What standards, specifications, processes, procedures, requirements, and instructions must a Bumble Roofing franchisee comply with during the Initial Term and any Interim Period?

ement, providing Franchisee, or if Franchisee is an entity, a person designated to manage the Business ("Designated Business Manager") with an initial training program. The initial training program shall be in California, at Franchisor's facilities in Virginia, or another location designated by Franchisor. Training may include a discussion of the System, techniques, procedures, installation and methods of operation, advertising, sales techniques, promotional ideas, marketing plans, customer relations, information technology systems, instructions on quality standards, administrative practices and procedures, safety practices, accounting practices, and practical experience in the operation of a Roofing Business.

• (e) Loaning Franchisee during the Initial Term (including any Interim Period) one copy of or providing electronic (Internet) access to Franchisor's confidential operating manual ("Manual") containing mandatory and suggested specifications, standards, operating procedures and rules prescribed from time to time by Franchisor as further stipulated in this Section 7, and containing information relative to other obligations of Franchisee hereunder. Any required specifications, standards and operating procedures exist to protect Franchisor's interests in the System and the Marks and to create a uniform customer experience, and not for the purpose of establishing any control or duty to take control over those day-to-day operational matters that are reserved to Franchisee. Franchisee shall operate the Business strictly in accordance with the required specifications and standards identified in the Manual. Failure to comply with the required standards set forth in the Manual shall constitute a material breach of this Agreement. Franchisor reserves the right to provide the Manual and updates to the Manual in electronic form or other form determined by Franchisor. Franchisor shall have the right to modify the Manual from time to time to reflect changes in authorized Products and Services, business image or the operation of the Business. Some of the revisions to the Manual may include changes with respect to: (i) sales and marketing strategies; (ii) equipment and supplies; (iii) accounting and reporting systems and forms; (iv) insurance requirements; (v) operating procedures; (vi) required technology; (vii) Services; and (viii) Products.

  • (i) Franchisee covenants to accept, implement and adopt any such modifications at its own cost, except as provided in Section 8.5 of this Agreement. Franchisee shall keep its Manual with replacement pages and insertions as instructed by Franchisor.
  • (ii) Franchisee hereby acknowledges that the Manual is loaned to Franchisee and shall at all times remain the sole and exclusive property of Franchisor, and upon termination of this Agreement for any reason whatsoever, Franchisee shall forthwith return the Manual together with all copies of any portion of the Manual which Franchisee may have made, to Franchisor.

• (f) Providing Franchisee with the arts graphics package suitable for letterhead, business cards and other start-up materials which will be purchased at Franchisee's expense.

• (g) At Franchisor's sole discretion, Franchisor may provide pre-opening and ongoing assistance during the first season of operations of Franchisee's Business.

• 7.4 Currently, the guidance, coaching and assistance provided by Franchisor to Franchisee after Franchisee opens the Business shall include:

  • (a) Make a representative reasonably available to speak with Franchisee on the telephone during normal business hours, as Franchisor determines is necessary, to discuss Franchisee's operational issues and support needs.
  • (b) Holding periodic conference calls, meetings or conferences to discuss sales techniques, new Product or Service developments, field operations, bookkeeping, training, accounting, inventory control, performance standards, advertising programs, merchandising procedures and other topics. Franchisee must pay a conference fee, if any, and all its travel and living expenses to attend. These elective conferences are held at Franchisor's Richmond, Virginia, headquarters or at a location chosen by Franchisor.
  • (c) Franchisor may also hold a mandatory annual conference to discuss sales techniques, new Service and Product developments, operations, marketing strategies and tactics, training, bookkeeping, accounting, performance standards, advertising programs, merchandising procedures, or other topics. Franchisee must pay the conference fee, if any, which Franchisor may collect on a month basis or otherwise, and all personal travel and living expenses. These mandatory annual conferences are held at Franchisor's Richmond, Virginia, headquarters or at a location chosen by Franchisor.
  • (d) Informing Franchisee of mandatory specifications, standards and procedures for the operations of the Roofing Business.
  • (e) Researching new Products, Services and methods, from time to time and in Franchisor's sole discretion, and providing Franchisee with information concerning developments of this research.
  • (f) Maintaining the National Branding & Marketing Fund and using these funds to develop promotional brand awareness and advertising programs for Roofing Businesses.
  • (g) Providing access to advertising materials to Franchisee in the form of a graphics package included in the Manual and as further stipulated in Section 11.
    • (h) Provide Franchisee with bookkeeping services for a fee.
  • (i) Franchisor may require that Franchisee or Franchisee's Designated Business Manager attend all supplemental and refresher training programs that Franchisor designates. Franchisor may charge Franchisee a reasonable fee for any supplemental and refresher training programs. Franchisee must pay the then-current fee for such training programs, if any, and all personal travel and living expenses.
  • (j) A representative of Franchisor may, in its sole discretion, provide additional assistance as it deems necessary.

• 7.5 If Franchisee believes Franchisor has failed to adequately provide pre-opening guidance, coaching and assistance to Franchisee as provided in this Agreement, including Sections 7.3 and 7.4, Franchisee shall notify Franchisor in writing within 30 days following the opening of the Business. Absent the timely provision of such notice to Franchisor, Franchisee shall be deemed to conclusively acknowledge

that all pre-opening and opening guidance, coaching and assistance required to be provided by Franchisor were sufficient and satisfactory in Franchisee's judgment.

7.6 Franchisor is not obligated to perform guidance, coaching and assistance set forth in this Agreement to Franchisee's particular level of satisfaction, but as a function of Franchisor's experience, knowledge and judgment. Franchisor does not represent or warrant that any other guidance, coaching and assistance will be provided to Franchisee, other than as set forth in this Agreement. To the extent any other guidance, coaching or assistance, or any specific level or quality of guidance, coaching or assistance is expected, Franchisee must obtain a commitment to provide such guidance, coaching or assistance, or level or quality of guidance, coaching or assistance in writing signed by an authorized officer of Franchisor, otherwise Franchisor shall not be obligated to provide any other guidance, coaching or assistance, or specific level or quality of guidance, coaching and assistance.

8. FRANCHISEE'S DUTIES, OBLIGATIONS AND OPERATING STANDARDS

• 8.1 Franchisee shall, consistent with the terms of this Agreement, diligently develop the Business and use its best efforts to market and promote the required Services and Products.

Source: Item 22 — CONTRACTS (FDD page 53)