r replacements to the Computer System or POS System as we direct from time to time in writing. We estimate that you will spend approximately $500 annually on maintenance and support contracts for your Computer System, which includes any upgrades.

We require that: (i) you comply with our standards and specifications for Internet access and speed; and (ii) the Computer System be programmed to automatically transmit data and reports about the operation of the Franchised Business to us. We may also, at any time without notice, electronically and independently connect with your Computer System to monitor or retrieve data stored on the Computer System or for any other purpose Franchisor deems necessary. There are no contractual limitations on our right to access the information and data on any component of your Computer System (Section 12.E.(3) of the Franchise Agreement). The data which must be generated or stored in the Computer System is information related to the operation of the Franchised Business, including customer information and financial information.

You are required to participate in any Franchise System-wide area computer network, intranet system, or extranet system that we implement, and may be required to use such area computer network, intranet system, or extranet system to, among other things: (i) submit your reports due under the Franchise Agreement to us online; (ii) view and print portions of the Franchise Operations Manual; (iii) download approved local advertising materials; (iv) communicate with us and other Franchise System franchisees; and (iv) to complete certain components of any ongoing training we designate (Section 12.F.(5) of the Franchise Agreement).

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.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 42–53)