MINNESOTA ADDENDUM TO AREA DEVELOPMENT AGREEMENT

This Addendum to Area Development Agreement is signed on between Stretch Zone Franchising, LLC, a Florida limited liability company ("us" 'we" and "our") and ("you" or "your") to amend the Area Development Agreement as follows: 2. Section 3.1 of the Area Development Agreement is amended as follows:

Section 3.1 Development Fee

In addition, all Development Fees and initial payments by Developers shall be deferred until the first Franchise under the Area Development Agreement opens.

The Commissioner of Commerce for the State of Minnesota requires that certain provisions contained in the Area Development Agreement be amended to be consistent with the Minnesota Franchise Act, Minn.

Stat. §§ 80.01 et seq.,(the "Minnesota Franchise Act") and of the Rules and Regulations promulgated under the Minnesota Franchise Act.

To the extent that the Area Development Agreement contains provisions that are inconsistent with the following, the provisions are amended:

• (a) Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit the Franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the Developer to consent to liquidated damages, termination penalties or judgment notes.

In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce (1) any of the Developer's rights as provided for in Minnesota Statutes, Chapter 80C or (2) the Developer's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.

• (b) With respect to Franchises governed by Minnesota law, the Franchisor will comply with Minnesota Statutes, Section 80C.14, Subd. 3-5, which requires (except in certain specified cases) (1) that a Developer be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the Area Development Agreement and (2) that the consent to the transfer of the Development Rights will not be unreasonably withheld.

Section 3.2 PAYMENT SCHEDULE

Royalty Fees, Technology Fees, training fees, Advertising Contributions and Fines are automatically billed and paid when are due by processing through our POS system. If we do not specify a due date, these amounts are due upon receipt of our invoice. Any payment or report not actually received by us on or before the due date is overdue. All payments will be processed through our POS system.

Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)