What rights does a Pump It Up franchisee acquire in the System Standards?

ICTIONS ON SOURCES OF PRODUCTS AND SERVICES**

System Standards

We own and control the distinctive plan for the establishment, operation and promotion of the Pump It Up Business and all related licensed methods of doing business, previously referred to as the ("System Standards"). System Standards may regulate and/or provide suggested specifications, best practices, standards, operating procedures, general guidance, ongoing advice, and consultation to you on any one or more of the following with respect to the Pump It Up Business: franchised site, premises, leasehold improvements, interior finish, interior décor, furnishings, equipment, products, product formulas, supplies, materials, inventory type, technical equipment standards, client relations, marketing techniques, written promotional materials, waivers, advertising, accounting systems, and service delivery methods, all of which constitute our confidential trade secrets. You acknowledge that we have valuable rights in and to such trade secrets. You further acknowledge that you have not acquired any right, title or interest in the System Standards except for the right to use the System Standards in the operation of the Pump It Up Business as it is governed by your Franchise Agreement, and that you are obligated to maintain the confidentiality of the System Standards.

We reserve the right to change the System Standards and inform you of any changes in the Manuals accessible to you online via computer systems or another electronic format. The Manuals may be modified, updated and revised from time to time to reflect changes in System Standards. You are expected to implement all relevant updates and amendments to the Manuals or System Standards as described in newsletters or any other notices we distribute through any written means. We reserve the right to require the implementation of any System Standards. You must maintain the Manuals as confidential and maintain the information in the Manuals as secret and confidential. Any form of the Manuals we make accessible to you, regardless of how we provide them (e.g. online or via email) will be deemed our Confidential Information. We will notify you in our Manuals or other communications of System Standards and/or names of PIU Vendors.

We reserve the right to require you to implement any System Standards within the time period we identify, whether they involve refurbishing or remodeling the Premises or any aspect of the Franchised Business, buying new operating assets, adding new products or services, or otherwise modifying the nature of your operations.

PIU Vendors: Designated Vendors, Preferred National Vendors and Local Vendors

You are required to purchase all products, equipment, materials, supplies and services for the operation of the Pump It Up Business from us, our affiliates, or from our Designated Vendors, Preferred National Vendors or Local Vendors of your choosing (collectively, the "PIU Vendors"). We reserve the right to require you to purchase specific products, equipment, material, supplies and/or services from specific PIU Vendors. As of the date of this Disclosure Document, we and our affiliates are not approved or designated suppliers of any items.

We may develop certain proprietary or branded products, including inflatable devices, hardware, or software programs that will be prepared by or for us according to our proprietary designs (collectively, "Proprietary Products").

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)