Dairy Queen of Virginia

You must purchase and maintain a monthly subscription service for credit card processing, which includes the TransArmor solution encryption, from ADQ’s designated supplier Fiserv (formerly, First Data). The cost for credit card processing is about 2% - 5% of the total amount of each sale made using an approved credit card, and the cost for the TransArmor Solution is $19.95 per month. You also must purchase and pay for Verifone payment card data encryption services at a cost of about $10 per terminal per month, and for a Verifone payment device warranty at a cost of about $80 per device per 3-year warranty. You also must purchase and maintain a managed firewall service from ADQ’s designated suppler Acumera. The cost for this service is about $51 per month. Also, you must comply with Payment Card Industry (PCI) Data Security Standards: https://www.pcisecuritystandards.org/. While you are not required to engage a 3rd party supplier to ensure compliance with PCI Data Security Standards (unless otherwise required to do so by your card processor), we and ADQ recommend that you do so, and ADQ estimates the initial cost of this to be $200 - $2,000, with an ongoing monthly fee of up to $100. You must participate in the system-wide gift card program administered by ValueLink, LLC and DQGC, and must sign the gift card participation agreement included in Exhibit E in this disclosure document. Gift card program fees are allocated based on a shared cost model between subfranchisees, franchisees and the NMF. Currently, DQ franchisees and subfranchisees pay fees equaling 3% of total gift card redemptions, which ADQ estimates will be about $200 per year per location. The NMF covers the balance of the gift card program's costs. In the future, the percentage allocation of costs between subfranchisees, franchisees and the NMF may change. These costs are in addition to any costs incurred by you in purchasing gift cards. All of the fees referenced in this section are to subject to change from time to time.

The above amounts include amounts spent on audits, the Children’s Miracle Network, certain point-of-sale items, research, and FAC. The above percentages vary if you calculate the allocations at the individual restaurant level, by area or group of restaurants, or by type of DQ or Orange Julius business. Except as described in this paragraph, sales promotion program fees that are not spent in any fiscal year will be carried over for future use. In addition to its other programs, ADQ has the right to offer a local reimbursement or online credit program to certain franchisees or subfranchisees if ADQ determines that the reimbursement is warranted for a particular store or restaurant. The availability of this program for a store or restaurant may be for a variable period of time and a variable amount of money, depending on the individual circumstances. If ADQ establishes such a program for your store or restaurant, you may request reimbursement (or online credit, depending on the system available) of all eligible types of local media, promotions and promotional items you purchase up to the amount that has been determined by ADQ for your store or restaurant. Unreimbursed funds at the end of the applicable period will not be carried over for future use by the particular store or restaurant, but will be used for other sales promotion activities in the DQ system as determined by ADQ. DQ-Virginia-0625 37 81975192;1 Electronic Point-of-Sale System and Other Computer Systems You must purchase, install and maintain an electronic point-of-sale (“EPOS”) system at your DQ store or restaurant, as designated by us and ADQ. The EPOS system includes designated hardware, software, peripherals, back office workstation, a managed firewall and installation. If you are opening a new DQ store or restaurant, you must purchase all of the components of the EPOS system from our and ADQ’s designated suppliers (see Item 8). The estimated initial cost to purchase the EPOS system hardware and installation from ADQ’s designated supplier ParTech, Inc., hardware for the Acumera managed firewall, and the launch fee for the Data Central back office software, will range from about $20,800 to $25,700 for a DQ Treat store, or about $25,500 to $33,000 for a DQ Grill & Chill restaurant. The EPOS system is an electronic cash and credit management system, which provides an interface for processing customer orders, collecting and managing information about the nature of sales transactions, providing financial records of those transactions, managing product inventory, and providing time and attendance functionality for your employees. The EPOS system will collect and report to us and ADQ a variety of information including overall sales, sales levels by item, item menu pricing, product movement statistics, individual unit and category sales data (including by flavor and size), various financial information to prepare store of restaurant reports, and other information. The EPOS system may contain components that support personnel-related functions, such as employee timekeeping, employee scheduling and payroll processing. Your use of those components is non-mandatory. You are permitted to use those non-mandatory components on terms we specify, or you have the right to use alternate software of your choosing to handle personnel-related functions in any other manner that you choose. Neither we, nor ADQ, nor any of our or ADQ’s affiliates, is obligated to provide any ongoing maintenance, repairs, upgrades or updates to you. You must pay ADQ’s designated supplier for ongoing hardware warranty services for the EPOS system, which cost about $46 to $118 per month for a DQ Treat store, or about $72 to $150 per month for a DQ Grill & Chill restaurant, depending on the warranty package you choose. In addition, as part of the ongoing software fees you will pay to some of the designated suppliers, the suppliers are obligated to provide certain maintenance and repair services for their software. You must make periodic upgrades and updates to the EPOS system, and there are no contractual limitations on the frequency and cost of this requirement. To enable us and ADQ to access the EPOS system, you must install one DSL or cable/broadband Internet connection, or other necessary communication access device, that is exclusively designated and permanently connected to the EPOS system. There are no contractual limitations on our and ADQ's right to access the information generated by the EPOS system, although we or ADQ may choose not to poll information from all stores and restaurants. In addition to paying initial costs for the EPOS system, you must pay monthly service fees for the ParBrink, Data Central, Olo and Punchh software for the EPOS system, back office systems, and mobile app ranging from $408 to $481 per month for a DQ Grill & Chill restaurant, or from $370 to $413 per month for a DQ Treat store. You also must pay Olo a per transaction fee of 0.25% for each order processed by Olo. Help desk and software support costs are included in these monthly service fees. Copies of the participation agreements that you must sign with these vendors are included in Exhibit E in this disclosure document. DQ-Virginia-0625 38 81975192;1 You must have access at all times to the Internet, must maintain and regularly use an active email account or other form of electronic communication that we and ADQ designate, and must keep us and ADQ informed of your contact information. You must purchase and maintain a monthly subscription service for credit card processing, which includes the TransArmor solution encryption, from ADQ’s designated supplier Fiserv (formerly, First Data). The cost for credit card processing is about 2% - 5% of the total amount of each sale made using an approved credit card, and the cost for the TransArmor Solution is $19.95 per month. You also must purchase and pay for Verifone payment card data encryption services at a cost of about $10 per terminal per month, and for a Verifone payment device warranty at a cost of about $80 per device per 3-year warranty. You also must purchase and maintain a managed firewall service from ADQ’s designated suppler Acumera. The cost for this service is about $51 per month. Also, you must comply with Payment Card Industry (PCI) Data Security Standards: https://www.pcisecuritystandards.org/. While you are not required to engage a 3rd party supplier to ensure compliance with PCI Data Security Standards (unless otherwise required to do so by your card processor), we and ADQ recommend that you do so, and ADQ estimates the initial cost of this to be $200 - $2,000, with an ongoing monthly fee of up to $100. You must participate in the system-wide gift card program administered by ValueLink, LLC and DQGC, and must sign the gift card participation agreement included in Exhibit E in this disclosure document. Gift card program fees are allocated based on a shared cost model between subfranchisees, franchisees and the NMF. Currently, DQ franchisees and subfranchisees pay fees equaling 3% of total gift card redemptions, which ADQ estimates will be about $200 per year per location. The NMF covers the balance of the gift card program's costs. In the future, the percentage allocation of costs between subfranchisees, franchisees and the NMF may change. These costs are in addition to any costs incurred by you in purchasing gift cards. All of the fees referenced in this section are to subject to change from time to time.

RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES Required Purchases You must maintain and comply with our and ADQ’s quality standards to protect the uniformity and quality of products and services throughout the DQ system. While you are not required to purchase or lease real estate from us, ADQ or its affiliates, we must approve the location of your store or restaurant (see Item 11), and we have the right but not the obligation to approve the lease for the store or restaurant premises before execution. You must construct and equip your store or restaurant according to our and ADQ’s then-current designs, specifications and standards. You must ensure that your building plans comply with the Americans With Disabilities Act and all other federal, state and local laws and regulations. You may only use or purchase products approved by us and ADQ that meet our and ADQ’s specifications. For purposes of this Item 8, “products” include products, services, ingredients, supplies, signage, fixtures, furnishings, advertising and sales promotion materials, and equipment (including hardware and software for a computerized electronic point-of-sale (“EPOS”) system and/or other computer systems, communications equipment, or electronic services providers). Approved products generally must meet our and ADQ’s specifications, and are manufactured, provided or prepared by ADQ approved manufacturers, suppliers or distributors. We and ADQ periodically identify approved products for use in DQ locations, and have the right to periodically change the list of approved products, and to update and alter the specifications for approved products. ADQ always has the right to designate a single approved manufacturer, supplier or distributor for the following products: (1) soft drinks; (2) 3 rd party branded products; (3) products relating to limited time offers and special promotions; (4) equipment, including EPOS equipment and all related point-of-sale and web based software and back-office hardware and software; (5) any product you purchase where ADQ does not receive a fee or payment from the manufacturer with respect to the sale of that product, other than payments from suppliers for marketing; and (6) the Orange Julius proprietary powders and frozen orange juice concentrate (if Orange Julius products are permitted to be sold at your store or restaurant). For other products not listed in (1) - (6) above, as long as there is not in place an agreement for a “unified purchasing program,” a franchisee or subfranchisee may make written request for approval of a specific product, service or piece of equipment of an additional, qualified manufacturer, supplier or alternate distributor, pursuant to ADQ’s then-current policies and procedures. ADQ has received and offered proposals to create a unified purchasing program as a joint effort between ADQ and a cooperative association of DQ restaurant and store operators, to benefit the entire DQ system in the United States. For any period during which there is an agreement for a unified purchasing program: (1) ADQ will designate as approved the manufacturers, suppliers or distributors properly selected within the structure of that program; and (2) ADQ has the right to designate a single approved manufacturer, supplier and/or distributor of any approved products. ADQ has designated ParTech, Inc. as the sole supplier of the required EPOS system hardware and software that you must purchase for your store or restaurant. You must sign an agreement with ParTech for the purchase of the equipment, software subscription services, and DQ-Virginia-0625 26 81975192;1 installation and other services (“ParTech Participation Agreement”), when you sign your operating agreement. ADQ also has designated: (a) ParTech, Inc. Data Central as the sole supplier of the back office software you must purchase for reporting and labor and inventory management; (b) Fiserv (formerly, FirstData Merchant Services) as the sole supplier of payment card processing and related services you must purchase; (c) Verifone as the sole supplier of certain payment card data encryption services that you must purchase; (d) ValueLink, LLC as the sole supplier of the gift cards and related services you must purchase; (e) Olo as the sole supplier of the DQ Mobile Ordering system; (f) Punchh Inc. as the sole supplier of the DQ Mobile Loyalty platform that you must purchase; (g) Acumera as the sole supplier of managed firewall services you must purchase; and (h) Cineplex Digital Media Inc. as the sole supplier of the digital menu boards you must purchase. Copies of the third-party participation agreements, if any, that you must sign with ParTech, Fiserv, Verifone, ValueLink, Olo, Punchh, Acumera, and Cineplex are included in Exhibit E in this disclosure document. When you sign your operating agreement, you must also sign the then-current participation agreements offered by the third-party suppliers listed above. ADQ has the right to designate suppliers in place of or in addition to these suppliers. The operating agreement requires you to purchase and maintain, at your expense, general liability insurance and business interruption insurance, as described in Item 6. The operating agreement permits us periodically to require the same types of insurance with increased coverage minimums, and to require different or additional types of insurance, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. You also must purchase and maintain any other insurance required by law or any agreement related to the subfranchised business. You must furnish copies of all insurance certificates to us. ADQ has arranged with a 3 rd party insurer to make certain insurance, including general liability insurance, available to qualifying franchisees and subfranchisees. We or ADQ may require you to periodically purchase restaurant training materials from ADQ. See Items 6 and 11 for more information. ADQ estimates that the purchase or lease of equipment (including computer and EPOS system hardware and software), signage, fixtures, furnishings, products, ingredients, supplies, advertising and sales promotion materials (see Item 11 for information on advertising and sales promotion materials), and services which meet ADQ’s specifications represent about 65% to 85% of the cost to establish the subfranchised business (excluding land) and 30% to 50% of the cost to operate the subfranchised business. We and ADQ provide no material benefit (such as renewal or granting additional subfranchise or franchise rights) based on your purchase of particular products or services or use of particular suppliers, but your operating agreement obligates you to use products and services approved by us and ADQ. We consider a number of factors when determining whether you might qualify for an additional subfranchise, including compliance with your operating agreement and support of our and ADQ’s programs and policies. Approval of Alternate Suppliers ADQ has the right to approve the manufacturer, supplier or distributor of any approved products you purchase. If there is no agreement in place for a unified purchasing program, you may request approval in writing of a specific product from an alternate manufacturer, supplier or distributor of products other than those listed in (1) - (6) in the “Required Purchases” section above DQ-Virginia-0625 27 81975192;1 in this Item 8. ADQ only approves alternate manufacturers for products if doing so will not create an inordinate number of manufacturers of the product, and the manufacturer meets ADQ’s then- current requirements. We and ADQ will not make product specifications available to you, but on request will provide summary specifications to you to provide to a manufacturer to determine if there is an interest in producing the product. ADQ will provide a manufacturer with detailed written specifications for the product, or, if detailed written specifications are not available, ADQ will provide the manufacturer with a parameter specification or information about a comparison product for purposes of obtaining approval of the alternate manufacturer. ADQ may require you and the manufacturer to sign a non-disclosure agreement before providing information on specifications. ADQ uses the following criteria, which ADQ may change periodically, when evaluating an alternate product or manufacturer: • Compliance with ADQ’s specifications • Ability to supply a large number of DQ stores and restaurants or geographic areas • Ability of facility to meet ADQ’s requirements and accessibility for periodic evaluations • Completion of a successful facility inspection by ADQ and/or a designated 3 rd party auditor that, depending on the product, may need to be certified by a Global Food Safety Initiative (GFSI) recognized scheme • Acceptable food defense plan, supplier specification, HACCP plan, product recall process, 24 hour contact information, and allergen control program • Manufacturer attendance at meeting with ADQ’s Research & Development staff to review specifications and related procedures • Compliance with other requirements as may be periodically implemented ADQ (or a 3rd-party product evaluator) may charge the evaluation cost to you or the manufacturer. ADQ also may charge the manufacturer for the cost of periodic reviews of existing products and manufacturing facilities, and may require the manufacturer to submit products and make payments to 3rd-party product or facility evaluators. Fees charged are based on a schedule of fees as may be established periodically by ADQ or the 3 rd-party evaluator. The manufacturer must provide samples (ultimately from a production run), product labels, and packaging for the alternate product. ADQ or a 3 rd-party product evaluator will conduct an evaluation of 1 or more samples to determine if the manufacturer’s product conforms to ADQ’s specifications. The evaluation may take from 90 to 180 days or significantly more, depending on the complexity of the product, the specifications, the comparison product, and the manufacturing process, as well as the manufacturer’s ability to provide samples and any required modifications on a timely basis. Before final approval, ADQ may require that a product successfully complete a field and distribution test where the product moves through a warehouse and is used in DQ stores and restaurants, which may take an additional 30 to 60 days or more. ADQ will notify you and the manufacturer of the approval or rejection of the manufacturer or product. If the manufacturer or product is not approved, ADQ or a 3rd-party product evaluator will notify you and the manufacturer of the basis for the decision.

RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES Required Purchases You must maintain and comply with our and ADQ’s quality standards to protect the uniformity and quality of products and services throughout the DQ system. While you are not required to purchase or lease real estate from us, ADQ or its affiliates, we must approve the location of your store or restaurant (see Item 11), and we have the right but not the obligation to approve the lease for the store or restaurant premises before execution. You must construct and equip your store or restaurant according to our and ADQ’s then-current designs, specifications and standards. You must ensure that your building plans comply with the Americans With Disabilities Act and all other federal, state and local laws and regulations. You may only use or purchase products approved by us and ADQ that meet our and ADQ’s specifications. For purposes of this Item 8, “products” include products, services, ingredients, supplies, signage, fixtures, furnishings, advertising and sales promotion materials, and equipment (including hardware and software for a computerized electronic point-of-sale (“EPOS”) system and/or other computer systems, communications equipment, or electronic services providers). Approved products generally must meet our and ADQ’s specifications, and are manufactured, provided or prepared by ADQ approved manufacturers, suppliers or distributors. We and ADQ periodically identify approved products for use in DQ locations, and have the right to periodically change the list of approved products, and to update and alter the specifications for approved products. ADQ always has the right to designate a single approved manufacturer, supplier or distributor for the following products: (1) soft drinks; (2) 3 rd party branded products; (3) products relating to limited time offers and special promotions; (4) equipment, including EPOS equipment and all related point-of-sale and web based software and back-office hardware and software; (5) any product you purchase where ADQ does not receive a fee or payment from the manufacturer with respect to the sale of that product, other than payments from suppliers for marketing; and (6) the Orange Julius proprietary powders and frozen orange juice concentrate (if Orange Julius products are permitted to be sold at your store or restaurant). For other products not listed in (1) - (6) above, as long as there is not in place an agreement for a “unified purchasing program,” a franchisee or subfranchisee may make written request for approval of a specific product, service or piece of equipment of an additional, qualified manufacturer, supplier or alternate distributor, pursuant to ADQ’s then-current policies and procedures. ADQ has received and offered proposals to create a unified purchasing program as a joint effort between ADQ and a cooperative association of DQ restaurant and store operators, to benefit the entire DQ system in the United States. For any period during which there is an agreement for a unified purchasing program: (1) ADQ will designate as approved the manufacturers, suppliers or distributors properly selected within the structure of that program; and (2) ADQ has the right to designate a single approved manufacturer, supplier and/or distributor of any approved products. ADQ has designated ParTech, Inc. as the sole supplier of the required EPOS system hardware and software that you must purchase for your store or restaurant. You must sign an agreement with ParTech for the purchase of the equipment, software subscription services, and DQ-Virginia-0625 26 81975192;1 installation and other services (“ParTech Participation Agreement”), when you sign your operating agreement. ADQ also has designated: (a) ParTech, Inc. Data Central as the sole supplier of the back office software you must purchase for reporting and labor and inventory management; (b) Fiserv (formerly, FirstData Merchant Services) as the sole supplier of payment card processing and related services you must purchase; (c) Verifone as the sole supplier of certain payment card data encryption services that you must purchase; (d) ValueLink, LLC as the sole supplier of the gift cards and related services you must purchase; (e) Olo as the sole supplier of the DQ Mobile Ordering system; (f) Punchh Inc. as the sole supplier of the DQ Mobile Loyalty platform that you must purchase; (g) Acumera as the sole supplier of managed firewall services you must purchase; and (h) Cineplex Digital Media Inc. as the sole supplier of the digital menu boards you must purchase. Copies of the third-party participation agreements, if any, that you must sign with ParTech, Fiserv, Verifone, ValueLink, Olo, Punchh, Acumera, and Cineplex are included in Exhibit E in this disclosure document. When you sign your operating agreement, you must also sign the then-current participation agreements offered by the third-party suppliers listed above. ADQ has the right to designate suppliers in place of or in addition to these suppliers. The operating agreement requires you to purchase and maintain, at your expense, general liability insurance and business interruption insurance, as described in Item 6. The operating agreement permits us periodically to require the same types of insurance with increased coverage minimums, and to require different or additional types of insurance, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. You also must purchase and maintain any other insurance required by law or any agreement related to the subfranchised business. You must furnish copies of all insurance certificates to us. ADQ has arranged with a 3 rd party insurer to make certain insurance, including general liability insurance, available to qualifying franchisees and subfranchisees. We or ADQ may require you to periodically purchase restaurant training materials from ADQ. See Items 6 and 11 for more information. ADQ estimates that the purchase or lease of equipment (including computer and EPOS system hardware and software), signage, fixtures, furnishings, products, ingredients, supplies, advertising and sales promotion materials (see Item 11 for information on advertising and sales promotion materials), and services which meet ADQ’s specifications represent about 65% to 85% of the cost to establish the subfranchised business (excluding land) and 30% to 50% of the cost to operate the subfranchised business. We and ADQ provide no material benefit (such as renewal or granting additional subfranchise or franchise rights) based on your purchase of particular products or services or use of particular suppliers, but your operating agreement obligates you to use products and services approved by us and ADQ. We consider a number of factors when determining whether you might qualify for an additional subfranchise, including compliance with your operating agreement and support of our and ADQ’s programs and policies. Approval of Alternate Suppliers ADQ has the right to approve the manufacturer, supplier or distributor of any approved products you purchase. If there is no agreement in place for a unified purchasing program, you may request approval in writing of a specific product from an alternate manufacturer, supplier or distributor of products other than those listed in (1) - (6) in the “Required Purchases” section above DQ-Virginia-0625 27 81975192;1 in this Item 8. ADQ only approves alternate manufacturers for products if doing so will not create an inordinate number of manufacturers of the product, and the manufacturer meets ADQ’s then- current requirements. We and ADQ will not make product specifications available to you, but on request will provide summary specifications to you to provide to a manufacturer to determine if there is an interest in producing the product. ADQ will provide a manufacturer with detailed written specifications for the product, or, if detailed written specifications are not available, ADQ will provide the manufacturer with a parameter specification or information about a comparison product for purposes of obtaining approval of the alternate manufacturer. ADQ may require you and the manufacturer to sign a non-disclosure agreement before providing information on specifications. ADQ uses the following criteria, which ADQ may change periodically, when evaluating an alternate product or manufacturer: • Compliance with ADQ’s specifications • Ability to supply a large number of DQ stores and restaurants or geographic areas • Ability of facility to meet ADQ’s requirements and accessibility for periodic evaluations • Completion of a successful facility inspection by ADQ and/or a designated 3 rd party auditor that, depending on the product, may need to be certified by a Global Food Safety Initiative (GFSI) recognized scheme • Acceptable food defense plan, supplier specification, HACCP plan, product recall process, 24 hour contact information, and allergen control program • Manufacturer attendance at meeting with ADQ’s Research & Development staff to review specifications and related procedures • Compliance with other requirements as may be periodically implemented ADQ (or a 3rd-party product evaluator) may charge the evaluation cost to you or the manufacturer. ADQ also may charge the manufacturer for the cost of periodic reviews of existing products and manufacturing facilities, and may require the manufacturer to submit products and make payments to 3rd-party product or facility evaluators. Fees charged are based on a schedule of fees as may be established periodically by ADQ or the 3 rd-party evaluator. The manufacturer must provide samples (ultimately from a production run), product labels, and packaging for the alternate product. ADQ or a 3 rd-party product evaluator will conduct an evaluation of 1 or more samples to determine if the manufacturer’s product conforms to ADQ’s specifications. The evaluation may take from 90 to 180 days or significantly more, depending on the complexity of the product, the specifications, the comparison product, and the manufacturing process, as well as the manufacturer’s ability to provide samples and any required modifications on a timely basis. Before final approval, ADQ may require that a product successfully complete a field and distribution test where the product moves through a warehouse and is used in DQ stores and restaurants, which may take an additional 30 to 60 days or more. ADQ will notify you and the manufacturer of the approval or rejection of the manufacturer or product. If the manufacturer or product is not approved, ADQ or a 3rd-party product evaluator will notify you and the manufacturer of the basis for the decision.

The above amounts include amounts spent on audits, the Children’s Miracle Network, certain point-of-sale items, research, and FAC. The above percentages vary if you calculate the allocations at the individual restaurant level, by area or group of restaurants, or by type of DQ or Orange Julius business. Except as described in this paragraph, sales promotion program fees that are not spent in any fiscal year will be carried over for future use. In addition to its other programs, ADQ has the right to offer a local reimbursement or online credit program to certain franchisees or subfranchisees if ADQ determines that the reimbursement is warranted for a particular store or restaurant. The availability of this program for a store or restaurant may be for a variable period of time and a variable amount of money, depending on the individual circumstances. If ADQ establishes such a program for your store or restaurant, you may request reimbursement (or online credit, depending on the system available) of all eligible types of local media, promotions and promotional items you purchase up to the amount that has been determined by ADQ for your store or restaurant. Unreimbursed funds at the end of the applicable period will not be carried over for future use by the particular store or restaurant, but will be used for other sales promotion activities in the DQ system as determined by ADQ. DQ-Virginia-0625 37 81975192;1 Electronic Point-of-Sale System and Other Computer Systems You must purchase, install and maintain an electronic point-of-sale (“EPOS”) system at your DQ store or restaurant, as designated by us and ADQ. The EPOS system includes designated hardware, software, peripherals, back office workstation, a managed firewall and installation. If you are opening a new DQ store or restaurant, you must purchase all of the components of the EPOS system from our and ADQ’s designated suppliers (see Item 8). The estimated initial cost to purchase the EPOS system hardware and installation from ADQ’s designated supplier ParTech, Inc., hardware for the Acumera managed firewall, and the launch fee for the Data Central back office software, will range from about $20,800 to $25,700 for a DQ Treat store, or about $25,500 to $33,000 for a DQ Grill & Chill restaurant. The EPOS system is an electronic cash and credit management system, which provides an interface for processing customer orders, collecting and managing information about the nature of sales transactions, providing financial records of those transactions, managing product inventory, and providing time and attendance functionality for your employees. The EPOS system will collect and report to us and ADQ a variety of information including overall sales, sales levels by item, item menu pricing, product movement statistics, individual unit and category sales data (including by flavor and size), various financial information to prepare store of restaurant reports, and other information. The EPOS system may contain components that support personnel-related functions, such as employee timekeeping, employee scheduling and payroll processing. Your use of those components is non-mandatory. You are permitted to use those non-mandatory components on terms we specify, or you have the right to use alternate software of your choosing to handle personnel-related functions in any other manner that you choose. Neither we, nor ADQ, nor any of our or ADQ’s affiliates, is obligated to provide any ongoing maintenance, repairs, upgrades or updates to you. You must pay ADQ’s designated supplier for ongoing hardware warranty services for the EPOS system, which cost about $46 to $118 per month for a DQ Treat store, or about $72 to $150 per month for a DQ Grill & Chill restaurant, depending on the warranty package you choose. In addition, as part of the ongoing software fees you will pay to some of the designated suppliers, the suppliers are obligated to provide certain maintenance and repair services for their software. You must make periodic upgrades and updates to the EPOS system, and there are no contractual limitations on the frequency and cost of this requirement. To enable us and ADQ to access the EPOS system, you must install one DSL or cable/broadband Internet connection, or other necessary communication access device, that is exclusively designated and permanently connected to the EPOS system. There are no contractual limitations on our and ADQ's right to access the information generated by the EPOS system, although we or ADQ may choose not to poll information from all stores and restaurants. In addition to paying initial costs for the EPOS system, you must pay monthly service fees for the ParBrink, Data Central, Olo and Punchh software for the EPOS system, back office systems, and mobile app ranging from $408 to $481 per month for a DQ Grill & Chill restaurant, or from $370 to $413 per month for a DQ Treat store. You also must pay Olo a per transaction fee of 0.25% for each order processed by Olo. Help desk and software support costs are included in these monthly service fees. Copies of the participation agreements that you must sign with these vendors are included in Exhibit E in this disclosure document. DQ-Virginia-0625 38 81975192;1 You must have access at all times to the Internet, must maintain and regularly use an active email account or other form of electronic communication that we and ADQ designate, and must keep us and ADQ informed of your contact information. You must purchase and maintain a monthly subscription service for credit card processing, which includes the TransArmor solution encryption, from ADQ’s designated supplier Fiserv (formerly, First Data). The cost for credit card processing is about 2% - 5% of the total amount of each sale made using an approved credit card, and the cost for the TransArmor Solution is $19.95 per month. You also must purchase and pay for Verifone payment card data encryption services at a cost of about $10 per terminal per month, and for a Verifone payment device warranty at a cost of about $80 per device per 3-year warranty. You also must purchase and maintain a managed firewall service from ADQ’s designated suppler Acumera. The cost for this service is about $51 per month. Also, you must comply with Payment Card Industry (PCI) Data Security Standards: https://www.pcisecuritystandards.org/. While you are not required to engage a 3rd party supplier to ensure compliance with PCI Data Security Standards (unless otherwise required to do so by your card processor), we and ADQ recommend that you do so, and ADQ estimates the initial cost of this to be $200 - $2,000, with an ongoing monthly fee of up to $100. You must participate in the system-wide gift card program administered by ValueLink, LLC and DQGC, and must sign the gift card participation agreement included in Exhibit E in this disclosure document. Gift card program fees are allocated based on a shared cost model between subfranchisees, franchisees and the NMF. Currently, DQ franchisees and subfranchisees pay fees equaling 3% of total gift card redemptions, which ADQ estimates will be about $200 per year per location. The NMF covers the balance of the gift card program's costs. In the future, the percentage allocation of costs between subfranchisees, franchisees and the NMF may change. These costs are in addition to any costs incurred by you in purchasing gift cards. All of the fees referenced in this section are to subject to change from time to time.

You must purchase and maintain a monthly subscription service for credit card processing, which includes the TransArmor solution encryption, from ADQ’s designated supplier Fiserv (formerly, First Data). The cost for credit card processing is about 2% - 5% of the total amount of each sale made using an approved credit card, and the cost for the TransArmor Solution is $19.95 per month. You also must purchase and pay for Verifone payment card data encryption services at a cost of about $10 per terminal per month, and for a Verifone payment device warranty at a cost of about $80 per device per 3-year warranty. You also must purchase and maintain a managed firewall service from ADQ’s designated suppler Acumera. The cost for this service is about $51 per month. Also, you must comply with Payment Card Industry (PCI) Data Security Standards: https://www.pcisecuritystandards.org/. While you are not required to engage a 3rd party supplier to ensure compliance with PCI Data Security Standards (unless otherwise required to do so by your card processor), we and ADQ recommend that you do so, and ADQ estimates the initial cost of this to be $200 - $2,000, with an ongoing monthly fee of up to $100. You must participate in the system-wide gift card program administered by ValueLink, LLC and DQGC, and must sign the gift card participation agreement included in Exhibit E in this disclosure document. Gift card program fees are allocated based on a shared cost model between subfranchisees, franchisees and the NMF. Currently, DQ franchisees and subfranchisees pay fees equaling 3% of total gift card redemptions, which ADQ estimates will be about $200 per year per location. The NMF covers the balance of the gift card program's costs. In the future, the percentage allocation of costs between subfranchisees, franchisees and the NMF may change. These costs are in addition to any costs incurred by you in purchasing gift cards. All of the fees referenced in this section are to subject to change from time to time.