Who bears the expense of complying with the Fly To Fit manual and system standards?

nimum score requirements set by Fly To Fit Franchise for such programs. Fly To Fit Franchise may set minimum scores that Franchisee must receive from the public on internet review sites (such as Yelp or Google).

• 7.10 Payment Systems. Franchisee shall accept payment from customers in any form or manner designated by Fly To Fit Franchise (which may include, for example, cash, specific credit and/or debit cards, gift cards, electronic fund transfer systems, and mobile payment systems). Franchisee shall purchase or lease all equipment and enter into all business relationships necessary to accept payments as required by Fly To Fit Franchise. Franchisee must at all times comply with payment card industry data security standards (PCI-DSS).

• 7.11 Gift Cards, Loyalty Programs, and Incentive Programs. At its own expense, Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by Fly To Fit Franchise, in the manner specified by Fly To Fit Franchise in the Manual or otherwise in writing. Franchisee shall honor all valid gift cards and other pre-paid systems, regardless of whether issued by Franchisee or another Fly To Fit business. Franchisee shall comply with all procedures and specifications of Fly To Fit Franchise related to gift cards, certificates, and other pre-paid systems, or related to customer loyalty, membership/subscription, or customer incentive programs.
• 7.12 Maintenance and Repair. Franchisee shall at all times keep the Business in a neat and clean condition, perform all appropriate maintenance, and keep all physical property in good repair. In addition, Franchisee shall promptly perform all work on the physical property of the Business as Fly To Fit Franchise may prescribe from time to time, including but not limited to periodic interior and exterior painting; resurfacing of the parking lot; roof repairs; and replacement of obsolete or worn out signage, floor coverings, furnishings, equipment and décor. Franchisee acknowledges that the System Standards may include requirements for cleaning, maintenance, and repair.
• 7.13 Remodeling. In addition to Franchisee's obligations to comply with all System Standards in effect from time to time, Fly To Fit Franchise may require Franchisee to undertake and complete a Remodel of the Location to Fly To Fit Franchise's satisfaction. Franchisee must complete the Remodel in the time frame specified by Fly To Fit Franchise. Fly To Fit Franchise may require the Franchisee to submit plans for Fly To Fit Franchise's reasonable approval prior to commencing a required Remodel. Fly To Fit Franchise's right to require a Remodel is limited as follows: (i) the Remodel will not be required in the first two or last two years of the term (except that a Remodel may be required as a condition to renewal of the term or a Transfer), and (ii) a Remodel will not be required more than once every five years from the date on which Franchisee was required to complete the prior Remodel.
• 7.14 Meetings. The Principal Executive shall use reasonable efforts to attend all in-person meetings and remote meetings (such as telephone conference calls) that Fly To Fit Franchise requires, including any national or regional brand conventions. Franchisee shall not permit the Principal Executive to fail to attend more than three consecutive required meetings.

7.15 Insurance.

• (a) Franchisee shall obtain and maintain insurance policies in the types and amounts as specified by Fly To Fit Franchise in the Manual. If not specified in the Manual, Franchisee shall maintain at least the following insurance coverage:
  • (i) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible);
  • (ii) Business interruption insurance covering at least 12 months of income;

• (iii) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit;
• (iv) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000; and
• (v) Workers Compensation coverage as required by state law.
• (b) Franchisee's policies (other than Workers Compensation) must (1) list Fly To Fit Franchise and its affiliates as an additional insured, (2) include a waiver of subrogation in favor of Fly To Fit Franchise and its affiliates, (3) be primary and non-contributing with any insurance carried by Fly To Fit Franchise or its affiliates, and (4) stipulate that Fly To Fit Franchise shall receive 30 days' prior written notice of cancellation.
• (c) Franchisee shall provide Certificates of Insurance evidencing the required coverage to Fly To Fit Franchise prior to opening and upon annual renewal of the insurance coverage, as well as at any time upon request of Fly To Fit Franchise.
• 7.16 Payments to Third Parties. Franchisee shall pay all vendors and suppliers in a timely manner. Franchisee shall pay all taxes when due. If Franchisee borrows money, it shall comply with the terms of its loan and make all loan payments when due. If Franchisee leases the Location, Franchisee shall comply with its lease for the Location and make all rent payments when due.
• 7.17 Public Relations. Franchisee shall not make any public statements (including giving interviews or issuing press releases) regarding Fly To Fit, the Business, or any particular incident or occurrence related to the Business, without Fly To Fit Franchise's prior written approval, which will not be unreasonably withheld.
• 7.18 Association with Causes. Franchisee shall not in the name of the Business (i) donate money, products, or services to any charitable, political, religious, or other organization, or (ii) act in support of any such organization, without Fly To Fit Franchise's prior written approval, which will not be unreasonably withheld.
• 7.19 No Other Activity Associated with the Business. Franchisee shall not engage in any business or other activity at the Location other than operation of the Fly To Fit Business. Franchisee shall not use assets of the Business for any purpose other than the Business.

Source: Item 22 — CONTRACTS (FDD page 44)