What is the franchisee's obligation regarding 'System Standards' for a Focalpoint Coaching franchise?

prescribes or suggests may or may not optimize the revenues or profitability of the Franchised Business and Franchisee irrevocably waives any and all claims arising from the establishment or suggestion of the Franchised Business' retail prices.

F. COMPLIANCE WITH SYSTEM STANDARDS.

Franchisee acknowledges and agrees that operating and maintaining the Franchised Business according to System Standards are essential to preserve the goodwill of the Marks and all FocalPoint Franchised Businesses. Therefore, Franchisee agrees at all times to operate and maintain the Franchised Business according to all of Franchisor's System Standards, as Franchisor periodically modifies and supplements them, even if Franchisee believes that a

System Standard, as originally issued or subsequently modified, is not in the Franchise System's or the Franchised Business' best interests. Although Franchisor retains the right to establish and periodically modify System Standards that Franchisee has agreed to maintain, Franchisee retains the right to and responsibility for the day-to-day management and operation of the Franchised Business and implementing and maintaining System Standards at the Franchised Business.

As examples, and without limitation, System Standards may regulate any one or more of the following, in addition to the items described in Subsections 8.A through 8.F above:

• (1) procedures, methods, and techniques for Services;
• (2) purchasing and inventory requirements for Proprietary Products and other products and supplies so that the Franchised Business may operate at full capacity;
• (3) terms and conditions of the sale and delivery of, and terms and methods of payment for, Proprietary Products, other products, and services that Franchisee obtains from Franchisor and affiliated and unaffiliated suppliers; and Franchisor's and Franchisor's affiliates' right not to sell Franchisee any Proprietary Products, or other products or to provide Franchisee with services, or to do so only on a "cash-on-delivery" or other basis, if Franchisee is in default under any agreement with Franchisor;
• (4) sales, marketing, advertising, promotional and loyalty programs and materials and media, including social media Websites, used in these programs ("social media" includes personal blogs, common social networks like Facebook, professional networks like LinkedIn, live-blogging tools like Twitter, virtual worlds, file, audio and video-sharing sites, and other similar social networking or media sites or tools);
• (5) use and display of the Marks at the Office and on vehicles, forms, paper and plastic products, and other supplies;
  • (6) issuing and honoring gift certificates;
• (7) staffing levels for the Franchised Business; identifying the Franchised Business' personnel; and employee qualifications, training, dress, and appearance (although Franchisee has sole responsibility and authority concerning employee selection and promotion, hours worked, rates of pay and other benefits, work assigned, and working conditions);
  • (8) days and hours of operation;
• (9) participation in market research and testing and product and service development programs and preparation of reports and other relevant information Franchisor may request regarding the market research, as well as participation in, and dues assessed for, advisory councils;
• (10) accepting credit and debit cards, other payment systems, and check verification services;

• (11) bookkeeping, accounting, data processing, and recordkeeping systems and forms; formats, content, and frequency of reports to Franchisor of sales, revenue, financial performance, and condition; and giving Franchisor copies of tax returns and other operating and financial information concerning the Franchised Business;
• (12) use of social media in connection with the Franchised Business' operation or otherwise referencing the Franchise System; and
• (13) any other aspects of operating and maintaining the Franchised Business that Franchisor determines to be useful to preserve or enhance the efficient operation, image, or goodwill of the Marks and FocalPoint Franchised Businesses.

Source: Item 22 — Contracts (FDD pages 56–57)