1

FRANCHISE INFORMATION

REPORT

2

TABLE OF CONTENTSABOUT US ..................................................................................3

SAME NAME, BUT WITH A NEW LOOK ...................................4

OUR TEAM .................................................................................5

OUR PRODUCTS ........................................................................ 7

FRANCHISEE SUPPORT ...........................................................8

WHAT’S THE BAD ASS ADVANTAGE? .....................................8

DO YOU HAVE WHAT IT TAKES TO BE A BAD ASS? ........... 11

INVESTMENT ..........................................................................12

REAL ESTATE ..........................................................................13

10 STEPS TO BECOMING A BAD ASS ...................................14

TERRITORIES AVAILABLE .....................................................16

FREQUENTLY ASKED QUESTIONS ........................................16

3

ABOUT US

AUTHENTIC HAWAIIAN GROWN COFFEES WITH OUR FAMOUS ALOHA SPIRIT In 1989, Bad Ass Coffee of Hawaii was born on the Big Island of Hawaii with a goal of sharing American-grown, premium Hawaiian coffee from Kauai, Oahu, Maui, Molakai, and 100% Kona and Ka’u coffees from Hawaii with coffee lovers everywhere. We moved to Salt Lake City, UT, and opened our first Bad Ass Coffee of Hawaii store in 1995 and began franchising on the mainland.

Today, Bad Ass Coffee of Hawaii serves premium Hawaiian and other top international coffees with a kick. Bad Ass Coffee franchises don’t stop there. We also serve popular blended drinks, teas, food and branded merchandise with exceptional service through 24 stores in the United States, US Virgin Islands and Japan.

WE EMBODY THE ALOHA SPIRIT In 2019, Royal Aloha Coffee, LLC purchased the rights to the Bad Ass Coffee of Hawaii brand and in 2020 launched a rebranded Bad Ass Coffee experience with a new logo, packaging and store design all supported with a vision and investment for future growth and success. The opportunity to get in on this hot concept has never been better.

ARE YOU READY TO BECOME A BAD ASS?

4

SAME NAME, BUT WITH A NEW LOOKATTENTION-GRABBING WITH A ‘WINK’ OF FUNWe like to think that there’s a little Bad Ass attitude in every bean we roast and every cup we brew for our customers. We’re stubborn about ensuring the highest quality of our beans and we’re dedicated to reliably making you the perfect cup every time. Bad Ass Coffee of Hawaii hand selects and roasts our own Hawaiian coffee beans and other international coffees with your perfect cup of coffee in mind.

THE BAD ASS LEGENDWith a name like Bad Ass Coffee, it’s easy to get confused, or even forget about the little guy who inspired our name and holds a special place in Hawaiian Coffee history.

For generations, the donkeys of Kona, Hawaii, could be heard bellowing as they carried precious loads of coffee beans down the steep mountains of the Big Island. The native people of Kona named these hard-working donkeys the “Bad Ass Ones” because of their reliably strong, but stubborn nature in carrying their precious cargo.

The legends of those hard-working donkeys live on today at Bad Ass Coffee of Hawaii where we’re stubborn about our sourcing, roasting and serving quality Hawaiian coffee while doing so with the Aloha Spirit.

5

SCOTT SNYDER Scott is the Chief Executive Officer and brings over 35 years as an accomplished business owner, executive, award-winning marketing strategist and business consultant with a consistent track record of transforming early stage brands into category contenders, and re-inventing existing brands to realize new levels of success. Prior to Royal Aloha Franchise Company, Scott was a consulting CEO for Bad Ass Coffee

of Hawaii. Snyder was also a founder of Xylem Digital, an international digital marketing agency that facilitated the rapid growth and expansion

of nearly 40 brands in the food & beverage space including Chipotle, Jimmy John’s, Jamba Juice, Einstein Brothers, Red Robin, Jack Links, Chili’s, Church’s

Chicken, Fresh Express/Chiquita, Noodles and more. Outside of coffee, Scott is an avid sailboat racer and also enjoys skiing with his wife in Colorado.

Favorite Coffee: Pele’s Blend offers such a complex flavor profile by combining the smooth flavor and finish of Kona Coffee with other bold international coffees to produce a truly unique experience.

DOUG AVRIN Doug is the Executive Vice President of Sales and is in charge of new franchise development. Doug gets to utilize his nearly thirty years of expertise in customer experience, sales process and strategy in this position. He has built a long career of setting his customers up for success and is now leveraging his experience from his time in the commercial insurance category into the exciting coffee franchise category. Doug resides in Denver, Colorado, with his wife, his teenage

daughters and his two retrievers Claude and Lucy.

Favorite Coffee: 100% Kona French Roast because I love treating myself to the smoothest, easy drinking coffee from the best place on the planet!

WILLIAM BRAND William is the Chief Financial Officer and has full oversight of company financials and strategy. Will served as Chief Financial Officer for Verdeam, LLC, a real estate investment fund located in Lakewood, Colorado. Prior to that, William served as Director of Finance for Denovo, a managed services and software company, and was also a Manager at Charter Communications, an internet service provider located in Denver, Colorado.

Favorite Coffee: For every day, Pele’s Blend because it offers such a balanced and fulfilling flavor. But for a treat, you can’t beat the decadent

taste of 100% Kona French Roast.

MEET OUR TEAM

6

CONNIE ALEXAKOS Connie is the Vice President of Franchise Operations and oversees the day-to-day performance and development of all Bad Ass Coffee of Hawaii franchisees. Connie began her role with Bad Ass Coffee over 23 years ago when the company was headquartered in Hawaii. She brings decades of retail operations, visual merchandising and development experience from prior key management positions with The Nature Company, Disney Stores, and Gymboree. When she’s not sipping the next great Bad Ass Coffee

blend, she’s an avid skier and loves spending time with her grandchildren.

Favorite Coffee: I like Pele’s Blend because it has a lot of depth with deep, dark, rich flavor that is naturally sweet without having any sugar.

CHRIS RUSZKOWSKI Chris is the Vice President of Marketing and oversees marketing communications, brand vision and advertising planning which includes social media and local store marketing for each of our valued Bad Ass Coffee franchise owners. Chris brings over twenty years of big brand advertising and communications knowledge to the team with experience marketing brands including Quiznos, McDonalds, Breckenridge Brewing, Einstein Bros, Zeps Epiq Sandwiches, Visa and Frito Lay. Outside of work, Chris

is busy raising four boys with his wife outside of Denver, Colorado. On the weekends he can typically be found out on his mountain bike, a hiking trail or

keeping score at the sports fields.

Favorite Coffee: Hawaiian Signature Blend, Volcanic Roast because I love a good dark roast and the volcanic roasts are about as good and dark as it gets!

SUSAN SAUERSusan is the Vice President of Franchise Success and brings nearly 40 years of franchise restaurant operations & training experience to Bad Ass Coffee of Hawaii having spent the last 18 years with The Wendy’s Company in the roles of Franchise Market Consultant, Area Director, and Field Training Manager. Sue will oversee the day-to-day performance,

training, and development of all Bad Ass Coffee of Hawaii franchisees.

CASSIDY MODANLOU Cassidy is a Sales Coordinator at Bad Ass Coffee of Hawaii, assisting in areas of

sales, marketing and operations. Prior to joining the team, Cassidy spent over a decade in the pharmaceutical industry with positions in sales and marketing.

Along with owning her own company with a focus on building a robust client list, she spent three years in event planning with customer success and satisfaction as top objectives. Cassidy lives in Denver, Colorado, with her husband, their two sons, and their rescue pup, Daphne. When she is not cheering for her kids on the sidelines of sporting events or traveling with her family, she most enjoys relaxing with a good book while drinking a cup of coffee.

Favorite Coffee: 100% Kauai Full City Roast. I love a cup of coffee that delivers a smooth, velvety finish that I can drink all day long!

7

OUR PRODUCTSTHE HAWAIIAN COFFEE DIFFERENCEBad Ass Coffee prides itself as a leader in sharing a wide variety of Hawaiian coffees to the mainland. While all of the Hawaiian Islands produce different varieties of coffees based on the elevation where they’re grown or their weather conditions, what they all have in common is a volcanic soil that is rich with minerals, which encourages the growth of healthy coffee trees. The unique weather on the islands also creates the perfect balance of temperature, rain, sun and shade with low winds to produce coffees that are mild in taste and low in acidity.

Hawaiian coffees are most often enjoyed as 100% Single Origin coffees for their hint of bright fruit flavors, brown sugar notes or hints of honey and even berries, but also have been known to compliment other international coffee blends for the smooth finish that they provide.

Our dedication to sharing Hawaiian coffee starts with our longstanding partnerships with multi-generational Hawaiian coffee farmers. We embrace their unique practice of harvesting some of the highest quality coffee beans in the world and we take pride in offering these superior coffees to our customers through our franchise locations.

While we’re known for bringing the very best of Hawaiian Coffees to coffee lovers everywhere, we’re famous for being one of the few to specialize in 100% Kona Coffees - often referred to as the “King of Hawaiian Coffee”.

KING OF THE ISLANDThe coffee plant was brought to the Kona district in 1828 by Samuel Reverend Ruggles from Brazilian cuttings. Henry Nicholas Greenwell, an English merchant, moved to the area and established Kona coffee as a recognized brand later in

the 19th century. Five generations later, Greenwell Farms is still growing coffee, is the oldest coffee farm on the Hawaiian Islands and we’ve been proud to call them our partner for over 30 years.

GROWN RIGHTKona Coffee is distinguished from coffees worldwide by the tremendous extra care taken throughout each and every step of the growing & hand-picked harvesting process that produce a one-of-a-kind coffee experience.

Grown on the mountain slopes of Hualalai and Mauna Loa volcanos, coffee from the Kona Region of Hawaii develops its signature taste from tropical, sun-drenched mornings and misty afternoons. The end result is a coffee that is delicate yet flavorful, medium-bodied, slightly acidic and has a deliciously rich aroma. These excellent qualities have made Kona coffee one of the most highly valued and loved coffees in the world.

8

WHAT’S THE BAD ASS ADVANTAGE?An in-store experience unlike any in the marketplace. Warm, inviting and filled with the “Aloha Spirit” from the moment you walk in, to the comfort and relaxation you experience while you enjoy a taste of Hawaii.

A disruptive brand identity that grabs customer’s attention, is memorable and is loved by all who experience it.

Superior coffee products representing the Islands of Hawaii, including world-renowned 100% Kona coffee, unique Hawaiian coffees with a kick, as well as select international coffees and teas.

A unique coffee shop model that features premium quality coffee, balanced with a growing food menu and bolstered by highly desirable branded merchandise.

Access to comprehensive marketing, operations and business consulting expertise. All of our resources are tailor-made for your operational success.

‘Ohana! That’s Hawaiian for family. As a franchisee, we welcome you to our family in every respect. We take care of each other and want the best for our ‘ohana.

FRANCHISEE SUPPORT Once you become a Bad Ass, you’re a part of the ‘ohana (family) - and we never let our family down. We’re here to help you succeed in every aspect of opening your store,

from development and training to offering ongoing support.

Your success is our success, so we’re committed to providing you with expert advice, resources and ongoing support for the major areas of your operation to ensure that your success continues to grow over the life of our partnership together.

TRAININGOur Bad Ass Coffee training team provides all franchise owners and managers with comprehensive training on the processes and procedures that are critical to operating your Bad Ass Coffee store successfully in compliance with our brand and operations standards. Our initial 5-day training program takes places approximately 4-5 weeks prior to your store opening in our Salt Lake City, UT, training store and includes a combination of classroom and hands-on, in-store learning sessions. Trainees are

9

introduced to every element of store and business management, coffee education, drink & food preparation, point-of-sale usage, visual merchandising and more. Approximately one week before your store opens, we conduct a “Training Tune Up” – this time in your own store and using your own equipment to ensure that you and your team have the training neccessary to run your store successfully and that your opening is nothing short of Bad Ass.

REAL ESTATEThrough strategic partners, we work with our franchisees during their site selection process to ensure that you’re positioned for success. Immediately after franchise orientation, we’ll work with you and a strategic real estate partner to identify key location attributes and requirements to begin your search. Throughout the selection process, our operations team will consult with you and assist in narrowing down your available options until a final location is identified and approved by our team. Our

strategic partner will then continue their work with you until a final lease for your location is acceptable to you and approved by our team.

CONSTRUCTIONThrough our operations team and strategic construction partners, we’re able to provide you with all of the tools you need to build your Bad Ass Coffee of Hawaii store. Whether you’re building from the ground up or building out an existing space to our brand and operations standards, the operations team and construction partners will guide you through every step of the construction process, including store design, project management, turnkey construction services, contractor selection assistance and equipment and décor purchasing. From architectural drawings to the final walk-through of your new store, we’re here to ensure that your store opens on-time, on-budget and ready to be Bad Ass.

10

MARKETINGBad Ass Coffee marketing is designed to “kick” your local community advertising and communications into motion.

We have a proud and differentiating name and story to tell. Our customers are part of our ‘ohana (family) and we have found that our family members love to help us share our story. Social media plays a big role in our marketing mix.

The goal of Bad Ass Coffee marketing support is to drive traffic into your store with a comprehensive local store marketing plan. Even after the big splash of a franchise grand opening, the Bad Ass Coffee marketing team continues to work with franchise owners providing advice, planning and access to exclusive Bad Ass Coffee marketing resources to effectively plan and execute sustained advertising and marketing tactics that start within the four walls of your store and expand out into your community. We may have roots in Hawaii, but we provide tools and guidance aimed to grow your success in the communities you choose to open your Bad Ass Coffee franchises.

OPERATIONSThe Bad Ass Coffee of Hawaii operations team begins working with you from the day you sign your franchise agreement and is by your side through every step of the store opening process to ensure that you’re 100% ready to share the Aloha Spirit on opening day. Our team will assist you during the first few days that your store is open and we return to assist you with your grand opening. After your store is operating, our operations team will visit your store on a regular basis to provide training

and development, business performance consultation and feedback to ensure that your store is operating in accordance with Bad Ass Coffee’s brand and operations standards.

PURCHASINGOur affiliate, Royal Aloha Enterprises, works with suppliers, vendors and strategic partners to ensure that your store receives the highest quality products for the best prices possible. Our goal is to create a “one-stop” shopping experience for most of the critical day-to-day products and supplies that you need for your store operation. Our expert support team is always ready to assist by providing analysis, recommendations and advice to order what you need and when you need it in the most productive and efficient way possible!

11

DO YOU HAVE WHAT IT TAKES TO BE A BAD ASS? We’re looking for entrepreneurial franchise owners with business experience who love coffee and want to be a part of something big that delivers the Aloha Spirit to their customers while fueling their own inner Bad Ass every day. We’re seeking single and multi-unit franchise owners who meet a basic qualifying criteria that includes:

A plan or aspiration to open multiple units

Net Worth $600,000*

Liquid assets $150,000*

A Persistent entrepreneurial spirit

Business management expertise

A strong desire to be a part of a bigger ‘OHANA (family) that delivers the aloha spirit

every day

A love for a great cup of coffee goes a long way as

well!

KEYS TO FRANCHISE START-UP SUCCESS

X A solid business plan & a committment to executing on-time and on-budget

X Solid financial resources

X Location, Location, Location!

X An entrepreneurial spirit that anticipates challenges and utilizes problem-solving skills & creativity to achieve success

X An active partnership with the franchisor operations and marketing support teams

X Involvement in the community – a desire to make a difference

X A 100% committment to compliance with the franchise operations and brand model

X An abundance of the Aloha Spirit to share

12

TYPE OF EXPENDITURE AMOUNTMETHOD OF PAYMENT

WHEN DUETO WHOM PAYMENT IS TO BE MADE

Initial Franchise Fee $35,000* Lump Sum At Signing of Franchise Agreement Us

Building & Tenant Improvements

$50,000 - $250,000 As Incurred Before Opening Other Suppliers

Equipment, Furnishings & Electronics

$130,000 - $150,000 As Incurred Before Opening Other Suppliers

Signs $7,000 - $18,000 As Incurred Before Opening Other Suppliers

Point-of-Sale System, Software & Office Equipment

$4,000 - $9,000 As Incurred

Within 10 Days of Signing Lease for Software & Hardware. Before Opening for Office Equipment

Other Suppliers

Opening Inventory $10,000 Lump Sum when ordered Before Opening Our Affiliate

Security Deposits, Utility Deposits, Business Licenses

$5,000 - $10,000 As Incurred Before Opening Other Suppliers

Grand Opening Marketing Campaign $10,000 As Incurred Before Opening Us

Initial Training: Travel & Living Expenses

$3,000 - $5,000 As Incurred Before Opening Other Suppliers

Additional Funds (3 months) $25,000 As Incurred As Incurred Other Suppliers

TOTAL ESTIMATED INITIAL INVESTMENT* $279,000 - $522,000

*Source: 2020 Bad Ass Coffee of Hawaii Franchise Disclosure Document

IS FINANCING AVAILABLE?Yes. We offer referrals to several qualified outside resources that offer SBA and private funding programs for construction, as well as lease/purchase programs for equipment and other funding needed to open your Bad Ass Coffee of Hawaii franchise.

QUALIFICATIONS AND INVESTMENT

MONTHLY FEES: X Royalty - 5%

X Advertising Fee - 2%

QUALIFICATIONS*: X Minimum Net Worth - $600,000

X Minimum Liquid Capital - $150,000

13

REAL ESTATEIS BAD ASS COFFEE RIGHT FOR YOU? The location you choose for your Bad Ass Coffee of Hawaii franchise is one of the first and most critical decisions you’ll make. Through strategic partners, we work with our franchisees during their site selection process to ensure that they’re positioned for success.

Immediately after franchise orientation, we’ll work with you and a strategic real estate partner to identify key location attributes and requirements to begin your search. Throughout the selection process, our operations team will consult with you and assist in narrowing down your available options until a final location is identified and approved by our team. Our strategic partner will then continue their work with you until a final lease for your location is acceptable to you and approved by our team.

SITE CRITERIA

X High visibility location on main commuting thoroughfares

X Mixed-use urban residential/ commercial developments

X Tourist locations

X End-cap or freestyle building with drive-thru capability

X College Campuses

X High-traffic community centers

X Visible exterior building signage plus monument signage visible from primary street and parking

X Dedicated parking spots and curb-side pick-up parking

STORE DESIGN AND FEATURESBad Ass Coffee of Hawaii stores are unlike anything in the market today. Our new store design provides an escape from the ordinary with a warm and inviting sense of Hawaii where customers can relax, be themselves and fuel their inner Bad Ass. Store design and features include:

X A unique, memorable and enhanced customer experience

X Dedicated Bad Ass Coffee branded retail merchandise display

X The ideal place for meetings, small groups, students or telecommuters with comfortable seating space for couples, a community table and a relaxing sofa and chairs

X 1,650+ Square Feet (with or without Drive-Thru)

X Kitchen/storage area & equipment designed for a growing food menu

X Each store floor plan is custom designed for the available space to optimize customer flow, sales & overhead.

14

10 STEPS TO BECOMING A BAD ASS 1. ALOHA AND WELCOME!We are excited to share our story with you and look forward to learning more about you, your goals and interest in Bad Ass Coffee of Hawaii franchise ownership. Simply fill out the inquiry form and we will promptly contact you to discuss your inquiry and share our vision with you. You can also call toll free (833) 205-2224.

2. APPLY AND QUALIFYAfter an initial conversation, we’ll ask you to review our franchise qualification criteria and to submit a preliminary franchise application that helps us to quickly learn more about you and your qualifications to be successful as a Bad Ass Coffee of Hawaii franchise owner. Once you submit the preliminary application, we’ll discuss the next steps in our franchise process and ensure that we’ve answered all of your questions before proceeding.

3. FRANCHISE DISCLOSURE DOCUMENTOne of the most important steps in our franchise application process is the review of our Franchise Disclosure Document (FDD). The FDD is a legal disclosure document that must be given to individuals interested in buying a U.S. franchise as part of the pre-sale due diligence process. It contains information essential to potential franchisees about to make a significant investment. We share this document only with serious franchise candidates, so it’s important that we’re both in agreement to move forward with the franchise process.

4. DISCOVERY DAY AND STORE VISITThere’s nothing like seeing one of our stores up close, and there’s no better way to get to know each other than a face-to-face interview with the Bad Ass Coffee of Hawaii management team. We’ll meet at our West Jordan, UT (Salt Lake City), franchise training location or another location as designated by us. You’ll meet the franchise support team and get a first-hand opportunity to see the Bad Ass Coffee of Hawaii “Aloha Spirit” at work.

5. SIGN FRANCHISE AGREEMENTWe’d love to take your word for it, but our attorneys would prefer that you sign and submit the Franchise Agreement before we can officially welcome you to the Bad Ass Coffee ‘ohana (family). Once you sign your Franchise Agreement, you will officially begin the exciting process of opening your very own Bad Ass Coffee of Hawaii franchise!

14

15

6. LOCATION SELECTIONJust like buying a home, the location you choose for your Bad Ass Coffee of Hawaii franchise is one of the most critical decisions you’ll make. We’ll work with you and a strategic real estate partner to identify key location attributes and requirements to begin your search, narrow your options and ultimately help you choose an approved location.

7. ONBOARDINGThe Bad Ass Coffee of Hawaii operations team begins working with you from the day you sign your Franchise Agreement and is by your side through every step of the store opening process to ensure that you’re 100% ready to share the Aloha Spirit on opening day. It begins with a franchise orientation and follows with a series of strategic interactions throughout the construction and opening process to ensure that no details are left unaddressed.

8. CONSTRUCTIONWhether you’re building from the ground up, or building out an existing space to our brand and operations standards, the operations team and our construction partners will guide you through every step of the construction process, including store design, project management, turnkey construction services, contractor selection assistance and equipment and décor purchasing to ensure that your store opens on-time, on-budget and ready to be Bad Ass.

9. HANDS-ON TRAININGOur Bad Ass Coffee training team provides all franchisees with comprehensive pre-opening training on the processes and procedures that are critical to operating your Bad Ass Coffee store successfully and in compliance with our brand and operations standards. Trainees are introduced to every element of store and business management, coffee education, drink and

food preparation, point-of-sale usage, visual merchandising and more as necessary to run your store successfully.

10. GRAND OPENING AND ONGOING SUPPORTThe big day is finally here and we’ll be right there at your side. Big events require careful planning and our franchise support team will prepare with you months in advance. We’ll make recommendations for proven opening day strategies including media, incentives and marketing. Then we’ll work with your team and your budget to execute a grand opening event that will be memorable, profitable and provide your new Bad Ass Coffee of Hawaii store with a great start toward sustained success in your local market.

The support you receive from the Bad Ass Coffee of Hawaii Franchise Support Team doesn’t stop once you’ve opened your doors. In fact, it’s just the beginning! Your success is our success and we’re committed to providing you with the expert advice and guidance you want and need for the life of our partnership together.

16

FREQUENTLY ASKED QUESTIONSWhether this is your first venture into franchising, or your first look at our Bad Ass Coffee of Hawaii opportunity, we understand and appreciate that you will have questions throughout the process of ownership consideration. With that in mind, we’ve provided quick answers below to the most popular questions we’re most often asked. If you still have questions, let us know. We’d love to hear from you.

HOW LONG HAS BAD ASS COFFEE OF HAWAII BEEN IN BUSINESS?Bad Ass Coffee was founded on the Big Island of Hawaii in 1989 where it specialized in selling locally grown and roasted Kona Coffees in local stores on Hawaii, Maui & Oahu. The brand moved to the mainland in

1995 and began franchising in the US, US Virgin Islands and Japan.

I’VE BEEN TO A BAD ASS COFFEE STORE BEFORE, BUT IT DIDN’T LOOK LIKE THIS COMPANY. ARE THEY DIFFERENT?They are the same great Hawaiian coffee brand. The Bad Ass Coffee franchise system was purchased by Royal Aloha Coffee Company in 2019 and is investing heavily in the future success of all franchisees with new branding, packaging, store design, marketing, training and operations support. It’s a new look, but with the same great tradition of spreading the Aloha Spirit for over 30 years.

WHAT ARE THE QUALIFICATIONS TO OWN A BAD ASS COFFEE OF HAWAII?You must have $150,000 available in liquid assets and a minimum net worth of $600,000. We’re looking for potential partners that have a persistent

TERRITORIES AVAILABLE

High Growth Markets

Territories Now Available

Inquire for More Details

17

entrepreneurial spirit, prior business management experience and a strong desire to be a part of a bigger ‘ohana (family) that delivers the Aloha Spirit every day.

HOW MUCH DOES IT COST TO OPEN A BAD ASS COFFEE OF HAWAII FRANCHISE?The cost of opening an ideal Bad Ass Coffee of Hawaii store ranges from $279,000 - $522,000 dependent on the location in which you’re building. See page 12 of this document for additional details.

HOW LONG DOES THE FRANCHISE AGREEMENT LAST?The initial term of a Bad Ass Coffee of Hawaii franchise agreement is five years and includes an additional (optional) 10-year successor term.

WHAT KIND OF SUPPORT CAN I EXPECT TO OPEN MY BAD ASS COFFEE STORE?From the day you sign your franchise agreement, you’ll gain access to the entire Bad Ass Coffee team to assist you in every step of your store opening process including:

X Site selection assistance and referrals

X Finance & insurance partnerships

X Construction project management & turnkey construction options

X Comprehensive training and store opening assistance

X Complete decor & equipment package

X Grand Opening marketing planning, management & execution

X Exclusive access and franchise pricing for most of your coffee and operations supplies through Royal Aloha Enterprises, LLC

HOW LONG WILL IT TAKE TO OPEN A BAD ASS COFFEE OF HAWAII FRANCHISE?The time required to open a Bad Ass Coffee of Hawaii franchise location is subject to many considerations including finding the right location, negotiating a purchase or lease, construction project timelines and more. We estimate that most new stores open in approximately 4-6 months.

WHAT KIND OF TRAINING WILL I GET?Approximately 30-45 days prior to opening your first store, we provide a 5-day comprehensive training for up to three owners & managers in our Salt Lake City, UT, training store or another designated location. We also provide a 2-day “tune-up” training in your new store just prior to opening. Plus our training team will assist you for the first few days of open business. Throughout the year, we also offer a

18

wide range of training and development opportunities online and through various media, as well as one-on-one business consulting assistance.

HOW MUCH MONEY CAN I MAKE?Every franchise location is unique. Under new ownership, Franchise Disclosure Document rules do not allow us to disclose average store performance through an Item 19 until 2021. However, you will have an opportunity to contact current franchisees to discuss their individual store performance. We also refer you to a coffee store business model tool to calculate your own opportunity based on the unique operating conditions in your area (rent, minimum wage, taxes, cost of goods, etc.).

I WANT TO BE A BAD ASS! WHAT ARE THE NEXT STEPS?Complete the franchise inquiry form with some basic contact information and expect contact from our Franchise Sales team to discuss your interest and to share our “Steps to Ownership”.