Any breach of a Guaranty will be deemed to be a breach of this Agreement.

2.8 Collateral Agreements

Franchisee must comply with all terms and conditions of any Collateral Agreement and acknowledges that a breach of any Collateral Agreement constitutes a breach of this Agreement.

3 Training and Operating Assistance

3.1 Initial Training

• (1) Franchisor will provide to Franchisee, Guarantor, and any senior managers nominated by Franchisor (up to a maximum of 4 people), a minimum of two weeks continuous days training in English (Initial Training), by one or more Franchisor representatives. Franchisee shall pay Franchisor an Initial Training Fee for the Initial Training. The Initial Training will be conducted at any place designated by Franchisor. Franchisee must ensure that the Initial Training is commenced by the designated persons no earlier than two months prior to your Chatime Store's Opening and completed by no later than your Chatime Store's Opening.
• (2) If deemed necessary by Franchisor, additional training will be provided by Franchisor either immediately following the Initial Training or otherwise at a place and time determined by Franchisor. Franchisor may charge Franchisee a reasonable fee for such additional training, in addition to the travel, meal and accommodation costs of the trainers, and Franchisee must pay that fee upon receipt of an invoice from Franchisor.
• (3) In relation to the initial training described in clause 3.1(1) or 3.1(2), Franchisee agrees to:
  • (a) Ensure that all relevant persons attend the training at such times and places specified by Franchisor and complete their training to Franchisor's satisfaction; and
  • (b) Bear the full costs and risk of all trainees' attendance at such training programs (including their compensation, travel, accommodation, meals, employee wages and entitlements, uniforms, workers' compensation insurance and personal expenses).

3.2 Continuing Training

• (1) Franchisor may require Franchisee and/or Guarantor and any senior managers of Franchisee to complete a formal training program with Franchisor from time to time during the Initial Term at a place Franchisor designates. All such training will be conducted in English. At Franchisee's request, Franchisor may in its sole discretion conduct additional training programs and provide assistance to Franchisee at a location within the Territory or such other location agreed upon by Franchisee and Franchisor.
• (2) Franchisee must pay all costs associated with:
  • (a) Its employees attending training in accordance with this clause 3 (including travel, accommodation, meals, employee wages and entitlements, uniforms, workers' compensation insurance, and personal expenses);
  • (b) Franchisor providing training in accordance with this clause 3 (including compensation, travel, accommodation, and meals); and
  • (c) Any fees levied by Franchisor in relation to such training.

3.3 Continuing Guidance and Support

• (1) Franchisor will provide ongoing advice and guidance to Franchisee concerning the development, operation, and franchising of the Outlet in the Territory to the extent and in the manner that it deems necessary and appropriate.
• (2) Franchisor will arrange for a representative to visit the Territory and meet with Franchisee at least once in each 12-Month period at Franchisor's Cost.

3.4 Operations Manual

• (1) Franchisor must supply, electronically, a soft copy of the Operations Manual to Franchisee by way of loan.
• (2) Franchisee, at its Cost, must:
  • (a) Upon receipt of the Operations Manual and as required from time to time during the Initial Term, review the Operations Manual for compliance with applicable Legal Requirements, local culture, and local business customs and practices for the Territory; and
  • (b) When changes are required, prepare a written addendum of the changes and provide to Franchisor for its review and approval. The approved addendum of changes will become the Operations Manual Addendum.
• (3) Franchisee may provide access to the Operations Manual and Operations Manual Addendum to Franchisee's key operational employees subject to the employees entering into the approved confidentiality agreement with Franchisor.

3.5 Policies and Procedures

Franchisee:

• (1) Must comply with any Global Policies and Procedures; and
• (2) May issue and enforce compliance with policies and procedures for the operation of the

Outlet in the Territory, provided that Franchisor has first approved those policies.

3.6 Changes to Operations Manual

• (1) Franchisor may add to, delete, or otherwise modify the specifications, standards, operating procedures, systems, instructions, and any other information set out in the Operations Manual or Operations Manual Addendum by giving notice to Franchisee of the change via email.
• (2) A change takes effect and forms part of the Operations Manual and Operations Manual Addendum 7 days after notification to Franchisee.
• (3) Franchisee must at its Cost adopt, in the conduct of The Franchised Business, all changes to the Operations Manual and Operations Manual Addendum.

Source: Item 23 — Receipts (FDD pages 58–262)