What are the qualifications, training, dress, and appearance requirements for anyone performing services on behalf of a HydroDog business?

• (h) qualifications, training, dress and appearance of anyone performing services on behalf of your HydroDog Business;

You must at all times faithfully, honestly, and diligently perform your contractual obligations. System Standards may regulate the staffing levels and employee qualifications, training, dress, and appearance of your HydroDog Business. Any Designated Owner or General Manager must complete the mandatory training to our satisfaction.

Either you, your Designated Owner if you are an entity, or any General Manager must be present to operate the business during all business hours. If your Designated Owner or General Manager resigns, is terminated, or is otherwise no longer performing as a Designated Owner or General Manager, you must designate a replacement Designated Owner or General Manager (either, a "Replacement"), as applicable, and we must pre-approve the Replacement in writing. Before being employed as Designated Owner or General Manager, the Replacement must complete the mandatory training to our satisfaction. You must pay our then-current fee for the Replacement's training and you must pay for your Replacement's costs in attending training, including travel, lodging, meals, wages, and any other related expenses.

Any General Manager and, if you are an entity, any officer (regardless of equity ownership) must sign, and you must ensure they sign, our then current "Confidentiality and Non-Solicitation and Non-Competition Agreement" as a condition of their employment or appointment. All of your employees, independent contractors, agents, or representatives who may have access to our confidential information must sign our standard confidentiality agreement, regardless of whether they have already signed a Confidentiality and Non-Solicitation and Non-Competition Agreement.

Should you fail to meet our standards in the skills assessment (as determined by us in our sole discretion), you will be required to attend a dog grooming academy of our choosing at your expense prior to Initial Training.

You acknowledge and agree that your failure to comply in all respects with the requirements of any such customer service program or customer retention program, or your failure to achieve customer satisfaction results in accordance with our required customer satisfaction index score for any customer service program, as determined by us in our sole business judgment, or your failure to achieve our required customer retention rate for any customer retention program, as determined by us in our sole business judgment, shall be sufficient grounds for us in our sole business judgment to: (i) require your mandatory attendance at any remedial training program that we specify at your sole cost and expense, (ii) deem your Territory non-exclusive and authorize any other person to operate a HydroDog business within the Territory, (iii) impose monetary penalties as specified in our then-current operations manual, and/or (iv) terminate this Agreement effective immediately upon your receipt of our written notice to you.

• 11.5 Hours of Operation. You agree to operate your HydroDog Business during the hours and on the days prescribed by us in the Manuals or otherwise approved in advance in writing by us.

If, upon your death or disability or the death or disability of the owner of a controlling interest in you, your HydroDog Business is not being managed by a trained Manager, your or such owner's executor, administrator, conservator, guardian or other personal representative must, within a reasonable time not to exceed three (3) months from the date of death or disability, appoint a Manager to operate your HydroDog Business.

Such Manager will be required to complete training at your expense.

Pending the appointment of a Manager as provided above or if, in our judgment, your HydroDog Business is not being managed properly any time after your death or disability or after the death or disability of the owner of a controlling interest in you, we have the right, but not the obligation, to appoint a Manager for your HydroDog Business.

All funds from the operation of your HydroDog Business during the management by our appointed Manager will be kept in a separate account, and all expenses of your HydroDog Business, including compensation, other costs and travel and living expenses of our Manager, will be charged to this account.

We also have the right to charge a reasonable management fee (in addition to the Royalty and Marketing Fund Fees and contributions payable under this Agreement) during the period that our appointed Manager manages your HydroDog Business, which will not exceed four hundred dollars ($400) per day plus our reasonable expenses.

Source: Item 23 — RECEIPTS (FDD pages 43–166)