What are the implications if a Bft franchisee's Designated Manager does not complete the required training modules?

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may charge such individuals its then-current Training Fee. Franchisee may also designate a third-party individual that Franchisor approves to manage the day-to-day operations of the Studio (a "Designated Manager"), but any such individual must at least complete the Designated Manager Module of the Initial Training Program prior to assuming any management responsibilities at the Studio (with Franchisee paying the Training Fees associated therewith, if any). If Franchisee is acquiring and assuming an existing BFT Studio from another System franchisee, it will be required to pay Franchisor's then-current Training Fee for persons required to attend Franchisor's Initial Training Program as necessary to satisfy the requirements of this Section.

• B. Designated Manager; Designated Manager Training Program. If Franchisee (or one of its Operating Principals) is not or does not intend to be on-site at the Studio during normal business hours to manage the day-to-day operations of its Studio (including, for example, where Franchisee owns or is affiliated with owners of multiple open BFT Studios), then Franchisee must appoint a "Designated Manager" for the Studio who will be responsible for the day-to-day operation of, and only for, the Studio. Each Designated Manager must attend and complete, to Franchisor's satisfaction, Franchisor's designated manager training program prior to assuming the Designated Manager responsibilities (the "Designated Manager Training Program"). Franchisor does not charge a Training Fee for Franchisee's initial Designated Manager's participation in the Designated Manager Training Program.
• C. Pre-Opening Instructor Training for Initial and Subsequent Instructors. Every instructor that provides any of the Approved Services at Franchisee's Studio must, prior to providing such instruction, complete the Pre-Opening Instructor Training and related testing, as described in the Learning Management System. The Pre-Opening Instructor Training will typically be provided (a) virtually, (b) on-site at a BFT Studio that is owned by another franchisee, or (c) at the Studio of one of Franchisor's affiliates; however, at least a portion of the Pre-Opening Instructor Training designed to provide individuals with guidelines and information on how to provide the Approved Services in accordance with Franchisor's current System Standards will be held virtually (the "Fundamentals Training Program"). In the event that an instructor completes the Pre-Opening Instructor Training on-site at a BFT Studio, Franchisor reserves the right to review the instructor's testing results before approving that individual to provide Approved Services from the Studio. Franchisor will assess a Training Fee for each trainee for participation in the Pre-Opening Instructor Training, and Franchisee will cover the related costs and expenses associated with all personnel attending and completing the Pre-Opening Instructor Training, including the Fundamentals Training Program.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 56–57)