What must the Engineering For Kids franchisee do to ensure employees render competent service?

You may be required to employ sufficient number of employees to provide services as needed by your customers.

You agree to comply with all mandatory standards, specifications and operating procedures set forth from time to time in our Manual. You acknowledge that the services and operation of your Franchised Business, accounting practices, record keeping and reporting practices, and software are important to us and our other franchisees. However, you acknowledge that we have the right to vary our standards and specifications, in our reasonable judgment, to accommodate circumstances of individual franchisees. We have the right from time to time to change or modify the System, including modifications to the Manual, the Programs, Proprietary Materials, curriculum, approved suppliers, the required equipment, the signage, and other aspects of the Franchised Business, the adoption of new administrative forms and methods of reporting and payment of any monies owed to us (including electronic means of reporting and payment). You agree to accept and implement any such changes or modifications to the System as if they were a part of the System at the time this Agreement was signed, and you will make such expenditures as the changes or modifications in the System may reasonably require. However, if any discontinued portion of the System, could pose a hazard to the public or prove detrimental to the System, you must cease selling that item or offering that service immediately.

We have the right, at any time during normal business hours: (i) to conduct inspections of the Franchised Business, including without limitation to inspect (and, if applicable, remove) the Proprietary Materials and any other curriculum documents, materials and products used or offered in the operation of the Franchised Business; (ii) to interview your employees, participants (and their parents and guardians), and customers; (iii) to observe and participate in Programs that your employees provide for participants; and (iv) to review your business records, including those maintained electronically or off premises. We can initiate these actions with or without prior notice to you. You must cooperate with such inspections by giving our representatives unrestricted access and rendering such assistance as our representatives may reasonably request. If we notify you of any deficiencies after the inspection, you must promptly take steps to correct them. If you fail to correct any deficiencies within a reasonable time, we have the right to correct such deficiencies and to invoice you for our expenses.

We may, from time to time, designate an independent evaluation service to conduct a "mystery customer," "student survey," and/or similar type, quality-control and evaluation program with respect to Engineering for Kids Businesses. You must participate in such programs as we require, and promptly pay the then-current charges of the evaluation service. If you receive an unsatisfactory or

You are responsible for operating in full compliance with all laws that apply to the industry in which Engineering For Kids Businesses operate, including all state and local laws and regulations. This includes all laws and regulations that apply generally to all coaching, teaching or tutoring youth in math, science, technology and engineering educational activities businesses. You should investigate these laws and regulations. You must secure and maintain all necessary licenses, permits and certificates for the operation of the Franchised Business, as well as any other licenses applicable to the persons that you employ.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 44–45)