HONEST1 AUTO CAREHONEST1

Item 8

You must also use our approved accounting service for a minimum of twelve months.

Item 11

We will have independent access to information and data that is electronically collected.

Item 8

We are not currently an approved supplier of any item except our business coaching services and except that we will collect a Technology Fee (and any data overage charges) from you for services provided by us or authorized vendors that we work with on system-related technology services, programs and platforms.

Item 11

The Franchisee Advisory Committee (“FAC”) advises us on the National Fund.

Item 11

If during the term of the franchise we change our requirements for the Website, you must change to the then current Website service and pay the related fees.

Item 8

For the year ending December 31, 2024, we collected $28,260 from our franchisees for their purchases of products or services from us, and which collectively is <1.0% of our total revenues of $6,442,607.

Item 8

We may derive revenue from certain of these suppliers, such as a rebate or commission based on sales to our franchisees.

Item 8

We estimate that your purchases from approved suppliers will represent approximately 60% to 85% of your total purchases in establishing your Center, and approximately 85% in the continuing operation of the Center.

Item 8

We may impose a charge for our evaluation of a new supplier that you propose, not to exceed the reasonable costs of inspection and testing, which would be paid by you or the supplier.

Item 8

If you wish to procure any items from a supplier other than a supplier we designate, you must obtain our approval in writing (see Section 5.14) of the proposed supplier, its name and address, and the items you desire to purchase from that supplier.

Item 11

You must participate in all customer survey programs, database marketing and other local programs as we may require and you will pay the costs for PH 3974608.8 03/2025 22 H1 2025 F.D.D.

Item 11

Conducting as we deem advisable, quality control audits of the franchised business and its operations and evaluations of the methods and the staff employed therein.

Item 12

You are granted the right, and you undertake the obligation, to operate an “Honest1” Center at a site we approve.

Item 11

You may not advertise or place your own social media postings on any social and/or networking Websites, such as Facebook, YouTube, Pinterest, SnapChat, Instagram, TikTok, LinkedIn and X without our prior written consent and, if we were to grant consent, then you may only use the supplier or wording that we designate.

Item 7

You are required to spend between $48,000 and $72,000, depending on your location, on grand opening advertising and initial marketing during the first six months of operation.

Item 11

You must spend no less than $4,000 a month on Local Advertising.

Item 11

If there are other franchisees in your local advertising cooperative area or designated market area marketing group, then you will be required to participate and pay your proportional share.

Item 8

All tools, equipment, uniforms, office supplies, marketing and other materials required to operate your Center must be obtained from suppliers that we designate or approve.

Item 8

All tools, equipment, uniforms, office supplies, marketing and other materials required to operate your Center must be obtained from suppliers that we designate or approve.

Item 6

We will collect your Royalty Fees via electronic funds transfer.

Item 15

If you are a corporation or other form of legal entity, you must appoint a designated representative for the entity.

Item 8

All tools, equipment, uniforms, office supplies, marketing and other materials required to operate your Center must be obtained from suppliers that we designate or approve.

Item 11

You must purchase the computer system we require, including the point of sale and shop management system, the point-of-sale and shop management software package, digital inspection and workflow management software and information system; the repair reference software; and a vehicle diagnostic code scanner.

Item 11

We will have independent access to information and data that is electronically collected.

Item 11

You must also use our approved intranet platform, website, CRM and learning management systems.

Item 11

We may require any of your principals or employees who become actively involved in the management of your Center to successfully complete any training programs we require.

Item 11

We will hold periodic conventions or meetings of our franchisees, which we expect to hold every 12 to 24 months, and you must attend all conventions/meetings, unless expressly excused from a specific convention/meeting in writing by us.