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

Other Business Activities. We have no other business activities. We have not conducted business in any other line of business and have not offered franchises in any other line of business.

Franchise Business. The Franchise Business you will conduct is a business offering advanced certified practitioner-assisted stretching to individuals operating under the trade name "Stretch Zone® " (the "Franchise Business") under the terms of the Franchise Agreement included in Exhibit C. We expect that a Stretch Zone business will typically be located in a retail shopping center in premises of 1,000 to 1,500 square feet in size. We may, however, consider alternative sites, on a case-by-case basis. Under the Franchise Agreement, we will also grant you the right to operate your Franchise Business within a designated geographical area in which you will actively promote the Franchise Business and solicit new clientele (the "Limited Protected Territory"). Each Stretch Zone business offers one-on-one practitioner-assisted stretching. The Approved Services must be provided by individuals that complete our proprietary Stretch Practitioner Training Program (as detailed in Item 11). You must have at least one stretcher that has successfully completed the Stretcher Practitioner Training Program (a "Certified Stretch Zone Practitioner") on-site at your Franchise Business during all times of operation to provide the Approved Services. We require each of your employees to sign our form of Confidentiality and Non-Competition Agreement (the form of which is included in the Operations Manual) as a condition of employment.

Each stretcher must complete our Stretch Practitioner Training Program before he or she can become a Certified Stretch Zone Practitioner. As part of our Initial On-Site Training Program (as detailed in Item 11), we will provide our Stretch Practitioner Training Program to your initial practitioners. [Item 12: ITEM -12 TERRITORY]

Except for any Area Development Rights you have also purchased, you have no option to purchase an additional Franchise Business, no right of first refusal to purchase an additional Franchise Business and no similar rights to acquire additional Franchise Business in the Limited Protected Territory or any contiguous territory.

LIMITED PROTECTED TERRITORY

We grant you a Limited Protected Territory that we define in Section 18.1 of the Franchise Agreement and designate on the Map attached as Exhibit A to the Franchise Agreement, if the Premises exist that we have approved. If the Premises do not exist at this time, we will describe the Limited Protected Territory in the Approved Location Addendum attached as Exhibit D. During the Initial Term, if you are not in default, we agree not to open the premises of a Company-Owned Unit within your Limited Protected Territory or franchise another Stretch Zone Franchise having premises

located within your Limited Protected Territory, except for Non-Traditional Locations. This does not mean that there might not be overlap with a Company-Owned Unit's or another Franchised Unit's Limited Protected Territory as long as the premises of the Company-Owned Unit or the other Franchised Unit is not physically located in your Limited Protected Territory. You may not advertise outside of your DMA.

We (and any Affiliates that we may have from time to time) will, at all times, have the right to engage in any activities that we or they consider appropriate that are not expressly prohibited by the Franchise Agreement, whenever and wherever we or they desire, including:

[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.]

Stretch Zone Franchising, LLC 6700 North Andrews Avenue, # 210 Fort Lauderdale, FL 33309 Attn: Tony Zaccario, CEO and President

4. Right to Cure and Take Occupancy.

• (a) If the Tenant/Franchisee defaults under the Lease, the Franchisor may (but is under no obligation to), within 30 days after receipt of written notice from the Landlord, cure the default (or a longer period of time if the default is not capable of being cured within 30 days and the Franchisor is diligently proceeding to cure the default).

If the Franchisor cures the Tenant/Franchisee's default, the Franchisor has the right to occupy the Premises and operate the Franchise Business.

The Tenant/Franchisee is deemed to have assigned the Lease to the Franchisor, but the Tenant/Franchisee and any guarantors are not released from their obligations under the Lease.

From and after the deemed assignment, the Franchisor will assume and perform all of the obligations of the Tenant/Franchisee under the Lease until the Franchisor is released in accordance with Subsection 4(b).

• (b) The Franchisor may assign the Lease to another Stretch Zone Franchisee with the Landlord's written approval of the new tenant/franchisee.

The Landlord will not unreasonably withhold, delay or condition its approval of the new tenant/franchisee.

Upon the permitted assignment by the Franchisor to the new tenant/franchisee, the Franchisor is released from all further obligations under the Lease.

• 1. Franchisor's Rights Upon Termination or Expiration of Franchise Agreement. The Landlord acknowledges that any landlord's lien or security interest does not include any property of the Tenant/Franchisee that includes any items bearing the Franchisor's trademarks including the signage and proprietary trade dress.

[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.]

Section 12.5 DISTINGUISHING OPERATIONS

• (a) Non-Competitive Business. If we do not exercise our option under Section 12.4 and you desire to remain in possession of the Premises, you may only operate a business that does not violate your covenant not to compete. You must make all modifications to the Premises immediately upon termination of this Agreement as necessary to distinguish the appearance of the Premises from that of other Franchise Businesses.
• (b) De-Identification. You must immediately remove all identifying architectural superstructure and signage on, about or in the Premises bearing the name or logos of Stretch Zone (or any name or logo similar to Stretch Zone), in the manner we specify. You will hold all property belonging to us for delivery to us, at our expense, upon request. Any signage that you are unable to remove within 1 Business Day of the termination or expiration of this Agreement you must completely cover the signage until the time of their removal. If you fail or refuse to comply with this obligation, we have the right to enter the Premises, without being guilty of trespass or any other tort for the purpose of removing the signage and storing them at another location, at your reasonable expense (for signage not owned by us) payable by you on demand.
• (c) Notice to Customers. Until you complete all modifications and alterations required by this Section, you must maintain a conspicuous sign at the Premises in a form we specify stating that your business is no longer associated with our Business System. You also must advise all customers or prospective customers calling your new telephone number that your new business is no longer associated with our Business System.
• (d) Our Entry Right. If you fail or refuse to comply with the requirements of this Section, we have the right to enter upon the Premises to make all changes as may be required at your expense and at your sole risk. We have no responsibility for any actual or consequential damages to your property or others, and without liability for trespass or other tort or criminal act. You agree that your failure to make these alterations will cause us irreparable injury.

Source: Item 16 — ITEM -16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 64–65)