16 Handles Franchising

© 2026 16 Handles Franchising, LLC 2026 Franchise Disclosure Document 25 Store . You must maintain a high -speed internet connection at all times with direct ethernet plug ins at your POS System . Other than the Computer System, w e have not approved any other hardware in place of these systems and programs, although we reserve th e right to do so in the future. You must use the software we designated for use in connection with your POS System , which will currently be licensed by Toast . The monthly software license fee for the current POS is $89 per month. You must have a music player and digital screen controller in your Store, which you must obtain from our designated suppliers. The current monthly subscription cost for a music player for your Store with a commercial license suitable for restaurants is $34/month. The current cost for cloud -based management of the digital screens in your Store is $36/month.

You may sell our products and related merchandise to retail customers and prospective retail customers who live anywhere but who choose to shop in your Store . You may not engage in any promotional activities or sell our products or similar products, whether directly or indirectly, through or on the Internet, the World Wide Web, or any other similar proprietary or common carrier electronic delivery system (collec tively, the “Electronic Media”); through catalogs or other mail order devices sent or directed to customers or prospective customers located anywhere; or by telecopy or other telephonic or electronic communications, including toll -free numbers, directed to or received from customers or prospective customers located anywhere. This excludes using online third -party delivery channels such as Grubhub, UberEats, and Doordash, which facilitate an online sale direct to a customer within close proximity to the Franchised Store for immediately delivery by a courier or hired driver, provided that all such activ ities shall be conducted only in accordance with the requirements of your Franchise Agreement and the procedures set forth on the Extranet or in our Manual . While you may place advertisements in printed media and on television and radio that are targeted to customers and prospective customers located within your Designated Territory , you will not be deemed to be in violation of the Franchise Agreement if those advertisements, because of the natural circulation of the printed media or reach of television an d radio, are viewed by prospective customers outside of your Designated Territory . You have no options, rights of first refusal, or similar rights to acquire additional franchises. You may not sell our products to any business or other customer for resale.

© 202 6 16 Handles Franchising, LLC 2026 Franchise Disclosure Document • GUEST SERVICE PHILOSOPHY ◄ ................................ ................... 27 • OBTAINING GUEST FEEDBACK ◄ ................................ ................. 29 • HANDLING GUEST COMPLAINTS ◄ ................................ .............. 29 • HANDLING REFUND REQUESTS ◄ ................................ ................ 31 • MYSTERY SHOPPERPROGRAM ◄ ................................ .................. 31 DAILY ROUTINES ◄ ................................ ................................ ......... 33 • OPENING ◄ ................................ ................................ ......... 33 • RESTOCKING ◄ ................................ ................................ ......... 39 • CLEANING ◄ ................................ ................................ ......... 39 • CLOSE ◄ ................................ ................................ ......... 39 SHIFT MANAGEMENT◄ ................................ ................................ .... 44 • RECEIVING THE SHIFT ◄ ................................ ................................ . 44 • PREPARING STAFF ◄ ................................ ................................ ........ 46 • PLANNING AND GIVING BREAKS ◄ ................................ .............. 47 • SETTING FRUIT PREP PRODUCTION LEVELS ◄ ......................... 47 • SEASONALITY AND PREP PRODUCTION LEVELS ◄ ................. 49 • MANAGING THE SHIFT ◄ ................................ ................................ 51 • COMMUNICATING DURING THE SHIFT ◄ ................................ ... 52 • ONGOING MAINTENANCE◄ ................................ ............................ 52 • TURNING OVER THE SHIFT ◄ ................................ ......................... 55 COMMUNICATION TOOLS◄ ................................ ............................ 56 • COMMUNICATION WITH FRANCHISOR ◄ ................................ ... 56 • FACEBOOK ◄ ................................ ................................ ......... 56 • COMMUNICATION WITH GUESTS ◄ ................................ ............. 57 • OPERATIONS BULLETINS ◄ ................................ ............................ 57 • MONTHLY CALLS ◄ ................................ ................................ ......... 57 • COMMUNICATION WITH BUSINESS CONSULTANT◄ ............... 57 • COMMUNICATION WITH MODS ◄ ................................ ................. 58 PROCESSING POS ORDERS◄ ................................ ........................... 60 POS PROCEDURES ◄ ................................ ................................ ......... 62 • POS/TILL AVAILABILITY ◄ ................................ ............................. 62 • CASHIER PROCEDURES ◄ ................................ ............................... 62 • CALIBRATING THE SCALE ◄ ................................ .......................... 62 • REGISTER RULES ◄ ................................ ................................ ......... 63 • BACK OFFICE PROCEDURES ◄ ................................ ....................... 65 • REPORTS ◄ ................................ ................................ ......... 69 • NO SALES ◄ ................................ ................................ ......... 70 • DISCOUNTS ◄ ................................ ................................ ......... 70 • REFUNDS AND TRANSACTION VOIDS ◄ ................................ ..... 70 POS TROUBLESHOOTING◄ ................................ ............................. 72 • INNCORECT BUSINESS DATE ◄ ................................ ..................... 72 • WORKSTATION & SERVER NOT COMMUNICATING ◄ ............ 72 • CREDIT CARDS FAILED TO BATCH ◄ ................................ ........... 72 • PRE-CLOSE AND “EMPLOYEE STILL CLOCKED IN” ◄ .............. 73 • POS VOIDS ◄ ................................ ................................ ......... 74 CASH HANDLING PROCEDURES◄ ................................ ................. 76 • ACCEPTING CASH ◄ ................................ ................................ ......... 76 • ACCEPTING CHECKS ◄ ................................ ................................ .... 77 • ACCEPTING CREDIT CARDS ◄ ................................ ....................... 78 • 16 HANDLES REWARDS POINTS ◄ ................................ ................ 79

You may sell our products and related merchandise to retail customers and prospective retail customers who live anywhere but who choose to shop in your Store . You may not engage in any promotional activities or sell our products or similar products, whether directly or indirectly, through or on the Internet, the World Wide Web, or any other similar proprietary or common carrier electronic delivery system (collec tively, the “Electronic Media”); through catalogs or other mail order devices sent or directed to customers or prospective customers located anywhere; or by telecopy or other telephonic or electronic communications, including toll -free numbers, directed to or received from customers or prospective customers located anywhere. This excludes using online third -party delivery channels such as Grubhub, UberEats, and Doordash, which facilitate an online sale direct to a customer within close proximity to the Franchised Store for immediately delivery by a courier or hired driver, provided that all such activ ities shall be conducted only in accordance with the requirements of your Franchise Agreement and the procedures set forth on the Extranet or in our Manual . While you may place advertisements in printed media and on television and radio that are targeted to customers and prospective customers located within your Designated Territory , you will not be deemed to be in violation of the Franchise Agreement if those advertisements, because of the natural circulation of the printed media or reach of television an d radio, are viewed by prospective customers outside of your Designated Territory . You have no options, rights of first refusal, or similar rights to acquire additional franchises. You may not sell our products to any business or other customer for resale.

So long as you comply with our standards, which we will determine in our sole and absolute discretion, you may promote your Store and/or using the Proprietary Marks in any manner on social and/or networking Websites, such as Facebook, LinkedIn, Yelp, Instagram, Snapchat , TikTok and X , without our prior written consent ; provided that if we request you remove any promotion, you must do so immediately . You must comply with our System standards regarding the use of social media in your Store ’s operation (“soc ial media” includes personal blogs, common social networks like Facebook and professional networks like Facebook, LinkedIn, Yelp, Instagram, Snapchat , TikTok and/or X , virtual worlds, file, audio and video -sharing sites, and other similar social networking or media sites or tools). We reserve the right to conduct collective/national campaigns via local social media on your behalf.

So long as you comply with our standards, which we will determine in our sole and absolute discretion, you may promote your Store and/or using the Proprietary Marks in any manner on social and/or networking Websites, such as Facebook, LinkedIn, Yelp, Instagram, Snapchat , TikTok and X , without our prior written consent ; provided that if we request you remove any promotion, you must do so immediately . You must comply with our System standards regarding the use of social media in your Store ’s operation (“soc ial media” includes personal blogs, common social networks like Facebook and professional networks like Facebook, LinkedIn, Yelp, Instagram, Snapchat , TikTok and/or X , virtual worlds, file, audio and video -sharing sites, and other similar social networking or media sites or tools). We reserve the right to conduct collective/national campaigns via local social media on your behalf.

So long as you comply with our standards, which we will determine in our sole and absolute discretion, you may promote your Store and/or using the Proprietary Marks in any manner on social and/or networking Websites, such as Facebook, LinkedIn, Yelp, Instagram, Snapchat , TikTok and X , without our prior written consent ; provided that if we request you remove any promotion, you must do so immediately . You must comply with our System standards regarding the use of social media in your Store ’s operation (“soc ial media” includes personal blogs, common social networks like Facebook and professional networks like Facebook, LinkedIn, Yelp, Instagram, Snapchat , TikTok and/or X , virtual worlds, file, audio and video -sharing sites, and other similar social networking or media sites or tools). We reserve the right to conduct collective/national campaigns via local social media on your behalf.

So long as you comply with our standards, which we will determine in our sole and absolute discretion, you may promote your Store and/or using the Proprietary Marks in any manner on social and/or networking Websites, such as Facebook, LinkedIn, Yelp, Instagram, Snapchat , TikTok and X , without our prior written consent ; provided that if we request you remove any promotion, you must do so immediately . You must comply with our System standards regarding the use of social media in your Store ’s operation (“soc ial media” includes personal blogs, common social networks like Facebook and professional networks like Facebook, LinkedIn, Yelp, Instagram, Snapchat , TikTok and/or X , virtual worlds, file, audio and video -sharing sites, and other similar social networking or media sites or tools). We reserve the right to conduct collective/national campaigns via local social media on your behalf.

You may sell our products and related merchandise to retail customers and prospective retail customers who live anywhere but who choose to shop in your Store . You may not engage in any promotional activities or sell our products or similar products, whether directly or indirectly, through or on the Internet, the World Wide Web, or any other similar proprietary or common carrier electronic delivery system (collec tively, the “Electronic Media”); through catalogs or other mail order devices sent or directed to customers or prospective customers located anywhere; or by telecopy or other telephonic or electronic communications, including toll -free numbers, directed to or received from customers or prospective customers located anywhere. This excludes using online third -party delivery channels such as Grubhub, UberEats, and Doordash, which facilitate an online sale direct to a customer within close proximity to the Franchised Store for immediately delivery by a courier or hired driver, provided that all such activ ities shall be conducted only in accordance with the requirements of your Franchise Agreement and the procedures set forth on the Extranet or in our Manual . While you may place advertisements in printed media and on television and radio that are targeted to customers and prospective customers located within your Designated Territory , you will not be deemed to be in violation of the Franchise Agreement if those advertisements, because of the natural circulation of the printed media or reach of television an d radio, are viewed by prospective customers outside of your Designated Territory . You have no options, rights of first refusal, or similar rights to acquire additional franchises. You may not sell our products to any business or other customer for resale.

So long as you comply with our standards, which we will determine in our sole and absolute discretion, you may promote your Store and/or using the Proprietary Marks in any manner on social and/or networking Websites, such as Facebook, LinkedIn, Yelp, Instagram, Snapchat , TikTok and X , without our prior written consent ; provided that if we request you remove any promotion, you must do so immediately . You must comply with our System standards regarding the use of social media in your Store ’s operation (“soc ial media” includes personal blogs, common social networks like Facebook and professional networks like Facebook, LinkedIn, Yelp, Instagram, Snapchat , TikTok and/or X , virtual worlds, file, audio and video -sharing sites, and other similar social networking or media sites or tools). We reserve the right to conduct collective/national campaigns via local social media on your behalf.