Is an Hck Hot Chicken franchisee required to purchase a computer and point-of-sale system?

ise Agreement, Section 7.3; Non-Traditional Location Addendum, Section 6)**

You are required to purchase a computer and point-of sale system that consists of the following hardware, software and services (collectively the "Computer System"): (a) a computer (laptop) of any brand capable of operating the required software for use by the management of the Restaurant, an all-in- one printer/scanner/copier, and firewall with all necessary software required to run the approved POS system, which shall include two POS terminals, two cash drawers, two receipt printers,two scanners, a remote printer, one kitchen display system; and (b) required software suite that the then- current POS system requires and charge a monthly subscription access; and (c) an installation and service package, an annual 24/7 help desk support package, an annual hardware maintenance package, and various hosted solutions required by our merchant services provider; and (d) any and all hardware and software we may require if we update our System, including adding order kiosks. All required POS system, software, and installation and service packages are contained in our Brand Standards Manual. You must pay us the Technology Fee and any set up fees that you incur for the establishment of accounts with various technology vendors, if any. If we incur any account setup fee on your behalf, you must reimburse for these fees as part of the Technology Fee. The Computer System will manage the daily workflow of the HCK Hot Chicken Restaurant, coordinate the customer ordering experience and other information. You must record all sales on the Computer System. For Non-Traditional Restaurants, if your POS System will record sales from third party businesses such as the host facility, your POS System must differentiate between your sales and those of the host facility. You must store all data and information in the Computer System that we designate, and report data and information in the manner we specify. The Computer System will generate reports on the Gross Sales of your HCK Hot Chicken Franchise and must run programs designated by us to allow us to extract the sales and product mix information of your HCK Hot Chicken Franchise. You must also maintain a business class Internet connection at the Restaurant. Business class Internet consists of a service with a service level agreement of minimal speed guarantee, uptime, and static IP, which guarantees service when needed.

We estimate the cost of purchasing the Computer System will be approximately $5,000 to $7,000. In addition to offering and accepting HCK Hot Chicken gift cards and loyalty cards, you must use any credit card vendors and accept all credit cards and debit cards that we determine. The term "credit card vendors" includes, among other things, companies that provide services for electronic payment, such as near field communication vendors (for example, "Apple Pay" and "Google Wallet").

Restaurants will also be required to comply with EMV standards for credit cards. EMV is a technical standard for smart payment cards and for payment terminals and automated teller machines that can accept them. We estimate that each Restaurant will require two EMV terminals which are approximately $400 to $1,000 each, and these amounts are included in our estimates for the cost of your Computer System.

We are not required to provide you with any ongoing maintenance, repairs, upgrades, updates, or support for the Computer System. You must arrange for installation of the Computer System at your cost.You must purchase maintenance contracts from our approved suppliers including help desk support and hardware maintenance for $250 to $500 per month (beginning after your first year) for help desk support, software, and seven-day technician and parts coverage. You must also pay our designated supplier ongoing annual fees for the hosted solutions if you do not use real time sales access software and you maychoose to add on hosted solutions with real time sales access software, including online ordering, gift cards, and network security

services. There are no limitations in the Franchise Agreement regarding the costs of such required support, maintenance repairs or upgrades relating to the Computer System. The cost of updating or upgrading the Computer System or its components will depend on your repair history, local costs of computer maintenance services in your area and technological advances, which we cannot predict at this time.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING,COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–37)