required licenses, permits and certificates relating to the operation of the Bakery and shall operate the Bakery in full compliance with all applicable laws, ordinances and regulations, workers' compensation and unemployment insurance requirements, and withholding and payment of federal and state income, social security, sales, use, and property taxes.

ARTICLE 7 TRAINING REQUIREMENTS

7.1 Initial Training.

If this is your first Nothing Bundt Cakes Bakery, then two (2) people, which must include you (in the event you are an individual) or your Operator (in the event you are an entity), must attend and complete, to our satisfaction, our initial tuition-free training program. You may decide to send one (1) additional person to initial training, for which you will pay us our then-current fee. We may require you to send additional people to initial training for your subsequent Bakeries, and/or if you enter into a new market, as set forth in the Operations Manual and subject to our then-current fees. The required training lasts up to four (4) weeks and consists of training in Product preparation and packaging, maintaining financial controls and general bookkeeping procedures, operational techniques, using our required equipment and computer hardware and software, inventory controls, marketing and advertising techniques, and Guest service and maintenance of quality standards. All training will take place at one of our company bakeries located in or around the City of Dallas, Texas or at any other location we designate. You, your Operator or any other trainees must attend the initial training program at the same time. In addition, we will provide one (1) of our representatives for up to five (5) days at your Bakery for additional training and opening assistance. You are responsible for all training related expenses, including you and your employees' travel, meals, lodging, and payroll expenses associated with attending the initial training program. You must complete training before opening your Bakery. If you or any Operator fails to complete training to our satisfaction, the respective person may repeat the course, or in the case of an employee, you may designate a substitute to attend our next available training program. At all times you must have an Operator in-place in your Bakery who has completed our training to our satisfaction. We may charge our then-current fee for replacement of initial training attendees. We have the right to terminate this Agreement if you fail to complete training to our satisfaction within the time frames we prescribe. If you are approved to expand as a multi-unit franchisee, we may require you to send your Operator to the Dallas, Texas, area for training by us, or we may require you to be responsible for the initial training of the management team for your second Bakery and any other Bakeries we grant you the right to open and operate.

7.2 Training Your Other Employees.

You must train your other employees using our training materials. We will provide you with training materials for your use in training your personnel. Only the materials we provide can be used by

you to train your personnel. All training materials we produce constitute part of our trade secrets and confidential information. You agree not to challenge our rights in and to any training materials.

7.3 Ongoing Training Programs.

Source: Item 23 — RECEIPTS (FDD pages 93–309)