What is the Area Developer prohibited from doing regarding site selection for Face Foundrie?

• 3.2 Identifying and Securing Sites.

Area Developer shall be solely responsible for identifying, submitting for Franchisor's approval, and securing specific sites for each Franchised Facial Bar.

The following terms and conditions shall apply to each Franchised Facial Bar to be developed hereunder:

• 3.2.1 Area Developer acknowledges that, other than providing its criteria for site approval for the Franchised Facial Bar, Franchisor provides no site-selection assistance.

To that end, Franchisor will not visit the search area and Area Developer will be responsible to identify, and ultimately acquire, an appropriate site, acceptable to Franchisor, for the Franchised Facial Bar's operation.

As Area Developer identifies prospective sites, it will notify Franchisor, and Franchisor will review criteria about the prospective sites that Franchisor deems appropriate.

Area Developer will assist Franchisor by providing Franchisor any information Franchisor requests about any prospective sites.

If Franchisor has not approved a site within thirty (30) days after Area Developer provides Franchisor with all information Franchisor requested about the site, the site shall be deemed disapproved.

Area Developer acknowledges and agrees Franchisor will not be responsible for Area Developer's results in operating at any particular site that Franchisor may have recommended, reviewed, or approved.

• 3.2.2 Following Franchisor's approval of a proposed site, Area Developer shall use its best efforts to secure such site, either through a lease/sublease that is acceptable to Franchisor herein.

Area Developer shall immediately notify Franchisor of the execution of the approved lease or binding purchase agreement.

The site approved and secured pursuant to this Agreement shall be specified as the "Approved Location" under the Franchise Agreement executed pursuant Section 3.4 below.

• 3.2.3 Area Developer hereby acknowledges and agrees that approval by Franchisor of a site does not constitute an assurance, representation, or warranty of any kind, express or implied, as to the suitability of the site for the Franchised Facial Bar or for any other purpose.

Approval by Franchisor of the site indicates only that Franchisor believes the site complies with acceptable minimum criteria established by Franchisor solely for its purposes as of the time of the evaluation.

Both Area Developer and Franchisor acknowledge that application of criteria that have been effective with respect to other sites and premises may not be predictive of potential for all sites and that, subsequent to approval by Franchisor of a site, demographic and/or economic factors, such as competition from other similar businesses, included in or excluded from criteria used by Franchisor could change, thereby altering the potential of a site.

Such factors are unpredictable and are beyond the control of Franchisor.

Franchisor shall not be responsible for the failure of a site approved by Franchisor to meet Area Developer's expectations as to revenue or operational criteria.

• 3.3 Lease Terms*.* For each Franchised Facial Bar to be developed hereunder, if Area Developer will occupy the premises from which the Franchised Facial Bar will be operated under a lease or sublease, Area Developer shall, prior to execution of such lease, submit the lease to Franchisor for its review and approval; provided, however, if pre-submission to Franchisor is not possible, then Area Developer may sign the lease only on the condition, agreed to in writing by the lessor, that the lease shall become null and void if Franchisor does not approve such lease.

Franchisor's approval of the lease or sublease may be conditioned upon the inclusion of such provisions as Franchisor may reasonably require.

Source: Item 23 — RECEIPTS (FDD pages 74–257)