1. Due Diligence in Franchise System Aquisitions Andrae J. Marrocco Partner amarrocco@dickinson-wright.com 416-777-4046 CFA Franchise Law Day January 28, 2016 Edward (Ned) Levitt Partner NLevitt@dickinson-wright.com 416-646-3842

2. Due Diligence Goals of Due Diligence Due Diligence Strategy

3. Due Diligence in Franchise M & A 1.The Intangible Assets 2.Third Parties at the Table 3.Viability of the Franchise System 4.The Franchise Agreement and Other Contracts

4. The Intangible Assets Trademarks Proprietary Software Operations Manuals, Confidential Information, and Other Intellectual Property

5. Third Parties at the Table The Financial Health of the Franchisee Population “Taking the Temperature”

6. Viability of the Franchise System Compliance Sales Protocols The “Flip Rate” Senior Management

7. Franchise Agreement / Contracts The Franchise Agreement Different Versions Indemnification “Side Deals” Logistical Concerns Other Contract

8. Andrae J. Marrocco Partner amarrocco@dickinson-wright.com 416-777-4046 Edward (Ned) Levitt Partner NLevitt@dickinson-wright.com 416-646-3842 Thank You