to the lease rider for the location of your Cicis Restaurant (Franchise Agreement, Section 2.A.)
• 1. Loan you a set of prototypical architectural and design plans and specifications for your Location. You must adapt these plans at your expense for construction of the Location. (Franchise Agreement, Section 2.B.)
• 1. Provide on-site inspections we believe are necessary to evaluate progress of construction or remodeling, and we have the right to require you to pay us a reasonable fee for such on-site inspections and to pay or reimburse us for expenses we incur, such as the cost of travel, lodging, and meals. (Franchise Agreement, Section 2.B.)

2. LEASE, DEVELOPMENT, AND OPENING DATE

• A.

Lease; Contract of Sale.

You must secure possession of the Location within 120 days following the Effective Date or, if applicable, the date on which Attachment A-1 is executed.

You agree not to sign a proposed lease or contract of sale pursuant to which you will acquire possession of the Location without first providing us with a copy of the proposed contract and obtaining our approval.

We will have a reasonable time after we receive the proposed lease or contract of sale to review and approve it.

We will not approve any lease unless a rider to the lease, in substantially the form attached as Attachment C hereto, is attached to the lease and incorporated therein.

If the Location is owned by a related party, you and the owner must enter into a formal lease containing arms-length terms.

You must have a lease compliance review by an attorney we approve or designate, and you will be responsible for the reasonable attorneys' fees incurred by us in connection with the compliance review of the proposed lease.

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 28–31)