Is Deka Lash required to provide any assistance to franchisees before opening their studio?

igned by you.

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

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

Before Opening:

Initial Training. We provide an initial training program, currently four days long either virtual or in person. The Operations Onboarding & First Studio Opening Support Fee, paid at the time of purchase, covers the fees charged by us for the owners listed on the Franchise Agreement (up to two attendees). We charge $1,500 per person for other individuals to attend. You are responsible for your travel, lodging, transportation, meal costs and your employees' wages to attend initial training. The topics covered in initial training are described in the chart below in this Item 11. (Franchise Agreement, Section 5.1).

Site Selection. We provide site selection criteria, guidelines, and counseling to help you select a site. We do not select the site. It is your responsibility to locate and select a suitable site for your studio. You must submit to us a site selection proposal containing reasonable items required by us to evaluate the site. We must approve any site you select before you sign a lease for that location. We do not generally own the premises and lease it to you. Before you enter into a lease or purchase agreement, you must have the site approved by us. We consider the following factors in approving your site selection: general location, proximity to other affiliated/Deka Lash locations, neighborhood, traffic patterns, signage, parking, size, zoning, physical characteristics of the proposed space, demographics, population density of the area, and lease terms (including the cost of the build-out, monthly rent rate). We may conduct an on-site evaluation if we consider it necessary as part of our evaluation. We will typically approve or disapprove a proposed site within 14 days of your submission to us of the pertinent information required by us on the proposed site. If we accept a proposed site and you obtain it, we will insert a description of the specific location in Schedule 1 to the franchise agreement. In the unlikely event that you and we cannot agree on a site within the opening timeframe allowed, you can extend the timeline by getting approved and paying the opening deadline extension fee, we can allow you more time to search for a site that we can agree upon, or we can terminate the franchise agreement. (Franchise Agreement, Section 5.2(a)).

Build out. It is your responsibility to conform the premises to federal, state or local ordinances, building codes, licensing requirements (including those required for a studio that offers our services) and obtain any required permits. (Franchise Agreement, Sections 6.2(b)-(c)).

Plans and Layout. We, or our designee, will furnish to you a sample site layout plan. You are required to have the site laid out by our approved furniture supplier. You are required to submit the layout and have it approved by us. We will typically approve or disapprove a proposed layout within 14 days of your submission to us. Once approved by us, it is your responsibility to remodel the premises and install the furniture, fixtures and equipment accordingly. (Franchise Agreement, Sections 5.2(b) and 6.2(c)).

Lease. Before you sign a lease, sublet a space, purchase space, or make any binding commitment to do so, we must approve, in writing, your proposed lease or purchase agreement. (Franchise Agreement, Sections 5.2(c) and 6.2(d)).

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–40)