What sections of the Fitstop Franchise Agreement relate to the Computer/Point of Sale System?

o do so by applicable laws.

H. Computer / Point of Sale System (Franchise Agreement, Section 6, 11 and 14)

We require that all System franchisees acquire and only use the Required Software, including the POS cloud-based software associated with our Current Billing/POS Provider, in connection with all sales, client record management and/or other business records in connection with the Franchised Business operations. We do not have specific brand or model requirements for the type of laptop or other computer you must acquire and dedicate to the operation of your Franchised Business only, but we may designate the same in the future via the Manuals. The computer hardware must be capable of running all Required Software and,

unless we agree otherwise in writing, we expect that you will purchase new model computer(s), tablet(s) and a printer/scanner, consistent with any more specific directives set forth in the Manuals.

As of the Issue Date, we estimate that the pre-opening costs associated with acquiring the required computer hardware components of our System's computer system ("Computer System") will between $3,000 and $7,000. Please note that this range does not account for any other electronics or security system you must and/or determine to purchase in connection with the Franchised Business buildout, which are covered more fully in Item 7 above. We expect that access to all current Required Software will be afforded to our System franchisees as part of the Technology Fee (which is currently 2% of Gross Revenue as detailed more fully in Item 6).

We will have independent and electronic access to the information and data collected or generated by the Required Software and other Computer System components. There are no contractual limits on our rights to do so. We may require updates and upgrades to the Computer System and/or Required Software from time to time during the term of the franchise agreement. We require updates and upgrades to your hardware, software and other Computer System components as such become available, at your expense, upon providing you with reasonable advance notice via the Manuals or otherwise in writing (i.e., typically 60 or more days). There are no contractual limitations to the frequency and cost of the obligation to upgrade and maintain these items. With that said, we do not currently have any specific ongoing maintenance and/or support contract requirements other than working with our third-party Approved Supplier for billing/collection and related services. We estimate that you may spend an average of between $500 and $1,500 (per year from the date you acquire the same) on annual updates and maintenance to the Computer System hardware, including any non-material upgrades.

If not part of the POS system, at your cost and expense, you must investigate and ensure that you comply with all payment card industry ("PCI") and data security standard ("DSS") standards, regulations, and requirements. You must meet the requirements of, and comply with enhancements and changes to, the PCI and DSS and maintain PCI compliance with the current version of the PCI and DSS. You are responsible for using all required tools, systems, and vendors to complete ongoing PCI requirements including quarterly external security scans and annual self-assessment questionnaires. You are solely responsible for all costs relating to PCI compliance and data security issues, such as security threats, breaches, and malware. It is your responsibility to alert us, not later than 24 hours following a suspected or confirmed data security breach, so that appropriate action can be taken to protect customer data and notify relevant parties. You are not permitted to collect, store, transfer, etc. any unnecessary customer information.

We reserve the right to require that you purchase a security system to protect your Franchised Business and provide us with notice once it has been installed. We may require you to install a compliance monitoring system in your location at reference points designated by us.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–35)