What training programs must the transferee complete to operate a Bft franchise?

tion in connection with the development of the Studio. Franchisee's architect is responsible for proposing changes to the layout, design and construction specifications provided by Franchisor as necessary to meet applicable legal requirements and to adapt for unique physical characteristics of the Authorized Location, but Franchisee agrees that no such changes, alterations or modifications whatsoever to Franchisor's selected layout and design specifications will be implemented without Franchisor's prior written consent.

• 6.2 Training-Related Programs and Obligations. Franchisor will provide the training programs described in Section 5.5 and below, and Franchisee must, at all times during the Term, be in compliance with all training obligations described in Section 5.5 and set forth below.
• A. Initial Training Program; Designated Manager Training Program. All persons required to complete the Owner/Operator Module, the Designated Manager Training Program and the Pre-Opening Instructor Training must do so prior to engaging in any activities related to the operation of the Studio. The specifics of each of the foregoing training programs shall be set forth in the Learning Management System. All such training is conducted, at Franchisor's option, at Franchisor's corporate headquarters or another training facility Franchisor designates. At Franchisee's option, one (1) or more other individuals that will be responsible for providing the Approved Services at the Studio must participate and complete Pre-Opening Instructor Training. If any of the individuals described in this Section and Section 5.5 fail to

successfully complete the applicable training required by this Section and Section 5.5 before the time Franchisee is required to conduct the Studio's Soft Opening, Franchisor may terminate this Agreement.

• B. Pre-Opening Instructor Training. Any individual that wishes to provide fitness instruction or any of the other Approved Services at the Studio must first complete the Pre-Opening Instructor Training (either as part of the Initial Training Program or at some point thereafter via the instruction materials and test that is part of the System Standards). Franchisor may, in addition to exercising any of its other rights under this Agreement, terminate this Agreement upon written notice to Franchisee if Franchisee permits the Approved Services to be provided by any individual that does not first complete the Pre-Opening Instructor Training. If Franchisee fails to comply with the foregoing (or any other material obligation under this Agreement), Franchisor reserves the right to charge Franchisee its then-current non-compliance fee ("Non-Compliance Fee") in each instance. The Studio must have at least one (1) individual that has completed the Pre-Opening Instructor Training on-site at the Studio at all times when any Approved Services are being provided. Franchisee must otherwise ensure that: (i) any Pre-Opening Instructor Training held at the Studio is performed in accordance with System Standards; (ii) any individual that participates in the Pre-Opening Instructor Training, successfully completes that program, and passes any test that is provided in connection with the program; and (iii) no personnel provides fitness instruction or other Approved Services at the Studio unless and until such personnel successfully completes the Pre-Opening Instructor Training and passes the corresponding test.

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