MINNESOTA COMMERCE - Unhappy Franchisee

Agreement (Appendix D, Exhibit O of this Disclosure Document). The MDBS Software is designed
to assist you in minimizing paperwork and in managing your route and List of Calls, handling
inventory, receivables and order processing functions, and performing other tasks relating to operating
the Distributorship. The MDBS Software performs numerous on-truck (Mobile Store) functions such
as tracking of sales histories and accounts receivable, printing of receipts and PSA quotes, credit
applications and contracts, inventory tracking, tool repair tracking support, credit management, order
placement, tracking of customers' orders, Product pricing, sales and collection records, weekly
activity reports, and feedback reports fromMateo.
Mateo provides computer systems maintenance and support services Monday through Friday during
the standard hours of 8:00 a.m. through 4:30 p.m.. Eastern time,at Stow, Ohio. Mateo will fromtime
to time review the MDBS Software for improved fiinctionalityand operating efficiency. Mateo will
make such improvements and enhancements as it deems appropriate and will provide you with the
updated software and documentation necessary to make the improvements on your system. You will
be required to update your computer hardware and software from time to time in order to maintain
compliance with Mateo's then-curtent standards. There are no contractual limitations on the
frequency or cost of your updating obligations. You will be responsible for acquiring and maintaining
the computer hardware and manufacturer's operating system software required to execute the MDBS
Software. You will be responsible for handling all equipment hardware/warranty issues direcdy with
the equipment manufacturers. Except for the MDBS Sofhvare, you will have sole and complete
responsibility for: (a) your own computer hardware and software as well as the manner in which those
systems are maintained, upgraded, and operated in order to maintain compliance with Mateo's
standards as they may be modified from dme to time; (b) obtaining and maintaining access to the
Intemet through a subscription with an Intemet service provider or a then-curtent technologically
capable equivalent in accordance with Mateo's standards; (c) the manner in which your systems
interact with Mateo's systems and those of other third parties; and (d) any and all consequences that
may arise if your systems are not properly maintained, upgraded, and operated. Mateo will have
access to certain sales, inventory, and accounts receivable collection information from a distributor's
MDBS system. Mateo uses this data to prepare and provide reports to a distributor with key business
statistics regarding the distributor's business. All data provided by you, uploaded to Mateo's system
from your system, and/or downloaded from your system to the Mateo system, is and will be owned
exclusively by Mateo, and Mateo will have the rightto use such data in any manner that Mateo deems
appropriate without compensation to you.
As described in Item 7, you may lease or purchase the hardware. The costs are estimated to be
approximately, $2,600 to $2,900 to purchase the equipment. As described in Item 6, the annual
computer maintenance and support charges are $400, or $800 if your computer does not satisfy the
required configuration.
(F)
Mateo will provide you with the standards and specifications for the New Distributor Starter Inventory
required by Mateo for your Mateo® Distributorship (see Article 3.3 of the Distributorship
Agreement).
Assistance Provided by Mateo during the Operation of the Business.
(A)
Mateo provides you with a designated trainer for a minimum of 80 hours of initial Field Training (see
Article 4.2 of the Distributorship Agreement). The designated trainer may be a regional trainer and/or
a regional or district business manager. The designated trainer will ride with you or your initial
operator on sales calls. Topics covered during Field Training include purchasing, selling and
markedng techniques, customer relations, computer operations, product knowledge, product
demonstrations, order placement, credit and collections management, record keeping, and other topics
relating to operating your Mateo® Distributorship. Further information concerning Field Training is
given in the !!Iraining_Pi:Qgram!l-table w
above.
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Mateo 2Q12.FDD/PK ^5?5545544^i2imJ 03/09/4412