Authority to Proceed

1. The Deposit is Refundable.

2. The Franchisor acknowledges that the deposit sum of $15,000 forms part of the initial Franchise Fee .

3. If the Authority to Proceed is withdrawn or cancelled in writing before issue and/or signing the Franchise Agreement, the Franchisor will refund $15,000 to the Applicant.

4. The offer is subject to and conditional upon a suitable property Lease being negotiated for the approval of the Applicant and the Applicant being approved by the Lessor.

a. Lease term of 7-10 years

b. Options for further terms of 5*5 years or similar

c. A rental range of $125,000 – $175,000 per annum

d. As per the Agreed Terms negotiated with the Lessor

5. The offer is subject to the Franchisors approval of the Applicant and the issue of a Franchise Agreement in line with the property Lease.

a. Franchise Agreement of 7-10 years or similar

b. Options for further terms of 5*5 years or similar

c. As per the Agreed Terms negotiated with the Lessor

6. The Franchisor agrees to an Initial Franchise Fee of $70,000 + GST payable as per the Chipmunks Store Set Up and Payment Timeline.