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FDD Guide Samples (Items 8-12)


This Item describes your obligations to buy or lease from us or our designees, from suppliers we permit, or in accordance with our specifications. All licensees must build, design, furnish, equip and supply their hotels in accordance with the Standards (as defined in the Franchise License Agreement). The Standards are compiled in our standards manual ("Manual"). Our Operating Committee reviews, modifies and implements product Standards. We may periodically modify and update Standards to reflect operational requirements, advances in technology, improved methods of manufacture, new materials and structures, new products, improved prices and other factors. We currently issue, modify and update specifications in the form of updates to the Manual. We may periodically require you to modernize, rehabilitate and/or upgrade your hotel's fixtures, equipment, furnishings, furniture, signs, computer hardware and software and related equipment, supplies and other items to meet the then current Standards. You are responsible for the costs of implementing all changes required because of modifications to the Standards.

**Excerpt of Item 8 from Hilton 2010 FDD**




This table lists your principal obligations under the franchise and other agreements. It will help you find more detailed information about your obligations in these agreements and in other items of this disclosure document.

Obligation Section in agreement Disclosure document item
a. Site Selection and acquisition/lease Franchise Agreement: Article I Items 5, 11,12
b. Pre-opening purchases/leases Franchise Agreement: Articles III, A; III, B; III, G-1; V.B. Items 5, 7, 8
c. Site development and other pre-opening requirements. Franchise Agreement: Article V, P; V,O Items 7, 8, 32
d. Initial and ongoing training Franchise Agreement: Articles IV, B; IV, C; V, G.2; V.E Items 5, 7, 11
e. Opening Franchise Agreement: Articles Ilk G -I;IV,A;IV,B;V,B;V,L;V,N;V O; V, P; Telephone Listing Authorization Agreement; Guarantee of Corporate Obligations. Item 11
f. Fees Franchise Agreement: Articles III;-IX, A.4; VI, D. 1; VII, B; Exhibit B Items 5, 6, 7, 10
g. Compliance with standards and policies/operating manual Franchise Agreement: Articles V; VI; VIII, B, 5; VIII, D; XIII, J; Items 8, 11, 12

  **Excerpt of Item 9 from Furniture Medic 2010 FDD**




Neither Great Clips, its agents, nor its affiliates offer financing arrangements for the purchase of your GREAT CLIPS® Salon. Great Clips may offer financing arrangements in the future depending on interest rates, availability of funds and other economic factors. Great Clips does not receive any payments from any company for the placement of financing. Great Clips has no existing practice or intention of selling, assigning or discounting to a third party all or any part of any financing arrangement.


Although it is not generally available, Great Clips may, at its sole and absolute discretion, guaranty a loan for a franchisee under limited circumstances and based upon certain criteria established by Great Clips. Great Clips may charge a fee for providing such guaranty. Great Clips reserves the right to change the amount or structure of the fee or to change or withdraw such guaranty without notice.

**Excerpt of Item 10 from Great Clips 2010 FDD**




Site Selection

You will select the site for the Club within the Preliminary Designated Area that will be identified in ihe Summary Pages when you sign the Franchise Agreement. You will identify a site within the Preliminary Designated Area (or if no sites are available in the Preliminary Designated Area, in proximity to it) for our approval. In evaluating the site, we will consider the following factors: demographics, visibility, ability to reflect image to be portrayed by SNAP FITNESS® businesses, access and parking, and market type (rural, suburban, and urban). Within 15 days after you have submitted all requested information concerning the site, we will notify you whether or not the site is approved. You must acquire a site for the Club within 90 days after the Franchise Agreement is signed.


Typical Length of Time Before You Open Your Club

The typical length of time between the signing of the Franchise Agreement, or the first payment of any consideration for the franchise, and the opening of your business is approximately three to five months from the execution of the Franchise Agreement. Factors thai may impact this length of time may include whether you have a site selected upon execution of the Franchise Agreement, your ability to obtain a site, prepare a site survey, arrange leasing and financing, make leasehold improvements, install equipment and signs, decorate the Club, meet local requirements and other similar factors

You must acquire a site for the Club location no later than 90 days after the Franchise Agreement is signed, and must open the Club for business no later than 180 days after the Franchise Agreement is signed. If you purchased three Franchise Agreements as part of our Market Accelerator Program, the opening deadline for the second Club is one year after the Franchise Agreement is signed and for the third Club will be 18 months after the Franchise Agreement is signed. If you fail to acquire an acceptable site or begin operations within the required time periods, we may terminate the Franchise Agreement or, at our election, may cancel any designated area protection afforded in the Franchise Agreement (Franchise Agreement, Sections 2B, 2C and 13D).



The Table of Contents for the Operating Manual, including number of pages on each subject and total number of pages, is included herein as Exhibit E. In addition to the Operating Manual, we also communicate operations information to franchisees through system bulletins and our online franchisee portal.


Initial Training Program

We will provide the following initial training to at least two people in your organization (including your general manager), which the attendees must complete to our satisfaction. Our training program is four days and includes:

**Excerpt of Item 11 from Snap Fitness 2010 FDD**




You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You are granted the right to operate the Office at a specific address-only location that first must be approved by RE/MAX Regional. RE/MAX Regional and International may establish other franchised or company owned outlets that may compete with your location. You may not relocate the Office without RE/MAX Regional's prior written consent.


International and RE/MAX Regional retain all rights to develop, locate and operate, and to grant others the right to develop, locate and operate, real estate brokerage offices under another trademark or service mark or any other business under the Marks or under any other trademark or service mark or to engage in any other business activity anywhere. The Franchise Agreement does not give you any right of first refusal, option or any other right to purchase, acquire, or open any additional RE/MAX office franchises.

**Excerpt of Item 12 from RE/MAX 2010 FDD**



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