Who pays for the training required for a proposed Bonchon franchisee?

ues or strategies. Policy statements are not part of the Manuals, are not contracts and do not create any contractual or other binding obligation on either you or us.

7.02 Initial Training Program/Partner Training Program

After entering into this Agreement and before the opening of the franchised Restaurant (although in no case earlier than two months before the opening of the Restaurant), your General Manager and Manager must attend and successfully complete an initial training program (the "Initial Training Program") which we will provide at no additional expense to you. If you (if franchisee is an individual) or your Operating Principal (if franchisee is an entity) will engage in the on-site management of the Restaurant's day-to-day operations on a full-time basis, then you or your Operating Principal will be considered the General Manager and must attend and successfully complete our Initial Training Program. If you (if franchisee is an individual) or your Operating Principal (if franchisee is an entity) will not be supervising the day-to-day operation of your Bonchon Restaurant on a full-time basis, then you must either attend and successfully complete our Initial Training Program or our partner training program (the "Partner Training Program") at no expense to you prior to opening your Bonchon Restaurant, and an additional manager must successfully complete the Initial Training Program (the Bonchon Restaurant must have at least two (2) fully-trained managers who intend to work in the Restaurant on a full-time basis). The Initial Training Program and Partner Training Program will be conducted for approximately 15 days to up to 20 days and may take place at our Restaurant Support Center in Dallas, TX and/or at a Bonchon Training Restaurant we designate. We will determine the date of commencement, location and duration of the Initial Training Program and Partner Training Program and notify you of them.

Any attendee of the Initial Training Program must have first attended, received and hold a current Bonchon approved nationally accredited food manager certification in addition to any safe food handling courses required by the local municipality in which the Restaurant is located. You agree to produce such certification to us for review before you (if the franchisee is an individual), your Operating Principal and/or your General Manager, Area Manager as applicable, attends the Initial Training Program. No such certification is a prerequisite for attending our Partner Training Program. In addition, any attendee of the Initial Training Program or Partner Training Program must sign and return to us the Trainee Waiver, Assumption of Risk and Indemnification Agreement in the form of Exhibit I to this Agreement, prior to such attendance.

Notwithstanding the foregoing, however, if you and we are parties to an Area Development Agreement and you have previously opened two Restaurants pursuant to two separate unit franchise agreements, then neither you nor any Operating Principal will have the obligation or the right to attend an additional Initial Training Program or Partner Training Program (as applicable). However, at least two (2) people – a General Manager and an assistant or other named manager – must complete the Initial Training Program to our satisfaction and both persons must intend to work in the Restaurant on a full-time basis.

If this Agreement is for your (or your affiliates', collectively with you) third Bonchon Business, then you must designate an Area Manager to us in writing. Your Area Manager will oversee the operation of each Bonchon Restaurant that you or your affiliates own and operate. Your Area Manager must have first attended, received and hold a current Bonchon approved nationally accredited food manager certification from the National Restaurant Association in addition to any safe food handling courses required by the local municipality in which your Restaurant is located. Once your Area Manager has received his/her Bonchon approved nationally accredited food manager certification, then he/she must attend and successfully complete the Initial Training Program (and such additional training that we may require) at no cost to you prior to the opening of your third Bonchon Restaurant. While we will not charge you the cost to train your Area Manager, you must pay all of the expenses incurred by your Area Manager in attending the Initial Training Program and such other training that we may require (including, without limitation, their salaries, travel costs, meals, lodging and other living expenses).

If we reasonably conclude in our business judgment that either you (if an individual), your Operating Principal (if you are a business entity), your General Manager, and/or your Area Manager has failed to attend or successfully complete our Initial Training Program or Partner Training Program (as applicable) to our satisfaction in our business judgment, then (depending on the reason for such person's failure to successfully complete our Initial Training or Partner Training program) that person may re-enroll in our next scheduled Initial Training Program or we may require that you send a replacement attendee.

Source: Item 23 — RECEIPTS (FDD pages 92–536)