Which sections of the Learningrx Franchise Agreement outline the initial and ongoing training obligations for franchisees?

• 1. Initial Investment to Open Initial Micro or Standard Center: This figure represents the total estimated initial investment required to open either a Micro Franchise Center or a Standard Franchise Center under the Area Developer Agreement. You will be required to enter into our then-current form of Franchise Agreement for the initial Center you open under your Area Developer Agreement. The range includes all of the items identified in the first chart in this Item 7. It does not include any of the costs that you will incur in opening any additional Centers that you are granted the right to open and operate under your Area Developer Agreement.
• 1. Area Development Fee: The Area Development Fee is equal to 35% of the value of our then-current Initial Franchise Fee and Initial Training and Materials Fee multiplied by the number of additional Centers, after your initial Center, granted pursuant to the Area Development Agreement. The Area Development Fee is for the right to open and operate additional Centers (provided you comply with your development obligations under the Area Developer Agreement). If you choose to open more than two Centers, the Area Development Fee will increase by either $10,500 (Micro Center) or $15,750 (Standard Center) for each additional Center, after your initial Center, that we will grant you the right to open and operate under the Area Developer Agreement.
• 1. Development Franchise Fee: At the time you sign the Franchise Agreement for each additional Center under the Area Development Agreement, you will pay us the applicable Development Franchise Fee, which is described in greater detail in Item 5 of this Franchise Disclosure Document.

ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES

We require that you establish and operate your franchised Center in compliance with your Franchise Agreement. You must strictly follow our Product, service and all policy specifications as described in the Operations Manual we provide to you or other written or digital materials from us (collectively, the "Operations Manual"), which we may modify from time to time, and which may be in print or electronic format. We reserve the right to require you to use an electronic version of the Operations Manual and to require you to access the document using the Internet or an intranet created and supported by us. Our standards and specifications have been prescribed in order to maintain a uniform standard of high quality, value, customer recognition, advertising support and availability to be furnished to the public in connection with our Marks. In operating the Center, all Products and supplies must conform to our standards and specifications which have been established through years of experience. In the future, we may modify our Product and equipment specifications, including providing training Operations Manuals to you in a digital format. All Operations Manuals and electronic or printed copies remain our property and

must be returned once a Center closes and you will be required to pay the shipping costs to return all such Operations Manuals to us.

Currently, we are the only approved or designated supplier of Products or access through the digital Training Management System. Each student will need 1 or more kits and/or workbooks or access to those kits and/or workbooks digitally that you must pay for on the student's behalf, depending on the program. You must purchase a trainer kit for each trainer in your Center. As of the date of this Disclosure Document, we price the student and trainer kits and workbooks at a cost that is less than the cost at which a franchisee could produce them, but we reserve the right to change our pricing at any time with advanced notice to you. You are not permitted to purchase these Products from any other supplier.

We estimate that the cost of purchases for these Products represents approximately 1.5% of your total purchases in connection with the establishment of your Business, and approximately 1% of your ongoing supplies and materials expenses. We will derive income or other material benefit from these purchases. In the Fiscal Year ended September 30, 2024, our affiliate LearningRx, Inc., received $60,569, which is 3.8% of the total revenue of $1,571,729 from these required purchases.

Certain officers and directors own an indirect equity interest in LearningRx Franchise Corporation. Other than LearningRx, there are no other approved suppliers in which any of our officers own an interest.

You must purchase certain marketing materials, equipment, services, supplies, and materials used to operate your franchise from our approved or designated suppliers as indicated in the Operations Manual. For example, for any agreements signed on or after January 1, 2019, Centers are required to use our designative merchant services provider, as specified in the Operations Manual, for receiving payments from clients at your Center. If you would like to purchase items from another supplier, you may request our "Supplier Approval Criteria and Request Form." At no cost to you, upon receipt of the Supplier Approval Criteria and Request Form, we will study the proposed product or service, and within 30 days approve or disapprove the proposed supplier. We base our approval on a number of factors including vendor reputation, quality of products, delivery performance, and credit rating. However, we reserve the right to determine, in our sole discretion, whether the materials meet our standards and specifications. If you do not receive an approval within 30 days, your request will be deemed disapproved. We expect to derive some income from Franchisees' required purchases from designated and approved suppliers in the next and following fiscal years through a program of rebates from some of our designated or approved suppliers. These rebates serve to partially reimburse us for our costs in the initial sourcing, approval and ongoing monitoring of compliance with our quality standards by our suppliers, but we may receive rebates in excess of our cost to source, approve and monitor suppliers.

We do not currently require you to purchase any particular computer equipment to establish or operate the Business, but we do specify the standards for computer and communication equipment and Internet access. You will be required to use our proprietary software to use in the operation of your Center. You will pay an annual Technology Fee between $1,800 and $2,400 depending on the size of your Territory. We reserve the right to require you to acquire and use specific technology, computer hardware or software, and other communications equipment, and to change or add other technology, computer-related and communications standards in the future.

We do not have any purchasing or distribution cooperatives as of the date of this Disclosure Document. We may negotiate purchase arrangements with other suppliers and distributors for the benefit of our Franchisees in the future and we may receive rebates or volume discounts from our purchase of products that we resell to you. We do not provide material benefits, such as renewing or granting additional franchises, to Franchisees based on their use of designated or approved suppliers.

For all LearningRx Centers, you will maintain and purchase insurance in the following amounts and categories: Property insurance adequate to replace the contents of the Center; General Liability, including, but not limited to Professional Liability coverage in the amount of not less than $1,000,000 per occurrence and $2,000,000 annual aggregate; Corporal Punishment & Hired and Non-Owned Auto Liability coverage in the amount of $1,000,000 per occurrence; Sexual Abuse and Molestation not less than $1,000,000 per occurrence and $1,000,000 annual aggregate; Workers' Compensation based on the statutory requirement of your state. You must also carry special coverage if we approve any request for you to provide in-home training. An Umbrella Liability policy is also recommended.

You must maintain insurance policies covering your entity and LearningRx Franchise Corporation as an "additional insured" and "Grantor of Franchise". We have the right to add categories and adjust the amounts required periodically as we deem necessary. You are required to comply with all property, liability, and other insurance required in the Operations Manual at all times. You must also procure and maintain all other insurance required by state or federal law.

ITEM 9 FRANCHISEE'S OBLIGATIONS

This table lists your principal obligations under the franchise and other agreements. It will help you find more detailed information about your obligations in these agreements and in other items of this disclosure document.

| Obligation | Section in Franchise Agreement | Item in Disclosure Document |

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 24–26)