What must an Alloy franchisee comply with regarding training requirements for the Facility?

• 1. The following provisions and conditions control with respect to personnel, training and supervision:
  • A. Supervision. During the term of this Agreement, you (if Franchisee is an individual), or your Operating Partner (if Franchisee is a legal entity), or your Facility's general manager must devote full time and best efforts to the management and operation of your Facility and provide direct, on-site supervision of the Facility. Any general manager or replacement manager(s) you hire must complete our training as described in subparagraphs 7.B – 7.E. Any general manager(s) or replacement manager(s) you hire must meet the applicable training requirements. The use of a general manager in no way relieves you of your obligations to comply with this Agreement and to ensure that the Facility is properly operated.
  • B. Training. You must comply with all of the training requirements we prescribe for the Facility to be developed under this Agreement. You (or if Franchisee is a legal entity, one of your Operating Partner) must complete our initial training program to our satisfaction prior to opening your Facility. It then is solely your responsibility to ensure that your employees are properly trained.

We will provide the initial training program to a maximum of three people without charging you a fee. You, however, are responsible for paying all costs and expenses, including salaries, hotel

and transportation costs, for all persons to attend our training program. You may send more than three people to our initial training program, but we reserve the right to charge you our then-current additional training fee each additional person who attends our initial training program. You will be responsible for paying all costs and other daily expenses for any additional person who attends our initial training program.

In the event you are given notice of default as set forth in subparagraphs 13.A and B, and the default relates, in whole or in part, to your failure to meet any operational standards, we have the right to require as a condition of curing the default that you and your manager, at your expense, comply with the additional training requirements we prescribe. Any new manager you hire must comply with our training requirements within a reasonable time as we specify. Under no circumstances may you permit the management of the Facility's operation on a regular basis by a person who has not successfully completed to our reasonable satisfaction all applicable training we require.

Source: Item 23 — RECEIPTS (FDD pages 69–245)