[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]

You may only offer and sell the Approved Services and Products. You may only use those products, supplies, equipment, technology systems, and services that we authorize and designate in writing. To ensure that our standards and specifications of quality, service and System development are maintained, you must operate your Center in strict conformity with the Franchise Agreement and the methods, standards, specifications and sources of supply that we designate and prescribe in the Manuals.

Source Restricted Purchases and Leases – Generally

We require that you purchase or lease certain source restricted goods and services for the development and operation of your Center. Source restricted goods and services are goods and services that must meet our specifications and/or that must be purchased from an approved or designated supplier that may include us or our affiliates. We may designate a supplier, including ourselves, or our affiliates, as the exclusive supplier for the System. Our specifications and list of approved and designated suppliers is contained in our Manuals. We will notify you of any changes to our specifications or list of approved or designated suppliers. We may notify you of these changes in various ways, including written or electronic correspondence, amendments and updates to our Manuals, and other forms of communication. We formulate and modify our standards and specifications for products and services based on our industry experience and our management decisions as to the overall operation and expansion of the System.

Suppliers and Supplier Criteria

We may designate ourselves, our parent and our affiliates as exclusive suppliers of source restricted goods and services. We may designate ourselves or a third party as the sole and exclusive supplier irrespective of the existence of competing suppliers. If, in the Manuals, we do not designate a supplier for a particular item, you will purchase all such products, supplies and services from suppliers who meet our specifications and standards. During the fiscal year ending December 31, 2024, we earned revenues in the amount of $850,684 from franchisee purchases. This constituted 67.30% of our total revenues of $1,263,312 in 2024.

Lease We do not review the terms of the lease for your Center Location but require that your landlord acknowledge our rights as set forth in the lease agreement rider attached as Exhibit 4 to the Franchise Agreement (the "Lease Agreement Rider") and that you collaterally assign the lease to us as set forth in the collateral assignment of lease attached as Exhibit 5 to the Franchise Agreement.

We possess the right to disapprove of a proposed lease if the landlord refuses to sign the Lease Agreement Rider in substantially the form set forth in Exhibit 4 to the Franchise Agreement.

The Lease Agreement Rider grants certain rights to us, including our right to be notified in the event of a lease default and, potentially, for us to enter the premises of your Center.

System Supplies Your Center must maintain an initial and ongoing inventory of System Supplies.

You must purchase the System Supplies, as designated by us, from us, our affiliates, and/or our designated suppliers.

Furniture and Fixtures Your Center must be equipped with branded and unbranded furniture and fixtures that we designate and that meet our standards and specifications.

You may purchase unbranded furniture and fixtures from any supplier of your choosing, provided that the furniture and fixtures meet our specifications and standards, which may also include specified manufacturers, brands and models.

If the furniture and fixtures that we designate are specified to be branded with the Licensed Marks, then you may only purchase them from our designated exclusive suppliers.

Signage The signage for your Center must meet our standards and specifications and must be purchased from our designated suppliers.

Business Management System and Computer Equipment You are required to purchase, license and utilize a business management system with at least five computers.

Additionally, you must purchase and maintain a computer system on-site at your Center Location.

In general, you will be required to obtain a computer system that will consist of certain hardware, software, and peripheral devices such as printers.

You will be required to meet our requirements involving back office and business management systems, security systems, printers, back-up systems, and high-speed internet access.

Credit Card Processing You must use our designated supplier and vendor for credit card processing which may be integrated with the business managementsystem that we designate.

Credit Card Processing You must use our designated supplier and vendor for credit card processing which may be integrated with the business managementsystem that we designate.

Credit card processing fees will, generally, be based on a percentage of all credit card processed Gross Sales.

Online Ordering You must use our designated supplier and vendor for the ability to access and use online, point of sale integrated, web based, and/or app based, and/or ordering systems.

As you access and utilize these systems you may pay usage fees based on a percentage of your processed Gross Sales.

Branded Items and Marketing Materials All materials bearing the Licensed Marks (including, but not limited to, stationary, business cards, brochures, apparel, signs and displays) must meet our standards and specifications and must be purchased from either us directly or our designated suppliers.

All of your marketing materials must comply with our standards and specifications and must be approved by us before you use them.

You may market your Center through approved digital media and social media platforms provided that you do so in accordance with our digital media and social media policies.

You must purchase all branded marketing materials from either us or our designated exclusive supplier.

We

may require that you exclusively use, at your cost, our designated supplier for social and digital media marketing services and exclusively use, at your cost, our social media platforms, vendors and marketing channels.

We

may require that you exclusively use, at your cost, our designated supplier for social and digital media marketing services and exclusively use, at your cost, our social media platforms, vendors and marketing channels.

1. Insurance – You must obtain the insurance coverage that we require from time to time as presently disclosed in the Manuals and as we may modify. All insurance policies required under your Franchise Agreement and as set forth in the Franchise Agreement must be written by a responsible carrier, reasonably acceptable to us and all insurance (excluding workers' compensation) must name us, our officers, directors, shareholders, partners, agents, representatives and independent contractors as additional insureds. The insurance policies must include a provision that the insurance carrier must provide us with no less than 30 days' prior written in the event of a material alteration to, or cancellation of, any insurance policy. A certificate of insurance must be furnished by you to use at the earlier of 90 days after the Effective Date of the Franchise Agreement or prior to the commencement of our initial training program. Insurance coverage must be at least as comprehensive as the minimum requirements set forth in the chart below and in the Franchise Agreement (Franchise Agreement, Article 8). You must consult your carrier representative to determine the level of coverage necessary for the Franchised Business. Higher exposures may require higher limits.

Insurance Requirements

Insurance Requirements

• a) Coverage against direct physical loss or damage to real and personal property, including improvements and betterments, written on a special form peril basis, including flood and earthquake, if the relevant property is situated in a flood or earthquake zone, in an amount equal to 100% of the Franchised Business' property value or $300,000, whichever is greater;
• b) Comprehensive general liability insurance, written on an occurrence basis, extended to include contractual liability, products and completed operations, and personal and advertising injury, with a combined bodily injury and property damage limit of at least $1,000,000 per occurrence, $2,000,000 in aggregate and with at least $2,000,000 per occurrence for damage to products/inventory;
• c) Statutory workers' compensation insurance and employers' liability insurance as required by the law of the state in which the Franchised Business is located, including statutory workers' compensation limits and employers' liability limits of at least $1,000,000;
• d) Business automobile insurance, including liability insurance coverage for hired and non-owned automobiles, with a combined single bodily injury and property damage limit of at least $1,000,000 per occurrence;
• e) Business interruption insurance equal to 12 months of your net income and continuing expenses including Royalty Fees;
• f) Commercial umbrella liability insurance with total liability limit of at least $10,000,000;
• g) Cyber insurance in the amount of at least $1,000,000 protecting against first party and third party claims;
• h) Employment practices liability insurance with a limit of at least $2,000,000 including actions of a third party and a minimum limit of $100,000 for wage and hour disputes; and
• i) All other insurance that we require in the Manual or that is required by law or by the lease or sublease for the Franchised Business.

Purchase Agreements and Cooperatives

We estimate that your purchase of goods and services from suppliers according to our specifications, including your purchase of goods or services from our designated exclusive suppliers, to represent approximately 85% of your total purchases and leases in establishing the Franchised Business and approximately 25% of the on-going operating expenses of the Franchised Business.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)