What licenses, permits, and certificates are required for operating an Extreme Art Studio franchise?

• 8.6.2 Actual types and amounts of coverage are subject to change, and certain types of coverage may differ depending on the type of Extreme Art Studio Business you operate.

We reserve the right to require that you obtain all or a portion of your insurance policies from a designated vendor.

The liability insurance must cover claims for bodily and personal injury, death, and property damage caused by or occurring in connection with the Franchised Business's operation or activities of your personnel in the course of their employment (within and outside the Franchised Business).

All of these policies must contain the minimum coverage we prescribe from time to time, where you operate the Franchised Business, and must have deductibles not to exceed the amounts we specify.

• 8.6.3 We may periodically increase the amounts of coverage required under these insurance policies and/or require different or additional insurance coverage (including reasonable excess liability insurance) at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances.

• 8.6.4 These insurance policies must be purchased from licensed insurers having a rating of "A/VIII" or higher by the then-current edition of Best Insurance Reports published by A.M.

Best Company (or other similar publication or criteria we designate).

The insurance company must be authorized to do business in the state where your Extreme Art Studio Business is located and must be approved by us.

Source: Item 22 — CONTRACTS (FDD page 49)