Does Closet Storage Concepts assist with selecting a showroom site?

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]

ITEM 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING

Except as listed below, we are not required to provide you with any assistance:

Pre-Opening Assistance

Before you open your Closet & Storage Concepts business, we will:

• 1. Designate your territory (Franchise Agreement Section 1.4).
• 1. Assist with respect to selecting a showroom site (Franchise Agreement Section 1.3, 4.2)
• 1. Assist you in negotiating a lease for the showroom site which you have selected. The lease is subject to our approval or disapproval which generally shall be given within 30 days after you submit a written copy of the lease to us. You should consult with an attorney who is experienced in reviewing leases for commercial locations. We do not anticipate owning the premises, although we reserve the right to do so. (Franchise Agreement – Section 1.3)

Site Selection Method

You must select an acceptable site within your Territory within 120 days after you sign the Franchise Agreement. Your site must be at least 3,000 square feet in area. We generally will approve or disapprove of the site within 60 days after we receive notice of and information about the location. If we have not yet designated an accepted location for the Franchised Business when the Franchise Agreement is signed then you are responsible for locating a site within a specified geographic site selection area (the "Search Area"). The Search Area is delineated for the sole purpose of site selection and does not provide any territorial exclusivity or protection.

In evaluating the site, we may inspect the site and may consider the lease obligations, population, demographic characteristics, traffic patterns, parking, character and attractiveness of the neighborhood, competing outlets and the proximity to those outlets, other Closet & Storage Concepts and More Space Place locations and other businesses. Our approval indicates that we believe that the particular site falls within its criteria at the time we conducted our evaluation.

You must independently evaluate and investigate the proposed site, observing customer traffic patterns near the location at different times of the day and on different days of the week and speaking with other tenants near the location under consideration. We must approve the site before you enter into lease negotiations. (Franchise Agreement – Section 1.3)

If you fail to obtain a site for the showroom which is acceptable to us in the time period required, we may terminate the Franchise Agreement (Franchise Agreement - Section 1.3)

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–38)