rial complexes, museums, educational facilities, hospitals, and recreational parks); (iii) limited access facilities (examples include military complexes, buyer club businesses, educational facilities, and business and industrial complexes); (iv) other types of institutional accounts; and (v) health clubs, hotels and resorts.

"Notice of Default" means the notices described in Section 11.3.

"Opening Date" means the date your Franchise Business is first opened for business to the general public.

"Operations Manual" means all manuals produced by, or for the benefit of, us and loaned to you and any revisions prepared for your internal use involving the operation and management of the Franchise Business. The Operations Manual may comprise printed text, computer disks, other electronically stored media, and DVDs.

"Patents" mean the patent rights described in ITEM 14 of our FDD.

"Payment System" means the system created by you to make payments to us as described in Section 3.3.

"POS System" means the point of sale system.

"Premises" means the leased property located at the Franchise Business's address.

"Principal Trademark" means "Stretch Zone© ," the name under which every Unit does business.

"Regional Manager" means you or your Designated Representative, unless you elect to hire another person to act as the Regional Manager. The Regional Manager must be a Certified Stretch Zone Practitioner.

"Renewal Fee" means the fee described in Subsection 3.1(h).

"Renewal Franchise Agreement" means our then-current form of Franchise Agreement for new Franchisees at the time you elect to renew the franchise relationship in accordance with Section 16.2.

"Renewal Term" means the term of the Renewal Franchise Agreement signed at the time the parties renew the franchise relationship.

"Royalty Fee" means the fee described in Subsection 3.1(b).

"Secured Assets" mean (a) all of your accounts receivable arising out of, or in connection with, the operation of the Franchise Business existing as of the date of this Agreement and which came into existence during the Initial Term, including notes, negotiable instruments and contracts (the "Accounts Receivable"); (b) all books and records pertaining to the Accounts Receivable; (c) all Assets; and (d) all proceeds upon sale or other disposition of any of property.

"Secured Obligations" mean the obligations referred to in Subsection 3.6.

"SCORE" means Store Compliance Operational Review and Education.

"Trade Dress" means the distinctive exterior of the Franchise Business, the distinctive interior décor, distinctive uniforms worn by staff, as well as the many other items, which together form the overall look and feel of the Franchise Business and its products and services.

"Trademarks" mean the trademark ""Stretch Zone® " and all other trademarks, service marks, trade names, logos and commercial symbols that we have developed, and we use, promote, and sublicense, and may in the future develop and license or sublicense, in operating Stretch Zone businesses and that we authorize you to use as part of the Business System.

"Trainees" mean the persons who attend the applicable training programs that we conduct.

"Transfer Fee" means the fee described in Subsection 3.1(g).

"Unique Consideration" means the consideration described in Subsection 10.5(c).

"Unit" means either a Company-Owned Unit or a Franchised Unit.

"Website" means www.stretchzone.com.

"You" or "Your" means the person, persons or Business Entity that signs this Agreement as the Franchisee.

Section 18.2 OTHER DEFINITIONAL PROVISIONS

• (a) All of the words or terms defined in this Agreement have these defined meanings when used in other documents issued under or delivered under this Agreement unless the context otherwise requires or unless specifically otherwise defined in the other document; and
• (b) The term "person" includes any limited liability company, limited liability company, partnership, estate, trust, association, branch, bureau, subdivision, venture, associated group, individual, government, institution, instrumentality and other entity, enterprise, association or endeavor of every kind.

ARTICLE 19 - GENERAL PROVISIONS

Section 19.1 AMENDMENTS

Except as stated in this Agreement, including Sections 19.2 and 19.6, a party cannot amend, supplement or change the provisions of this Agreement except by an Amendment to Franchise Agreement signed by the parties. Only our President has the authority to sign an Amendment to Franchise Agreement on our behalf.

Section 19.2 MODIFICATION OF THE SYSTEM

**YOU AGREE THAT AFTER THE AGREEMENT DATE WE MAY MODIFY THE SYSTEM UNDER THE TERMS OF THIS AGREEMENT. YOU AGREE TO ABIDE BY ANY MODIFICATIONS IN THE SYSTEM AS IF THEY WERE PART OF THIS AGREEMENT AT THE TIME THE PARTIES SIGNED THIS AGREEMENT.

Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)