s**: During your operation of your HydroDog Business, we will:

1. Advise you from time to time regarding the operation of your HydroDog Business based on reports you submit or inspections we make. In addition, we will provide guidance to you on standards,

specifications and operating procedures and methods utilized by the HydroDog Businesses; purchasing required equipment, signs, products, materials and supplies; inventory practices and purchasing practices; use of suppliers and approved products and supplies sales, pricing policies and the like; employee, and management training; and administrative, bookkeeping and accounting procedures This guidance will, at our discretion, be furnished in our Manual, bulletins or other written materials and/or during telephone consultations and/or consultations at the HydroDog Business or elsewhere. (Franchise Agreement, Section 7.5).

• 1. Loan you one copy of the Operations Manuals (or make the Manuals available on-line or via other electronic format), consisting of such materials (which may include audiotapes, videotapes, magnetic media, computer software and written materials) that we generally furnish to franchisees for use in operating HydroDog Businesses. The Manuals contain mandatory and suggested specifications, standards, operating procedures and rules ("System Standards") that we prescribe from time to time for operation of HydroDog Businesses and information relating to your other obligations under the Franchise Agreement and related agreements. (Franchise Agreement, Section 11.1).
• 1. Issue, modify and supplement System Standards for your HydroDog Business. These may establish minimum or maximum prices to the extent permitted by law. We may periodically modify System Standards, which may accommodate regional or local variations as we determine or to comply with applicable laws, rules and regulations, and these modifications may obligate you to invest additional capital in the HydroDog Business and/or incur higher operating costs. However, these modifications will not alter your fundamental status and rights under the Agreement. (Franchise Agreement, Section 11.3).
• 1. As may be permitted by law, inspect and observe, photograph and videotape the operations of HydroDog Businesses, remove samples of any products, materials or supplies for testing and analysis, interview HydroDog Businesses' customers and personnel, and inspect and copy any books, records and documents relating to the operation of your HydroDog Business from time to time to assist you in complying with the Franchise Agreement and all System Standards. (Franchise Agreement, Section 14.1).
  • 1. Provide ongoing training as described later in this Item (Franchise Agreement, Section 7).

Marketing Fund

We currently have a national marketing fund (the "Marketing Fund") for the common benefit of HydroDog franchisees.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–30)