reements between you and us.

Ongoing Assistance

During the operation of the franchised business, we will:

• 1. Offer you a reasonable amount of continuing advisory services by telephone during normal business hours. We may also provide additional trainings or conferences, for which you may incur a fee. We may also provide to you visits by our field representative, but any additional on- site consultation or advisory services you request may incur a fee. (See Sections 8.01, 8.05, and 8.06 of the Franchise Agreement).
• 1. We will include information about your Beauty Bungalows Franchise on our website. (See Section 8.11 of the Franchise Agreement).
• 1. Provide marketing, promotional materials, and services to you. Materials provided may include video and photography, copy-ready print marketing materials, posters, mailers, banners social media graphics and copy, digital advertising collateral, and miscellaneous items. You will receive one sample of each at no charge. If you want additional copies, you must pay duplication costs. We may use either national advertising agency or a regional advertising agency and marketing agencies and internal staff to create advertising. You may develop marketing materials for your own use, at your own cost. We must approve the marketing materials in advance and in writing within fifteen days from receipt. We reserve the right to utilize marketing and photography/videography developed by you for the use of all Franchisees without any payment or other compensation to you. (See Section 9.02 of the Franchise Agreement).
• 1. We may hold periodic regional or national conferences to discuss on-going changes in the industry, operational techniques, studio rental developments, training, bookkeeping, accounting, advertising programs and new service procedures. We may require you to attend these conferences at our then-current conference attendance fee, currently $500 per attendee. If we charge a conference fee, you will be required to pay the fee regardless of your attendance at the conference (See Item 6). You must pay all of the travel and living expenses for you and any other employees who attend. These conferences will be held at our corporate headquarters or at another location chosen by us. We estimate the cost of the travel and living expenses to attend the conferences to be between $1,500 and $3,000. We may provide other trainings/conferences from time to time, and you may be required pay an Additional Training Conference

fee for attending these additional trainings/ conferences based upon the direct costs to us of retaining speakers and other direct expenses associated with the conference. You must pay all of the travel and living expenses for you and any other employees who attend. (See Section 8.05 of the Franchise Agreement).

1. You are also required to participate in any continuing advanced training which we may choose to offer in the future ("Continuing Advanced Training"). The Continuing Advanced Training may be provided by various methods, including by telephone, video conference, e-mail, or via online learning management systems. We do not charge any fee for the Continuing Advanced Training. (See Section 8.05 of the Franchise Agreement).

Marketing Programs

Local

You are required to market on a local basis as an individual Beauty Bungalows Franchise or by local marketing agencies hired by you. We do not require you to spend any specific amounts on local marketing, but we recommend you spend approximately 1% to 2% of gross revenue on local marketing efforts. These expenditures may include wages and bonuses paid to your Manager or other employees who secure Bungalow renters in your Business. The amounts you spend on marketing will be influenced largely by the number of vacant suites at any given time in your Business.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–30)