How are System Standards communicated to the Extreme Art Studio franchisee?

• 8.8.2 As examples, and without limitation, System Standards may regulate any one or more of the items described in Sections 4.2 and 8.1 above, as well as any other aspects of operating and maintaining the Franchised Business that we determine to be useful to preserve or enhance the efficient operation, image, or goodwill of the Marks and Extreme Art Studio Businesses. You agree that System Standards we prescribe in the Franchise Operations Manual or otherwise communicate to you in writing or another tangible form (for example, via a System extranet or website), are part of this Franchise Agreement as if fully set forth within its text. All references to this Franchise Agreement include all System Standards as periodically modified.
• 8.9 VARIATION AND MODIFICATION OF SYSTEM STANDARDS. We may permit variations in the System Standards as we deem advisable, including, without limitation, variations to accommodate local or regional differences. We periodically may modify System Standards, and these modifications may obligate you to invest additional capital in the Franchised Business and/or incur higher operating costs. You agree to implement any changes in System Standards within the time period we request, whether they involve buying new Operating Assets, adding new products and services, updating your Computer System and adding personnel, or otherwise modifying the nature of your operations, as if they were part of this Franchise Agreement as of the Effective Date.

We will provide mandatory and suggested standards, specifications, operating procedures and rules ("System Standards") that we periodically prescribe for operating an Extreme Art Studio Business, and information on your other obligations under this Franchise Agreement, which may include, but are not limited to: (1) standards, specifications, and operating procedures and methods that Extreme Art Studio Businesses use, including, but not limited to, scheduling and managing classes; (2) customer service standards and policies; (3) qualifications for other employees, including criminal background checks (although you will have sole responsibility and authority concerning employee selection and promotion); (4) staffing levels, training, dress and appearance of your employees; (5) amounts and types of classes to be offered, including lesson class sizes; (6) days and hours of operation; (7) supplies, equipment and inventory management; (8) use and display of the Marks at the Franchised Business and on Operating Assets and other materials; (9) sales, marketing, advertising, and promotional strategies and programs, and materials/media used in these programs; (10) recommended liability waiver forms for customers; (11) use and acceptance of gift cards, loyalty programs, coupons, passes, certificates and discounts; (12) policies regarding credit and debit cards, credit card vendors (including, among other things, companies that provide services for electronic payment such as near field communication vendors like "Apple Pay" and "Google Wallet"), electronic payment, other payment systems, and check verification services, including compliance with the then-current Payment Card Industry Data Security Standards, as those standards may be revised and modified by the PCI Security Standards Council, LLC or any successor organization, or standards that we may reasonably specify; (13) required and recommended associations and memberships; (14) participation in market research and testing and product and service development programs, as well as participation in, and dues assessed for, advisory councils; and (15) administrative, accounting, reporting and record retention.

Such guidance and System Standards will be furnished in the form of our standards manual for the operation of Extreme Art Studio Businesses ("Franchise Operations Manual"), which may include access to an Internet site containing information, as well as audiotapes, videotapes, compact discs, computer software, newsletters, bulletins, and other written or electronic materials.

We may also provide guidance via telephonic conversations and/or consultation at our offices.

We reserve the right to periodically visit your Extreme Art Studio Business(es) and evaluate the Franchised Business.

• 4.3.1 We will provide you with access to some or all of the Franchise Operations Manual on a restricted website or extranet to which you will have access.

We may modify the Franchise Operations Manual periodically to reflect changes in System Standards.

You acknowledge that your compliance with the Franchise Operations Manual is vitally important to us and other System franchisees and is necessary to protect our reputation and the goodwill of the Marks and to maintain the uniform quality of operation through the System.

• 4.3.2 You agree to monitor and access the website or extranet for any updates to the Franchise Operations Manual or System Standards.

Source: Item 22 — CONTRACTS (FDD page 49)