Does Big O Tires charge a fee for additional training for the Operator or other personnel?

In addition to the initial training program described above, we may offer you, your Operator and Managers, defined in Item 15, or other personnel additional training programs, seminars and online training. These additional training programs may be conducted on a mandatory or voluntary basis and, at our discretion, you must pay a tuition or fee for your trainees.

We offer an optional online training program referred to herein as the Learning Management System or LMS. Currently, we do not charge a fee for access to the Learning Management System, but we may impose a fee of $150 per month upon notice to you. This fee, if imposed, will be paid to us, and we will pay the vendor. The amount of this fee, once imposed, is subject to change by the vendor. The Learning Management System currently includes access to approximately 55 preselected training programs from the Big O Tires library, including approximately 13 that are specific to the Big O System in terms of operations and corporate culture. Additional new online courses are in development as of the date of this disclosure document, and we expect that additional online courses will be developed in the future. A franchisee's right to access any particular programs offered as part of the Big O Tires LMS shall terminate on the expiration of the LMS Term, regardless of when the franchisee executed its Franchise Agreement or submitted its additional payment. All terms and conditions related to the Big O Tires LMS, including the selection of programs, the fees, and the amounts that we will pay, are subject to change.

Onsite training is provided in Big O's discretion by the national training staff upon a request of a franchisee or a Franchise Business Consultant ("FBC"), and it may be directed by Big O. Onsite training programs or sessions may be conducted on a mandatory or voluntary basis and, at our discretion, you may be required to pay a site visit tuition or fee for your trainees. To request onsite training or to suggest topic areas for training, you should contact your FBC or email requests to the Big O Tires Training Department at: training@bigotires.com.

You will be required to have your employees complete and pass a Motorist Assurance Program test established by AMRA to become qualified to participate in that mandatory program. See Item 16.

For all training, you must pay all your employee costs, such as salaries and wages, benefits and uniforms.

In some circumstances designated by Big O in its sole discretion (for instance, for Stores with real estate costs or past sales at high levels designated by Big O in its sole discretion), Big O may provide or arrange for certain "additional training" that Franchisee's Operator or Manager must take. You must pay for your own transportation, lodging and living expenses which are incurred while attending this additional training; Big O, in its sole discretion, may charge a reasonable fee for this additional training; the amount of this fee, if any, has not been set as of the date of this disclosure document. This "additional training" will typically consist of spending an additional 60 working days training in a similar Store. Big O's current standards for these "high levels" include real estate project costs of $4,500,000 or more for purchased real estate or lease payments of $40,000 or more per month for leased real estate.

If you are a corporation or other legal entity, you must designate at least one Manager acceptable to us to receive training and you must provide for the day-to-day operations of the Store. The initial training program must be attended by you or your Operator and the Manager or Managers for your Store, all of whom must complete the training program to our reasonable satisfaction. If we are not satisfied

with the trainee's attendance and completion of the training program, we have the right, on written notice to you, to disqualify that person from acting as the Manager or Operator of the Store. If there is a change in the Manager of your Store, at our direction, the new Manager must attend and complete our full training program to our satisfaction.

At our direction, you must pay the then current initial training fee for each additional individual (that is, after the first individual attending the training) attending the initial training program regardless of whether the individual is an additional or replacement Manager or Operator. Presently, the initial training fee for additional Managers or Operators is $75.00 per person per week for the Facilitated Training program at Big O's National Training Center in Palm Beach Gardens, Florida, or other designated location and $500 per person per week for field training and certification at a Big O Store designated by us. In addition, you must bear all travel and living expenses of the additional Manager and any other trainees. All franchisees must meet all the training requirements, even if the franchisee has previous experience with Big O (such as a manager for another franchisee) except for specific requirements that we may, in our sole discretion, waive for specific franchisees, such as (by way of example but not limitation): (a) we may waive all or part of the training requirements for new Stores opened by existing franchisees, and (b) we may waive the requirement that your initial and/or additional Operators and Managers attend the entire initial training program if your Operator or Manager has previously worked in a Big O Store and previously received training from us or in other circumstances.

If you open a second Big O Store, at our direction, you may be required to attend multi-unit franchise management training conducted at our National Training Center in Palm Beach Gardens, Florida or other designated location.

There is a $550 training fee for the multi-unit franchise management training. However, you must bear all travel, lodging and meal expenses during the multi-unit franchise management training.

If your Store or an interest in your entity is transferred to a third party, we charge the transferor or transferee a transfer fee of up to $5,000. The transferee must attend our training program except if and to the extent we waive any training requirements. If the transferee must attend our training program, we charge the transferee a training fee of up to $5,500 for the first trainee (this fee includes lodging). The training fee for additional persons is $75 per person per week for the Facilitated Training program and $500 per person per week for field training and certification at a Big O Store designated by us. The transferee must bear any and all transportation and living expenses which are incurred by all trainees while attending the initial training program, and all lodging expenses incurred by any trainees in addition to the first trainee. If the transferee must receive "additional training" as described in Item 11 above, in our discretion we may charge a reasonable additional training fee for each trainee. The amount of this fee for additional training, if any, has not been set as of the date of this disclosure document.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM AND TRAINING (FDD pages 55–73)