r franchisee operating territories.

Time to Open

You may not open your Cordova Business until you have completed our initial training requirements, obtained the necessary licensing and authorization from state and regulatory agencies within your Operating Territory and have obtained and provided us with written proof of the required insurance, and have timely secured an Administrative Office location that we approved. Within 180 days from the signing of your Franchise Agreement you must open and offer services and products of your Cordova Business to the clients within your Operating Territory. We estimate that the length of time between the signing of your Franchise Agreement and opening your Cordova Business to be one to three months. Factors that may affect this estimated time period include the length of time undertaken by you to satisfactorily complete our initial training program, obtaining third party lender financing, securing an Administrative Office, if necessary, obtaining the necessary licenses and training staff.

Post-Opening Obligations

• 1. Communication of Operating Standards We may establish, update and provide you with consultations and communications as to the standards, procedures and System requirements as to the operation of your Cordova Business including, but not limited to, Approved Services and Products, System Supplies, marketing and promotion standards, and as we may, in our discretion, designate, modify, supplement and amend from time to time and, as set forth in the Manuals. (Franchise Agreement, Articles 4.B. and 4.C.);
• 1. Marketing Standards and Approval We will establish, update and communicate to you our standards for the marketing and promotion of the Franchised Business including, but not limited to, the marketing media that you may use. We will respond to your request respecting the communication of our approval or disapproval of marketing media that may be requested by you for use in the marketing and promotion of the Franchised Business. We maintain full discretion as to the marketing standards and the marketing media that may be used in the marketing and promotion of your Cordova Business (Franchise Agreement, Article 4.B.);
• 1. Approved Vendors We will provide the names and addresses of approved vendors and suppliers for the Approved Services and Products and the System Supplies. (Franchise Agreement, Articles 4.B. and 4.C.);
• 1. Annual System Conference We may, in our discretion, coordinate an annual conference to be attended by franchisees of the System that are in good standing. (Franchise Agreement, Article 5.D.);
• 1. Supplemental Training We may require that you and your Operating Manager participate in supplemental onsite training that we may designate and require in our discretion. If you are not meeting what we believe to be

System performance standards, we may provide, in our discretion, supplemental training on-site within your Operating Territory. You will be required to pay our then current supplemental training fee, which is currently $500 per on-site trainer per day, plus travel expenses, meals and accommodation expenses incurred by us. (Franchise Agreement, Article 4.A.);

• 1. Initial Training for Replacement Operating Managers Your Operating Manager must complete, to our satisfaction, our initial training program.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–28)