May Ella Cafe require franchisees to buy their requirements of food, spices, ingredients, and supplies from affiliated or third-party distributors?

ccording to Specifications**

You must purchase only from us or from designated sources, as applicable, all: (1) fixtures, furniture, equipment, interior and exterior signage, graphics, decor, trade dress, and Coffee House design consulting services; (2) food products, spices, and ingredients whether or not they are developed by or for us through a special recipe, formula, or specifications; (3) all fountain and bottled beverages; (4) advertising, point-of-purchase materials, and other printed promotional and marketing materials; (5) gift certificates and stored value cards; (6) stationery, business cards, contracts, and forms; (7) bags, packaging, and supplies bearing our Marks; and (8) all other goods

and/or services as we require. In addition to approved suppliers, we may require you to buy your requirements of food, spices, ingredients, and supplies from affiliated or third-party distributors. Information concerning approved and designated suppliers will be communicated to you via the Manual.

Currently we are the only designated suppliers for the Initial Inventory Package which includes, among other things, the initial proprietary coffee, supplies, branded paper products, and merchandise necessary to open and operate the Coffee House. Other than as stated, currently neither we nor any affiliate is an approved supplier. None of our officers owns an interest in any other privately-held supplier or a material interest in any publicly-held supplier.

You must purchase (1) the computer hardware and software and (2) uniforms, shirts, memorabilia, and all merchandise and items intended for retail sale (whether or not bearing our Marks), (3) POS System, CRM System, Marketing Operating System, Sales Metrics Software, Inventory Control System, and Music System including any speakers or music players and any other software we may deem necessary for operation of your Franchised Business, from us or our approved, thirdparty vendor. You must purchase or lease the point-of-sale software and hardware, and related software and hardware based on our specification and from our approved supplier or vendor. See Item 11 for more information about pos, computer hardware, and software requirements. If a designated music provider has been identified, you must acquire music from the designated provider.

Your initial vehicle used in operation of your Franchised Business must be leased or purchased from our designated or approved supplier that is in good condition and is compliant and equipped and enhanced with our specifications.

If you propose to purchase from an unapproved source any items for use in your Coffee House for which we have identified, designated, or approved supplier(s), you must request our approval in writing. We will grant or revoke approvals of suppliers based on criteria appropriate to the situation, which may include evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews. Our criteria for approving suppliers are not available to you. We permit you to contract with alternative suppliers who meet our criteria only if you request our approval in writing, and we grant approval.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–22)