ColorTyme

21 ColorTyme 2023 FDD The software programs we currently use have been developed by Ideal Software Systems, Inc. (“Ideal”) a company located at 3839 Hwy 45 N. Meridian, Mississippi 39301, telephone number (800) 964- 3325. VersiRent programs are the proprietary property of Ideal. We have entered into an agreement with Ideal under which they have agreed to license the software to our franchisees at a discounted price. The minimum monthly software license fee is $216 per month per store. The store software includes sales & marketing, customer database, inventory control, laser forms, rental payments, receipts, collections, automated inventory audits, employee time recording, data transaction audits, security passwords and reports. You must utilize the services of Ideal to install the VersiRent Point-of-Sale software, and be trained by them in its use. The total cost of hardware, software, installation and training for a new store ranges from $6,000 to $12,500. The cost of hardware, software, installation and training for the Home Office Enterprise and General Ledger accounting modules are additional.

In lieu of traditional White Pages and Yellow Pages listings, we may post Rental Store information on your behalf via online business listings. It is your responsibility to keep the content accurate by notifying us of any changes. It is your responsibility to manage the reputation of your Rental Store by tracking and promptly responding to negative online comments by customers through social media outlets such as Facebook and online directories such as ColorTyme.com, Yelp, Better Business Bureau, Google or another customer-facing medium. Manuals

We have established establish and maintain an intranet software program through which franchised Rental Stores and RAC Franchising through which we disseminate updates to the Manuals and other confidential information (the “Intranet”). Our current vendor for the Intranet is FranConnect. We will have no obligation to maintain the Intranet indefinitely. We have established policies and procedures for the Intranet’s use. We do not permit the use of abusive, slanderous or otherwise offensive language in electronic communications; (b) nor do we permit any communications that endorse or encourage breach of any franchisee’s franchise agreement; (c) the confidential treatment of materials that we transmit via the Intranet must be maintained per the terms of the franchise agreement; (d) RAC Franchise has established password protocols and other security precautions. We reserve the right to suspend or revoke franchisee’s access to the Intranet should they violate the above listed terms. We do offer franchisees the ability to maintain a private library of documents that are posted on the Intranet for their respective franchise group (“Franchisee Library”). The Franchisee Library is not visible to other franchisees or RAC Franchise, with the exception of the FranConnect Administrator (an employee of RAC Franchise) who assists the franchisee in any franchisee maintenance requests and G. Michael Landry, our Vice President – Franchising. We make no claim to the Franchisee Library and the franchisee is required to maintain our policies and procedures at all times. This is a web-based software, so you are not required to purchase and install any necessary additions to the Rental Store’s information system. Your obligation to maintain connection with the Intranet will continue until your Franchise Agreement’s expiration or termination (or, earlier if we dismantle the Intranet). You must contribute up to $350 per year per store (currently, $200 per year, per store) to the cost of the Intranet’s maintenance and further development as provided in Items 5 and 6 (Franchise Agreement, Section 5.13).

18 ColorTyme 2023 FDD You may not develop your own website or link any websites to the Website or Sub-website. All online advertising that you create, or purchase must be reviewed and approved by us and can only direct customers to the Website or Sub-website, your physical store and/or to your store phone number. In all cases, we will have sole discretion and control over any profile(s) using or relating to the Proprietary Marks, or that display the Proprietary Marks, that are maintained on social media outlets, including without limitation Instagram, Facebook and Twitter or other similar outlets, that may exist in the future. If you establish any social media profiles, those profiles must be linked to the ColorTyme preferred vendor’s social management system. This will allow us the ability to properly monitor the use of the Proprietary Marks. We may use part of the National Fund monies we collect under the Franchise Agreement to pay or reimburse the costs associated with the development, maintenance and update of the profile(s). We may (but are under no obligation to) establish guidelines under which you may establish profiles or otherwise establish a presence on the social media outlets. In that event, you must comply with the standards, protocols and restrictions that we impose on that use.

18 ColorTyme 2023 FDD You may not develop your own website or link any websites to the Website or Sub-website. All online advertising that you create, or purchase must be reviewed and approved by us and can only direct customers to the Website or Sub-website, your physical store and/or to your store phone number. In all cases, we will have sole discretion and control over any profile(s) using or relating to the Proprietary Marks, or that display the Proprietary Marks, that are maintained on social media outlets, including without limitation Instagram, Facebook and Twitter or other similar outlets, that may exist in the future. If you establish any social media profiles, those profiles must be linked to the ColorTyme preferred vendor’s social management system. This will allow us the ability to properly monitor the use of the Proprietary Marks. We may use part of the National Fund monies we collect under the Franchise Agreement to pay or reimburse the costs associated with the development, maintenance and update of the profile(s). We may (but are under no obligation to) establish guidelines under which you may establish profiles or otherwise establish a presence on the social media outlets. In that event, you must comply with the standards, protocols and restrictions that we impose on that use.

In lieu of traditional White Pages and Yellow Pages listings, we may post Rental Store information on your behalf via online business listings. It is your responsibility to keep the content accurate by notifying us of any changes. It is your responsibility to manage the reputation of your Rental Store by tracking and promptly responding to negative online comments by customers through social media outlets such as Facebook and online directories such as ColorTyme.com, Yelp, Better Business Bureau, Google or another customer-facing medium. Manuals You will be provided access to the ColorTyme Franchise Operations Manual which contains mandatory and suggested specifications, standards and operating procedures (“Operations Manual”). The Operations Manual is designed to protect the ColorTyme System and goodwill of the Proprietary Marks associated with the System and foster a uniform quality of operations through the System. This Operations 19 ColorTyme 2023 FDD Manual is not meant to control the day-to-day operations of the Store. Franchisee shall at all times remain responsible for the operation of the Store, and all activities occurring at the Store. Franchisee must hire, train, discipline and otherwise be solely responsible for the store’s employees. We are not responsible for and do not direct or control the conduct of any Store employee. The table of contents for each of the volumes of the ColorTyme Franchise Operations Manual is attached as Exhibit G. The Operations Manual is currently contains 224 pages, however, all aspects of the Operations Manuals may be modified by us from time to time, and you must comply with the Operations Manual as modified.