What is the Face Foundrie Franchisor's role in providing training and assistance?

perating 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. These counseling and advisory services shall occur at Franchisor's offices or via telephone or e-mail. Franchisor shall generally provide such

assistance at no expense to Franchisee, provided Franchisor reserves the right, in its sole discretion, to charge Franchisee its then-current per diem charges plus expenses incurred in connection with providing counseling and advisory services beyond those offered as part of Franchisor's standard support established for the System. In addition, if requested by Franchisee and Franchisor's personnel are available, or if determined necessary by the Franchisor in its sole discretion, Franchisor may provide onsite assistance and training at the Facial Bar, however, Franchisee shall pay to Franchisor its then-current per diem charges plus expenses and costs incurred by Franchisor in rendering such assistance.

• 4.06 Operations Manual. During the Term, Franchisor will loan to Franchisee one (1) copy of, or provide Franchisee with electronic access to, the Operations Manual. The Operations Manual may consist of computerized documents or software, information provided on the Internet or an extranet, or any other medium Franchisor adopts periodically for use with the System and designates as part of the Operations Manual, and may consist of a number of individual manuals. The Operations Manual is confidential, copyrighted and Franchisor's exclusive property. The Operations Manual will contain information, standards and specifications concerning the System, the development and operation of the Facial Bar and any other information and advice Franchisor may periodically provide to its franchisees. Franchisor may update and change the Operations Manual periodically to reflect changes in the System and the operating requirements applicable to Face Foundrié Facial Bars, and Franchisee expressly agrees to comply with each requirement within such reasonable time as Franchisor may require, or if no time is specified, within thirty (30) days after receiving notification of the requirement. Franchisee shall at all times ensure that its copy of the Operations Manual and any other confidential materials supplied by Franchisor to Franchisee are kept current and up to date. Franchisee must keep any printed Operations Manual in a secure location at the Facial Bar and must restrict employee access to the Operations Manual on a need-to-know basis, and take reasonable steps to prevent unauthorized disclosure or copying of any information in any printed or computerized Operations Manual. If Franchisor and Franchisee have any disagreement about the most current contents of the Operations Manual, Franchisor's master copy of the Operations Manual will control. Upon the expiration or termination of this Agreement for any reason, Franchisee must return all copies of the Operations Manual to Franchisor, and upon Franchisor's request, certify to Franchisor that Franchisee has not kept any copies in any medium.
• 4.07 Nature of Assistance and Training. Franchisee agrees that Franchisor is not obligated to provide any training or assistance to Franchisee's particular level of satisfaction, but as a function of Franchisor's experience, knowledge, and judgment.

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