Does the Hydrodog system include training and assistance?

1.1 The HydroDog System. We, our affiliates and our predecessor have expended considerable time and effort developing retail businesses offering, on a mobile basis, pet grooming services (the "Products" and/or the "Services"), in a distinctive and innovative environment (each a "HydroDog Business"). HydroDog Businesses utilize our approved vehicles (the "HydroDog Vehicles") and operate in accordance with our standards and specifications (our "System Standards"). A key to the development, operation, franchising and success of the HydroDog Businesses is the use of our System. The "System" includes, but is not limited to, distinctive designs, layouts, color schemes and signs, equipment, inventory, marketing methods, service requirements, standards and specifications, products, inventory, and suppliers; rules; training and assistance; and other methods and procedures relating to the establishment and operation of a HydroDog Business.

• 7.2 Initial Training Fee. We will provide our HydroDog Academy training as stated herein. At the time you sign this Agreement, you must pay us a five thousand dollar ($5,000) nonrefundable initial training fee (the "Initial Training Fee") per trainee in consideration of the pre-opening initial training program that we will conduct for you. You are responsible for all expenses and costs that you incur for training or attending conferences, including wages, travel and living expenses. If you transfer your franchise, we may charge the new franchisee the then-current Initial Training Fee for each of the transferee's owners and employees that attends our initial training program. All training fees and expense reimbursements are due ten (10) days after invoicing.
• 7.3 Additional Training. We reserve the right to require you and/or your previously trained owners to attend periodic refresher training courses at such times and locations as we may designate. If we require you, and/or your previously trained owners to re-take or attend additional or extended initial training at your expense ("Additional Training").
• 7.4 Completion of HydroDog Academy. Successful completion of HydroDog Academy, any other initial training and any additional or extended initial training we require before opening is a condition to the opening of your HydroDog Business to the public.
• 7.5 General Guidance**.** We will advise you from time-to-time regarding the operation of your HydroDog Business based on reports you submit to us or inspections we make. In addition, we will furnish guidance to you with respect to:
  • (a) standards, specifications and operating procedures and methods utilized by the HydroDog Businesses;
    • (b) purchasing required equipment, signs, products, materials and supplies; 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.

Such guidance will be furnished at our sole discretion, in our Manuals, bulletins or other written materials, during telephone consultations, or during consultations at our office or your HydroDog Business. At your request, we will furnish additional guidance and assistance. If your requests for additional or special training and guidance are, in our opinion, excessive we may charge you our actual expenses that we incur in connection with such training or guidance, including per diem charges and travel and living expenses for our personnel.

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