What is the process for Basecamp Fitness to approve the equipment used at a Basecamp Fitness studio?

the service. However, if you are not required to pay us a fee for the service, you will not be obligated to pay any parties we contract with for services that we are required to provide to you without charge under this Agreement. We and our affiliates may also receive rebates or compensation from other parties in connection with the provision of such services.

• R. Purchases. You will purchase only such types, models or brands of fixtures, furniture, equipment, inventory, supplies and other items that we approve for Basecamp Fitness studios as meeting our standards for quality, design, warranties, appearance, function and performance. Although we do not do so for every item, we have the right to approve the manufacturer or supplier of any item used in the operation of your Basecamp Studio. You will not install or maintain at your Basecamp Studio any newspaper racks, video games, jukeboxes, gaming machines, gum machines, vending machines, video or similar devices without our, and any necessary governmental, prior written approval. We may require you to offer additional services or products and some of those products or services may require that you purchase additional equipment or training for your staff. We may require you, in our sole discretion, to purchase certain fixtures, furniture, equipment, inventory, supplies, services, and other items used or offered at your Basecamp Studio from suppliers who have been approved by us, in which case we will provide you with a list of approved suppliers.

• 1. You acknowledge and agree that you may be required to purchase for use in the operation of your Basecamp Studio certain products, including all retail products you offer for sale, supplies or other services, including certain items comprising the Information System, the Grand Opening Program, marketing collateral and services, local marketing collateral and services, and mass communication services, including texts and email messages, exclusively from us or our affiliates, or from other mandatory suppliers or vendors that we approve, in our sole discretion.
• 1. You must honor and participate in all member programs, national campaigns, consumer sales and satisfaction programs or surveys that we require, including loyalty programs, rewards programs, member challenges . You must obtain and maintain all technology we require to deliver member exercise programming. You may not create your own programs, campaigns, incentives or other promotions without our prior written approval.
• 1. We or an affiliate or other third party are currently the sole suppliers of certain fitness equipment, certain items logo'd with our Marks, including branded mobile applications, all retail products for re-sale, and workout formats and fitness programming, that you must use at your Basecamp Studio. Certain third parties are sole suppliers for some of the items included in the Build-Out Package you must purchase from us, including the signage, marketing materials, including marketing collateral and marketing services, furniture, fixtures. Our affiliate is also the sole supplier of certain fitness equipment, technology services, technology, network hardware, security systems, computer hardware and software, security systems, lighting, audio and video systems, and other related components, including a point of sale system and certain cloud based technology in the Technology & Fitness Equipment Package you must purchase from our affiliate to operate your Basecamp Studio. We also have a sole supplier of studio management, billing, payment and scheduling software which you must use to operate your Basecamp Studio. We may also require you to pay the $40,000 for the Grand Opening Program to us and we will execute the Grand Opening Program. We may also require you to pay us the monthly amount you must spend to satisfy the Monthly Local Advertising Requirement and we will spend this amount on local advertising in your market.
• 1. If you do not use our designated architectural vendor for the creation of your Construction Documents, you will pay us upon demand a nonrefundable fee of Two Thousand Seven Hundred Dollars ($2,700) to review your Construction Documents. The vendor you use must meet any standards and specifications we require.

Source: Item 22 — CONTRACTS (FDD pages 61–62)