Teapioca International Franchisee Lease Policy:

Franchisees are required to submit all LOI/Leases for Teapioca International’s (“TPI”) review. The scope of TPI’s review is limited to ensuring the LOI/Lease meets Teapioca Lounge brand standards and certain Franchisee protective provisions as stated in the FDD. TPI will not review every detail of the LOI/Lease and will not negotiate with the landlord on behalf of franchisees. It is each franchisee’s responsibility to obtain the services of a commercial real-estate agent and/or attorney who is qualified to conduct a full and thorough review and negotiation of your LOI/Lease, for your benefit and protection. The lease is an agreement that is between the landlord and the franchisee. It will be the franchisee’s responsibility to understand fully the
entirety of the LOI/Lease and any negotiated terms.

   ● TPI provides the Required Lease Rider which has the minimum brand standards of Teapioca Lounge. These minimums include exclusivity, signage, and use language amongst others. However, it remains the franchisee’s responsibility to negotiate protections above and beyond the minimum brand standards wherever possible or
desired by the franchisee.

   ● TPI reserves the right to reject any LOI/Lease that does not meet the minimum brand standards outlined in the Required Lease Rider, or any LOI/Lease that is not in the best interest of the brand, in TPI’s sole discretion. Franchisee should not enter into a lease
that TPI has rejected.

   ● The franchisee is responsible for the terms in the lease during the term of the lease. This includes any litigation, conflicts, or violations between franchisee and the landlord. TPI always recommends franchisees retain the services of a commercial real-estate attorney to review and negotiate the lease for the best protection.

   ● TPI is committed to protecting the Teapioca Lounge brand, and every franchisee’s investment. Please rest assured that every lease is reviewed through the same process.

Teapioca International will assist every franchisee in their site selection and leasing process as much as possible for everyone’s benefit.