How does Face Foundrie ensure that franchisees comply with all applicable laws and regulations (Item 8)?

Franchisee shall comply with all federal, state and local laws, codes and regulations, including the applicable provisions of the ADA, regarding the construction, design and operation of the Facial Bar.

In the event Franchisee receives any complaint, claim, other notice alleging a failure to comply with the ADA, Franchisee shall provide Franchisor with a copy of such notice within five (5) days after receipt thereof.

• (e) Franchisee shall obtain all permits and certifications required for the lawful construction and operation of the Facial Bar and shall certify in writing to Franchisor that all such permits and certifications have been obtained.

• (d) Comply with all applicable laws, rules, ordinances, regulations and licensing and permitting requirements that affect or otherwise concern the Facial Bar or the Premises, including, without limitation, zoning, disability access, signage, fire and safety, sales tax registration, music licensing, health and sanitation, construction, HVAC, plumbing, environmental laws, and other data privacy regulations, guidelines and best practices.

Franchisee will be solely responsible for obtaining any and all licenses and permits required to operate the Facial Bar.

Franchisee must comply with all state and local laws and regulations regarding the staffing and management of the Facial Bar, including without limitation (i) any requirements for medical personnel supervision, ownership, oversight or involvement with the Facial Bar, and (ii) any requirements for certain services to be provided by licensed and/or credentialed individuals.

Without limiting the previous

sentence, Franchisee must ensure each employee or contractor has all necessary licenses, and meets all continuing education requirements, and Franchisee must maintain copies of all such licenses. Franchisee must notify Franchisor in writing within five (5) days of the commencement of any action, disciplinary investigation, suit, proceeding or investigation, or of the issuance of any order, injunction, award of decree, by any court, agency, or other governmental instrumentality that relates to Franchisee, the Facial Bar, or any of Franchisee's employees. Franchisee must keep copies of all health, fire, building occupancy and similar inspection reports on file and available for Franchisor to review. Franchisee must promptly forward to Franchisor any correspondence stating that Franchisee is not in compliance with any such laws, rules, ordinances and regulations. Franchisee must abide by: (a) the Payment Card Industry Data Security Standards ("PCIDSS") enacted by the applicable Card Associations (as they may be modified from time to time or as successor standards are adopted); (b) the Fair and Accurate Credit Transactions Act ("FACTA"); and (c) all other standards, laws, rules, regulations or any equivalent thereof applicable to electronic payments that may be published from time to time by payment card companies and applicable to electronic payments ("Electronic Payment Requirements"). If Franchisee or Franchisor are required by one of the credit card companies or another third party (including any governmental body) to provide evidence of compliance with PCIDSS, FACTA or applicable Electronic Payment Requirements, Franchisor may require Franchisee to provide, or make available, to Franchisor copies of an audit, scanning results, or related documentation relating to such compliance. If Franchisee suspects or knows of a security breach, Franchisee must immediately give Franchisor notice of such security breach and promptly identify and remediate the source of any compromise or security breach. Franchisee assumes all responsibility for providing all notices of breach or compromise and all duties to monitor credit histories and transaction concerning customers of the Facial Bar.

Franchisee agrees to comply with Franchisor's System standards regarding Memberships, including regarding the following matters: (i) the types and terms of Memberships it may offer; (ii) the form(s) of Membership Agreement; (iii) the terms and conditions upon which a member may transfer his or her Membership from the Facial Bar to another Face Foundrié Facial Bar and vice versa; (iv) admission of members of the Facial Bar to other Face Foundrié Facial Bars; (v) procedures to follow when members transfer to or from the Facial Bar; (vi) use and acceptance of coupons, passes, certificates, and gift cards; (vii) group accounts and group Memberships (and discounts applicable thereto); and (viii) payment terms for Memberships.

Franchisee shall also maintain maintenance contracts and/or service contracts on all equipment and machinery designated by Franchisor and Franchisor shall have the right to designate the vendor(s) for such contracts and the requirements for the contracts.

Operate the Facial Bar and prepare and sell all products and services sold therein in accordance with, and comply with all requirements of, this Agreement, Franchisor, the System and the Operations Manual as they are now or hereafter established, including, without limitation, any specifications, standards, business practices and policies.

Franchisor and its duly authorized representatives shall have the right, if they so elect, at all reasonable times, to enter and inspect the Facial Bar to ensure that Franchisee is in compliance therewith and to test any and all service offerings, equipment, systems, products and supplies used in connection with the operation of the Facial Bar.

Franchisee shall promptly make all repairs and replacements thereto as may be required to keep the Facial Bar in the highest degree of sanitation and repair and to maintain maximum efficiency and productivity and in accordance with Franchisor's specifications and in compliance with applicable laws.

If Franchisor changes the System or standards of operation with respect to the Facial Bar, Franchisee expressly agrees to comply with each change within such reasonable time as Franchisor may require, or if no time is specified, within thirty (30) days after receiving notification of the change.