ess. The Regional Manager must complete the Regional Manager Training Program, as well as the Stretch Practitioner Training and Sales Associates Training Programs, before managing your Franchise Business, unless we otherwise agree in writing.

• (d) Change in Regional Manager. If the Regional Manager fails to satisfy his or her obligations provided in Subsection 4.6(c) due to death, disability, termination of employment or for any other reason, you, your Designated Representative, or a Franchise Owner will satisfy these obligations until you designate a new Regional Manager acceptable to us who has successfully completed our then-current training requirements (for which you must pay us the applicable training fees). You are solely responsible for the expenses associated with such training, including the thenprevailing standard training fees we charge.

Section 4.7 APPROVED SPECIFICATIONS AND SOURCES OF SUPPLY

• (a) Purchases from Us. You must purchase from us or our Approved Supplier the stretching tables, kits, bolsters and wedges and other items that we require if implemented on a Network-wide basis. We will charge you the same price that we charge all Franchisees. You will submit payment for orders and pay all shipping, handling and insurance costs to us in the manner and in accordance with the price schedule contained in the Operations Manual or otherwise provided in writing, which we may amend in our sole direction. You agree to pay us for all orders in accordance with our then-current payment terms and policies. Your orders are subject to our acceptance and we reserve the right to wholly or partially accept or reject any order you place. We reserve the right to: (i) deny or limit the amount of credit we will extend to you; (ii) suspend shipments; (iii) make shipments only after all prior orders shipped to you have been paid in full: or (iv) make shipments on a cash in advance, on a C.O.D. basis, or on any other terms which we deem appropriate.
• (b) Purchases from Designated Suppliers. You must purchase certain products or services solely from third party suppliers that we designate and from no other suppliers. ITEM 8 of the FDD discloses the current types of products and/or services and the names of our current Designated Suppliers.
• (c) Approved Suppliers. You must purchase or lease certain equipment, supplies, inventory, advertising materials, and other products and services used for the development and operation of your Franchise Business only from Authorized Suppliers. These Authorized Suppliers have demonstrated: (i) the ability to meet our standards and specifications for the specified items; and (ii) possess adequate quality controls and the capacity to supply your needs promptly and reliably. We will use our best reasonable efforts to negotiate agreements with Approved Suppliers

that are in the best interest of all Franchise Businesses. In approving suppliers for the Business System, we may take into consideration factors like the price and quality of the products or services and the supplier's reliability. We may concentrate purchases with 1 or more suppliers to obtain the lowest prices and/or the best advertising support and/or services for any group of Franchised Units or Company-Owned Units. Approval of a supplier may be conditioned on requirements on the frequency of delivery, standards of service, warranty policies including prompt attention to complaints, and concentration of purchases, as stated above, and may be temporary, pending our additional evaluation of the supplier.

• (d) Approval of New Suppliers. If you propose to purchase or lease any equipment, supplies, inventory, advertising materials, construction services, or other products or services that are not proprietary to us or an Affiliate from an unapproved supplier, you must submit to us a written request for approval, or request that the supplier do so itself. We have the right to require, as a condition of our approval, that the supplier permit our representatives to inspect its facilities. If we request, the supplier will deliver samples to us or to our designated independent, certified laboratory for testing. We are not liable for damage to any sample that may result from the testing process. You will pay a charge not to exceed the reasonable cost of the inspection and the actual cost of the testing (not to exceed $1,500).

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)