Does Annex Brands provide assistance to franchisees to prepare for initial training?

Franchisee must obtain and install all computer hardware, and all software programs and licenses, as specified by Franchisor under Section 9 of this Agreement, and must establish Internet access as specified by Franchisor under Section 9 of this Agreement, before or at initial training. Franchisee acknowledges that this is necessary to prepare for initial training. Franchisor will provide Franchisee assistance to prepare for initial training, which may include providing Franchisee with pre-training materials (including computer materials) and a workbook before training.

4. TRAINING, GUIDANCE AND MANUALS

A. TRAINING. Franchisor will provide to Franchisee and/or Franchisee's personnel (not to total more than 4 persons) initial training in the operation of the Center.

Initial training will take place only after this Agreement is fully executed, and will generally be a combination of hands-on experience in Franchisor's training Center and classroom training at Franchisor's offices in San Diego, California. Initial training generally will last 8 classroom days for a standard, flex or express Center, with up to 1 additional 6-hour day for a flex Center, provided, however, that Franchisor may, in its sole discretion, reduce the number of days of classroom training, taking into account factors such as attendees' prior experience with the subject matter, the number of attendees, scheduling, etc. Franchisor may, but is not required to, provide an online training program before Franchisee and/or Franchisee's personnel attend initial training that may reduce the number of classroom days for initial training. Franchisor, may but is not required to, provide additional pre-training or post-training sessions, including teleconferences, online web-based training and live webcast sessions, that Franchisee must complete within the timeframe specified by Franchisor in its sole discretion. Franchisee must pay any then-current license and administrative fees associated with pre-training and post-training

requirements (such as the current one-time 12-month license and administrative fee of $330 for an online financial training portal). Initial training will cover general and local marketing, advertising and promotion, marketing programs, marketing resources and tools, sales training, general business instruction, and the practical, administrative and financial aspects of each revenue center in a typical Center. Franchisee and/or Franchisee's designated personnel must complete initial training to the satisfaction of Franchisor.

Source: Item 22 — Contracts (FDD pages 109–110)