What factors does Face Foundrie consider when approving a site?

cial Bar that is mutually acceptable. You select the site for your Facial Bar, subject to our acceptance.

The site for your Facial Bar may be leased or owned by you, and we generally do not own the premises and lease them to you. The proposed site for your Facial Bar must be accepted by us along with any applicable lease, sublease or purchase agreement. Our approval of a site will be based on the information you give us to review, including a site plan. The information should include: (i) square footage; (ii) traffic patterns, flow, and total count; (iii) density and income level of the surrounding population; (iv) land and building costs; (v) zoning patterns; (vi) surrounding educational and recreational facilities; (vii) terms of the lease, if any; (viii) the distance

from competitive businesses, including other facial bars; and (ix) other factors having a substantial bearing on the proposed site. In addition, you must submit for acceptance by us proposed site and construction plans and any modification to our specifications you propose. The construction of the premises must be completed according to our specifications. If you lease the premises, you and the landlord must enter into a lease reasonably acceptable to us, which includes the Lease Rider in substantially the form attached to the Franchise Agreement (currently as Exhibit G). If we do not approve a site, you must propose a new site. If we and you are unable to agree upon a site for your Facial Bar and, as a result, you fail to meet required opening date, we may terminate your Franchise Agreement. Once we have all the necessary documentation for review, we typically review that information and approve or disapprove the proposed site and lease within 30 days. Once we have approved a site, it is your responsibility to conform the premises to local ordinances and building codes, and to obtain any required permits. Additionally, it is your responsibility to oversee the construction, remodeling, and/or decorating of the premises, according to the standards and guidelines we provide you.

We expect that the time from the date you sign the Franchise Agreement to the date you open your Facial Bar to be between seven and nine months. The factors that affect this timing are financing, building permits, zoning, and local ordinance issues, and delayed installation of equipment, fixtures, and signs. Your Facial Bar must be open and operating within 10 months after you sign the Franchise Agreement, subject to any extensions that have been granted.

Under the Area Development Agreement

For each proposed site for a Facial Bar to be developed under the Area Development Agreement, you must also obtain approval of your site as outlined above. If you sign an Area Development Agreement, you must sign individual Franchise Agreements and begin operating a Facial Bar under each of those agreements within the time provided for in the Development Schedule, which may differ from the form of Franchise Agreement attached to this Disclosure Document, and find a site that meets our approval under our then-current site approval criteria. Under the Franchise Agreement and Area Development Agreement, we will be deemed to have disapproved a proposed location unless we have expressly approved it in writing.

Operations Manual

Exhibit D to this Disclosure Document is a summary of the content contained in our Operations Manual. As of the date of this Disclosure Document, our Operations Manual is approximately 173 pages.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 33–43)