Is Creative World School required to modify or supplement System Standards during the term?

nic format) version and printed copies of the Manuals. You may not at any time copy, duplicate, record or otherwise reproduce any part of the Manuals. If your copy of the Manuals is lost, destroyed or significantly damaged, you agree to obtain a replacement copy at our then applicable charge which currently is $1,000

(unless we have made on-line Manuals accessible to you. If so, you may utilize the on-line Manuals instead of purchasing other printed or electronic format Manuals).

• 11.02 Compliance with System Standards. You acknowledge and agree that your operation and maintenance of the School in accordance with System Standards are essential to preserve the goodwill of the Marks and all Schools. Therefore, at all times during the Term, you agree to operate and maintain the School in accordance with each and every System Standard, as we periodically modify and supplement them during the Term. System Standards may regulate any one or more of the following with respect to the School:
  • (a) Construction, design, layout, decor, appearance, playground surface and playground equipment and lighting; periodic maintenance, cleaning and sanitation; periodic remodeling; replacement of obsolete or worn-out leasehold improvements, fixtures, furnishings, equipment and signs; periodic painting; and use of interior and exterior signs, emblems, lettering and logos, and illumination;
  • (b) types, models and brands of required fixtures, furnishings, equipment, signs, software, materials and supplies;
  • (c) required or authorized products and product categories including for all educational items and materials;
  • (d) designated or approved suppliers of fixtures, furnishings, equipment, signs, software, products, materials and supplies including for all educational, learning or developmental products and services;
  • (e) terms and conditions of the sale and delivery of, and terms and methods of payment for, products, materials, supplies and services that you obtain from us, unaffiliated suppliers or others;
  • (f) sales, marketing, advertising and promotional programs and materials and media used in such programs;
  • (g) use and display of the Marks;
  • (h) matters relating to managing the School, and dress and appearance of employees, including uniforms (all other matters pertaining to employment are suggestions or recommendations only);
  • (i) hours of operation of the School;
  • (j) participation in market research and testing and product and service development programs and customer satisfaction programs;
  • (k) acceptance of credit cards, gift certificates, coupons, and payment systems and check verification services;
  • (l) bookkeeping, accounting, data processing and record keeping systems, including software, and forms; methods, formats, content and frequency of reports to us of sales,

revenue, financial performance and condition; and furnishing tax returns and other operating and financial information to us;

• (m)types, amounts, terms and conditions of insurance coverage required to be carried for the School and standards for underwriters of policies providing required insurance coverage; our protection and rights under such policies as an additional named insured; required or impermissible insurance contract provisions; assignment of policy rights to us; periodic verification of insurance coverage that must be furnished to us; our right to obtain insurance coverage for the School at your expense if you fail to obtain required coverage; our right to defend claims; and similar matters relating to insured and uninsured claims;
• (n) complying with applicable laws; obtaining required licenses and permits; adhering to good business practices; observing high standards of honesty, integrity, fair dealing and ethical business conduct in all dealings with customers, suppliers and us; and notifying us if any action, suit or proceeding is commenced against you or the School; and
• (o) regulation of such other aspects of the operation and maintenance of the School that we determine from time to time to be useful to preserve or enhance the efficient operation, image or goodwill of the Marks and Schools.

You agree that System Standards prescribed from time to time in the Manual, or otherwise communicated to you in writing or other tangible form, constitute provisions of this Agreement as if fully set forth. All references to this Agreement include all System Standards as periodically modified.

11.03 Modification of System Standards. We may periodically modify System Standards, which may accommodate regional or local variations as we determine. Such modifications may obligate you to invest additional capital in the School ("Capital Modifications") and/or incur higher operating costs.

Source: Item 23 — RECEIPTS (FDD pages 80–247)