ITEM -21 FINANCIAL STATEMENTS*

Attached as Exhibit M are our:

• 1. Unaudited Balance Sheet dated March 31, 2025 and Unaudited Profit and Loss Statement for the 3-month period from January 1, 2025 to March 31, 2025; and
• 1. Audited financial statements for fiscal years ending December 31, 2024, December 31, 2023, and December 31, 2022.

Our fiscal year ends December 31.

ITEM -22 CONTRACTS

The following contracts, agreements and other relevant documents are attached as Exhibits to this Franchise Disclosure Document:

• C Franchise Agreement
• D Approved Location Addendum to Franchise Agreement
• E Area Development Agreement
• F State Addenda to Agreements (if applicable)
• G Guaranty
• H Agreement with Landlord
• I Telephone Number and Directory Advertising Assignment Agreement

• J Security Agreement, UCC-1 Financing Statement and Rider
• K Software Sublicense Agreement
• N Franchise Termination and Release Agreement
• P Form of Regional Advertising Cooperative Agreement

ITEM -23 RECEIPTS

You will find copies of a detachable Receipt attached as Exhibit P at the very end of this Franchise Disclosure Document. It is not a binding contract. This merely verifies that you have received this Franchise Disclosure Document. Please complete and sign both copies. Keep a copy of your files and mail the other copy to us.

EXHIBIT A – STATE ADDENDA TO FRANCHISE DISCLOSURE DOCUMENT

The States of California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin require that we amend the Franchise Disclosure Document and Franchise Agreement to conform to their state's franchise laws as part of the state's registration and approval of the franchise offering. We must do this before we offer or sell any franchises intended to be operated in those states or to residents of these states. If we have registered in any of these states, attached are the applicable Addendum to Franchise Disclosure Document in this Exhibit and Addenda to Franchise Agreement and Area Development Agreement (in Exhibit F) that apply only to residents of that state and/or where the Stretch Zone Franchise will be operated in that state.

CALIFORNIA ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT

THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE FRANCHISE DISCLOSURE DOCUMENT.

• 1. The Department has determined that we, the franchisor, have not demonstrated we are adequately capitalized and/or that we must rely on franchise fees to fund our operations. The Commissioner has imposed a fee deferral condition, which requires that we defer the collection of all initial fees from California franchisees until we have completed all of our pre-opening obligations and you are open for business. For California franchisees who sign a development agreement, the payment of the development and initial fees attributable to a specific unit in your development schedule is deferred until that unit is open.
• 1. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
• 1. The California Franchise Investment Law requires that a copy of all proposed agreements involving the sale of the Franchise be delivered together with the Franchise Disclosure Document ("FDD").
• 1. ITEM 3 is amended to add: Neither we, nor any person in ITEM 2 of the FDD is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. § 78 et seq., suspending or expelling these persons from membership in that association or exchange.
• 1. ITEM 6 is amended to add that the maximum interest rate in California is 10% annually.
• 1. ITEM 17: The following additional paragraphs are added:
  • (a) California Business and Professions Code §§ 20000 through 20043 provides you rights concerning transfer, termination or nonrenewal of a Franchise. If the Franchise Agreement contains a provision that is inconsistent with the law, the law controls.
  • (b) The Franchise Agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law (11 U.S.C.A.

Source: Item 22 — ITEM -22 CONTRACTS (FDD pages 84–89)