What section of the Coffee News Franchise Agreement addresses initial and ongoing training obligations for franchisees?

[Item 11: Franchisor's Assistance, Advertising, Computer Systems, and Training]

Startup Time Period

Once the agreement is signed, you will spend approximately 4-6 weeks preparing to publish your first edition of Coffee News. Your timing is affected by the rate of sales of advertisements, the state of preparations with printers, and your selection of restaurants as distribution locations. We shall provide you with 8 weekly editions of copy within 14 calendar days of signing the agreement. Future editions may be accessed from a passcode protected Coffee News Resource Center (Franchise Agreement Section 4.2).

TRAINING PROGRAM

We have no obligations to provide any training classes before or after you begin publishing or to set up an advertising program or fund. You are not required to participate in any other advertising fund.

Our training program is available in person. All signatories, usually the business owners and/or the principal officers of the entity, to the agreement are required to complete the training program to our satisfactory. All costs including without limitation mentoring and startup services are covered by the one – time training fee of $2,900.00, which is included in and will be deducted from the $9,900.00 initial franchise fees. Said onetime fee only applies to new publishers coming into our system. We provide all new publishers with access to all necessary pre-opening training materials and our mentor training program upon signing the franchise agreement.

We also offer a two to three-day Coffee News College every 8-13 weeks for all North American publishers/franchisees. The business owners and their principal officers of the entity are required to attend the initial training program. Travel expenses are not included.

There are no other additional training programs we offer. All existing publishers may attend future initial training programs voluntarily at their own expenses.

TRAINING PROGRAM

[Item 23: Receipts]

9.1 Reservation of Rights. All rights in the Periodical other than those specifically granted herein by Franchisor to Franchisee are reserved by Franchisor for full use by it or its assignees, transferees or licensees.

10. TRAINING

Our training program is available in person and is required. All signatories, usually the business owners and the principal officers of the entity, to the agreement are required to complete the initial training program to our satisfactory. All existing franchisees may attend future initial training programs voluntarily.

• 10.1 Mentoring Program. Upon signing of this Agreement and receipt of the initial franchise fee payment, we provide all new publishers with the access to all necessary pre-opening training materials and our mentor training program.
• 10.2. In Person Training Program. Franchisor offers a two to three-day Coffee News College every 8-13 weeks for all new North American franchisees. The business owners and their principal officers of the entity are required to attend the initial training program. Such training consists of a two to three-day classroom program utilizing both veteran franchisees and corporate staff to provide a combination of lectures and hands-on involvement. There is also time allowed for networking between you and veteran franchisees during this period. The topics covered in the two to three-day training program include without limitation sales, advertisement design, billing, collections, distribution, marketing, and startup.
• 10.3. Expenses. The initial training program is at no additional cost to you. The one-time training fee of $2,900.00 is included in the $9,900.00 initial franchise fees. However, you are responsible for your own travel and hotel expenses. Your attendance of subsequent training program will be at your own expenses.
• 10.4 Training When Purchase with Finance. When Franchisee obtains finance for full funding to purchase minimum of four franchises subject to Paragraph 4.4 hereof, Franchisee shall attend the next Coffee News College at the time of purchase.

11. SUCCESSORS AND ASSIGNMENT.

[Item 11: Franchisor's Assistance, Advertising, Computer Systems, and Training]

¹ A sample Promissory Note is attached to Coffee News License Agreement as Schedule B.

We will not sign an agreement with you or require the payment of the Initial fees until we have agreed on the specific territories you wish to purchase.

When you request the areas where you wish to publish, we will determine the number of franchises that the area would represent based on the guidelines in Item 11.2 and Item 12. There is no time limit for an acceptance since all site locations are resolved before you sign an agreement with us.

• 1. We shall disclose to you the unique marketing and sales techniques employed in the design and format of the Periodical, described in detail in the operations manual (Franchise Agreement Section 7.2).
• 1. The design of the periodical stand is disclosed in the operations manual. The current suggested stand for Coffee News can be purchased for $5.25 each plus shipping and handling for a total of approximately $5.75 each from Coffee News USA or its preferred vendor (Franchise Agreement Section 7.3). If you opt to purchase stands elsewhere, we will provide labels for each stand at a nominal charge.
  • 1. You are not required to buy or use electronic cash registers or computer systems.

After you publish your first edition of Coffee News,

1. We shall provide you support services as deemed reasonable and advisable by us (Franchise Agreement Section 7.4).

Source: Item 9 — Franchisee's Obligations (FDD pages 15–16)