Where in the Pearce Bespoke Franchise Agreement can I find information about compliance with standards and policies?

[Item 1: THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES]

The purchase of a Franchise permits you: (i) to use Pearce Bespoke's Marks; (ii) to obtain access to the distinctive operational and management attributes of the Business System, including confidential manuals describing complete guidelines for the operation of a Franchise (the "Manuals"); (iii) the right to use Pearce Bespoke's Approved Suppliers (see Item 8); and (iv) to receive the benefits of association with an expanding franchise system, including various forms of opening and operational assistance from Pearce Bespoke (see Item 11). You must comply with all of Pearce Bespoke's requirements described in the Franchise Agreement and the Manuals. This compliance assures uniform and consistent application of the Business System which is essential to the successful operation of your Franchise.

Laws and Regulations

You must comply with all laws, rules, and regulations governing the operation of the Franchise, and obtain all permits and licenses necessary to operate your Franchise (including licenses to play music, videos, or television in your Franchise, if applicable). In addition to laws and regulations that apply to businesses generally, your Franchise may be subject to local statutes or regulations that generally govern tailors and other trades. You should check with state and local government entities to find out if these types of statutes or regulations will apply to your franchise. Your Franchise will also be subject to various federal, state, and local government regulations, including those relating to site location.

[Item 22: CONTRACTS]

E. Operations Manual.

Franchisor will provide Franchisee with an electronic copy of the Operations Manual and one or more other confidential manuals (collectively, the "Manuals") wherein Franchisor will describe its operational policies, standards, requirements, and practices as such things are modified and amended by Franchisor from time to time. The Manuals may also include computer software, information available on an internet/extranet site and other electronic media that Franchisor may change from time to time. Franchisee will comply with all provisions of the Manuals. Franchisor reserves the right to revise the Manuals at any time.

8. OPERATION OF THE FRANCHISEE'S BUSINESS

The Marks and Business System licensed to Franchisee represent valuable goodwill distinctive of Franchisor's business and reputation. Franchisor will periodically develop uniform standards of quality and service regarding the business operations of the Pearce Bespoke Franchise so as to protect (for the benefit of all franchisees and Franchisor) the distinction, valuable goodwill, and uniformity represented and symbolized by the Marks and Business System. To ensure that all franchisees will maintain the uniform requirements and brand standards for goods and services associated with the Pearce Bespoke Franchises and with the Marks and Business System, Franchisee will maintain the uniformity and brand standards Franchisor reasonably requires for all products and services and agrees to the following provisions:

[Item 22: CONTRACTS]

R. Participation in Internet Website.

Franchisee must have high speed internet access from the Pearce Bespoke Franchise and an e-mail address. Franchisor will include Franchisee in the Pearce Bespoke Franchise location section of Franchisor's website www.pearcebespoke.com at no charge as part of Franchisee's marketing fund. Franchisor will establish the rules from time to time under which franchisees will establish their own website or separately use the internet, and Franchisee shall be required to strictly abide by all such rules and follow the then current form of Internet Code of Conduct. Franchisee is required to have a Pearce Bespoke Franchise website and will pay all expenses associated with the development and operation of the website for Franchisee's individual Pearce Bespoke Franchise. Franchisor will, at its discretion, determine the content and use of the Pearce Bespoke website, and the core brand content and design of the franchisee Pearce Bespoke Franchise website templates. Franchisor will retain all rights relating to the Pearce Bespoke website and the individual Pearce Bespoke Franchises' website template and domain name(s) (URL) and may alter or terminate the websites upon thirty (30) days' notice to Franchisee. Franchisee's general conduct on the internet and specifically its use of the Marks on the internet (including the domain name and any other Marks Franchisor may develop as a result of participation on the internet) will be subject to the provisions of this Agreement and regulated by the Internet Code of Conduct or similar document. Franchisee may be required to participate in e-commerce activities (as regulated in the Internet Code of Conduct) on its Pearce Bespoke Franchise website and have a separate online merchant account to accept credit card payments through the website.

[Item 22: CONTRACTS]

S. Credit Cards and Methods of Payment.

At all times, Franchisee must maintain credit card relationships with the credit and debit card issuers or sponsors, check or credit verification services, financial-center services, and electronic-fundstransfer systems that Franchisor designates, and Franchisee must not use any such services or providers that Franchisor has not approved in writing. Franchisor has the right to modify its requirements and designate additional approved or required methods of payments and vendors for processing such payments. Franchisee must comply with all credit card policies. The Franchisee must comply with the Payment Card Industry Data Security Standards ("PCI DSS") as they may be revised and modified by the Payment Card Industry Security Standards Council or its successor organization, FACTA and any other card payment standards Franchisor may specify.

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 20–21)