What form will Alloy's guidance and assistance in the operation of my Franchised Business take?

1. Provide guidance and assistance in the operation of your Franchised Business. This guidance may be provided in the form of periodic virtual and in-person meetings and telephone or written communications and will cover topics such as products or services to be offered to customers; improvements and developments in your Franchised Business; administrative, bookkeeping, accounting and inventory control procedures; and operating problems encountered by you or other franchisees (Franchise Agreement – Article 7.B).

Prior to opening, we reserve the right to require you to have 75 members who have joined your facility during the pre-sale marketing campaign, although we may allow you to open without 75 members. You can appoint your Director of Training or Manager to conduct this direct sales activity. You will be required to attend weekly coaching and accountability meetings during the pre-sale period. You must have Alloy HQ permission to open your facility. After opening you must attend monthly meetings with your Alloy franchise business coach. Failure to attend these required meetings will put you out of compliance with your franchise agreement.

We may designate any geographic area in which two or more Facilities are located as a region for purposes of establishing a local or regional adverting group or marketing cooperative ("Advertising Group" or "Cooperative"). The members of any Advertising Group or Cooperative

for any area will consist of all Alloy Facilities, whether operated by us, our affiliates or our franchisees. We have the right to dissolve, merge or change the structure of the Groups or Cooperatives.

We reserve the right to form Advertising Groups based on specific criteria determined by us for designated marketing areas. We have the right to establish how Advertising Groups operate. If an Advertising Group is established in your market, you will be designated to be a member of that Advertising Group. We will determine the amount of member contribution. Your contribution will count towards any required minimum local marketing spending.

A Cooperative will be a more formal entity, organized for the exclusive purposes of administering marketing programs and developing promotional materials for use by the members, subject to our approval as described above. If a Cooperative has been established for a geographic area where your Facility is located when the Franchise Agreement is signed, or if any Cooperative is established during the term of the Franchise Agreement, you must become a member of the Cooperative. If the Cooperative will operate according to written documents, we must approve of these documents, and a copy of the Cooperative documents applicable to the geographic area in which your Facility will be located will be provided to you if you request it. You will not have to participate in more than one Cooperative.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–42)