What pre-opening obligations does Cool Binz have to its franchisees before they open their Cool Binz Business?

S AND TRAINING**

Except as listed below, we are not required to provide any assistance.

Our Pre-Opening Obligations

Before you open your COOL BINZ Business, we will:

• 1. Designate the Territory for a COOL BINZ Business (Section 1.D and the Summary Page of the Franchise Agreement). We do not provide any assistance with (a) selecting a business site or negotiation of any lease or purchase of any site, (b) conforming the site to local ordinances and codes and obtaining any required permits, or (c) hiring and training employees (other than the required training discussed in Section 3.A of the Franchise Agreement). Your business site must be located within the Territory and must contain at least 500 square feet and a minimum lot size of 0.5 to 1.0 acre, and must adhere to our standards and specifications, which includes demographics, size, local traffic, whether there are complementary businesses or competitors in the area, and similar characteristics. Your COOL BINZ Business site must be approved by us, in our sole discretion, which we will not unreasonably withhold provided that the site meets our minimum specifications. (Section 1.D of the Franchise Agreement). We will use commercially reasonable efforts to approve a suggested site in 30 days. Failure to find a site and commence operation of the COOL BINZ Business within eight (8) months of signing the Franchise Agreement may result in termination of the Franchise Agreement (Section 12.B of the Franchise Agreement). We do not generally (a) own the premises from which franchisees operate the COOL BINZ Business or (b) lease any premises to franchisees to operate the COOL BINZ Business.
• 1. Provide your Initial Equipment Package that includes the truck, bins, mule, and other equipment needed to operate the COOL BINZ Business and the Initial Promotional Package that includes logowear, digital marketing, consumables, and promotional items. The items in the Initial Equipment Package and the Initial Promotional Package are purchased from us. Other than providing the Initial Equipment Package and the Initial Promotional Package we do not provide, install or supply any signs, fixtures, equipment, opening inventory, signs, or other

• inventory or supplies, or assist in constructing, remodeling, or decorating the COOL BINZ Business.

• 1. Loan to you a copy of our copyrighted Operations Manual and System Standards, and other proprietary materials or manuals as we may publish and distribute to you periodically (Section 3.C of the Franchise Agreement).
• 1. Give prior approval for use of business forms, business stationery, business cards, advertising materials, permanent materials, and forms that you intend to use (Section 7.A of the Franchise Agreement). We will continue to do this after you open the COOL BINZ Business.
• 1. Give prior approval to all marketing, advertising, and promotional materials prepared by you within ten days of our receipt of the proposed materials for Franchises (Section 2.G of the Franchise Agreement). We will continue to do this after you open the COOL BINZ Business.
• 1. Specify minimum policy limits for certain types of insurance coverage (Section 7.C of the Franchise Agreement), and guidelines regarding pricing. You are responsible for setting your own prices, but we will provide recommendations. We will continue to do this after you open the COOL BINZ Business.
• 1. Provide you with a training program (described in more detail below) to (a) the Managing Owner, if they are managing the COOL BINZ Business, and (b) the Designated Manager, if applicable at no additional fee or other charge (Section 3.A of the Franchise Agreement).
• 1. Provide you with the business phone number to be used by the COOL BINZ Business. (Section 2.I. of the Franchise Agreement).

Franchisor's Obligations After the Opening of the COOL BINZ Business

Once you have opened your COOL BINZ Business, you will have access to information helpful to the operation of your COOL BINZ Business based on reports you submit to us and/or inspections that we make (Sections 7 and 8 of the Franchise Agreement). In addition, we or our designee will furnish guidance to you, to the extent we determine necessary in our sole discretion, regarding the following:

• 1. New products, services and methods that we may have discovered or have developed for the System (Sections 3 and 7 of the Franchise Agreement);
• 1. The purchase and use of supplies and products (Sections 3 and 7 of the Franchise Agreement);
• 1. The formulation and implementation of marketing, advertising, and promotional programs using the merchandising, advertising, and research data and advice as we may, periodically, develop for use in your local market (Sections 3 and 7 of the Franchise Agreement);
• 1. The financial and daily operation of the COOL BINZ Business including its accounting and record keeping functions (Sections 3 and 7 of the Franchise Agreement);
• 1. Other business and marketing advice (Sections 3 and 7 of the Franchise Agreement);
• 1. Support for our required franchise software management system, as defined in the Licensing Agreement (Exhibit B of Franchise Agreement);
• 1. A contact telephone number, which may be used by you for communications with us (Section 2.I of the Franchise Agreement);
• 1. Periodic modifications to the Operations Manuals and periodic modifications to the System Standards (Section 3.E of the Franchise Agreement); and
• 1. Periodic refresher training courses and conferences, not to exceed one per year. (Section 3.A of the Franchise Agreement).

Estimated Typical Length of Time to Open the COOL BINZ Business

The estimated typical length of time between the signing of the Franchise Agreement, and the opening of the COOL BINZ Business, is approximately 180 days. Factors affecting this length of time usually include normal business startup considerations, completion of training, the truck delivery date, whether or not you have an existing Office Site in the Territory, and whether or not you obtain outside financing.

Local Marketing and Advertising

We are not required to conduct advertising for you or the System. We are not required to spend any particular amount in your Territory. It is at our discretion to determine how much to spend, and where to market, advertise and promote the System.

We may provide you with advertising, promotional or marketing materials for you to use in local advertising, but we are not obligated to do this. We will provide you the business phone number and fax number to be used by the COOL BINZ Business. This number will be forwarded to any device(s) that you choose.

Under the mandatory KickStart digital marketing program, which is included in your Initial Promotional Package, you will receive digital marketing assistance to promote the opening of your business.

You must also spend a minimum of 10% of Gross Sales annually on local advertising until your fleet of Portable Equipment containers is at least 80% rented and then, at that point, you are required to spend at least 5% of Gross Sales annual on local advertising. You must use our approved advertising and marketing materials, or receive our written approval of any and all other advertising and marketing materials before their first use. All advertising and marketing materials must meet our then-current standards and specifications. We may, in our sole discretion, offer and sell advertising, marketing, and promotional materials at any time. Certain items, such as your truck, must reference the COOL BINZ national toll free number. You may not alter or remove reference to the national toll free number. You have no obligation to purchase any of these materials or forms from us, but you may be required to purchase such materials from approved or designated suppliers, or participate in our local marketing programs, like our call center and/or direct mail solicitations at your expense. (Section 2.G of the Franchise Agreement).

We do not currently require you to participate in an advertising cooperative, however we reserve the right to implement cooperatives in the future, and require you to participate. The area

of the cooperative and membership will be determined on a regional basis depending on where our future franchisees operate. Since we do not currently have active cooperatives, we cannot state affirmatively how much franchisees will contribute, however, we, along with franchisees that are members of the cooperative will determine the amount contributed and each will contribute equally or on a pro-rata basis, as determined by the cooperative. Company Stores are not required to contribute, but may do so. We will administer the cooperatives and the cooperatives will operate from written governing documents that will be available for review to franchisees. If two or more COOL BINZ Businesses and/or Company Stores are serviced by the same telephone directory, we will require you to list all businesses under one COOL BINZ heading. Should this instance arise, you must pay your pro-rata share of the total expense of the joint listing. Any other forms of advertising that would also advertise to zip-codes both inside and outside of the Territory must be pre-approved by COOL BINZ in writing. We will notify you within ten days of our receipt of your written request. If we do not respond within ten days, the material is unapproved. Additionally, if we implement local marketing programs, like a call center and/or direct mail solicitations, you may be required to participate, at your expense.

Brand Marketing Fund

We have established and maintain a brand marketing fund (the "Brand Marketing Fund") for the common benefit of System franchisees.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–45)