What are the conditions that must be met before Kidokinetics provides assistance (Item 11) and how do these conditions relate to the franchisee's initial investment (Item 7)?

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Before you open your Kidokinetics Business, we (or our designee) will:

• 1. Designate the territory within which you will operate the Kidokinetics Business. You must run your Kidokinetics Business from an office located inside of your territory. You may use a home office if suitable. You and we will agree on your territory before you sign the Franchise Agreement. (Franchise Agreement, Section 2.1 and Attachment B)
• 1. Provide an initial training program. We will not provide general business or operations training to your employees or independent contractors; however, we may provide limited training on the System and brand standards to your key employees. You will be responsible for training your employees and independent contractors, including any training on the day-to-day operations of the Kidokinetics Business. You will be responsible for hiring, training, directing, scheduling and supervising your employees and independent contractors in the day-to-day operations of the Kidokinetics Business. (Franchise Agreement, Section 6.1)
• 1. Loan you one copy of the Franchise Operations Manual, which is approximately 350 pages. The table of contents of the Franchise Operations Manual, along with number of pages devoted to each section, is included as $\underline{\text{Exhibit C}}$ to this Franchise Disclosure Document. (Franchise Agreement, Sections 8.1 and 9.1)
• 1. Provide to you any written specifications for required equipment, tools and vehicles and provide you with a list of any approved suppliers and/or manufacturers of these items. You must purchase at your own costs, install, maintain in sufficient supply and only use fixtures, furnishings, equipment, signs and supplies that conform to the standards and specifications described in the Franchise Operations Manual or otherwise in writing. (Franchise Agreement, Sections 9.3 and 9.5)

1. Provide you with Enhanced Business Coaching and Training Services for two days following the launch of your Kidokinetics Business. You will at all times be responsible for complying with the obligations of the Franchise Agreement even though you may retain Enhanced Business Coaching and Training Services. If you operate an existing Kidokinetics Business, you will not be required to complete this training, but may request it and pay the Enhanced Business Coaching and Training Fee (Franchise Agreement, Section 5.2.6).

Site Selection

We expect that you will operate your Kidokinetics Business out of your home. We do not provide any site selection assistance to you. We do not have specifications for an office location outside of the home, except that if you choose to operate from a location other than a home office, such location must be within the Territory. If you choose to open an office location outside the home, we do not assist you in conforming the premises to local ordinances and building codes, obtaining permits, or constructing, remodeling or decorating your premises. You must provide a copy of the lease for the location and obtain written acceptance from us. We will notify you in writing of our approval decision of your location within 10 days of receiving the request. If we cannot agree on an office location located within your Territory, we can terminate the Franchise Agreement. You must ensure that the premises allow you to operate your Kidokinetics Business according to our standards and specifications set forth in our Franchise Operations Manual, comply with local ordinances and building codes, and obtain any required permits. We generally do not own retail or commercial spaces that we would lease to you.

Typical Length of Time Before Operation

We estimate that the typical length of time between the signing of the Franchise Agreement and the opening of a Kidokinetics Business is 60 days. Factors that may affect your beginning operations include ability to secure permits, zoning and local ordinances, weather conditions and delays in installation of equipment and fixtures. You are required to open your Kidokinetics Business and be operational within 90 days after signing the Franchise Agreement.