What are the 'Standards' that Crisp & Green franchisees must maintain and comply with?

ODUCTS AND SERVICES

To help ensure a uniform image and uniform quality of products and services throughout our System, you must maintain and comply with our Standards. Our Standards exist to protect our interest in the System and the Marks and not for the purpose of establishing any control, or the duty to take control, over those matters that are reserved to you and are your responsibility.

Site Selection

You must operate the Franchised Restaurant at a location that meets our site selection requirements and that we have approved. If we have approved a site for your Franchised Restaurant at the time you

execute the Franchise Agreement, we will specify the site as the premises for your Franchised Restaurant in the Franchise Agreement at the time you sign the Franchise Agreement. In all other cases, the Franchise Agreement will describe a preliminary designated area and you will be responsible for identifying a site within the preliminary designated area that meets our approval. Upon our approval of the site, we will designate the site as the premises for your Franchised Restaurant in the Franchise Agreement. If you utilize a broker to identify a location, you will be responsible for any costs associated therewith. We will not unreasonably withhold our approval of a site that meets our then-current criteria for demographic characteristics; traffic patterns; parking; character of the neighborhood; competition from, proximity to, and nature of other businesses; other commercial characteristics; and the proposed site's size, appearance, and other physical characteristics.

We must approve of the lease, sublease, or purchase contract (which we refer to as the site acquisition document) for the premises of your Franchised Restaurant before you sign such document. If you lease the premises, the lease must contain the terms and provisions that are reasonably acceptable to us, and you and the landlord must execute the standard form of lease addendum (attached as Exhibit C to the Franchise Agreement). Within 10 days after our approval of the site acquisition document, you must send us the fully signed site acquisition document, together with the signed lease addendum, if applicable, for the premises. You may not relocate the Franchised Restaurant without our prior approval.

You are responsible for developing the Franchised Restaurant at your expense. It is your responsibility to prepare all required construction and remodeling plans and specifications to suit the Restaurant and to make sure that they comply with federal, state, or local laws and regulations, including the Americans with Disabilities Act (the "ADA") and similar rules governing public accommodations for persons with disabilities, other applicable ordinances, building codes, permit requirements, and lease requirements and restrictions. You must submit all site surveys, construction and remodeling plans, and specifications to us for our approval before beginning build-out for the Franchised Restaurant and all revised or "as built" plans and specifications during construction and development. You must obtain a site survey from one of our approved vendors. We have a required architectural vendor who you must use for the creation of the architectural plans for your Franchised Restaurant.

You must open the Franchised Restaurant in compliance with our standards within nine months after the date of your Franchise Agreement. If you have signed an Area Development Agreement, you must open your first Franchised Restaurant in compliance with our standards within nine months after the date of your first Franchise Agreement and each of your subsequent Franchised Restaurants in compliance with our standards according to the opening deadlines set forth in the Area Development Agreement you will sign at the same time you sign your first Franchise Agreement.

Your obligation to complete construction of the Franchised Restaurant includes obtaining all required construction and occupancy licenses and permits, developing the premises (including all outdoor features and landscaping of the premises), installing all required fixtures, furnishings, equipment and signs, and doing all other things required by the Franchise Agreement or by practical necessity to have the Franchised Restaurant ready to open for business by the required opening date. You must give us at least 30 days' prior notice of the date on which you plan to open the Franchised Restaurant. You may not open the Franchised Restaurant for business until we have notified you that the Franchised Restaurant meets our requirements for opening, including payment in full of the initial franchise fee and all other amounts then owing to us, successful completion of Crisp Academy, and our receipt of your certificates of insurance.

We may, but are not obligated to, grant you extensions of any opening deadlines if we determine, in our sole discretion, that you are expending good faith best efforts to complete site development and the opening process and pay a fee for the extension of up to $5,000. However, in the event your Franchised Restaurant is not open and operating in compliance with our standards within nine months after the date of

the Franchise Agreement (or within the required opening date for a subsequent Franchised Restaurant if you have signed an Area Development Agreement), unless you have obtained an extension to this requirement, you will be required to pay us the Minimum Royalty Fee of $7,500 plus 7% of your Gross Sales, if any, for each month until your Franchised Restaurant opens in compliance with our standards (prorated for partial months). Additionally, if the Franchised Restaurant does not open for operation in compliance with our standards by the required opening date, unless you have received an approved extension, we may terminate the Franchise Agreement.

At our option, we may periodically require you to substantially alter the Franchised Restaurant's appearance, branding, layout and/or design, and/or replace a material portion of the furniture, fixtures, equipment, wares, digital menu boards, signs, and related assets that we require for the Franchised Restaurant, to meet our then current requirements for new Restaurants. You must incur any necessary costs in connection with such upgrade or remodel. We will not require a substantial upgrade or remodel more than once during any five-year period.

Required and Approved Suppliers

We will provide you with a list of approved manufacturers, suppliers and distributors ("Approved Suppliers List") and approved equipment, signs, stationery, supplies and other items or services necessary to operate the Franchised Restaurant ("Approved Supplies List"). From time to time we, an affiliate or a third-party vendor or supplier, may be the only approved supplier for certain products. The Approved Supplies List also may include other specific products without reference to a particular manufacturer, or may designate the specifications and/or standards for other approved products. We may revise the Approved Suppliers List and Approved Supplies List from time to time in our sole discretion. We currently require seasonal menu changes and you will be responsible for your costs and expenses associated with these seasonal required changes.

You are required to purchase from our approved suppliers certain furniture and fixtures, art and décor, restaurant and catering supplies and wares, technology and related equipment for use in back-of-house operations, site survey services, and a variety of other supplies and resources. You may use in the operation of the Franchised Restaurant only the proprietary or nonproprietary equipment and supplies that we specify and must purchase or lease all equipment that we designate from our approved suppliers. Except for marketing and promotional services and assistance described in Item 11, neither we nor our affiliates currently are approved suppliers for any products or services as of the date of this disclosure document. None of our officers hold an interest in any of our suppliers, other than us and our affiliates. We reserve the right to designate ourselves and/or any of our affiliate as an approved supplier of additional items in the future, and we may even designate ourselves or an affiliate as the sole supplier of one or more items, in which case, you would have to buy the item from us or our affiliate at our or its then-current price. Our Operations Manual and other communications will identify our standards and specifications and the names of approved or designated suppliers. If we become a designated supplier, we may charge you a reasonable mark-up, surcharge and handling fee on any items you purchase from us. Monies you pay to us will include a profit for us.

As of the date of this disclosure document, we also maintain specific suppliers as the sole source of supply for certain foods, ingredients, beverages, supplies, and other products and services; you must purchase and maintain our designated POS system hardware and software from a single supplier; and you must use our designated architectural vendor for creation of the architectural plans for your Franchised Restaurant as described above. We may also require you to use a designated digital marketing vendor for digital marketing services and a designated vendor for public relations services.

Advertising

You are required to spend a certain amount of local advertising and promotion per quarter. We will have the right to review and approve all marketing plans and promotional materials that you propose to use, and you may use only marketing and promotional materials that meet our standards, are approved by us, and are produced by an approved supplier. You may not implement any marketing plan or use any promotional material without our prior written consent.

Computer System and Required Software

You are required to obtain and use the specific POS and inventory system, electronic cash register, computer, thermal printers, AC line filters, remote printer interface, internet-based communications (collectively, the "Computer System") we have approved for use at your Franchised Restaurant. All components of the Computer System must be purchased from suppliers approved by us. You must also obtain a license for the required POS system software and for a back office and inventory system, as well as certain off-the-shelf software, including Microsoft Office, accounting software and such other business operations software as we may require and complete such training on this software as we may require, at your expense.

Certifications and Licenses

You are required to obtain the required licenses and certifications as may be required by your state laws. Each of your managers and other employees we designate must be ServSafe certified or must have completed a similar safety training and certificate program approved by us, and you must bear the cost of ensuring such managers and employees have obtained such approved certifications.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–31)