[Item 23: RECEIPTS]

I. Management and Staffing of the Franchised Business.

• (1) You (or your Operating Principal or Multi-Unit Manager) must remain active in overseeing the operations of the Franchised Business, including, without limitation, regular, periodic visits to the Franchised Business and sufficient communications with us to ensure that the operations of the Franchised Business comply with the System Standards promulgated by us from time to time in the Manuals or otherwise in written or oral communications to you. You (or your Operating Principal or Multi-Unit Manager) will not engage in any other business or activity that conflicts with your obligations to operate the Franchised Business. You have the sole responsibility for recruiting, hiring, and training employees for the Franchised Business. Before you hire any employee for the Franchised Business, you should require that employee to sign a non-disclosure and confidentiality agreement. No employee of the Franchised Business is or shall be considered an employee of PIU.
• (2) You must conduct appropriate criminal background checks and due diligence on all employees of the Franchised Business to ensure that your employees meet the high ethical standards necessary for working with children. You must comply with all state and local laws and regulations regarding the staffing and on-premises management of personnel including, but not limited to, any required licenses and any regulations dealing with the ratio of your staff or equipment to the children on the Premises. You must employ only suitable persons of good character and reputation who will at all times conduct themselves in a competent and courteous manner in accordance with the image and reputation of Pump It Up Businesses and the System and, while on duty, comply with the dress attire, personal appearance and hygiene standards set forth in the Manuals.

Source: Item 23 — RECEIPTS (FDD pages 60–225)