What page of the Big Blue Swim School franchise agreement discusses the development of the school?

ur signature at the end | | of this Agreement (the "Effective Date"). | |

1. Preambles

We and certain of our affiliates (a) have created, designed, and developed a swim school concept identified by the Marks (defined below) that currently provides a proprietary curriculum of swim lessons and skills in approximately 90-degree water to children ranging in age from three (3) months to twelve (12) years old (the "Swim School Concept"), and (b) also may permit other services provided in a swimming pool (the "Ancillary Services") that are not encompassed within the Swim School Concept. We and such affiliates currently use, promote, and license certain trademarks, service marks, and other commercial symbols for the Swim School Concept and Ancillary Services, including "BIG BLUE SWIM SCHOOL®," and from time to time may create, use, and license new trademarks, service marks, and commercial symbols (collectively, the "Marks"). One of our affiliates currently owns the Marks, the Confidential Information (defined in Section 9 below), and all aspects of our branded system and licenses that intellectual property to us for use in our franchise program for BIG BLUE Swim Schools operating the Swim School Concept ("BIG BLUE Swim Schools"). The definition of "Swim School Concept" expressly excludes a swim-related business, whether or not operated under the Marks, whose core activities are anything other than providing swim lessons and skills in approximately 90-degree water to children ranging in age from three (3) months to twelve (12) years old, including, for example but without limitation, competitive swimming in lower-temperature water, coaching and video analysis, laps, wave pools, and any Ancillary Services.

We offer and grant franchises to operate a BIG BLUE Swim School operating the Swim School Concept and using the BIG BLUE Swim School business system, business formats, methods, procedures, designs, layouts, trade dress, standards, specifications, and Marks, all of which we and our affiliates periodically may improve, further develop, and otherwise modify (collectively, the "Franchise System").

You have applied for a franchise to operate a BIG BLUE Swim School, and we are willing to grant you the franchise on the terms and conditions contained in this Agreement.

2. Acknowledgments

You acknowledge that:

(1) Attracting customers for your BIG BLUE Swim School will require you to make consistent marketing efforts in your community, including through permitted media

advertising, direct mail and on-line advertising, social media marketing and networking, and display and use of in-School promotional materials.

• (2) Retaining customers for your BIG BLUE Swim School will require you to provide high-quality services and adhere strictly to the Franchise System and our Brand Standards (defined in Section 6.G below and categorized in Section 7.C below).
  • (3) You are committed to maintaining Brand Standards.
• (4) Our officers, directors, employees, consultants, lawyers, and agents act only in a representative, and not in an individual, capacity when dealing with you, and their business dealings with you as a result of this Agreement therefore are considered to be only between you and us.
• (5) All application and qualification materials you gave us about you and your owners to acquire this franchise were accurate and complete.
• (6) We make no commitment about the extent to which we and our affiliates will continue developing and expanding the BIG BLUE Swim School network.

Source: Item 22 — CONTRACTS (FDD pages 75–76)