notify you in our Operations Manual or other forms of communication.

We may limit the number of approved suppliers with whom you may deal, designate sources that you must use and/or refuse any request for alternative suppliers for any reason, including that we have already designated an exclusive source (which may be us or our affiliates) for any particular item or service if we believe doing so is in the best interest of our Franchise System.

Technology, Computer Hardware and Software

You must use the computer software and hardware components and accessories as further

detailed in Items 7 and 11 ("Computer System") that we require. We have the right to designate a single supplier for the Computer System. We have the right to appoint additional suppliers or different suppliers for the Computer System. We may require you to maintain service support contracts and/or maintenance service contracts and implement and periodically make upgrades and changes to the computer hardware and software, and credit card, debit card and other noncash payment systems. We may designate the vendor(s) for these support service contracts and maintenance service contracts.

Neither we nor our affiliates currently derive revenue from your purchase of the Computer System; however, we are permitted and may do so in the future.

Insurance

You must obtain and maintain insurance, at your expense, as we require, in addition to any other insurance required by law or otherwise. Currently, required coverages include, without limitation, casualty, liability, and workers' compensation. Below are the minimum levels of coverage you must maintain.

You must purchase workers' compensation in the minimum amount required by state law without exclusion of principal owners who actively work in the Franchised Business; general liability insurance, including broad form contractual liability, products and completed operations in the amount of $1,000,000 per occurrence, in the aggregate of $2,000,000; professional liability insurance in the amount of $1,000,000 per occurrence, in the aggregate of $2,000,000; business personal property insurance of $2,500 limit, $1,000 deductible; data breach $100,000 limit, $2,500 deductible; employment practices liability insurance $250,000 limit, $10,000 deductible. Some states may require a deposit for workers' compensation insurance.

The policies must be written by an insurance company reasonably satisfactory to us with a Best rating of "A-" or better and include the types, risks, amount of coverage and deductibles as stated in our Operations Manual. We may periodically change the types and amounts of coverage required under the insurance policies, based on changes in circumstances, if the changes apply to all CINCH I.T. Franchised Businesses. If you fail to purchase the mandatory insurance, we may obtain insurance for you, and you must reimburse us for its cost, which might be higher than the cost of insurance you could obtain for yourself, and you must also reimburse us for any costs we incur in procuring the insurance for you. All insurance policies must name us and any affiliates that we designate as additional insureds and give us at least 30 days' prior written notice of termination, amendment, or cancellation. You must provide us with certificates of insurance evidencing your insurance coverage no later than 10 days before your Franchised Business opens and annually as prescribed in our Operations Manual.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–26)