Under what circumstances may Extreme Art Studio allow a franchisee to appoint a Designated Manager?

8.5 MANAGEMENT OF THE FRANCHISED BUSINESS. You (or your Operating Owner, if you are an Entity) are responsible for the day-to-day management, direction, and control of the Franchised Business, subject to the terms and conditions of this Franchise Agreement. Under certain circumstances, we may allow you to appoint a designated manager ("Designated Manager") to supervise the day-to-day operations of the Extreme Art Studio Business. The Designated Manager must successfully complete our Initial Training Program. The Designated Manager need not have an ownership interest in the Franchisee Entity. If, at any time during the term of the Franchise Agreement, you replace your Operating Owner and/or Designated Manager, that replacement must attend and successfully complete the first available Initial Training Program. You will be charged a training fee for each and every replacement Operating Owner and/or Designated Manager and will be responsible for all costs for airfare, ground transportation, lodging, meals and expenses. You (or your Operating Owner) or your Designated Manager (if any) must continuously exert your (or his or her) best efforts to promote and enhance the Franchised Business. The Franchised Business must always be under the direct, full-time supervision of you (or your Operating Owner) or your Designated Manager, if any. You are not required to directly manage and train the teachers; however, you must at all times have a Designated Manager (if someone other than you) who must have satisfactorily completed our Initial Training Program.

Source: Item 22 — CONTRACTS (FDD page 49)