[Item 11: Franchisor's Assistance, Advertising, Computer Systems, and Training]

• 1. Our training managers may utilize other employees to assist them with all aspects of training. We do not require our training managers or other employees who assist them to have a certain minimum amount of industry experience. Failure to complete initial training to our satisfaction within the applicable time may result in termination of the Franchise Agreement.
• 1. The My Salon Suite University is offered once a quarter or more frequently as needed. If you, your designated manager (if applicable), or other trainee you designate fails to complete the My Salon Suite University to our satisfaction, that person may re-attend, or you may send a replacement ("Replacement Personnel") to our next available My Salon Suite University session, provided there is availability. We may charge our then- current training tuition rate for these individuals to attend My Salon Suite University as well. In any event, you are solely responsible for all expenses incurred related to your and your employee's attendance at My Salon Suite University, including transportation to and from the training site, meals, and employee wages.
• 1. You may only use the training materials we provide you with to train your other employees. We will provide updated training materials to you as we develop them, at your request. All training materials we provide you with will remain our property, and you agree not to challenge our or our affiliates' title or rights in or to the training materials. You may not make any disclosure, duplication, or other unauthorized use of any portion of the training materials (Section 10 of the Franchise Agreement).

Ongoing Training

From time to time, we may require that you, designated managers, and other employees attend Franchise System-wide refresher or additional training courses. Some of these courses may be optional, while others may be required. We may charge you for training newly hired personnel, refresher training courses, advanced training courses, and additional or special assistance or training you need or request at the then-current fee plus travel and living expenses. If you appoint a new designated manager, that person must attend and successfully complete My Salon Suite University before assuming responsibility for the management of your Franchised Business. If we conduct an inspection of your Franchised Business and determine you are not operating in compliance with the Franchise Agreement, we may require that you attend remedial training that addresses your operational deficiencies. You may also request that we provide additional training (either online and/or On Demand Education). [Item 23: RECEIPTS]

10. TRAINING

• **A.

Initial Training Program**.

Franchisee, as well as any individual Franchisee designated to manage the day-to-day operations of the Franchised Business (the "Designated Manager"), must attend, and complete to Franchisor's satisfaction, Franchisor's initial training program (the "My Salon Suite University") sixty (60) before opening the Franchised Business Effective Date.

If Franchisee is a partnership, corporation, or limited liability company ("Entity"), at least one (1) of the trainees must be Franchisee's general partner, principal shareholder or manager, as applicable.

Franchisor will provide the My Salon Suite University to this individual and additional individual tuition-free.

All trainees that Franchisee designates prior to opening must attend My Salon Suite University at the same time.

My Salon Suite University will be conducted online, on demand education or another location Franchisor designates.

Franchisor has the right to convert the My Salon Suite University from Online Training to in-person training.

Franchisor provides components of My Salon Suite University by webinar or via the Internet, as Franchisor deems appropriate in its sole discretion.

All training related expenses, including Franchisee and other trainees' transportation to and from the training site, meals, and salaries during training, are Franchisee's sole responsibility.

My Salon Suite University is intended to protect and maintain the System Standards and the Proprietary Marks and not to control the day- to-day operation of Franchisee's Franchised Business.

Franchisee must sign a Training and Joint Employment Acknowledgment to indicate Franchisee's understanding of this.

This acknowledgment will be in the form contained in Attachment "F" to the Franchise Agreement.

Initial Training ("My Salon Suite University"), must be completed in the following order:

Online Training or On Demand Education Completion

Designated Mentor Location Visit

• (1) Replacement Personnel.

[Item 23: RECEIPTS]

Initial Training ("My Salon Suite University"), must be completed in the following order:

Online Training or On Demand Education Completion

Designated Mentor Location Visit

• (1) Replacement Personnel.

In the event Franchisee or Designated Manager fails to complete My Salon Suite University to Franchisor's satisfaction, that person may repeat the course, or, in the case of an employee, Franchisee may send a replacement (collectively, the "Replacement Personnel") to the next available training session.

Franchisor may charge its thencurrent training tuition fee for Franchisee to re-attend, or have Replacement Personnel attend, My Salon Suite University.

Failure by Franchisee, an employee, or any Replacement Personnel to complete My Salon Suite University to Franchisor's satisfaction within the time prescribed in this Franchise Agreement shall constitute default of this Franchise Agreement and Franchisor may terminate the Franchise Agreement.

• (2) Additional Employees.

In the event Franchisee wishes for more than one (1) additional person to participate in My Salon Suite University (other than Franchisee or Franchisee's partner, principal shareholder or manager or Designated Manager), Franchisor may provide My Salon Suite University to such additional persons, subject to the availability of Franchisor's personnel.

Franchisee will be required to pay Franchisor Two Thousand Dollars ($2,000) for each additional person who attends My Salon Suite University.

In addition, all training related expenses for Franchisee's additional personnel, including transportation to and from the training site, meals, and salaries during training, are Franchisee's sole responsibility.

• (3) Training Materials.

Franchisor will provide Franchisee with training materials for Franchisee to use in training Franchisee's personnel.

Updated training materials will be provided to Franchisee by Franchisor upon written request.

All training materials provided to Franchisee by Franchisor shall always remain Franchisor's property, and Franchisee agrees not to challenge Franchisor's or Franchisor's Affiliates' title or rights in or to the training materials.

Franchisee may not make any disclosure, duplication, or other unauthorized use of any portion of the training materials.

[Item 11: Franchisor's Assistance, Advertising, Computer Systems, and Training]

Initial Training

You and any designated manager or representative must complete My Salon Suite University, to our satisfaction, before you open your Franchised Business. My Salon Suite University is intended to protect and maintain the System and the Marks and not to control the day-to-day operation of your Franchised Business. You must sign a Training and Joint Employment Acknowledgment to indicate your understanding of this. This acknowledgment will be in the form contained in Attachment F to the Franchise Agreement. My Salon Suite University consists of Initial Training for new Franchisees; 1. Online Training (New Store Training and Suite Force); and 2. On the Job Mentor Training (at a franchised business we designate or online). We reserve the right to convert the Online Training of the My Salon Suite University to in-person training. All must be completed to provide the best training possible. After My Salon Suite University is completed, it is recommended that all owners attend My Salon Suite University every 5 years. We provide your initial introduction to My Salon Suite University at no charge for up to two people. You must pay a $2,000 fee for training each additional person. My Salon Suite University is quarterly to train new franchisees. You will not receive any compensation or reimbursement for services or expenses for participation in My Salon Suite University. We plan to provide the training listed in the table below. We may vary the length and content of My Salon Suite University based upon the experience and skill level of the individual attending My Salon Suite University.

TRAINING PROGRAM

[Item 23: RECEIPTS]

Franchisee may not make any disclosure, duplication, or other unauthorized use of any portion of the training materials.

Only Franchisor's provided training materials may be used by Franchisee in training Franchisee's personnel.

• (4) Training Instructors.

Franchisor has the right to substitute certain instructors of, or other personnel involved with, My Salon Suite University with other individuals that have similar experience with the System or have otherwise been properly trained by Franchisor's personnel to be a My Salon Suite University instructor.

• (5) Failure to Complete My Salon Suite University.

In the event Franchisee or its Designated Manager fail to complete My Salon Suite University within the prescribed period, Franchisor may terminate this Franchise Agreement immediately upon notice to Franchisee and Franchisee is not entitled to any refund of the Initial Franchise Fee or other expenses incurred with My Salon Suite University.

• **B.

Additional Training**.

To assist Franchisee in the operation of the Franchised Business, Franchisor may offer, and require Franchisee and other personnel Franchisor designates to attend, additional training programs and/or refresher courses, as Franchisor deems necessary.

Franchisor may require Franchisee and its Designated Manager (if applicable) to attend up to two (2) days of additional training under this Section each year, and Franchisee will be required to pay Franchisor's training tuition fee for such additional training upon Franchisor's request.

If such training is conducted at the Approved Location, Franchisee shall also be required to pay Franchisor's reasonable travel and accommodation expenses.

Additional training courses and programs may be required by Franchisee and/or its staff as dictated in the Manual.

Franchisee shall be required to comply with any updates to the training program within sixty (60) days of receiving updates to the Manual.

• **C.

Costs and Expenses**.

With respect to all training described in this Section, Franchisee is solely responsible for the expenses of Franchisee, Franchisee's management, and Franchisee's employees, including transportation to and from the training site and lodging, meals,

**11.

ACCOUNTING, RECORDS AND REPORTING OBLIGATIONS**

Source: Item 9 — **FRANCHISEE'S OBLIGATIONS (FDD pages 39–40)