What are the 'System Standards' for a Clean Your Dirty Face Facial Bar?

During the term of this Agreement we will provide you with access to our confidential operations manual for the operation of CYDF Facial Bars, which may include one or more separate manuals, as well as audiotapes, videotapes, compact discs, computer software, information available on an Internet site, other electronic, virtual, or digital media, bulletins and/or other written materials (collectively, the "Operations Manual"). The Operations Manual contains the mandatory specifications, standards, operating procedures, and rules that we periodically prescribe for operating a CYDF Facial Bar ("System Standards"), other specifications, standards and procedures that we suggest, and information on your other obligations under this Agreement. We may modify the Operations Manual from time to time to update our System Standards.

If there is a dispute over its contents, our master copy of the Operations Manual shall control. You agree that the Operations Manual's contents are confidential and that you will not disclose the Operations Manual to any person other than any employee who needs to know its contents. You may not at any time copy, duplicate, record, or reproduce any part of the Operations Manual.

We may advise you from time to time regarding your Business's operation based on your reports or our inspections. We may guide you with respect to: (1) standards, specifications, and operating procedures and methods that CYDF Facial Bars use, including, facility appearance, guest service procedures, and quality control; (2) equipment and facility maintenance; (3) inventory management and working with national suppliers; (4) advertising, marketing and branding strategies; and (5) administrative, accounting, reporting and record retention. Such guidance will be furnished in the form of our Operations Manual (as defined in Section 4.C). We may also provide guidance via telephonic conversations and/or consultation at our offices. If you request, and we agree to provide, additional or special guidance, assistance, or training, we may charge you our then-applicable fee, including our personnel's per diem charges and travel and living expenses. We reserve the right to periodically visit the Premises and evaluate your Business.

You agree to comply with the System Standards we establish from time to time regarding Memberships. These System Standards may regulate, among others, the following topics: (1) the types and terms of Memberships you may offer; (2) the form(s) of Membership Agreement; (3) the terms and conditions upon which a member may transfer his Membership from your Business to another CYDF Facial Bar and vice versa; (4) admission of members of your Business to other CYDF Facial Bars; (5) procedures to follow when members transfer to or from your Business; (6) use and acceptance of coupons, passes, and certificates; (7) group accounts and group Memberships; (8) Membership discounts; and (9) payment terms for Memberships.

You acknowledge that complete and detailed uniformity might not be possible or practical under varying conditions, and that we specifically reserve the right (as we consider best, in our sole discretion) to vary System Standards for any franchise owner based on the peculiarities of any condition that we consider important to that franchise owner's successful operation. We may choose not to authorize similar variations or accommodations to you or other franchise owners.

We may periodically modify System Standards. These modifications may obligate you to invest additional capital in your Business and/or incur higher operating costs. You agree to implement any changes in System Standards within the time period we request, whether they involve refurbishing or remodeling your Business, buying new Operating Assets, adding new products and services, adding personnel or modifying the nature of your operations, as if they were part of this Agreement as of the Effective Date.

During the term of this Agreement you must regularly clean, repaint and repair the interior and exterior of the Premises, repair or replace damaged, worn out or obsolete Operating Assets and maintain the condition of your Business, the Premises and the Operating Assets to meet the highest standards of professionalism, cleanliness, sanitation, efficient, courteous service and pleasant ambiance.

We may designate, approve or develop standards and specifications for manufacturers, distributors and suppliers of products and services to your Business, which may be us or our affiliates (collectively, "suppliers"). You must purchase the products and services we periodically designate only from the suppliers we prescribe and only on the terms and according to the specifications we approve.

• accepting credit and debit cards, other payment systems and currencies, and check verification services:
• policies for the registration, use, content, and/or management of Online Presences or other technology systems, solutions, or products;
• (12)bookkeeping, accounting, data processing, and record keeping systems and forms; formats, content, and frequency of reports to us of sales, revenue, financial performance, and condition; and
• any other aspects of operating and maintaining your Business that we (13)determine to be useful to preserve or enhance the efficient operation, image, or goodwill of the Marks, or CYDF Facial Bars.

Source: Item 22 — CONTRACTS (FDD page 54)