What is the relationship between the Hyper Kidz Franchise Agreement, the Manual, and the System?

t**: During the operation of your Hyper Kidz Business, we will do the following:

• 1. Furnish guidance to you with respect to: (a) specifications, standards and operating procedures utilized by Hyper Kidz Businesses and any modifications of them; (b) purchasing approved equipment, fixtures, signs, inventory, and operating materials and supplies; (c) development and implementation of local marketing and promotional programs; (d) administrative, bookkeeping, accounting, inventory control, and general operating and management procedures of Hyper Kidz Businesses; and (e) establishing and conducting employee training programs at your Franchised Business. This guidance will be furnished in the form of the Manual, bulletins, written reports and recommendations, other written materials (including email), periodic telephonic consultations, or consultations at our offices or at your Franchised Business. (Franchise Agreement – Section 5.4.)
• 1. Additional training and assistance on-site at your Hyper Kidz at your request or if we determine that additional training or assistance is necessary. You must pay our then-current per diem fee

for each trainer we send to you, and you must reimburse our trainers' expenses, including travel, lodging and meals. (Franchise Agreement – Section 5.2.)

• 1. License to you the right to use the Marks and certain copyrighted works and will indemnify you from certain claims relating to your use of the Marks as more fully described in Items 13 and 14. (Franchise Agreement – Articles 6 and 7.)
  • 1. Maintain a Brand Development Fund. (Franchise Agreement Section 12.1.)
• 1. At our option, hold a meeting of our franchisees. This meeting will be held when we believe it will be beneficial to the franchisees in the System and will not be held more frequently than annually. (Franchise Agreement – Section 5.3.)
• 1. Indemnification against and reimbursement for all damages for which you are held liable in any proceeding arising out of your use of any of the Marks (including settlement amounts), if you have fully complied with the terms of the Franchise Agreement. (Franchise Agreement, Section 6.5.)

Site Selection

You must select the site for your Hyper Kidz Business, and you must obtain our written acceptance of any proposed site in accordance with our procedures. Within 180 days after you sign the Franchise Agreement, you must submit to us the information and materials we may reasonably require for your proposed site, including demographic, commercial and other information, and photographs.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 40–41)