What site selection guidance does Dermani Medspa furnish to franchisees, including minimum site characteristics?

us to provide any other assistance or services to you during the operation of the dermani MEDSPA®.

Site Selection

If you do not have a location for the dermani MEDSPA® that we have accepted when you sign the Franchise Agreement, then after you sign the Franchise Agreement you will have 6 months to locate a site for the dermani MEDSPA® and submit to us all of the information we require to evaluate your proposed site. We may provide you with general site selection criteria to assist you in locating a prospective site for the dermani MEDSPA®. The Franchised Business and the dermani MEDSPA® must located at, and operated from, the same site. We typically do not own the premises of a dermani MEDSPA® and lease it to a franchisee.

You shall submit to us in the form we prescribe a description of the proposed site of the dermani MEDSPA®, including evidence reasonably satisfactory to us demonstrating that the site satisfies our site selection guidelines, together with such other information and materials as we may reasonably require. We will have 30 days after we receive this information and materials from you to approve or not approve, in our sole discretion, the proposed site as the location for the dermani MEDSPA®. No site may be used for the location of the dermani MEDSPA® unless it is first approved in writing by us Our approval of a location for the dermani MEDSPA® is not a warranty or guaranty, express or implied, that you will achieve any particular level of success at the location or that your Franchised Business or the dermani MEDSPA® will be profitable. Our acceptance of a location for the dermani MEDSPA® only signifies that the location meets our then-current minimum criteria for a dermani MEDSPA®. If you fail to obtain our approval for a proposed site and open within the requisite time period, then we may terminate the Franchise Agreement.

You must execute a lease for the Premises which must be coterminous with the Franchise Agreement, or a binding agreement to purchase the site. We reserve the right to review and approve the terms of the lease or purchase agreement for the Premises, and we reserve the right to require that certain provisions be included in any lease for the Premises. You shall provide us with a copy of the executed lease or purchase agreement. You must also execute a collateral assignment of lease, attached to the Franchise Agreement as Exhibit B.

We estimate that the time period between beginning to find a site for the Premises and the start of operations at the dermani MEDSPA® will be approximately 5 to 9 months. Factors which may affect this time period include your ability to locate a site, negotiate a lease, secure financing, obtain necessary permits and licenses, construct or build-out facilities for the dermani MEDSPA®, and obtain and install fixtures and equipment, and obtain supplies.

You are required to open and commence operations of the dermani MEDSPA® within 12 months of executing the Franchise Agreement (the "Opening Date"). If you do not open the dermani MEDSPA® by the Opening Date, then we may terminate the Franchise Agreement or, in our sole discretion, provide you with an extension of time.

For each Franchised Business to be developed under the Area Development Agreement, we reserve the right to require that you submit to us, in the form that we specify, site approval forms and data that we specify, which may include a copy of a site plan, financial information and any other materials that we may require, together with an option contract, a letter of intent, term sheet, or other evidence satisfactory to us which describes your favorable prospects for obtaining the site, and any other information and materials that we may reasonably require. No site will be deemed approved unless it has been expressly approved by us in writing. We reserve the right to provide guidance to assist you in working with designated contractors and suppliers to complete the development and build out of the dermani MEDSPA®s you will manage. If

you sign an Area Development Agreement, then the selection and approval of a site that may become the Premises under a Franchise Agreement entered into under the Area Development Agreement will be governed by the Area Development Agreement and our then-current site review and approval procedures set forth in the Manuals. In addition, the time frames and time limits described in the Development Schedule, and not those in the site selection provisions of the Franchise Agreement, will apply to the opening of dermani MEDSPA®s under the Area Development Agreement. You must locate an approved location for your first Franchised Business under an Area Development Agreement within 180 days of signing the Area Development Agreement.

We reserve the right to designate third parties to provide franchisees and developers with some of the site selection and site evaluation assistance described above and in the Franchise Agreement and the Area Development Agreement. In addition, we reserve the right to require that you utilize a real estate broker that we designate, approve or recommend to assist you in locating a site and/or negotiating lease terms for the Premises.

Training

At least 14 days before commencing operations, you, or your Operating Principal, and your manager must attend and successfully complete, to our satisfaction, the initial training program that we offer. You may also have up to 2 additional employees attend the initial training program, for a maximum of 4 individuals. You must pay the Initial Training Fee, which covers the cost of up to 4 people to attend the same initial training program, within 14 days attending the initial training program.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 31–43)