16 Handles Store

As of the date of this Disclosure Document, you must purchase the POS system that we designate from our approved supplier (the “POS System”). The Computer System provides the following functions: manages guest checks, credit card processing, staff productivity, menu offerings, and restaurant operations and tracks sales by menu item. The approximate cost to purchase the hardware associated with the Computer System is approximately $1,000 to $1,500, which includes a POS System with two terminals, respectively. You must use our current designated supplier, Toast, for the POS System. A typical POS System will include two point-of-sale terminals and registers. We may require you to purchase additional equipment and software depending on the size and configuration of your Franchised Store. You must maintain a high-speed internet connection at all times with direct ethernet plug ins at © 2025 16 Handles Franchising, LLC 2025 Franchise Disclosure Document 24 QB\95667075.1 your POS System. Other than the Computer System, we have not approved any other hardware in place of these systems and programs, although we reserve the right to do so in the future.

4. “Cost of Goods Expense” means the cost of all food (such as soft serve, toppings, and fresh fruit), beverages, and paper goods (such as cups, spoons, lids, bags, and dishwashing supplies, which are sold and delivered by the same vendor) used in the operation of the Affiliate Stores. This also includes expenses related to delivery of first party orders through services like Doordash Drive. The © 2025 16 Handles Franchising, LLC 2025 Franchise Disclosure Document 46 QB\95667075.1 affiliate stores operate in the same way and do not materially differ from a Standard Store. Cost of Goods may vary store to store and market to market. Cost of Goods may vary based on how well operations are managed, particularly in minimizing waste.

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 (“social 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 (collectively, 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 activities 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 and 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 (“social 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 (“social 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 (“social 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 (“social 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 (collectively, 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 activities 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 and 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 (“social 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.