Under what condition must a franchisee pay a 'Lead Fee' to Beauty Bungalows during a transfer?

rent members, shareholders or limited partners of Franchisee;

• (f) Franchisee pays any third-party broker or agency fees that are incurred by Franchisor, Franchisee or the transferee as a result of the transfer;
• (g) If the transferee is a person or entity who was a "Lead" of Franchisor's (defined below) before Franchisee became aware of or was introduced to the Lead, then Franchisee must pay Franchisor ten percent (10%) of the sales price between Franchisee and the transferee for the interest transferred, not to exceed Fifty Thousand Dollars ($50,000) ("Lead Fee"). The Lead Fee (including the portion of the sales price) compensates Franchisor for its lost opportunity of potentially granting a new franchise to the Lead as each year Franchisor spends significant resources to attract and identify Leads. The Lead Fee does not apply if Franchisor directly shares a Lead with Franchisee before Franchisor, in its sole discretion, has had significant contact with the Lead in connection with the possibility of purchasing a Beauty Bungalows franchise. For purposes of this Section, "Lead" means (a) a person or entity who contacts, or has been contacted by, Franchisor (including our authorized representative or affiliate) in connection with the possibility of purchasing a Beauty Bungalows franchise for a new market area or territory and/or (b) a lead located in our contact management system ("CMS") (in both (a) and (b), a "Lead" does not include someone who is an existing franchisee in the Beauty Bungalows system). Franchis

Source: Item 22 — CONTRACTS (FDD pages 47–48)