Is Body20 required to provide ongoing maintenance, repairs, upgrades, or updates for the Technology System?

Studio, you must pay us the Technology Fee for certain technology-related services, which is currently $1,060 per month and pay MindBody, our approved POS system vendor, a license fee that is currently $599 per month.

We currently do not require you to enter into, or expect that you will need to enter into, any maintenance, updating, upgrading, or support contracts related to the Technology System. We, our affiliates, and third-party vendors are not obligated to provide you with any ongoing maintenance, repairs, upgrades, or updates. Vendors may be able to offer optional maintenance, updating, upgrading, or support contracts to you, which we estimate may cost approximately $2,500 per year.

You, at all times, must give us unrestricted and independent electronic access (including users IDs and passwords, if necessary) to the Technology System for the purposes of obtaining the information relating to the Studio. You must permit us to download and transfer data via a connection or such other connection that we specify on a real-time basis. There are no contractual limitations on our right to access data stored in the Technology System.

Manuals

The current Table of Contents of the Manuals is attached as Exhibit E to this Disclosure Document. The Manuals currently consist of 460 pages. We may amend, modify, or supplement the Manuals at any time, so long as such amendments, modifications, or supplements will, in our good faith opinion, benefit us and our existing and future franchisees or will otherwise improve the System. You must comply with revised standards and procedures within 30 days after we transmit the updates, unless we otherwise specify.

Training

Initial Training. Your Required Trainees must personally attend and satisfactorily complete our Initial Training at least 30 days before the earlier of the date you open the Studio or the Opening Deadline (or by such earlier deadline that we specify). We will determine the length, timing, location, and substance of Initial Training in our sole discretion. We will provide Initial Training as soon as practicable after the execution and delivery of the Franchise Agreement at our offices, at any other location that we designate, and/or remotely via recorded media, teleconference, videoconference, the internet, webinar, or any other means as we determine.

Currently, we conduct Initial Training as often as needed to train new franchisees; there is no set frequency for Initial Training. We may periodically identify certain limited time periods during which we will not offer Initial Training.

Currently, we provide four days of in-person training at our office and approximately four days of virtual training through online modules. We may waive a portion of Initial Training or alter the training schedule if we determine that your Required Trainees have sufficient prior experience or training or have previously been trained at one of our Studios.

We will provide instructors, facilities, and materials for Initial Training for your Required Trainees as part of the Franchise Fee, as long as all of your trainees are trained during the same training session.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–49)