SHOE BOX - FDD UFOC ITEM 10 Detail

ITEM 10 FINANCING

Except as described below, we and our affiliates do not offer direct or indirect financing arrangements for any purpose in establishing or operating your Franchise. If you sign an Area Development Agreement, we may, in our sole discretion, negotiate an installment payment plan for your initial Development Fee. We are not obligated to permit you to pay the Development Fee over time. Some of the factors that will be considered by SBF in deciding whether to offer an installment payment plan are the amount of the Development Fee, the creditworthiness and business experience of the prospective franchisee, and the Development Schedule. We may negotiate the amount of financing to be offered, the rate of interest (if any) to be charged, the payment period, and the nature of security required. The deferred amount may be prepaid at any time''without penalty or premium. If you default under an installment plan, we may, among other remedies, accelerate your obligation to pay the entire sum, require you to pay our costs and attorneys'' fees incurred in collecting the debt, or terminate your Area Development Agreement.

We and our affiliates do not guarantee your promissory note, lease, or any other obligation you may make to others. We and our affiliates have no practice or intent to sell, assign or discount to a third party all or part of any financing arrangement. We and our affiliates do not receive any consideration for placing financing with any lender.