What valuable consideration does Fitstop provide to the franchisee that includes the use of the Franchise System?

wners, | | | | | |

Section 1: Background

• 1.1 We have the right to license and we administer a system (the "Franchise System") that offers and awards franchises (the "Franchise") for the right to indepenedently own and operate a fitness facility (each, a "System Business") that features, offers, sell and/or provides: (i) membership-based and other fitness classes combining strength training, nutritional information and other fitness-related instruction and training; (ii) access to various fitness and gym equipment; (iii) group fitness training and any other services that we designate or authorize in our proprietary manual(s) (the "Manual(s)") and/or otherwise in writing (collectively with subparts (i)-(ii), the "Approved Services"); and (iv) any fitness apparel, merchandise, nutritional items, branded and/or privately-labeled retail items that we designate or otherwise approve in writing (collectively, the "Approved Products").
• 1.2 Each System Business is authorized to operate (a) under the then-current proprietary marks, logos, associated taglines, names and/or trade dress that we designate now or in the future, including our current primary mark FITSTOP® (collectively, the "Proprietary Marks"), and (b) the system that we and our affiliates have developed for use in connection with the establishment of a System Business (the "System").
• 1.3 Based on the financial and/or other representations you made in your franchise application package and subsequent correspondence, upon which we have materially and reasonably relied, we are willing to award you the right to own and operate a franchised System Business (the "Franchised Business") from a specifc location that you propose and we approve (the "Premises"), subject to and in accordance with the terms and conditions set forth in this Agremeent.

Source: Item 23 — RECEIPTS (FDD pages 50–135)