What details about the Franchisee's Operating Partner does Face Foundrie require?

sor will not modify the prototype plans and specifications for the Facial Bar developed pursuant to this Agreement once those prototype plans and specifications have been given to Franchisee). Franchisee further understands and acknowledges that each Face Foundrié Facial Bar will be designed differently depending on the specifications of the Premises. Franchisee shall adapt the standard plans to the Facial Bar's location, subject to Franchisor's approval.

4. TRAINING AND GUIDANCE.

4.01 Franchisor Training Programs. The Facial Bar must have an individual that is designated by Franchisee to assume primary responsibility for managing the Facial Bar, and is required to own at least twenty percent (20%) of the outstanding equity of Franchisee (the "Operating Partner"). The Operating Partner must meet our qualifications and must be approved by us. Your Operating Partner must devote fulltime and best efforts to the operation of your Facial Bar. Without our written consent, your Operating Partner may not engage in any business other than the operation of your Facial Bar. Your Operating Partner must be empowered with full authority to act for you and we will be entitled to rely solely on the decision of the

Operating Partner without discussing the matter with any other party. In the event that your Operating Partner ceases to own at least a 20% ownership interest and voting interest in you, or fails to meet our requirements, you must designate a new Operating Partner within thirty (30) days for our review and approval.

Franchisee will inform Franchisor in writing as to the identity of the Operating Partner and its Salon Manager, including all additions to and successors. As and when required by Franchisor, the Operating Partner and the Salon Manager must attend and successfully complete to the satisfaction of Franchisor an initial management training program specified by Franchisor, and are required to complete the initial training program before the Facial Bar may open for business. No fee will be charged by Franchisor for the participation of up to three (3) individuals in the training program, however, Franchisee shall be responsible for the costs and expenses (such as transportation, lodging, meals, compensation and incidental expenses) of each individual who attends the training. You may invite additional employees to attend the initial training program if space allows, though we reserve the right to charge you our then-current training fee for each additional individual. We also reserve the right to limit the number of additional attendees for the initial training program. We reserve the right to require your assistant managers to attend the initial training program, in our sole discretion. Any successor or replacement Operating Partner or Salon Manager must successfully compete the initial training program no more than thirty (30) days after appointed, provided that, Franchisor may in its sole discretion offer an abbreviated training program for approved successor or replacement Salon Managers who previously served in designated positions at the Facial Bar. Franchisee is responsible for all related travel and living expenses and wages incurred in connection with any replacement Operating Partner or Salon Manager attending these training sessions, as well as Franchisor's training fee. No such person may offer services to your Facial Bar or supervise your Facial Bar until they have completed the initial training program.

• 4.02 Franchisee Training Programs. Franchisee shall implement a training program approved by Franchisor for Personnel of the Facial Bar and shall be responsible for the proper training of its employees. Franchisee agrees not to employ any person who fails or refuses to complete Franchisee's training program or is unqualified to perform his or her duties at the Facial Bar in accordance with the requirements established for the operation of a Face Foundrié Facial Bar. We may require your Operating Partner and Personnel to attend various training courses, trade shows, ongoing education or certification programs, and/or webinars at the times and locations designated by us, including courses and programs provided by third-parties we designate and/or provided by us and our Affiliates. You will be responsible for the costs of all such ongoing education.
• 4.03 Additional Training. Franchisee and its employees shall attend and conduct such additional training programs as Franchisor may from time to time reasonably require relating to the operation of the Facial Bar and the System. Franchisee also may be required to purchase training or other instructional materials as specified by Franchisor from time to time in the Operations Manual or otherwise. Franchisee is responsible for reimbursement of Franchisor's trainers' travel and living expenses and other related expenses for any such additional training. Franchisee is responsible for all travel and living expenses and wages incurred in connection with its Personnel attending any training sessions. Franchisor reserves the right to charge for training program fees beyond the initial training program for Franchisee and its original Operating Partner, including without limitation additional pre-opening training if we determine in our sole discretion that your staff is not properly trained before the Facial Bar opens.
• 4.04 Conferences. Franchisor may require Franchisee, the Operating Partner, and/or one or more of the managers of the Facial Bar to attend conferences which may be offered by Franchisor from time to time. Franchisee will be responsible for the travel and living expenses of such persons, and Franchisee must pay Franchisor's then-current registration fee per person that attends such conference.
• 4.05 Advisory Services. During the Term, Franchisor may, in its sole discretion, upon the request of Franchisee or if determined necessary by Franchisor, furnish counseling and advisory services to Franchisee with respect to the development, opening and/or operation of the Facial Bar.

Source: Item 22 — CONTRACTS (FDD pages 73–74)