What happens if a Caring Transitions franchisee does not adhere to the System Standards?

travel, room, board and wages, and any training fee charged by Franchisor.

• 7.2 System Standards. Franchisee acknowledges and agrees that every detail of the System is important, not only to Franchisee but also to Franchisor and other Caring Transitions franchisees, in order to develop and maintain high and uniform operating standards, to increase the demand for the products and services offered by all franchisees, to establish and maintain a reputation for uniform, efficient, high quality services, and to protect the goodwill of all Caring Transitions franchises. Franchisee further acknowledges and agrees that a fundamental requirement of the System, this agreement, and other Caring Transitions franchises is adherence by all franchisees to the uniform specifications, standards, operating procedures and rules prescribed by Franchisor for the development

and operation of the franchised business (hereafter referred to as "System Standards"). Accordingly, Franchisee agrees to comply with each and every System Standard (including, by way of example and not limitation, a designated maximum or minimum for a Buyer's Premium or for other Permitted Products and Services), as periodically modified and supplemented by Franchisor in its sole and absolute discretion, during the term of this agreement. Franchisee further agrees that System Standards prescribed from time to time in the Manual, or otherwise communicated to Franchisee in writing, shall constitute provisions of this agreement as if fully set forth in this agreement. All references to this agreement include all System Standards as periodically modified.

• 7.3 Products and Services. Franchisee shall offer and sell all products and services, and only those products and services, authorized by Franchisor and specified in the Manual or as designated in writing by Franchisor ("Permitted Products and Services"). Franchisor may unilaterally add and delete products or services to or from the Permitted Products and Services at any time. Franchisor may also designate any products or services as optional for all or any subgroup of franchisees. Optional services currently include moving services. Before offering or selling any Permitted Products or Services, Franchisee shall comply with all appliable laws and other requirements and submit proof of compliance therewith to Franchisor.
• 7.4 Fixtures and Furnishings. Franchisee, at its own expense, shall purchase and install, the Communication and Information System as specified in Section 7.15 below, and all fixtures, furnishings, signs, and other equipment as may be specified by the System Standards from time to time;

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)