What is the Initial Training Program for Bft franchisees?

i) incur and promptly pay all fees and costs associated with the Opening Support Program and other Pre-Sales Phase activities as and when such amounts become due.

• C. Franchisee further agrees to install at its expense and use the membership accounting, cost control, point-of-sale system and inventory control systems (the "POS/Inventory System") through the supplier Franchisor designates. The designated, or approved, supplier(s) for these services will be updated in the Learning Management System as changes are made. Throughout the Term, Franchisee will also be required to pay Franchisor's then-current designated provider for the software that Franchisor prescribes for use in connection with the Studio and the POS/Inventory System, which may be modified upon reasonable written notice to Franchisee.
• 5.5 Training Programs and Fees. The Parties agree and acknowledge that: (i) Franchisee or, if Franchisee is an entity, at least one (1) of Franchisee's operating principals (an "Operating Principal") must complete the "Owner/Operator Module" and Franchisor's proprietary initial training program (the "Initial Training Program"), as described in more detail in the Learning Management System; and (ii) each instructor that Franchisee engages to provide any of the Approved Services at its Studio must complete Franchisor's proprietary training program that is designed to provide instructors with additional guidelines and instruction for providing the Approved Services in accordance with the System (the "Pre-Opening Instructor Training"). Franchisor may, at its option, conduct any training program virtually via live or prerecorded modules. Fees for attendance and participation in a training program (each a "Training Fee") may be assessed as described below.
• A. Initial Training Program; Owner/Operator Training. Except as provided below, Franchisee will not be required to pay any Training Fee or tuition in connection with individuals that attend the Initial Training Program prior to the Studio's Soft Opening, provided such individuals all attend at the same time. For those individuals that wish to complete the Initial Training Program at a time other than when Franchisee (or, if applicable, its Operating Principal) attends the Initial Training Program, Franchisor

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").

Source: Item 23 — RECEIPTS (FDD pages 79–265)