Does Engineering For Kids allow franchisees to offer optional, ancillary programs?

the conference is mandatory or optional). You will be also responsible for all costs that you (or your Operating Principal) and any other personnel incur in connection with attending these conferences. The mandatory fees per conference will not exceed Four Hundred Dollars ($400) per Franchised Business (or per person if multiple persons will attend from the Franchised Business).

7. APPROVED PROGRAMS

7.1. Core Programs and Additional Approved Programs

Unless we approve otherwise, you must only offer only the Programs we have approved in the Manual or otherwise in writing, and in doing so you will use only the Proprietary Materials, any other curriculum materials, and standards that we have approved for use in conducting the approved Programs. We may designate certain Programs as Kelvin's core programs that are mandatory (collectively, the "Kelvin's Core Programs"). There may be other Programs that we will approve for the operation of Engineering For Kids Businesses. Such other programs may in the future be deemed to be Kelvin's Core Programs, in which case they will become mandatory for you to offer or operate in connection with the Franchised Business; or such Programs will remain ancillary Programs, in which case they will be optional for you to offer or operate in connection with the Franchised Business. We reserve the right to limit the number of ancillary Programs you conduct at the Franchised Business in addition to the Kelvin's Core Programs. You agree that you will not offer any Programs or services in connection with the Franchised Business that are not approved. We have the right to revoke our approval of any Program, curriculum and materials; and in the event we revoke our approval, you agree to discontinue further offer or use of the disapproved Programs and materials. We will maintain a list or directory of the approved Programs in the Manual and/or other written instructions that we make available to franchisees of Engineering for Kids Businesses.

7.2. Review of Proposed Programs and Test Programs

In no way limiting the terms of Section 6.3 above, if you wish to offer and conduct programs and/or to use curriculum that we have not approved for use in the System, you must submit a written request for approval according to the procedures we establish in the Manual. We have the right to grant, deny, or revoke approval of proposed programs, curriculum, and materials based solely on our judgment. We will

notify you in writing of our decision as soon as practicable following our evaluation. We may grant our approval on a limited or test basis. If we authorize you to test programs and curriculum in your Franchised Business, you must cooperate with us in connection with the conduct of such test programs and comply with the procedures we establish from time to time in connection with such programs as set forth in the Manual. At the conclusion of the test program, you must submit all curriculum and/or materials to us.

7.3. Virtual Programs

In no way limiting the terms of Sections 7.1 or 7.2 above, the following terms apply to recorded videos and other programs and materials prepared to be provided to customers of Engineering for Kids Businesses through designated online and "virtual" settings that we prescribe and/or approve in writing (the "Virtual Programs"). We have developed Virtual Programs for use by Engineering for Kids Businesses as a supplemental method of offering Programs during periods when Engineering Kids Businesses are under governmental restrictions that impair their ability to conduct in-person Programs. The Virtual Programs are not intended as a replacement for in-person Programs and you must offer in-person Programs unless legally restricted from doing so or we provide written modification of that requirement. With respect to Virtual Programs, we have the right to (a) require that you offer and conduct Virtual Programs; (b) right to designate some or all Virtual Programs as Core Programs or as optional Programs;

Source: Item 23 — RECEIPTS (FDD pages 53–138)