Stride - 2019-02-19 - FDD - Xponential Fitness

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The document discusses the franchise disclosure for Stride fitness studios, including investment amounts and legal requirements.

The total investment necessary to begin operations of a single franchised Studio ranges from $233,900 to $493,000.

$121,500, to $14’l,00O that,must be.paid to: the franchisor or its affiliate prior to opening. The total investment necessary to operate multiple Studios under our form of area development agreement depends Oh the number of franchises we grant you the right to open.

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Mailroom »
^25 2019 ;
Oep^ment of^^RANCHISE DISCLOSURE DOCUMENT
guslness
Stride Franchise,XLG
a Delaware limited liability company
0^ .. 17877 Von Karmah Avenue, Suite 100
Irvine, CA 92614
i. (949) 490-5989
franchismgi@stride:CQm
www.runwithstrideiconi

Stride Erariehise, LLC (“we,” “us,’’ or “our”) offers for sale a franchise to establish and operate a fitness/studio
that offers and provides indoor walking and running classes/ihstructibn and other related exercise classes
utilizing; the then-current proprietary marks we designate, including pur current ihafk STRIDE (collectively,
the “Marks’’), and systeih of business operations that we and/or certain of our affiliates have developed (each,
a“Studio’0-

The total investment necessary to begin, operatiohs of a sirigle: franchised Studio ranges from $233,900 to
$493,000. This amount includes $121,500, to $14’l,00O that,must be.paid to: the franchisor or its affiliate prior
to opening.

The total investment necessary to operate multiple Studios under our form of area development agreement
depends Oh the number of franchises we grant you the right to open, vvhich in all cases with be three (3) or
morei The total investment necessary to enter into a development agreement for the right to develop three (3)
Studios is $308,900 to $568,000, which includes (a) a development fee of $135,000' that is paid tO us Or our
affiliates prior to opening, and (b) the total estirhated initial investment to begin operation of your initial Studio
(as described above).

This Disclosure Document suminafizes Certain provisions of your Franchise Agreement arid other infonhation
iri plaih.English. Read the disclosure document and all accompanying agreements carefully. You must receive
this disclosure document at least 14 calendar days, before you sign a binding: agreement with, or make any
payments to the Franchisor or an affiliaterin connection'with the proposed franchise sale. Note,, however„thaf
no government: agency has verified the irifoririatiOn cohtairied in this document.

You may wish to receive your Disclosure Document in another format that is more convenient for you. To
discuss the availability of disclosures in different formats, contact “Attn: Franchise AdtriinistratiOn” at Stride
Franchise,,LLC, 17877 Von K^an, AvC., Suite 100, Irvine, CA 92614, and at (949) 490-5989.

The tertriS of your contract will govern your franchise relationship. Don’t rely onthe disclosure document alone
to understand your contract. Read all of your contract carefully. Show your contract and thiSdisclosure document
to an advisor, like a lawyer or accountant.

Buyingja franchise is;a Complex investment. The information in thissdisclosure document can help you make up
your mind. Information about comparisons of franchisors is available. More information op;franchisings such
as “A Consumer’s Guide to Buying a Franchise,” which can help you understand how to use this Disclosure
Document, is available from the Federal Trade Commission. YOu can contact the FTC at 1-877-FTe-HELP or
by writing tO the FTC at,600'Pennsylvania,Avenue, NW, Washington, DC 20580. You can also visit the FTC’s
hometpage at www.ftc.gov for additional information. There.tnay also be laws on franchising in yOur state., Call
your state;agency listed On Exhibit B or visit your public library for other sources of informaition on franchising.

THE ISSUANCE DATE OF THIS DISCLOSURE DOCUMENT IS: FEBRUARY 19,2019.

©2019 Stride Franchise, LLC,


20i9'Franchise Disclosure Dpcument

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
STATE COVER PAGE

Yflur state may have a franchise law that requires a franchisor to register or file with a state franchise
administrator before offering or selling in your state. REGISTRATION OF THIS FRAhICHISE WITH A
STATE DOES NOT MEAN THAT THE STATE: RECOMMENDS: IT OR HAS VERIFIED THE
INFORMATION IN THIS DISCLOSURE DOCUMENT.

Call the state franchise adininistrator listed On Exhibit B for information about the frahehisori or about,
franchising in your state: If you learn that anjdhing in this di sclosure document is untrue, contact the Federal
Trade Commissibh arid the state administrators listed on Exhibit B.

MANY franchise AGREEMENTS DO NOT ALLOW YOU TO RENEW


unconditionally .AFTER THE INITIAL TERM
EXPIRES. YOU MAY HAVE TO SIGN A NEW
Agreement with different terms and conditions in order to continue to
OPERATE YOUR BUSINESS. BEFORE YOU BUY,, CONSIDER WHAT RIGHTS YOU HAVE; TO
RENEW YOUR FRANCHISE, IF ANY, AND WHAT TERMS YOU MIGHT HAVE TO ACCEPT IN
ORDER TO RENEW.

Please consider the fpllbwirig RISK FACTORS before you buy this franchise:;

1. THE FRANCHISE AGREEMENT AND DEVELOPMENT AGREEMENT CONTAIN A


MANDATORY BERING ARBITRATION CLAUSE GOVERNING NEARLY ALL
DISPUTES BETWEEN YOU AND US. THE BINDING ARBITRATION (AND ANY
LITIGATION) AND ANY ARBITRATION APPEAL WILL TAKE PLACE IN THE COUNTY
IN WHICH OUR THEN-CURRENT HEADQUARTERS IS LOCATED, CURRENTLY,
IRVINE, CALffORNIA, AND THAT MAY COST YOU MORE (AND BE LESS
CONVENIENT) THAN IF THOSE PROCEEDINGS TOOK PLACE NEAR YOUR
RESIDENCE OR BUSINESS. COSTS OF THE ARBITRATION AND ANY ARBITRATION
APEEAL MAY BE GREATER THAN IN LITIGATION. YOU AND WE'WILL GENERALLY
BEAR EACH OF OUR OWN^OSTS IN ANY DISPUTE, BUT THE ARBITRATOR CAN
ASSESS COSTS (BUT NOT ATTORNEY’S FEES) AGAINST A LOSING PARTY.

2. THE, FRANCHISE. AGREEMENT AND DEVELOPMENT AGREEMENT PROVIDE: THAT


THE LAWS OF THE STATE OF CALIFORNIA GOVERN THE AGREEMENTS, EXCEPT
THAT:: (I) THE LAW OF THE STATE WHERE YOUR FRANCHSIED BUSINESS iS
LOCATED Will govern all, clams, disputes and other matters arising
OUT Of Or related to the covenants against competition set forth in
YOUR FRANCHISE AGREEMENT AND DEVELOPMENT AGREEMENT; AND (II) THE
LAWS OF CALIFORNIA REGARDING FRANCHISES WILL NOT APPLY TO YOUR
franchise or Relationship with us unless the jurisdictional,
DEFINITIONAL AND OTHER CRITERIA SET FORTH IN THAT LAW ARE MET
WITHOUT REFERENCE OR RELIANCE ON THE GOVERNING LAW PROVISION OF THE
AGREEMENT(S). YOU ENTER INTO WITH US.

3. YOUR SPOUSE MUST SIGN A DOCUMENT THAT MAKES YOUR SPOUSE LIABLE FOR
ALL FINANCIAL OBLIGATIONS UNDER THE FRANCHISE AGREEMENT, EVEN IF
YOUR SPOUSE HAS NO OWNERSHIP INTEREST IN THE FRANCHISE. THIS
GUARANTEE WILL PLACE BOTH YOUR AND YOUR SPOUSE’S MARITAL AND
PERSONAL. ASSETS (PERHAPS INCLUDING YOUR HOUSE) AT RISK IF YOUR
FRANCHISE FAILS.

©2019 Stride. Frahchis;e, LLC


20 tOTi^chise. Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
4. THE FRANCHISOR IS AT AN EARLY STAGE.OF DEVELOPMENT AND HAS A LIMITED
OPERATING HISTORY. THIS FRANCHISE IS LIKELY TO BE A RISKIER INVESTMENT
THAN A FRANCHISE WITH A LONGER OPERATION AL.HISTORY.

5. YOU MUST MEET A MINIMUM MONTHLY GROSS REVENUE QUOTA REQUIREMENT.


YOUR INABILITY TO MEET THIS REQUIREMENT MAY RESULT IN LOSS OF /^Y
TERRITORIAL RIGHTS YOU ARE GRANTED, TERMINATION OF YOUR FRANCHISE,
AND LOSS OF YOUR INVESTMENT.

6. THERE MAY BE OTHER RISKS CONCERNING THIS. FRANCHISE.

We use the services of one or more FRANCHISE BROKERS or referral sources to assist us‘in selling our
franchise. A franchise broker or referral source represents us, not you. We pay this person .a fee:for selling
our franchise, or referring you to us: You should make sure to do your own investigation of‘the franchise..

Effective Date: See the next page for state effective dates..

@2019 'Stride Franchise, LLC


2019 Eranchise'Disclosure Docunient

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
STATE EFFECTIVE DATES

The followihg states require that the Franchise Disclosure Documents be registered or filed with the state
dr be exempt frorii.registration: California, Hawaii, IHihois, Indiana, Maryland, Michigan, Minnesota,'New
York, North Dakota, Rhode Island, South Dakota, Virginia, Washington and Wisconsin.

This Franchise Disclosure DoeUmeht is registered, on file or exempt from registration in the following
states having franchise registration and disclosure laws, with the following effective dates:

STATE EFFECTIVE DATE


CALIFORNIA Pending
FLORIDA Pending
HAWAII Pending,
ILLINOIS Pending
INDIANA Pending
KENTUCKY Pending
MARYLAND Pending
MICHIGAN Pending
MINNESOTA Pending,
NEBRASKA Pending
NEW YORK Pending
NORTH DAKOTA Pending
RHODE ISLAND Pending
SOUTH DAKOTA Pending
TEXAS Pending
UTAH Pending
VIRGINIA Pending
WASHINGTON Pending
wTsCOnsin Pending

©2019 Stride Franchise, tLC


2019 Franchise Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
TABLE OF CONTENTS

PAGE
ITEM 1 THE FRANCHISOR, AN Y PARENTS, PREDECESSORS AND affiliates ........ ......... .............1
ITEM 2 BtJSINESS EXPERIENCE.............. •aaaa«aaaaaaaasaasaaaa«as>s>4

■ •••••••a •••••••

ITEM 3 LITIGATION..., ....7


ITEM 4 BANKRUPTCY 7
■asaaaaaaaaaaaataaaa»aa<

ITEM S INITIAL fees. laaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa^aaaa


7
ITEM 6 OTHER FEES............... 9
ITEM 7 ESTIMATED INITIAL INVESTMENT.......................... .................... .............. . 15
ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES 20
ITEM 9 FRANCIHSEEsS OBLIGATIONS.................................... ........... ..... ............................................... 24
ITEM 10 FINANCING................................................................................................ ....................................25
ITEM 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING... 26
ITEM 12 TERRITORY............................. ....... ...............,........ .................................................... ........ . 38
ITEM 13 TRADEMARKS............ .................................. ..................................... ........................................ 41
ITEM 14 PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION............................................43
ITEM 15 obligation TO PARTICIPATE,IN THE OPERATION OF THE FRANCHISE BUSINESS... 44
ITEM 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL........................ ........................ . 44
ITEM 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
ITEM 18 PUBLIC figures........................................................
ITEM 19 FINANCIAL PERFORMANCE REPRESENTATIONS ........................ 56
ITEM 20 outlets And FRANCHISEE information......... ......61
ITEM 21 FINANCIAL STATEMENTS.......................................... ........................................ ........ ..^....61
ITEM 22 CONTRACTS.,.......... .................... ........ ......... ........ .
ITEM 23RECEIPTS............................................... ..................''63

Exhibits

A. ERANGHISE AGREEMENT AND EXHIBITS


B. LIST OF STATE,AGENTS FOR SERVICE OF PROCESS AND STATE ADMINISTRATORS
C. FINANCIAL,STATEMENTS
D. STATEMENT OF PROSPECTIVE FRANCHISEE
E. TABLE OF CONTENTS OF MANUAL
F. SAMPLE FORM OF GENERAL RELEASE
G. STATE SPECIFIC ADDENDA
H. LIST OF FRANCHISEES AND FRANCHISEES THAT LEFT OUR SYSTEM
I. DEVELOPMENT AGREEMENT
J. RECEIPTS

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
ITEM 1
THE FRANCHISOR, ANY PARENTS, PREDECESSORS AND AFFILIATES

To simplify the language, this disclosure document uses “we,” “us,” “our,” “Franchisor” or “Stride” to
mean Stride Franchise, LLC, the franchisor. “You” means the person, corporation, partnership Or other entity that
buys the franchise: Tenns not defined in this Disclosure Document (including various capitalized terms) are
defined jrt the Ffanchise Agreement attached as Exhibit A to this Disclosure Document (the “Franchise
Agreement’’).

FFanchispr

We do business under the name Stride Franchise;, LLC, or in some cases, simply as “Stride,” We do not
do business under any other name, Our principal business: is 17877 Von Karman,Ave., Suite 1 GO, Irvine, CA and
our business phone nutnber is (949) 490^5989. We are a Delaware limited liability company formed on December
18,2018.

We do not Currently own Or operate ahy Studios similar to the franchise being Offered in this Disclosure
Document. We commenced offering and selling franchises as of the Issue Date.

We do not offer, and have not previously offered, franchises in any other line of business., Except as
provided in this Disclosure Document, we are not involved in the conducting of any other substantive business
activities.

Parent

Xponential Fitness, LLC (“Xponential’’) is our direct parent company. Xponential is a Delaware limited
liability company with a principal business address at 251 Little Falls Drive, Wilmington, DelaiVare 19808.
Xponential does npt provide products or services tO our franchisees and does hot Offer/sel) franchises in any line
of business., Xponential is owned by H&W Franchise Intermediate Holdings, LLC (“H&W Intermediate”), a
Delaware entity with a principal business address at 301 Commerce Street, Suite 3300, Fort Worth, Texas 76102,
H&W Intermediate is owned by H&W Franchise Holdings, LLC, also a Delaware entity with a business address
at 301 Commerce Street, Suite 3300, Fort Worth, Texas 76l.OZ (“H&W”). H&W is contfolled by TPG Growth III
Fitness, LP (“TPQ Fitness”), ah entity with a principalbusihess address at c/o TPG Global, LLC, 301 Commerce
Street, Suite .33,00^ Fort Worth, Texas 76102. In turn, TPG Fitness is owned by a series of entities. These include
the following entities controlled by TPG Holdingsll, LP: TPG Growth III Media,Financej L.P., TPG Growth III
DE.AIV Gen Phr, LP, and TPG Growth III DE AIV Gen Par Advisors, LLC; all share the sahae address as TPG
Fitness. None of these entities: (i) provide products of services tO Our franchisees directly; or (ii) have directly
offered or sold franchises in any line of business.

AfTiUates

Our affiliate, GycleBar Ffanchisiiig, LLC (“CBF”), an Ohio limited liability company with a principal
business address of 299 E 6th St., Floor 1, Cincinnati, Ohio 45202, franchises indoor cycling studios under the
GYCLEBAR mark. CBF began franchising GYCLEBAR studios in January 20,15. As of December 31, ,2018,
there were 154 franchised GYCLEBAR studios in operation. CBF has also Offered area representative: franchise
since March 201.7^ and CBF had one area,representative open and in operation as of December ,31,2018.

Our affiliate, GycleBar Canada Franchising, LLC (“GycleBar Canada”), a British Columbia unlimited
liability company withfa registered offiee at 2200 HSBC Building; 885 West Georgjia Street, Vancouver, BC V,6C
3E8, offers CYCLEBAR franchises in Canada. Our affiliate, GycleBar International Inc. (“GycleBar
International’’) an Ohio corporation with a principal business address of 299 E 6th St., Floor 1, Cincinnati, OH
45202 offers CYCLEBAR,franchises in other inteniational territories. GycleBar Canada has Offered franchises in

©2019 Striae, Franchise, LLG


2019 Franchise Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Canada sihee August 2015,,and CycleBar International has offered franchises: outside the United States since
February 2016.

OUr affiliate, Club, Pilates;Franchise, LLC (“CP Franchising”),,a Delaware limited liability compariy with
a principal husihess address at 17877 Von Karman Ave., Suite 100, Irvine, California 92614, franchises' fitness
studios that provide^ Pilates and^other exercise classes under the CLUB PILATES® marks. CP Franchising began
offering franchises in March 201:5 and, as of DeCernber 31, 20.18^ there were: 382 franchised CLUB PILATES
Studios in operation.

Dur affiliate. Row House Franchise, LLC (“Row House Franchise”), a Delaware limited liability company
with a principal business address at 17877 Von Karman Ave., Suite 100, Irvine; California 92614,, franchises
rowing and free, weight exercise classes under the ROW HOUSE mark. Row House Franchise began franchising
rOW HOUSE studios at some point in early 2018. As of Decernber 31, 2048, there were 3 franchised ROW
HOUSE Studios in operation.

Our affiliate. Stretch Lab Franchise, LLC (“SL Franchising”), a Delaware limited liability Company with
a principal business address of 17877 Von Karman Aye., Suite 100, Irvine^ California 92614, franchises fitness
studios that provide stretching classes-in both private and grbUp formats, related therapy activities and„if approved,
a proprietary “flexologist” training programs under the STRETCH LAB® mark. SL Franchising began offering
franchises for STRETCH LAB Studiosin late.Decernber 2017. As of December 21,2018, there were 9 franchised
STRETCH LAB Studios in operation.

OUr affiliate, Yoga Six Franchise, LLC (“Y6 Franchising”), a Delaware limited liability company with a
principal business address of 17877 VOn Karman Aye., Suite 100, Irvine, Califomia 92614, franchises fitness
studios that offer and provide indoor yoga elasses/instruction and.other related exercise classes under the YOGA
SDC® marks. Y6 Franchising began offering franchises for YOGA SIX Studios in September 2018'. As of
December 31, 2018, there were 7 franchised YOGA SIX Studios in operation.

Our affiliate, AKT Franchise, LLC (“ART Franchising”), a Delaware limited liability company with a
principal business address: at 17877 Von Karman Ave., Suite 100, Irvine, Califomia 92614, franchises fitness
studios that provide indoor fitness classes/instmction through, a combination of circuit, training, dance Cardio,
Pilates, and yoga under the AKT marks. AKT Franchising began: franchising at ;spme point in July 201-8, As of
December 31, 2018, there were 2 franchised AKT Studios'in operation.

Our affiliate, PB Franchising, LLC (“PB Franchising”), a Delaware: limited liability company with a
principal business address at, 17877 Von Karman Ave., Suite 100, Irvine, California 92614, franchises fitness
studios that provide indoor fitness classes/instructibn through a combination of Pilates, weights and ballet,
including using a ballet barre, under the PURE BARRE marks; PB Franchising commenced franchising as the
franchising arm of the brand jn October 2012 and, as of December 31, 2018,, there were 508 franchised PURE
BARRE Studios in operation.

Our affiliate, LB Franchising, LLC (“LB Franchising’^, an Ohio limited liability company with a principal
business address at 299 E. 6'^ St., Floor 1, Cincinnati, Ohio 45202, franchises the right to operate a facility that
provides shared fitness space and other event hosting space under the @ THE LB® .mark, LB Franchising jUst
began offering unit: franchises, as well as area representative franchises, in September 2016, and LB Franchising
did not have any operating franchisees or area representatiyes as of December 31,2018..

Our affiliate. Fueled Collective Franchising,, LLC (“FC Franchising”), is an Ohio limited liability
company with a principal business address of 299 E 6th St., Floor 1, Cincinnati, Ohio 45202, that intends to
franchise shared workspace facilities under the FUELED COLLECTIVE mark.in early 2018. As of December 31,
2018, FC Franchising did not have any operating franchisees or area.representatives.

©2019 Stride (Frahchis.e, LLG


2019 Franchise Disclosure. Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Our affiliate^ STG Brand Anib^sadbr Franchising, LLG (“STGBAF”), is an Ohio limited liability
company with a principal business address at 3825 Edwards Road, Suite 103, Cincinnati, Ohio 45209. STGBAF
franchises franchise development and shies businesses under the STG BRAND AMBASSADOR'’''^ mark and
certain other marks as may be designated by STGBAF., .STGBAF began franchising ;in November 2018. As: of
December ,31,,2.018, STGBAF did not'have any operating franchisees..

Except as.disclosed above, we currently have no parents, predecessors or affiliates required tobe disclosed
in this Item, and our affiliates haye not offered franchises in any Other lines of business.

Agent for Service of Process

Our agents fOr service of process are disclosed in Exhibit B.

The Franchised Business We Offer

Franchised Business and System/Manuals; Designated Territory

We offer and award franchises for the right to independently own and operate a Sbdio utilizing the Marks
and “System” described below (each, a “Franchised Business”) pursuant to pur theri-current form pf franchise
agreement (the “Franchise Agreement”). Our cuirent form of Franchise Agreement is attached to this Disclosure
Docurnent aS Exhibit A.

We expect that a Studio will typically be located in a retail shopping: center, and this franchise offering
assumes that tho size of a typical Studio; will be at least aroimd 2,000 square feet in size. We may, however^
consider alternative sites, on a case-by-case basis. Under frie Franchise Agfeement, we will also grant you the
right tp Operate yOurFranchised BusiaeSs withiiia designated geographical area wherein you will also be permitted
and required to actively promote the Franchised,Business and solicit new clientele^the “Designated Territory”).

If you own an existing fitness facility and meet our other qualifications, you may convert your existing
business to a StudiO; A converted Studio will likely encoimter lower investment requirements than those of a
start-up Studio, but we will only approve a conversion if it is completed in accordance with our then-current
System Standards (as defined below).

The Studios are established and operated under a comprehensive design that includes spacious interior,
treadmills, specifications, and procedures for operations; quality customer seryice; management and financial
control; training and assistance; and advertising and promotional programs (collectively^ the^ “System’’). The
System standards, specifications: and procedures (collectively, the “System Standards”) are described in our
confidential operations manual (the “Manual”). The System and the Manual may be changed, improved and
further developed by us.

Approved Services and Approved Products

Each Studio Will offer and provide indoor running mid Walking classes; through live instructional group
and; indiyidub classes designed to target and accommodate: different skill levels, as we designate or otherwise
authorize from time to time (collectively, the “Classes”); and (ii) any other services that We develop, designate
and/or otherwise, authorize (Collectively;, the “AjpprOve,d Services”). Typicallyj all classes and other Approved
Services will be paid for ^d scheduled online via the Internet. You will also be authorized,and required to offer
and sell certain apparel, merchandise, beverages and other retail items and products;that we designate or otherwise
approve (collectively, the “Approved Products”).

©2019'StrideTranchise, LLC
2019 Franchise Disclosufe'Documeiit

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Authorized Instructor(s) and Corresponding Requirements

The Classes and certain other Approved Services may only be provided by an' individual that has: (i)
acquired a/an (a) NASM Personal Training Certified, or (b) ACSM Personal Traiining: Certification, from the
appropriate third-party certification agency (thei“Required Third-Party Certification’’); and (ii) also completed thei
appropriate portion(s) of our proprietary initial training regarding the provision of the Approved Services at a
given Studio in accordance with our then-current System Standards, specifications and equipment (the
“Authorized Coach Traihirig”).

You must have ,al least one individual that has both (a) acquired the Required Third-Party Certification,,
and (b) completed the Authorized Coach Training (collectively, an “Authorized Coach”) on-site to proyide the
Approved Services at your Studio at all tirnes it is open and Operating.

Our standard franchise Offering assumes that any individual you,engage to serve as an.Authorized Coach
will already have the Required Third-Party Certification. We may set forth additional third-party certifications
and/or training courses that we recommend your Authorized Coaches complete arid/or participate in before Or
after they engagesin the provision of Approved Services at yOur $tudiO. We may also adjust or even waive certain
components or testing associated with our typical.Authorized Coach Training: fOr a given coach at your Studio if
that coach demonstrates significant experience and/or prior training/education with regards to indoor running
and/or the related equipment;

You or your contemplated coach will be;required to pay us our then-current tuitioii for that individual to
attendthe: Authorized Coach Training (the “Coach Tfaitiing Tuitioii’’); As of the Issue Date, we expect;and intend
that your initial coaches will attend arid complete the; Authorized Coach Training at one (1) of our affiliate-owned
Studios: prior to you, opening your franchised Studio.

Master Trainers and Provision of. Authorized Coach Training

With that said, we: may authorize you or other System franchisees to provide the Authorized Coach
Training as part of the Approved Services from your Studio, provided: ,(i) you have an Authorized Coach that;
completes additional training that we determine appropriate to become a “Master Trainer” that is eligible to
provide the Authorized Coach Training from a franchised Studio; and (ii) you are otherwise in compliance with
your obligations under your Franchise Agreement, Once a franchised Studio has a Master Trainer and is otherwise
authorized by us in jyriting tO provide the Authorized Coach Training, that Master Trainer can provide;Authorized
Coach Training tO ,(a) potential coaches of any other franchised Studio that wishes to become an Authorized
Coach, or (b) any other clients of that Studio (or other Studio) that wish to attend the Authorized Coach Training
at that Studio (subject to any restrictions you haye On recruiting and/Or ,soliciting any such clients that.are located
outside your Designated Territoty, to the extent permitted under applicable law where the; Franchised Business is
located). Regardless of whether the Authorized Coach Training is provided at a franchised or affiliate-owned
Studio, the Coach Training: Tuition will be paid directly to us and, if and as appropriate, we will remit then-
appropriate portion of that Coach Training Tuition to the oWnef of the franchised Studio that provided the
instruction.

Owner/Operdtor Module

Prior to opening your Franchised Business, you must ensure?that: (i) you (or, if you are an entity, one Of
your Designated Operators) complete at least the owner/Operator module Of our initial training program (the
“Owner/Operator Module”); and (ii) the individual(s) you expecfto provide Classes and other Approved Services
at yoyr Studio each attend and complete the Authorized Coach Training so that at leastmne (1) Authorized Coach
is scheduled.to be on-site^at all times your Franchised Business is open.

©20 m stride Franchise, LLC


,2019: Franchise Disclosure,Document
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
The Franchise Agreement is signed by us, by;youi and by those'of your principals whom we designate as
the principal franchisee-operator(s) (the “Designated.Operator(s)”) of your Franchised Business. The.DeSignated
Operator(S) (there, may be up to .tvyd Such indiyidualSj but only one address to which we commimicate in regards
to the frahchise) named has the authority to act for you in all matters relating to the Sttide Franchise, including
voting responsibilities. By signing the Franchise Agreement, you and the Designated Operatdr(s) agree td be
individually bound by certain dbligatidns in the Franchise Agreement, including covenants concerning
confidentidity and ndn-competitiori, and to personally guarantee your performance under the Franchise
Agreement Depending oii the type of business activities, which must be ftilly discldsed prior to sigriing this
document, in which you or your Designated Operator(s) tnay be mvdlved, we may require. ydu or your Designated
Operator(s) to sign additional confideiitiaiity and noh-competition agreements.

Muia-Unit Offering

We also offer qualified individuals and entities the:right to.open and operate three (3) dr more Franchised
Businesses within a desi^ated geographical area (the “Developrneht Area”) under our current form of
development agreement that is attached to this DiScldsure,Document as Exhibit I (the “Development Agreement”),
which \yiil also outline a schedule of defined period of time in which you must open and commence operating
each Franchised Business (a “Development Schedule”).

You will be'required to: sign a Franchise Agreement for the initial Franchised Business we grant you the
right to open within the Development Area at the same time ydu sign yoUr Development Agreement, and you will
need to sign our then-currerit form of franchise agreement for each of the, Franchised Businesses you open under
the Development Schediilej which may differ from the current franchise agreement mcluded With this Disclosure
Document.

You will be required to’pay us a One-time development fee that will be calculated based on themumber of
Franchised Businesses we grant you the right to open under the Development Agreement (the; “Development
Fee”), but you will not be required to pay any other initial franchise fee at the time you execute your franchise
agreements for each Franchised Business we permit you to open under your Development Agreement.

Market and Conipetitibii

The market for fitness services and studios is crowded, YOu will face competition fOr members from
gyms, personal trainers, fitness/exercise Centers and,studios, health clubS; yOga.and Pilates studios and even other
System franchisees (Subject to the-territorial protections and restrictions set forth in Item 12). The market for the
Approved Services does not fluctuate seasonally.

Applicable; Regulations

Sonie States require that certain kinds of health/fitness facilities haye a staff perSpn available during all
hours of operation that is certified in basic cardiopulmonary resuscitation or other specialized medical training.
Some state or local laws may also require that health/fitnesS facilities have an automated external defibrillator
^d/or Other first aid equipment On the premises. At a minimum, your Studio will be subject to various federal,
state and local laws, and regulations affecting the business, including laws relating to zoning, aCCessYor the.diSabled,
and safety and fire standards. You may need the local fire marshals or other local, state or federal agency’s
permission before you begiri Operations., Iri addition, there may be local licensing and employment regulations,
intluding worker’s' compensation insurance requirements. You should examine these and other laws before
purchasinga fi^chise.

You should consult with your attorney, and local and state agencies/authorities, before buying a
Franchise to determine if there are any specific regulations you must comply with as it relates to offering the
Studio products and Services to consumers in your state, and consider the effects on you and the cost of
5
©2019 Stride Franchise, LLC
2019 Franchise Disclosure Docurnent

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
compli^ce. These requiremerifs: can affect a broad scope of your operations, inciuding location selection,, and
hurihg of personnel, among other things. It is your sole responsibility to investigate any regulations in your area^
including those related to the establishment and operation of a Studio generally.

ITEM 2
BUSINESS EXPEFUEISCE

Megan Mgen: Executive Vice President of Finance

Ms. Moen has served as our Executive Vice President of Finance: since January 2019. She has also served as the
Executive Vice President of Finance for CP Franchising, LLC, and PB Franchising; LLC, both also based in
Irvine, Galifornia, since January 2016, and November 20.18, respectively. Ms. Moen was a Senior Director for
the Valuation arid Financial Advisory Services practice of FTI Consulting, Inc., located ih Los Angeles, Califomiaj
ffomJune 2013 to:2016.

Leanne Pedante; Master Trainer

Ms. Pedante'has'served as our Master Trainer since Jmiuary 2019. Ms-i Pedante has served as: (i) Prpgram'Director
and Head Cpach for an actively operating Studio, located in Pasadena, California, since October 2016; and (ii)
Oymer and Founder Pf Leanne Pedante Personal Training, located in Los Angeles, California, since July 2013.
Ms. Pedante previously served as: (i) Group Fitness Instructor at Equinox, located in Lps Arigeles, California^
from.February 2015 through October 2016; and (ii) Owner and Founder of Leanne PedanteConsulting & Design,
located in Lps Angeles, California, from Sfeptemlber 2012 through December 2016.

Richard Feinberg: Vice President of Real Estate

Mr., Feinberg has seryed as Pur Vice President of Real Estatessince January 2019. Mr. Feinberg has; alsoiserved as
Vice President of Real State fPrCP Franchising, LLC, also locatedln Irvine, California, since March 2015, Mr.
Feinberg was the Director of Real Estate fpr UFC Gym Franchise Company, located in Santa Ana, California,
from January 2013 to Marchv20l 5.

Pete Riggs: Executive Vice President of Construction & Procurement

Mr. Riggs has served as pur Executive Vice President of Construction and Procurement since January 2019.
Previously, Mr, RiggSiserved as Vice President of Facilities for UFC Gym, located in Irvine,, California, from June
2007 to. August 2017.

Rudy Flores: Vice President of Retail

Mr. Flores has been our Vice President of Retai l since January 2019. Mr. Flores has also; served as Vice President
of Retail Sales for CP Franchising, LLC, also located in Irvine, California, since June 2016. From January 2013
to May 2016, Mr. Flores worked aS the Product Sales Director for UFC Gyih Franchise Company in Santa Ana,
California.

Kate Kwon: Vice President of Franchise Marketing & Communications'

Ms. Kwpn has served as pur Vice President of Franchise Marketing and Communications since January 2019.
Ms. Kwon has also served as Vice.President of Franchise Marketingand.Communicatipns for Xponehtial Fitness,
also located in Irvine, California, since September 2017. Ms. Kwon_served as Director of Franchise Marketing
and Communications for Club Pilates, located in Costa Mesa^ Califbmia, from June 2016 to September 2017.
Previously,, Ms. Kwon was Vice President of Marketing and Branding for Fitness Wear with Flair, located in

©2019 Stride.Franchise,LLe
2019' Franchise Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Orange, California, from December .2014 to December 2016. Prior to that time, Ms, Kwdn was Director of
Marketing for Honest to Goodness, located in Sydney,, Australia, from January 2013 to November 2014.

ITEM 3
LITIGATION

No litigatibn is required to be disclosed in this Iterri.

ITEM 4
BANKRUPTCY

No bankruptcy information isirequired to be disclosed in this Item.

ITEMS
INITIAL FEES
Franchise Agreement

Initial Franchise Fee

You must pay to us and initial franchise fee of $60j000 (the “Initial Franchise Fee’^) to establish a single
Studio under a Franchise,A^eement (.whether a start-up or conversion). The Initial Franchise Fee is a lurnp sum
payment due upon the signing of the Franchise Agreement. The Initial Franchise Fee shall be fully earned by
Franchisor upon payment and is not refundable, in whole or in part, under any circurhstancei Except as disclosed
in this Item, we uniformly impose the Initial Franchise Fee on all parties that are purchasing a singlei Franchised
Business.

Initial FFE Package

You must purchase, an initial package of furniture, fixtures and equipment thatiS designed to provide you
with the majority of these items that yOu'wUI heed in connection with^outfitting, equipping and otherwise building
out your Studio (the “Initial FFE Package”), ;and includes, the cost of shipping and installation. As of the Issue
Date of this Disclosure Document, the Initial FEE Package costs approximately between $39,000 tO $48,Q00
comprised of thescosts to (a) lease 25 treadmills, as well as acquire free Weights of various sizes and various other
related equipment/supplies for use in connection with the pfovisiOn of the Approved Services, (b) acquire r StudiO
fixture package comprised of a desk, displays and display rack, storage cubbies, pedestals, and assorted other
fixtures, and (c) acquire certain other, equipment used in connection with the Studio.

These items are: described in greater detail in Item 6 under the headings “Specialty and Other Exercise
Equipment,” “Furniture, Fixtures and Related Supplies,” and “Shipping and Ihstallatibn.” Currently, you must
purchase the Initial FFE Package from us, but we reserve to desi^ate another approved supplier in our sole
discretion, You must pay for the Initial FFE Package prior to opening your Studio, and each fee that comprises
the Initial FFE Package is non-refimdable under any circumstances and, except as provided, above, will be
uniformly imposed.

Opening Retail Inventory

Prior to Operiing your StudiOj yoii must purchase opening inventory from us at a cost of approximately
SI 2,000 (“Qpening Retail Inventory”), which includes apparel and other apparel that wj]! be available- fOr resale
as part of your Approved Products, including items branded with the Marks, and other t-shirtS, towels^ exercise
clothing and related accessories. The amOUrit paid for the Qpening Retail Inventory is non-refimdable under any
circumstances and will be iinpOsed uniformly^

,02619 Stride Franchise, LLC


2619 Franchise, Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Pre-Opening. Coach Training

We estimate that you will coyer theCoach Training Tuition (purrently, $l,499) ,tha;t we charge to provide
Authorized Coach Training to your initial coach(es) so that such coach(es) can become Authorized Coaches that
offer arid proyide the Approyed Services at your Franehised Business. Prior to opening, we estimate, we wjU
provide Authorized Coach Training to at least one and as m^y as seyen coach(es), as you deterrhine appropriate
in your discretion, and you will pay us between $1,499 and $10,493 in corresponding Coach Training, Tuition
fee(s). YOU may not be required to pay the Coach Training Tuition for a given coach if you.require that coach to
pay us that fee directly. The Coach Training Tuition disclosed in this Item; |s uniformly imposed and is nom
refundablempon payment.

Once your Studio is open, you may engage an Authorized Coach that has completed Master Training and
become a Master Trainer to provide Authorized Coach Training to subsequent cOaches, as well'as Studio clientele^
from and at your own Studio.

DevelbpmenfcAgreement

If we award you the right to develop two (2) or moreiFranchised.Businesses withih a giveri Developpient
Area, you must pay us, a one-time Development Fee upon execution of ypur^ Development Agreement. Your
Development Fee will depend on the number of Franchised Businesses we grant you the right to open within the
Development Area, and is calculated as follows: (i) $ 100,000; for the right,to open two Franchised Businesses; ,(ii)
$45,OO0 per Franchised. Business if you agree to open and operate between fliree and five Franchised Business;
(iii) $40,000 per Franchised Business if you agree to open and operate between $iix and nine Franchised
Businesses; and ,(iv) $35,000 per Franchised Business if you agree to open and operate 10 Or more Franchised
Businesses.

You will be required to enter into our then-current form of franchise agreement for each Franchised
Business you wish to open under your Development Agreement, but you will not be required to pay any additional
Initial Franchise Fee at the time you execute each of these franchise a^eements,, If yOu enter into a Development
Agreement, youmvist, execute our currentTorm OfFranchise Agreement,for the first Studio we grant you the right
to open withih your Development Area concuifently with the Development Agreement.

Your Development Fee will be deemed fully earned upon payment, and is not refundable under any
circumstances. The Development Fee described above iscalculated and applied uniformly to all of our franchisees.

©2019;Stride Franchise, LLG


2019 Franchise pisclosure.Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
ITEM 6
OTHER FEES

'TypC'-of Fec . ' Date f Remarks - -

Royalty 7% ofGross Sales' : Payable^weekly You will be required to start paying your
based on the Gross Royalty once your Franchised Business
Saiesofyour begins collecting;revenue from
Franchised operations.
Business during the
preceding business We reserve the right to collect your
week Royalty on a different intejval (for
example, monthly);
Brand Development The then-current Payable weekly at When we establish a Fund^ vye may
Fund (the “Fund”) contribution we.designate the same time and require yOti to make a contribution to that
Contributions^ you must make to fee in the same manner Fund amounting to up to 2% of fee Gross
Fund (yoiif “Fund as the Royalty Sales of your Franchised Business (the
Contribution”) “Fund Contribution”), and your
obligation to contribute will commence
We have not established a once you have started operating your
Fund as,of the Issue Date, Franchised Business
but intend and expect to
do so in 2019

Local Advertising $ 1,500 per month (your As arranged. This is fee minimum amount you must
Requirement “Local Advertising expend within your Desifeiated Territory
Requirement”) each month in connection with fee active
promotion and marketing of your
Franchised Business, mcluding lead
gertefatibn activities feat we designate or
approve. We may request invoices and
other evidence demonstrating your
cornplianCe with this requirement.

This is only the minimum amount you


must expend each month, and we
encourage you to expend more on
advertising as you determine appropriate
to-increase'visibility and clientele.

Coach Training: Then-cuirent tuition fee Prior to training: The Coach Training Tuition is payable to:
Tuition (the “Coach Training us in fee event the program is completed)
Tuition”) at a corporate location.,

CiiiTently, $1,499 per If fee Authorized Coach Training: is!


trainee. provided by an authdrized Master
Trainer at a franchised Studio, then
currently: (i) -STOOO of this Coach]
Training Tuition is retained by us; and
(ii) fee remaining $499 is remitted by us

©2019 Stride Franchise,; LLC


2019 Franchise,Disclosure.Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Reihaf^; ■1?
to.the franchiseeThat owns the franchised
Studibsat issue.

We reserve the right to modify this,


allocation similar to our right to modify
the Coach Trainjhg Tuition and other
training fees described in this Chart.

Training Fee Then-current training fee Prior to training. This fee is paid iii coTmection with
(the “Training Fee”). additional training/instruction that we
may provide on an ongoing basis in
Currently, $500 per day cohriectibn with the overall operation arid
per trainer^, development of your Studio.

We reserve the right to charge this fee in


connection with (a) any Master Training
we provide to an Authorized Coach of
your Studio, (b) re-training, or
replacement training with regards to the
portions of the initial training that are
desired for the franchisee-owner and/or
Designated Manager, (c) any training we:
require you to complete to cure a default
under-your Franchise Agreement with us
(“Remedial Traihing^”)^ (d) traimhg you
request we provide (other than the kind
of day-to-day assistance described
below). Or (e) training We prqyide*bn-site
at your Franchised Business.

We: will not charge any training fee in


connection with minor, day-tQ-day
assistance that we provide remotely over
the. phone or via email, subject to our
availability.

In addition to our then-current training


fee; you will always be responsible for
the costs and expenses that are incurred
in corinectioh with, you and your
personnel attending.training,
Required Software Then-current fees charged Payable^morithly in You must pay our Approved Supplier for
Fees by pur Approved Supplier the same manner as any proprietary software or other
for (a) Studio maiiagement theRoyalty software we require you to. use in
and POS software, (b) coiinecfion with the operation of your
client performance :Studio (collectively, ithe “Required
tracing software, and (c) Software”). We may designate ourselves
any other software we or our affiliate as the Approved Supplier
designate for use in for certairi Required Software, as we

©2019 Stride Franchise, LLC


.2019 Franchise Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
connection with your determine appropriate, at any tirne during
Studio the term of your Franchise Agreement.

Currently^ approxiihately We may also require that: you usel


,$269 for Studio Required Software that is licensed from a|
management software, third-party provider to assist in
and (ii) $150/month for accounting and bookkeeping functions of
the client performance your Franchised Business.
software system.
Technology Fee While we do hot cufrehtly Payable monthly in we reserve the right fp collect a,
charge a Technology Fee the same manner as Technology Fee in connection with any'
to cover certain costs as the Royalty costs we incur in establishing andl
described under maintaining an intranet, extranet, online
“Rertiafks” colunm, we portal, website; online advertising tools,,
reserve the right to charge mobile application and/or any other
our then-current technology for use in connection with the
technology fee in the Franchised Business. This amount is
future (the “Technology subject to increase based upon vendor
Fee”) pricing;
Renewal Fee 0,000 At time of renewal. You must renovate and reirriage the
Studio at your expense at the time of
Renewal to conform to our then-current
standards.and image.
Transfer Fee under $10,000 Before the transfer Payable when ypU sell the Studio.
Franchise Agreement
There are a number of other conditions
that must be; satisfied in order for us to
approve your transfer, including your
agreement to cover any and all broker
fees involved in connection with the
proposed transfer at issue,

Transfer Fee under $10^000 On;submitting Payable when you want to sell/transfer
Development application for the rights under your Development
Agreement consent to Agreement.
assignment;
There are a number of other conditions
that must be satisfied in order for Us to
approve your transfer, including your
agreement to cover any and all broker
fees involved in connection with the
proposed transfer at issue;

Insurance Policies^ Amount of unpaid Must have the Payable: only if you fail to maintain
premium. policies within 60 required insurance coverage and we elect
calendar days after to obtain coverage for you.
signing the

©2019 Stride Franchise, LLC


201’9 Franchise Disclosure'Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
lujEfBate; :

Franchise
Agreement, but no
later than the time
that you acquire an
interest in me real
property from
which you will
operate the Studio,

Audit Fees'* Reimbursement of our Within 15 calendar Payable only if audit shows an
actual costs incurred in days after receipt of uriderstatemeht of Gross Revenue, for the
connection with the audit audit report. audited or reviewed period of 2% or
more.
Approximately, $500 -
$2,500 This fee here is based on the experience
of our affiliate franchisors in connection
with their respective: franchise systernSj
as weLaye^yet to encounter this Situation.

Mystery Shopper and Currently, we do not Within 30 days of Payable only if we establish a mystery
Other Quality require'&anchisees to demand.. shopper program or other quality control
Control Programs cohtributeto these mechanism/program, in which case we
programs, but we reserve reserve the right tOrrequire a franchisee to
the right to do so in the: contribute up to $5 Oofyear to help, defray
fiiture. the costs, of such programs that are-
designed to preserve; the goodwill and
brand image.

Late Fees The greater of the highest Upon demand. Applies to all amounts not paid when
applicable legal rate for due, until paid in full. We may also
open: account business require, you to pay an administrative fee
credit or 1.5% per month. of $50 for each late payment or late
report.

Penalty Fee Theh-currerit fee charged Upon demand. Payable: only in the event you fail to
by us comply with your material obligations
under your Franchise Agreement by (a)
Currently,, $100 for each permitting any coach at your Studio to
day of non-compliance., provide running instruction or other
Approved Services before they complete
the Authorized Coach 'Training, dr (b)
offering or selling ;any imauthorized
products or services at your Studio,,
including provision of the Authorized!
Coach Training with an approved Master]
Trainer (deScfibed more fully in Item 11
below). The Penalty Fee will be incurred
during each day of non-compliance,

©2019 StridesFranchise, LLG;


2019 Franchise Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
A.iniun^-J
P

Attorneys’fees and The costs that we incur in As incurred or upon You must reimburse us all costs and
other Enforceinent- Connection with any demand, as expenses that we incur in connection
related.Gosts action to (a) enforce your applicable. with any action we, bring against you to
obligations under any enfdrCe the terms of an agreement against
Franchise Agreement or you, as well as in connection with any
ADA, and/or (b) defend action you bring against us that we
against any action you successfully defend against.
bring against us wherein
we prevail.

Other Agreement- The;attomeys’ feesrand Upon demand and We rnay set forth flat administrative fees
Related Costs'and actual -costs that (a) we prior to us CQunter- in the Manual's that;ydu will need to pay
Expenses actually incur, or (b) signing any relevant to help us defray the costs we incur in
provide specific notice of addendum, connection with modifying any
in our Manuals with amendment-or other agreernent or any contractual relationship
regards to certain docUmeht you.have with us.
situations (such as modifying the terms
relocation, certain of your Franchise Any such modifiCafion to your
transfers, etc.),, in Agreement or agreements or relationship will heed to:
connection with a given ' ADA. approved, set forth in writing and signed
amendment or other by us. consistent with the terms of your
change to the franchise Franchise Agreement and/or ADA-
relationship
Indemnification All costs, including Upon settlement or You will defend suits at your own cost:
attorneys’ fees conclusion of claim and hold us harmless agalinst suits'
oraction. involvihg damages resulting fi-om your
operation of the Studio (subject to'
applicable state law).
Alternative Supplier $500 per day for At time of request. Additionally, you rriust reimbursement
Approval^ personnel engaged in us for any travel, accommodations, and
evaluating a supplier. meal, expenses.

Regional Cooperative As the Cooperative As the Cooperative We may establish regional cooperatives,
determines determines comprised of Studios that, are: within a
given geographical area (each, a.
“Cooperative”). If a CddpefatiVe is
established where your Studio is located,
you will be required to participate in that
Cooperative and Contribute to that
Cooperative in the amounts the

©2019 Stride.Franchise,:LLC
2019 Ffahchisei Disclosure. Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Ampuiit tpuelate
^ « V '

Cooperative determines. Company-


ovyned or affiliate-owned Studios will
have the same; voting rights in such
Cooperatives as ffanchisee-owned
Studios
Liquidated Damages $lO;0OO As incurred. If you in any way compromise the secure
access to the online version of the
Manual, including, but not limited to,
allowing unauthorized users access to the
Manual and its confidential contents, you
will be required to pay us liquida;ted
damages in the amount of $10;000, to
compensate us for the breach and related
damage to the System.
Notes to, Item; 6 Chart:

All fees are uniformly imposed by and are payable to us, unless othervyise noted. No other fees or
payments are to be paid to us, nor do we: impose Or colject any Other fees or paynients for any third party. Any
fees paid to us aremon-refundable unless otherwise noted. Fees payable to third parties may be refundable based
on your individual arrangements. With;regards to any interest,charged in conneetion with the fees set forth in the
chart .above, the highest interest rate allowed by law in California is I0,% aimually.

* Gross Sales. Except as provided below, the term “Gross Sales” means the total revenues you derive,
directly or ihdirectly from all business conducted upon, from or in connection with the Studio, less sales taxes or
sirnilar taxes, imposed by governmental authorities. (See Section 5.3 of the Franchise Agreement for'a more
coinplete definition). Please note that we exclude; revenue generated froirt the provision of tile Authorized Coach
Training at your Studio from the defmitipn of “Gross Sales” because you,are fequired.to pay us a flat fee of $l,000
for each indiViduall that received the required training (as described more fully in the Coach Training Tuition
section of the Chart above), Please see Section 5.3 of the Franchise Agreement:fbr additional Mormation-

You must participatetin our then-current electronic furtds transfer and reporting program(s). All fees owed
and any other amounts designated by us must be;feceived or credited,to our account by pre-authorized bank debit
by 5:00 p.rn. on or before the applicable due date. Your franchised business may be located in a jurisdiction
whose taxing authority will subject us to tax assessments on payments you submit to Us for the Royalty Fee
and Fund'contributibns. Under such circumstances, yoU will be required to adjust, or “gross up” your payment
to us to account for these taxes.

^ Brand Development Fund. We reserve the fight to establish a Fund that is designed to market,
promote: and otherwise develop the brand. Proprietary Marks; System (and associated tools/components).
Studios and/or Approved in the Ghart above. Please; see Item If for all required disclosures regarding the Fund
and our right to administer that Fund once established.

^ Insurance Policies. The; minimum limits for coverage, under many policies will vary depending on
various' factors, including where yOu are located and the size of your Studio. See Item 8 of this Disclosure
Document for Our minimum insurance requirements.

** Audit Fees: In the event that an audit discloses an understatement of Gross Sales or other discrepancy,
in addition to the Cost of the audit, you will be required to pay the marketirig due oh the amount of sUch
imderStatement, plus late fees and interest.

©2019 Stride Franchise, LLG


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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
® Alternative Supplier Approval. You may request the approval of: an item, product, service or supplier.
We may xequire you to;pre-pay any reasonable charges connected with.our reviewiand evaluation of any proposal.

ITEM?
ESTIMATED INITIAL INVESTMENT

YOUR ESTIMATED INITIAL INVESTMENT

A. Franchise Agreement

vi;;!;
Upon
Initial Ffanchise Fee^ execution of
$60,000 $60,000 Lump sum Us
the Franchise
Agreentent
Airlines,
Travel & Living,Expenses Prior to
vvhile Training^ $500 '$3,000 Lump sum hotels and
training
restaurants
Real Estate/Lease'' $9,000, $45,000 As! arranged As incurred Landlord
Approved
Leasehold Improvements^ Suppliers,
$15,000 $165,000 As arranged As iticurred Architects and
Contractors

Signage & Graphics* Approved


$15,000 $20,000 As arranged As ihcuifed Suppliers
Insurance^ Before Insurance
$900 $1,000 Asarranged
opening Carrier
Treadmill Equipment
$;15,000 Before Approved
Lease - Security DepoMt $25,000 Asarranged:
and 3 Months® opening Supplier

Us and Other
Specialty and Other Before
Exercise Equipment’ $2,000 $5,000 As required Approyed
opeiling Suppliers

Opening Retail Before


Inventory” $12,000 $12,000 Lump Sum Us
Opening

Utility Deposits" Utility


$0 $1,000 As arranged As incurred Suppliers
Local, State or '
Licenses and Pefraiits'^ $0 $3,000 As arranged As arranged Federal
Govermnent
Us and other
Furniture, Fixtures and $23,000
Related Supplies'^ $17,000 As arranged As incurred Approved
i Suppliers

©2019 Stride Eranchise„LLC


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This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Us and other
Gomputer System and $30,000
AudioA^isual, Equipment’"' $47,000 As. arranged As arranged Approved
Suppliers
Us and other
Shipping and Ihstallation” ,$20,000 $20,00O Before
As arranged Approved
Opening Suppliers
Approved
Grand Opening
Adyertisihg’^ $12,000 $12,000 As arranged As auranged Suppliers and
Vendors
Usand
Coach Training Tuition
$10,500 Before Transportation
and Related Travel $21,000 As arranged
Costs/Expenses” Opening Gafriers, Hotel
Facilities, Etc.
Us,
Additional Funds - First EmployeeSi
Three (3) Months'* $15,000 $30^000 As' arranged As incurred
Vendors and
Utilities
Total'® $233,900 $493,000

Notes to Table A in Item 7:

' General. The iriitial investment table' shows the estimated initial investment required to establish aiVd
operate a Studio. All amounts payable to us are nonrefundable, unless dtherwise noted. Amounts payable to
suppliers/vendors are refiinded according to arrangements you make with the Vendor, if any. These figures are
estimates of the range of your initial costs in the first 3 months of operation only. Neither we nor our affiliates
offer direct Or indirect financing:

^InitialFranchise Fee. The Initial Franchise Fee is homrefundable. The Initial Franchise Fee for a single
Studio is $60,000. We do riot provide financing for the Initial Franchise Fee.

^ Travel and Living Expenses While Trairiing: This estirnate is designed to cover the costs and expenses,
you might incur irixonnection with you (or if you afetari entity;, one'(T) of your operatingjprincipails you designate
to be the Designated Operatdrfor the:Studio) attending and completing the requiredlnitial training described more
fully in Itetri 11 of this Disclosed Document. We will not charge you or your Designated Operator for thiSipdrtion
of our initial training that must completed on behalf of the fTarichisee/owner uridef your Franchise Agreement.
You will be responsible for the costs and experises associated vvith attending this training: (e.g., transportation,
nieals, lodging and other expenses). The amount you will spend while training will depend op several factors,
including the number of persons attending, the distance you must travel and die type of accommodations you
choose, if any are needed. The estimate assuines that you (or your‘Desigriated Operator) and the individual(s) you
designate to receive the Authorized Goach Trairiing and serve as an Authorized Goach at your Studio will attend
their respective trairiirig at the same time at our headquarters or one (1) pf designated training Studios. The
estirriatefi Gbach Training Tuition fees associated with your initial coaches is accounted for in die estimate of
“Additional Funds” in the Ghart above.

^ Real Estate/Lease. If you do not own adequate: Studio space, you must lease suitable premises. These
figures assume that the leased premises wilt be at least 2,000 square feet. Landlords tnay also Vary the base:rental

16
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rate and eharge rent based on a percentage of gross sa:ies. In addition to base rent, the lease may require you to
pay common area maintenance charges (“CAM Charges”), your pro rata share of the real estate taxes and
insurance, and your pro rata share of HVAC and trash removal. The actual amount you pay under the lease will
yaiy deperidihg on the size of the. Studio, the types, of charges that are allocated to tenants under the lease^ your
ability to negotiate with landlords, and the prevailing rental rates in the geographic area. You will also likely be
required to’pay a security deposit. This estimate assumes your’security deposit-will amount to approximately one (1)
month of rent.

iSince rental, improvement and other real-estate-related, costs can vary significantly by area, it’s your'
responsibility to (1) independently research,all applicabledaws and regulations,, and real estate market conditions
and costs where you plan to locate and operate^ your facility, and (2) obtain appropriate advice from your own
accountant, attorney and real estate professional, before signing any binding documents or making any
investments, or other commitments, whether to us or anyone else;

^ Leasehold Improvements. The cost Of leasehold iiftproverrierits will vary depending on: (i) the size and
configuration of the premises;,(ii) pre-construction costs (e.g., demolitionof existing wallsand rernovalpf existihg
improvements.,and fixtures); (iii) thei need for soundproofing; and (iv) the; cost of materials and labor which,may
vary based on geography and location., You must adapt our prototypical plans and. specifications for the
construction and fihish-out of the Studio, including approved flooring, mirrors and paint. These amounts may
vary isubstaiitiariy based on local conditions, including the availability and prices of labor and materials. These
amounts may also vary depending on whether certain of these costs will be incurred,by the landlord,and allocated
over the term of the lease. For clarity, the estimates presented hefeiri are net of tenant improvement amounts
incurred by the landlord. The lOW-end of the range reflects modest improvements to a smaller location, and the high
end reflecfs significant physical improvements to a larger Studio.

* Signage & Graphics. YOU will need to purchase appropriate signage for your Studio that we approve.
The cost of your ,sighage may be more or less than this estimate, and depends on the size, type and method of
installation:you choose. Each landlord has different.restrictions itplaces onmterior and extefior signage that may
affect your costs.

Insurance. This estimate is for 3 months of your minimum required insurance^ The actual cost may be
more'than shown here. You will need to check with your insurance carrier for actual premium quotes and costs,
and for the actual amount of deposit. Insurance costs can Vary widely, based on the area in which yoiu business
is located, your experience with the insurance carrierj the. loss experience of the carrier, the amount of deductibles
and of coverage, and other factors beyond our control. You should obtain appropriate adVice frpin your own
insurance professional before signing ;any binding, documents or making any investments or other commifmerits,
whether to us ,or anyone else.

^ Treadmill Equipment Lease - Deposit and Lease Payments (3 Months'). As previously disclpsed, our
standard franchise, offering assumes and expects that.new System franchisees will lease the designated treadmills
that we designate for use in connection with the Studios and proyisibri of the Approved Services. The lease: terms
you are offered and ultimately agree to will likely vary based on; your credit score/rating, finances, local market
and lending conditions, yOur documented business experience and any amount you might put down as a deposit
on.such a lease (if that is an option with the lessor). The range estimated here is based on the estimate'we received
from, our Approved Supplier for this.equipment.
^ Specialty and Other Exercise Equipment. In addition to the leased treadmills described above, the initial
required amount of running and other exercise equipment for a standard Studio is approximately free weights' of
various.sizes, various equipment/supplies for use in coimection with the provision of the Approved Services, and
certain other equipmerit used in connection with the Studio. The amount of equipment and corresponding
investment will likely Vary based oiithe size and layout of your Studio..Financing forcertain of this equipmentmay
be available, but: neither we nor our affiliates provide such financing. If you chose to finance the equipment
17
©2019 Stride Franchise, LLC
2019 Franchise Disclosure Document
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
comprising, this entity, your initial costs may be less than the range provided in the Chart above; however, your
overall payments may be higher.

^ Opening Retail Inventory. The typical for-,sale items held in opening inventory are theiapparel and other
branded merchandise that .you will be permitted to resell a:t your Studio as part of your Approved Products,
irtcluding items such as t-shirts, towels, exercisexlothing and related accessories.

Utility Deposits. Typically,;a utility deposit will be required only if you areia hew customer of the utility
Qompany.
'' Licenses and Permits. The range of costs covers the expense to acquire the required local business
permits, Qur estimated costs include building perrhits, fire ihspectidn, sales tax permit, and retail sales permits.
If an electrical permit is, necessary, the costs may be more. You should investigate applicable requirements in
youriarea and the related costs, including receiving advice from regulator agencies^ and your own lawyer, before
making any commitments, whether to us or anyone else. The low end estimate will apply to franchisees who
already have the necessary licenses; and pennits in place prior tO; executing the franchise agreement.

'^ Furniture. Fixtures and Related Supplies. This is a range of expenses that will be incurred when
decorating and fumishihg the Studio, including Certain components of the Initial FFE Package that you must
purchase frorn us. Both the low-end and the highi-end numbers, represent a straight purchase of all furniture,
fixtures and related supplies (rather than leasing or making installment payments on these items).

.Computer System and Related Equipment. You must acquire a personal computer and a Point of Sale
system (“POS”) for use in the Operation of the Studio. Your computer system must be equipped with a high, speed
connectionito the Internet and must include a local area network with a dedicated server, You will pay the third-party
vendor directly for all fees associated with the use Of all Required Software; Please see Item 6 of this Disclosure
Documenffor the fee amount and more details on,the software. You can.expectinitial cash outlays to be lower if the
items can be leased rather than purchased. These costs are paid to suppliers, when incurred, before beginning
business and are usually not refundable. Please see Item I I of this Disclosure Docuinent for more information On
the Computer System.

'‘*.AudioA(isual Equipmerit. You are required to have;at least one (1) surveillance'camera installed in the
Studio. You may be required, to purchase the camera(s) and related accessories from an Approved Supplier (see
Item 8 of this Disclosure Document)., The:camera(s) must be web accessible. You will use the camera to inOriitOr
teacher performance, quality assurance and Safety; We have an absolute right, to also review and monitor the
camera(s) for the Same purposes as you, and to; ensure, compliance with the System. You are responsible for
ensuring customer consent and foriany failure to obtain such consent. You must indemnify us for any breaches
of privacy from your use of any surveillance camera.

Shipping arid Installatioh. We arrange for the shipping of all of your equipment and fiimiture/fixtures.
These amounts; may vary based upon the location of your Studio.

Grand Opening Advertising. You willhe required .to expend a minimum of $15,000 on advertising and
promoting the opening of your Franchised Businessi as described more fully in Item 11 of this Disclosure
Document;, We may require tha:t you expend all or some portion of these funds on materials or services that are
provided by our then-current Approved Supplierfs) for advertising or marketing, and we expect that you will
typically expend these amounts primarily in the month(s) immediately preceding and following your opening,
Any materials you wish to include as partOf your pre-opening campaign must be approved by us ifnot previously
designated for'use.

Coach Training Tuition and Related Travel Costs/Expehses; The low estimate here assumes that you
will be covering the Coach Training Tuition, and the costs/expenses for seven (7) individuals to attend and
18
©2019 Stride Franchise, LLC
2019, Franchise Disclosure. Document

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
complete Authorized Coach Training from a nearby area that does not invol ve flight or pay of overnight lodging
while the high end of this estima:fe assumes, you wil] be covering the tuitibn and costs for'such individuals to-attend
and complete siich training from an area that will require the individuals to fly and have overnight lodging.

'^ Additional Funds - First Three C3Y Months. This is an estimate of certain funds needed to cover your
business (not personal) expenses during the first three (3) months Of Operation of the^ Studio. These expenses
include initial employee wages; possible Coach Training Tuitioii(s) if you decide to cover such fees- on behalf of
your‘initial coaches; ongoing-purchases of equipment and .supplies; marketing expenses/fees and local advertising;
ongoing utilities (other than initial deposits); and repairs and maintenance. Your cost will depend upon your
management skill; experience and business acumen; local economic- conditions; the prevailing wage fate;
cOmpetitioni and sales of the SmdiO during the period. This estimate is based on: (i) the experience of the Studio
open and operatmg in Pasadena, Califoniia; (ii) the experience of our sister brands in developmg other fitness
concepts and information related to their respective studio investment costs; arid (iii) current estimates we have
received from Our Approved Suppliers and Other third party vendors.

The availability iand terms of financing to you will dbpend upon factors sUch as the availability of financing
in general, your credit-worthiriess, the collateral security that yOU may have, and policies; of lending institutions
concerning the type of business you operate. This estimate does;not include any finance charge; interest, or debt
serviee obligation.

Total Estimated Initial Investment. The total listed above does,not include compensation for your time
Of labor or any return on yOur investment. Your costs- will vary depending on such factors: as: the location and
size of the Studio, how closely you follow the System; your management and marketing skills, experience apd
general business ability; and Ipcal and geperal economic and m^ket conditions^ including disposable income.
You should fey lew these figures carefully with a business advisOr (such as. an accountant) before making, any
commitiriehts. In preparing the figures in this chart,, we relied on the experience of: (i) the Studio open and
operating in Pasadena, California; (ii) the experience of our sister brands in developing other fitness coricepfs and
information related to their respeetiye studio mvestment costs; and (iii) current estimates we have received from
our Approved Suppliers and othef third party vendors.

B. Development Agreement (3-Eack)

tWE^F ," ....... Umii ndi |.

... . .
•Development Fee^
. i'-At .signmg Of
$135,0,00 Lump sum, in Us
cash, certified the
check or bank Development
wire- Agreement.
Initial Inveshnerit tp Open $173,900 to,$433,000. See Chart A of this Item 7..
Initial Franchised
Business^

l as the '

ed'Msmess for

©2019 Stride,Franchise, LLG:


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This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Notes to Taible B in Item 7:

' Generali All amounts payable to us are nonrefiindabiej unless otherwise hotedl Amounts jjayable to
suppliers/vendofs are refunded, according to arrangements you make with the vendor, if any. These figures are
estimates of the range of your initial costs in the first three months of Operating the initial Franchised Business
yOurare»grahted under yOur Development Agreement Only;.

^Development Fee. The Development Fee is non-refundable. The DeyelopmentFee is described in greater
detail in Item 5 Of this Disclosure Document, and this Development Fee is for theiright tO open and operate a total
of three Franchised Businesses (provided you comply with your development obligations under the: Development
Agreement). If you choose to open more than three Franchised Businesses, your Development Fee will he
calculated as follows; (i) $100^000 fOr the right to open twO Franchised Businesses-; (ii) $45',000 per Franchised
Business if you agree tO open and operate between three and five Franchised Business; (iii) $40,000: per Studio if
you agree to open and operate between six and nine; Franchised Businesses; and (iv) $35,000 per Franchised
Business if you.agree to open and operate 10 or inore Franchised Businesses.

Initial Investment for Initial Franchised Studio. This figure represents the total estimated initial
investment required to open and commence operating the first Franchised Business you agreed to develop under
your Development Agreement. You wifi be required to enter into our then-cUrrent |orm of franchise agreement
for the initial Franchised Business you open under your Developiheht Agreement, most likely once you have
found a Premises fOr the business that we approve; The range includes all the items outlined in Chart 7.A..of this
Item, except for the $60,000 Initial Franchise Fee (because you are not required to pay an Initial Franchise Fee
for those Franchised Businesses you open under the Development Agreement). It does not include any Of the costs
you will incur in openingiany-additional Franchised Business(es) 'that yOu are granted the;right to open and operate
under-your Developmerit Agreement.

ITEM 8
RESTRIGTIONS ON SOURCES OF PRODUCTS AND SERVICES

You must operate all aspects of your Franchised Business in strict conformance with the methods,
standards and specifications of our System. Our methods, standards^ and specifications will be communicated to
you in writing:diroiighour confidential Manuals.and Other proprietary guideliheS; and writings that we prepare for
your use in connection with the Franchised Business, and System. We may periodically change our System
standards and specifications from time to time, as we deem appropriate or necessary in our sole discretion, and
you will be solely responsible for costs associated with complying with any modifications to the System.

Approved Products and Services

You may only market, offer, sell and provide the Approved Services, as well as any related rnerchandise
and other products thatFranchisor authorizes for sale in conjunction with the Approved Services (the “Approved
Products”) at your Frahchised.Busihess in a manner that.meets our System standards and specifications. We will
pfovide yOu With a list of our then-current Approved Products and Services, along With their standards and
specifications,, as part of the Manuals ot otherwise in writing prior to the opening: Of yoiir Franchised Business.
We may update Or modify this list in writing at any time.

If you wish to offer any product or servicein your Franchised Business other than our Approved Products
and ’Services, or use: any itetn in connection with your Franchised Business that does not meet our System
standards and specifications, then you must obtain our prior written approval as described.more flilly in this Item.

©2019: Stride Franchise, LLC


2019 Franchise! Disclosure Docurnent
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Approved Suppliers

We have theiright to requireiyou to purchase ^any items: or services necessary to operate your Fr^chised
Business from a supplier that we approve or designate (each, an “Approved Supplier”), which may include us or
our aff!liate(s). We will provide you with a list of our Approved Suppliers in writing as part of the Manuals or
otherwise in writing, and we may update or modify thisi list as we deem appropriate.

Currently, we:have Approved Suppliers for the following items that youimust purchase in connection: with,
the establishment and/or opefatibri of yoiir Franchised Business: (i),Opening.Retail Inventory; (ii) the:Initial FFE
Package; (iii) the Authorized Coach Training that your coaches must complete to become Authorized Coaches
(and related materials); (iv) designated treadmills and certain other exercise equipment/supplies; (v) mteriof
graphics and exterior signage; (vi) insurance coverage; (vii) shipping and. installation services; (yiii) training
materials, including the “Webinar Training” associated with the Authorized Coach Training; (ix) counsel to
review land negotiate potential leases; and (x) the Required Software, including the current Studio management;
software and performance software designed to meaisure Studio clientele performance we designate.

Curreritly, We and our affiliates: (i) are theionly Approved Supplier for the Opening:Retail Inventory and
Initial FFE Package; and (ii) will be the only party that can provide your coaches with the Authorized Coach
Training other than a fi-anchised Studio that has a Master Trainer capable of providing the Authorized Coach,
Training as part of that Studio’s Approved Services.

We may develop proprietary products for use in your Franchised Business, including pfiyate-label
products that bear our Marks, and require you to purchase ftiese items from us or our affrliate(s).

If you wish to purchase a product or service that weneqiiire you to purchase from an Approved Supplier
from an alternate source, then you must obtain our prior written approval aS‘ outlined more fully in this Item. We
may provide our standards and specifications for oiu- Approved Products and Services directly to bur Approved
Suppliers; and may provide these standards and specifications to an alternative supplier you propose ift (i) we
approve the supplier in writing as outlined.more frilly in this Item; and (ii) the alternative supplier agrees to sign
our prescribed form of non-disclosure agreement with respect to any confidential informatibn we disclose.

Except as provided above in this Item; (i): neither we nor any of our affiliates are an Approved Supplier
for any items" you are required to purchase in connection with your Franchised Business; and (ii) none of our
officers own an interest in, any of our Approved Suppliers other than us.

We reserve the right to designate us: of any of out affiliates as an Approved Suppli er with , respect to any
other item ybu;must purchase in connection with your Franchised Business in the future,

Required Purchases and Right to Defiye Revenue

The products or services we.require you to purchase or lease from an Approved Supplier, or purchase dr
lease in accordance with our standards and specifications, are referred to collectively as your “Required
Purchases.” We estimate that your required purchases, purchases from; Approved Suppliers and purchases,that must
meet our specifications in total will be about 70% - 95% of your total purchases to establish the Studio; and about
15% - 50% of your purchases to continue the operation of the Studio. Please be advised that "these percentages do
not include the lease payments that you make in; connection with your premises.

We and Oiif affiliates reserve the right to derive jevenue from apy of the purchases,(items or services) that
our System franchisees are required to make in connection with the Franchised Business. As wfe have just
commenced offering franchises as of the Issue Date, neither we nor Our affiliates have derived any revenue frorh
our franehisees’ required purchases in a-past fiscal yean
21
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2019 FrMchise DisclosureiPpcument

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Non-Approved Product/Seryice and Alternate Supplier Approval

We may, but.are not obligated to, grant your request to: (i) offer any products or services in connection
with your Franchised Business that are not Approved Products and Services; or (ii) purchase any item of seivice
we require you to purchase from an Approved Supplier from an alternative supplier.

If you wish to undertake either of these actions, you must request and obtain gur approval in writing
before: (i) using or offering the non-approved product or service; in connection \yith your Franchised Busihess; or
(ii) purchasing from a nomapprgved supplier. Voti ifiUst pay our theii-current supplier or non-approved product
evaluation fee when submitting your request, as well as cover our costs incurred in evaluating your request. We
may ask you to submit samples or information so that we can make an informed decision whether the goods,
equipment, supplies or supplier meet our specifications and quality standards: lii evaluating a supplier that you
propose to us, we consider riOt only the quality of the particular product at issue, but,also the supplier’s production
and delivery capability, overaU business reputation and financial condition. We may provide any alternate supplier
you propose with a copy of our then-current specifications for any prgduct(s) you wish the supplier to supply,
provided the supplier enters into a confidentiality and npn-discldsure agreement in the form we specify. We. may
also inspect a proposed supplier’s facilities and test its products and7or services, and request that:you reimburse
our actual, costs associated with the testing/inspection.

We will notify you m writing within 30 days after we receive all necessary information and/or complete
oUr inspection or testing to advise you if we approve or disapprove the proposed item and/or supplier. The criteria
vve use iii approving or rejecting new suppliers is proprietary, but we may (although are not required to) make if
available to you upon request. Each supplier that we approve must comply with dur usual and customary
requirements regarding insurance, ihderhnificatipn and non-disclosure. If we approve any supplier, we will not
guarantee yourperformance ofany supply contract with that supplier under any circumstances. We may re-inspect
and/or revoke our approval of a supplier or item at any time and for any reason to protect the best interests' and
goodwill of our System and Marks, The revgcatign of a previously approved product or aitefhative supplier is
effective immediately when you'receive written notice from us of revocation anfr, following receipt of our notice,
you may not place arty new orders for the revoked product, or with the revoked supplier.

Purchasing Cogperatives and Right to Receive Compensation

We may, when appropriate, negotiate purchase arrangements^ including price terms, with designated and
Approved Suppliers on behalfof the System. We may establish strategic alliances or preferred vendor programs
with.suppliers that are willing fo supply some products, equipment, of services to some or all of the Studios in our
System. If we do establish those types of alliahcesor programs, we may: (i) limit the number of approved suppliers
with whom you may deal; (ii) designate sources that you must use for some or all products, equipment and
services; and (iii) refuse; to approve proposals from franchisees to add new suppliers if we believe that approval
would not be in the best interests of the System.

We ahd/bf our affiliate(s);may receive payments, or other compensation from Approved Suppliers or any
other suppliers.on accoimt ofthese suppliers’ dealings with us, you, or other Fianchised Businesses in the System,
such as rebates, commissions or other forms of compensation. We may use any amounts tha:t we receive from
suppliers for any purpose that We deem appropfiafe. We and/br our affiliates,may negotiate supply contracts with
our suppliers uiider which we are able to purchase products, equipment, supplies, services and other items at a
price,that will benefit us and our franchisees.

We reserve the right to createiadditional purchasing cooperatives in the future. We may negotiate volume
purchase agreements with some vendors dr Approved Suppiiers.for the purchase ofgoods and equipment needed to
operate the Studio.

©20 to Stride Franchise,.LLC


2019 FrancHisei Disclosure Dpcument
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Franchisee Compliance

When determining whether to grant new or additional franchises,, we consider many factors, including
your compliance with the requirements described in this Item 8^ You do not receive,any further benefit as a result
of;your compliance with these requirements.

Insurance

You *e obligated to obtain and maintain, at your soleexpense, all of the insurance coverages that we require,
Your policy Or policies must be written by an insurance company licensed in the state in which,you Operate the
Studio. The; insurance^company must have at least an “A” Rating Classification as indicated in A.M. Best’s Key
Rating Guide, in accordance vvith standards and specifications set forth in the Manual. The standards may vaiy
depending On the size Of yoUT Studio and/or other factors, such as what is customary for businesses of your type
in ydiir areai but we typically require; the following insurance in the followingiarnouiits:

Coverage Minimum Limits of Coverage


General Aggregate $5,000,000
Products/Completed Operations Aggregate S5,G0Q;000
Personal and Advertising Injury SLOOOiOOO
Each Occurrence $1,000,000
Participant Legal Liability $1,000;000
Professional Liability $1,Q00;000
Employee Benefits Liability (per ernployee) $l,000i000
Employee Benefits Liability (aggregate) $2,000;000
Damage to Rented Premises (per occurrence) $l,000j000
Medical Expense (any one person) $5,000

Other current insurancejequiremehts include; (i) “ALL.RiSK” or Special form property coverage of.no less than
current replacement cost of the Studio’ s equipment, fixtures and leasehold improvements (tenant improvernents)
sixfficient in the aifiount tb;restore the Studio to full operations (with glass coyeragcmo less than a limit of $25,000
and sign coverage no less than;a,limit of $ 10,000 in addition to equipment, fixtures and leasehold improvements);
(ii) Business interruption insurance with coverage for at least twelve (12) months for actual losses; (iii) if you are
using a vehicle in connection with your Studio operations. Auto Liability (Hired and NOn-owned autos) with a
$1,000,000 Combined Single Limit Each AccidentTor Bodily Injury and Property Damage; and (iv) Employhient
Practices Liability with a limit no less than $1,000,000 per claim and $1,000,000 aggregate per location (and the
retention may not exceed $1,000)-

All instance policies must name us and any of our affiliates as additional insured parties.

Computer System

You must purchase the computer system that we specify, including computer hardware, software, point of
sale system, inventor control systems, and high-speed,network connections (collectively, the “Computer System”).
The component parts of thCi Computer System must be purchased from approved suppliers. If we require you to use
any proprietaiy software Or^to purchase any software from a designated vendor, you must:sign any ,software license
agreements thatwe or the licensor of the software require and any related software maiiitenanCe agreements. The
Goniputer System is described in more detail in Item 11 of this Disclosure Document.

©2019;Stride;Franchise,.LLC
2019 Franchise Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
ITEM 9
FRANCHISEE’S OBLIGATIONS

tiiis table lists your principal obligations under the franchise and other agreements.. It will help
you find more detailed information abbut your pbligations in these agreements and in other items of the
Disclosure Document.

PisclosuEeL^^

1a. Site Selection and


acquisition/lease
\grcciiuiil

Sections 1.2,6.1, 6.2„7.2 ,


and 7.3 of Franchise
Agreement
1 Section 8 Items 11 and 12

b. Pre-opening Sections 6.1 ,,6.2, 7.2, 7,3 Section 8 Items 5, 7 and 8


purchases/leases and 8 .4 of Franchise
Agreement
c. Site development and Sections 6.1,, 6.2, 7.1 and Section 3 Items 6,7 and 11
other pfeTopening 7.3 of Franchise
requirernents Agreement
d. Initial ^d ongoing Sections 5.7 arid 6.3 of Not Applicable Items 6; 7 and 11
traihirtg Franchise Agreement
e. Opening Sections 2.2 and 6.9 of Section 3, Exhibit B Item 11
Franchise; Agreement
f: Fees Sections 3.2.F., 5, 9.1 and Section 9 Items 5 and 6
14.2, of
Franchise Agreement
g. Compliance with Sections 1.2, 2.2, 4.2, 6:4, Sections Item 11
standards and ppiicies 6'.6i 6.7, 7.1, 7.3, 7.4, 8.7
/ Operating Manual and 9.3 of Franchise
Agreement
h. Tradem^ks and Sections 1.1,4, 124,15.1 Section 13 Items 13 and 14i
proprietary and 15.3 of Franchise
information Agreement
f. Restrictions on Sections 1.3, 2.1, 2.2, 7.1, Not Applicable Items 8 ^d 16
products/services 8.1 and8.4-of Franchise^
offered Agreement
j. Warranty and Section 8.3 of Franchise Not Applicable NofApplicable
customer service Agreement
requirements
k. Tenfitorial Sections 1.3 and 8.8 of Section 1, 3, and Item 12
development and sales Franchise Agreement ExhibitB
quotas
1; Ongoing Sections 8.4 and 10.3 of Not Applicable Items 8 and 11
product/service Frpichise Agreement,
purchases

©2019 Stride Franchise, LLC


2019 Franchise Disclosure.pocument

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
#111
'h 4--
S 'Section jin flan'cfe-4;
pbligati^\

_
^ vr" 1^.
f -- ' "“13'f '
m. Maintenance, Sections 3.2.D, and 7.4 of Not Applicable Items 6 and 17
appearance and Franchise. Agreement
feiiiodelihg
requirements
h„ Insurance Section 1.0.4 of Franchise; Not Applicable Items 6,1 and 8
Agreement
0, Advertising and Fund Sections 5.6 and 9 of Not Applicable Kerns 6 and 11
Franchise Agreement
p. Indemnification Section 11.2 of Not Applicable Item 6
F ranchise Agreement
q. Owner’s participatioh/ Sections 8.3 and 8.6 of Section 7 Item 15
ihanagement/staffing Franchise; Agreement
r; Records and reports Sections 10.1 and 10.3 of Not Applicable Item 11
Franchise Agreement
s. Inspections and audits Sections 8.2 and 10.2 of Not Applicable Items 11
Franchise Agreement
t. Transfer Seetiori 14 of Franchise Section l 6 Items 6 and 17
Agreement
u. Renewal Section ,3.2 of Franchise Not Applicable Item 17
Agreement
V. Post-termination Sections 13.1 and 15.3 of Sections, 14,15 Item 17
obligations Franchise Agreement
W: NPn-competifi'on Sections 12.2 and 13 of Section 11 Item 17
covenants Franchise Agreernent
X. Dispute resolution Section 16 of Sections 21, 22 Item 17
Franchise Agreement

ITEM 10
FINANCING

We do not offer direct or indirect financing for any ^ount due under the Franchise Agreerrient or
Development Agreeinent. We do not guafantee your note, lease or any other obligation.

©2019 Stride Franchise; LLC


2019 Franchise-Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
ITEM IT
franchisor's assistance, APYERTISING, computer systems AND TRAINING

Except as listed below, we are not required to provide you with any assistance.

A. Pre-Opening Assistance

Franchise Agreement -----

Before you open the Studio:

1. We will provide you (or, iifyou are an entity, your Designated Operator), as wellas your Designated
Manager (if appointed) with .the respective initial training that such individuals: ^e*required to attend and complete
prior to opening your Franchised BusihesS. We will typically provide the Initial Training Program to you and your
designated trainees withiii the 30 days preceding your Stuio opening, but that timing will be subject to the
ayaiiability and schedules of our training personnel. We will provide this Initial Training Program at bur corporate
headquarters or other training facility we=designate, and this initial traiiiing (as well as other training provided by lis
in connection with your Studio) is described more fully bel0w in this Item under the heading “Training.” (Franchise
Agreement, Section 6.3). We will also provide the Authorized Coach Training to the initial coaches that wish to
become Authorized Coaches and provide: the Approved Services at your Studio prior to the opening of your Studio,
provided you or the coach pay our then-current Coach Training Tuition. Other than,the trainingbbligations setTOrth
in Item 11, you will be responsibleTor hiring and training all other Studio employees.

2. If die Authorized Locatibn for your Studio, has not been identified at the time the Franchise
Agreement is signed, we will work with you to designate a geographical area within which you must secure an
Authorized Location for your Studio (“Designated Market Area”), franchise Agreement, Section 1.3), We will
also comply with our obligations with respect to she selection assistance and site approval as Set forth more fully
below in this Item under the heading “Site Selection Assistance and Time to Open.”

3. Prior to you attending yOur required initial training, we will loan you one copy of the Manual,
vvhich contains mandatory and suggested specificationsi standards and procedures. The Manual :is confidential
,and remains our property. We may modify the; Manual. (Franchise-Agreement, Section 6.4). The Table of'
Contents of the Manua:! is attached to this Disclosure Documeiifias Exhibit E. The Manual currently consists of
94 pages,

4.. Within 30; calendar days of execution of your Franchise. Agreement, wewiH provide you (through
the Manual or otherwise) with specifications for the layout and design of the Studio (Franchise Agreement,
Sections 6:2, T1 and 7.3).

5. Within 30icalendar days of execution of your Franchise Agreement, we will provide you (through
the Manual or otherwise) with a list of the ergometers^ fitness equipment and gear, standard fixtures, furnishings,,
supplies,;and signs to be used in the Studio, aswell asxertain other Required Items and a list of Approved Suppliers
(Tfanchise Agreement, Section 6.6).

6. We vyill pfoyide you with the “Initial FFE Package” (as described in more detail in. Item 5 of this
Disclosute Document); including the cost of shipping and installation, though the act of shipping and installing
the Initial FFE Package may be carried out by a third party. We \yill also provide you' with the Opening Inventory
Kit. Currently, these items are purchased directly fi'om us, but we reserve the right to designate, another approved
supplier in our sole discretion., We do not provide viritten specifications for the items-comprising: the Initial FFE
Pacl<age or Opening: Inventory Kit other than, those descriptions that are included in the Manual, and we will

©2019 Stride Frandiise.LLC


2019 ErancKise-Disclosiire Dpcument

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
eondition ouriprovisidn of these itemson your'timely payment of the appropriate amonhts described in Item 5 of
this Disclosure; Document. (Franchise Agreement, Section 5.4).

6. We will license you'the use of our tradernarks (Franchise Agreement, Section 4.2).

X We will consult and advise you on:the:advertising, marketing and promotion associated with the
grand operiing of your Studio, as described more fully below in this Item 11. (Franchise Agreement, Sections 6.9
and 9.2).

8. If you enter a DeVelopmerit Agreement, we will designate your Development Area.,


(Development Agreement, Section 1 and Exhibit A),

B. Site Selection Assistance and Time to Open

Site Selection Assistance

You must assume all CostSiliabilitieSi expenses and responsibility in connection with: (i) locating, obtainmg-
and developing a Prernises, for your Franchised Business; and (ii) constructing,, equipping, remodeling and/or
building out the Premises for use as a Franchised Business; all in accordance with bur System standards and
specifications. If the AuthorizedLocation for your Studio has not been identified at thetime the Franchise Agreement
is Signed, we will assign you a Designated Market . Area as previously disclosed in this Item. (Franchise Agreement,.
Sections 1.2iand L3).

We may provide you vrith: (|) our current written,site selection guidelines, to'the extent such guidelines are
in place, and any other site selection counseling: and assistance we determine is appropriate; and (ii) the contact
informatiph of any local real estate broker that we havetan existing relationship with and that is familiaf with our
Confidential site selection/evaluation criteria, if we know any such brokers in Or around the Designated'Market Area
you are assigned. (Franchise'Agreement, Sections 1.2, 1.3 and 6.1). We do not generally own the premises that
System fi-anchisees Use for their Studio.

Our guidelines for site selection may require that you Conduct, at yOur expense, an evaluation of the
demographics of the market area for the location. Ideally, the Authorized Location of your Studio will be:a major,
national-tenant, anchored Commercial retail center that meets our then-current requirements for population
densiW, demographics, available parking, traffic flow and entrance/exit from the site. OUr standard franchise
offering assumes a Studio size of approximately 2,000 square^ feet. You are sOlely responsible for obtaining all
required construction/build-out licenses and ensiuing the Prernises comply with all local ordinances and building
codes. (Franchise Agreement, Section 6; 1);

If you lOcateia site, we will approve or disapprove of the site within 30 days after we receive any and all
reasonably-requested information regarding your proposed site from you. (Franchise Agreement, Section 1.2).
We use a software program to evaluate the deniographics of a market area for siteselection approval. If we cannot
agree on a/site, we may extend the time for you to obtain a site, or we may terminate the Franchise Agreement.

We must also have the opportunity to review and apprpye/reject any lease or purchase agreement for a
proposed location before; you enter into SUCh an agreement. We may condition our approval on a nurnber pf
conditions, including; ;(i) the’inclusion of the terms outlined infection 7.2 Of the Franchise Agreement and Exhibit
5 itp the Franchise, Agreement inthe lease for the location;.and (ii),reCeiving a written representation;from the landlord
of the Premises that you will have the right tP operate the Studio, including, offering, and selling the Approved
Products and Services, throughout the term of your Franchise Agreement. (Franchise Agreement,, Sections 2.2(C)
and 7.2, and Exhibit 5).

©2019 Stridb Franchise, LLC’


2019Franchise Disclosure Docurnent.

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
You must:secure an.Authorized Location that weiapprove within six (6),months of executing your Franchise
Agreement for that Franchised Business or we may terminate that Franchise' Agreement. (Franchise Agreement,
Section 1,2).
Time to Open: Franchise A^eement

We win authorize the opening of your Studio when (i) all of your pre-dpening obligations: have been
fulfilled, (ii) all required preTopening ttaining has, been completedi. including Authorized Coach Training that must
be completed by at least one (.1): Authorized .Coach to be able to provide the Approved Services from your Studio,
(iii) all amounts due us have been paid, (iv) copies of all insurance policies (and payment Of premiums) and all
other required documents haye been received by lis, and :(y) all permits have been approved. (Franchise
Ajgreement, Sections 5.A 5-7, 6.3 and iO.4):

The typical length of time between die signing of the Franchise Agreement and the tithe you Open your
Studio is approximately three (3) to six (6) months: Your total timeframe:may be shorter or longer depending on the
time hecessaiy to Obtain an acceptable^ Premisesi to obtain financing, to obtain the permits and licenses for the
construction and operation of the Franchised Business, to complete construction Or remodeling as it may beaffected
by weather conditions, shortages, delivery schedules’ and other Similar factors, to complete the interior mid exterior
of the Franchised Business, inOluding decorating, purchasing: and installing fixtures, equipment and signs, and to
complete prepafation for operating:the Franchised Business, including;purchasing any inventory or supplies,needed
prior to opening.

You are required to open your'Franchised Business within six (6) months, of executing your Franchise
Agreement, but we may agree in writing to provide you with an additional three (3) months to open your Studio if
you (a) have already secured an approved premises for your StudiO,, and (b) are otherwise m^ihg diligent and
continuous efforts: to buildout and otherwise prepare your Franchised Business for opening throughout the six (6)
month period folloAving the execution of your Franchise A^eement. If you do not open your Studio withmthe time
period set forth in the Ffanchise Agreement; we will have the option to terminate your Franchise Agreement.
(Franchise Agreement, Sections 1.2.and:2:2).

Time to Open: Development Agreerhent (ifapplicable)

If you have entered into a Development Agreement to open and operate three (3) or more Franchised
Businesses, your Development Apeemenf will include a Development Schedule coiitaihing a deadline by which
you must haye each ofyour Fraiichised Businesses open and operating; (Development^Agreement, Exhibit A)- We
will approve sites for additiorial Franchised Businesses developed under your Development Agreement using our
then-current site selection criteria..

C. Our Obligations During the Operation of the Franchised.Business

Except as listed below, we are not required: to> provide you with any assistance;

Dufing the operation Of the franchised busmess:

1. We will specify or approve certain equipment and suppliers to be used in the franchised business
(Franchise Algreement, Sections 6.6 and 7.1).

2. Wc^will provide: additional training to you and any of your personnel at your request, subject to
the availability of suitable trainers, including (a) OngOirtg Authorized GOach Training for new and, replacement
coaches of your Studio so they can provide the, Approved Services as an Authorized :Coach, and/or (b) any Master
Training you request; and we determine appropriate to provide to one; (1) of your Authorized GOaches that has
demonstrated a high proficiency in providing the Approved Services. Youare responsible for any and all fees and
costs associated with such additional fraining (Franchise Agreement, Section 6;3).,

©2019 Stride Eranch'ise. LLC


2019 Franchise Disclosure-Document
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
3. If you.do not obtain and maintain appropriate insurance coverage, we may procure thetcoverage
on your behajf. We will pass the cost onto you. (Franchise Agreement, Section 10.4.D.)

4. We:may institute various programs for auditihgxustpmer satisfaction and/or other quality control
measures (Franchise Agreement, Section 8.2).

5. We will maihtaih and administer the marketing fund (the “Fund”) as described fnpre fully under
the “Advertising,and Marketing” headihg 'below (Franchise A^eement, Section 9; 1)«

D. Advertising and,Marketing

Advertising Generally; Local Advertising Requirement;' Co-Ops

You are responsible for local marketing activities to attract members to your Studio, We require you to
subihit saihples of all advertising and promotional materials (and any use of the Marks and/or other forms, of
commercial identification) for any media, including the Internet^ World Wide Web or otherwise.. You must first
obtain our advanced written approval before employing any form.of co-branding, or advertising with other brands,
prQducts or services: (Fi^chise, Agreement, Section 9.2)

You must strictly follow the social media guidelines, code of conduct, and etiquette as set forth in the
Manual regarding social media activities. Any use of Social Media by you pertaining to the Studio must be in
good taste and riot linked to controversial, unethical, immoral, illegal or inappropriate content. You tyill prornptly
modify or remove any online communication pertaining to the Studio that does not comply with the Franchise
Agreement or the Manual. (Franchise Agreement, Section 9:3)

As part of your material obligations under .your. Franchise Agreement, you must expend at least , $1,600
per morith on marketing and advertising materials that we approve In cOrinection with the promotion of your
Studio within your Designated Territory (which we. refer to as your “Local Advertising Requirement”). Upon pur
request, you must provide us with an accounting of your monthly expenditures associated with ypur Local
Advertising Requirement, along with invoices and other relevant documentatipri to support those expenditures.
Please be advised that the Local Advertising Requirement is only the friinirnum amoimt you must expend each
month, and we encourage you to expend additional amounts on the local promotion of your Studio, We are npt
required to;spend:any amourit on advertising within your Designated Territory.

As of the Issue Date, we have not yet established a local Or regional advertising cooperative and we have
not created any advertismg; coimcil coriiposed of ffanchisees. We may, in the future,, decide to form one or more
associations and/or sub-assbeiafions of Studios to conduct various marketing-related actiyities on a cooperative
basis (a “Co-Op”). If one or more Co-Ops (local, regional and/or riatipnal) are formed covering yoUr area, then
you must join and, actively participate. All Studios iri the designated area may be required to contribute such
amounts as are deterrriined frorp tiifte to time by such Co-Op. Each participating, Studio will have one vote in
making decisipris pf the CO-op, but in order to vote the Studio must be in good standihg, and all decisibris will be
subject to our approval. We have the right to establish reasonable procedures fbncalling and,coriducting meetings,
notices to the participants, and other procedural matters, arid will make ariy governing documents, if any exist,
available to you upon request, (Franchise Agfeement^ Section 9.4).

Grand Opening Advertising

In addition to the Local Advertising Requiremerit, you will be required to expend a minimum of $15,000
in connection with the opening of the Franchised Business. You may be required to expend all or some portiori of
these funds on products/seryices received from an Approved Supplier we designated Or approve, and all materials
used in connection with your grand opening campaign must be approved by us if not previously designated for

©2019 Stride Franchise, LLC


201'9 Franchise Disclosure Dpcumerit

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
use. We expect that you. will typically .be required to expend these amounts, in the 30-60 days prior to opening
and in the 30-day period following opening. (Franchise Agreement,, Section 9.2).

The Fund

We reserve the right and intend to establish a Fund as previously disclosed in Item 6 of this Disclosure
Documentto promote the brand, Proprietary Marks, System, Studios ancFOr Apprpyed Sefvices.how we determine
■appropriate in our discretion. When we establish such a Fund, we may require you to make a Fund Contribution
each payment period amoimting to up to two percent (2%) of the Gross Sales of your Franchised Business.
Franchisor will give Franchisee sixty (60) days’ written notice before the Fund is established or with regards to
any increase in your Fund Contribution. (Franchise Agreenient,. Sections 5.5 and,9;i).

The Fund will be administered by us once established as we dfcem appropriate. With that said, we may also
establish a marketing fund committee (the “MFC”) to help advise on matters related to the Fund. In the event we
establish the MFC, the Fimd will still he administered by us with the MFC serving in an advisory capacity only. The
Frmd will be niaintained and operated by us to meet the costs ofconducting regional and national advertising and
promotional efforts, other brand development activities, as well as related technology used to implerhent the
foregoing (i.e.,,digital marketing platfonn. System web pprtal) thatwe determineheileficial to the System. The MFC,
ifestablished,, willserve in an advisory capacity only. We will direct all public relations, advertisingand promotions
with sole discretion oVer the message, creative concepts, materials and media used in the programs and the
placement and allocation thereof. We have the power to form, change or dissolve the Fund and/or MFCi We will
pay for thesenctivities from the Fund. The Fund contributions may be used for traditional and digital advertising
activities, such as website development, social media, public relations, advertising campaigns (television, radio,
print or other rnedia), or other promotions which will raise awareness of pur brand generally. (Franchise
Agreement, Sections. 6.8 and 9.1).

We are not obligated to ensure that Fund activities or dollars are spent equally, on a pro rata basis, either
on your Studio, or all Studios in an area. A brief statement regarding the availability of System franchises may
be included in advertising and Other items produced using the; Fund, but we will not otherwise use the Fund to pay
for franchise; sales or solicitations.

'Reasonable disbUfsements from the Fund will be made solely for the payment of expenses incurred in
connection With the general promotion ofthe Marks and the System, includingthe cost of formulating,, developing
arid implementing advertising and promotional campaigns; and the reasonable costs of administering the Fund,
including accounting expenses and the actual costs Of Salaries and fringe benefits paid to our employees engaged
in administration Of the Frmd. The Fund, is not a tfUst or escrow account, and we have no fiduciary obligations
regarding the Fund. We are not required, to audit our Fund expenditures, but we reserve the right to do so and
cover the costs associated with the audit from the Fund. Otherwise,, we will prepare and make available to our
franchisees, upon written request, a basic accounting of the Fund fpr a given fiscal year after 120 days have passed
since that year end. Any cornpanyTOwned or affiliate-owned Studios we may open will contribute to the Fimd at
the: rate provided in our then-eurrent,Efanchise Disclosure Document. Should the advertising contribution for the
System decrease at:any time, we have theright to reduce our contribution from coinpany-onned Of affiliate-owned
Studios to thejrate specified for franchised locations.

We are not required to spend all Fund contributions in the fiscal year they are.received,

You agree to participate in all Fund programs. The Fund may furnish you with marketing, advertising;
and promotional materials; however; we may require that you pay the cost of producing, shipping, and handling
for such materials.,

The Fund was not in existence during the fiscal year ended Oh December 31, 2017, and consequently no
contributions or expenditures WeremadC to disclose during this time period.
30
©20 tO-Stride Franchise,, LLC
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This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
E. Training

Initial Training and Programs

Prior, to opening your Franchised Business, you must ensure that; (i) you or your Designated Operator
(if you are: a business entity) completes the Owher/Qperator Module of the initial training program
described below, which will typically last approximately three. (3) business days at our corporate
headquarters in Irvine; CA or another training,facility we designate (most likely in Califprriia);, (ii) your
Designated Manager (if appointed) attends and completes the Designated Manager Module described
below;and (iii) at least one (1) (but most, likely 2-7) Of your initial coaches complete(s) the Authorized
Coach Tfaihing necessary tO becoine an Authorized Gbach and provide the Approved Services at your
Studio (and that all corresponding Coach Training Tuition fees are paid prior to such training being
provided). (Franchise, Agreement, Section 6.3).,

Wedo not charge a tuition or training fee for you (or your Designated Operator or Designated Manager)
to attend the appropriate Module ofbur initial training program below, provided these, individuals attend
prior to the opening of your Studio, You will be responsible for the cOsts and expenses associated, with
these individuals attending this initial training. (Franchise Agreement,ISection 5.;7).

You will be required to pay theitheti-current Coach Training Tuition in connection vvith each individual
that you designate to attend Authorized Coach Traiirimg, with Our standard fianchise offering assuming
that:

(i) each ihdividual-that you engage as:a conternplated Authorized Coach,tOiattend such training
will haye already have acquired one* of the Third-Party Required Certifications pribr to
being employed or otherwise engaged by you and attending Authorized Coach Trainmg;
and

(ii) you vyill have betvyeeii one (1) and seven (7) Authorized Coaches that have attended and
completed Authorized Coaching Training and are ready to provide the Approved Services
as; of the date your Studio opens.

(iii) While there is no specific deadline by which you must completeithe applicable module(s) of our initial
training, the foregoing training must be^ satisfied to our satisfaction prior to opening your StudiOi
(Franchise Agreement, Section 6.3)

(iv) In the event you are the owner of inultiple Studios or otherwise wish to appoint a third-party individual
to rnatiage the day-to-day operations of your Franchised Business; then that.Desi^ated Manager must
complete the Designated Manager Module described below and bb approved by Us before assuming any
management responsibility at your Franchised Business. (Franchise Agreement; Sections 5;7 :and 6.3).
(V) We do not charge a tuition Of training fee for you (or your Designated Operator or Designated Manager)
to attend the appropriate Module of our initial training program below, provided these iiidividualsiattend
prior to the opening; of your Studio. You will be respOnsibre for the costs and expenses associaited with
these individuals attending this; initial training. (Franchise Agreement, Section 5.7).

;(vi) We expect to conduct the different Modules of the initial training prograrn on an “as needed” basis and,
as of the; Issue Date, we do not have a set training Schedule. We expect, however, that we will provide
training; on a quarterly basis to our first set of System franchisees as they are; in position to attend such
training. We will provide our typical initial Paining materials, which are: generally cornprised of the
Manuals, remote leamingtools and other trainihg/instructional materials and/br presentations, at or prior
to youattending the corresponding training described belbw.
;3i
©2019 Stride Franchise, LLG
20i9Franchise Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
(vii) You will be responsible for all costs and expenses tha!t you, your management and other designated
trainees incur in connection with attending.and successfully completing the appropriate training to our,
satisfaction.

Out primary initial training programs as of the Issue Date of this Disclosure Documentjare described belowi
certain portions of which may be provided via online remote'instructipn via'webinaT or similar learning management
system:

TRAINING PROGRAM(S)

Owner/Operator Module (to be completed by Franchisee or Operating Principal)

i^ssroom Training
1 ■.lining
Histoiy and Philosophy ■1 At our corporate headquarters in
0 Irvine, CA.
At our corporate headquarters in
Real Estate 2; 0 Irvine, CA.
At our corporate headquarters in
Construction 1.5 0
Irvine, CA.
Expectations and At Our corporate headquarters in
Obligations 1 0 Irvine, CA.
Stiidib and Equipment At OUr corporate headquarters in
Set- Up and Support 1 0 irvinCj CA,
At our corporate headquarters in
Stride Class 0. 1 IrymCi CA-
At our corporate headquarters in
Products 1.5 0 Irvine, CA.
Intro to Studio At our corporate headquarters in
Management Software 1.5 0 Irvine, CA.
At our corporate headquarters in
Sales and Operations 3.5 0 Irvine, CA.
At our corporate headquarters in
Finance 3 0 Irvine, CA.
At our eoiporate; headquarters in
Staffing and HR Support 1 0 Irvine, CA,
At our corporate headquarters in
Marketing 3 :o Irvine, CA.
Training Re-Gap and At our corporate headquarters in
Summation 1 0 Irvine, CA.
At our corporate headqUarters in
Test 1 0 Irvindj CA-
TOTAL HOURS FOR
Owner/operatqr 22 I
MODULE

©2019 Stride Franchise, LLC


2019 Franchise Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
II. Designated Manager Training Module (if applicable)

1^ »' "ft •# S’ P^ign^ldl^'^^er^E^^^S^ule I


^ Igubjecf"^ "■ *
yrllUnil’'’
.A ®
At our corporate headquarters in Irvine,
Ingredients of a Successful GM 1 0 CA.
At our corporate headquarters in Irvine,
Club Ready Software 3 0 CA.
At our corporate headquarters in Irvine,
Prospect Generation 2‘ 0 CA,
Pre-Sale, Soft Open, and Grand At our corporate headquarters in Iry ine,
Open 1 0 CA.
At our corporate headquarters' in Irvine,
Retail Sales 1 0 CA.
Teachef Training. Sales and At our corporate headquarters iii Iryihe,
Program 1 0 CA.
Sales Process: Demo Classes and At our corporate headquarters, in Irvine,
Memberships 4 0' CA.
At ouf corporate headquarters, in Irvine,
Marketing 1 2 0 CA.
Private Training Sales At: our corporate headquarters in Irvine,
1 0 CA,
Sales; RbllrPlay &. Agreement At our corporate headquarters in Irvine,
Wfite-0p 2 0 CA,
At our corporate headquarters in Irvine,
Stride Sample Class 1 0 CA.
At our corporate headquarters in Irvine,
“WhatNotJtoDo” 1 0 CA.
At our corporate headquarters in Irvine,
Comprehension.Exam 1 0 CA.
TOTAL HOURS FOR
DESIGNATED MANAGER 21 Not ApplicaBle
MODULE

©2019iStride Franchise, LLC


2019 Franchise Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Authorized Coach Training

Authorized Coabh Training: Module I

Hours of Hours of
Subject Classroom On-The-Job Location
Training Training
VIDEO TOPICS: (Watch Prior to Day 1):
Intro to Stride 15 iniiiutes 0 Online/Remote
Training Program Objectives TO minutes 0 Ohline/Remote.
Intro to Stride Core Glasses 30 minutes 0 Online/Remote
Training Strategies Online/Remote
0
& Pace Card 45 minutes
Tfairiing Purpose & Science 30 minutes 0 Onlirie/Remote
Why Run on a Treadmill?: 10 minutes 0 Online/Remote
Running Form Ohlihe/Remote
0
20 minutes
Music Philosophy 30 minutes 0 Online/Remofe
Runner Profiles 15 minutes Online/Remote
Technology 15 minutes 0 Online/Remote
Special Populations (Elderly, Online/Remote
0
Obese, Pre/Post Natal, Injured) 15 minutes
Emergericy Protocol 15 minutes 0 Onlirie/Rernpte
Common Running Injuries 15 minutes 0 Online/Remote
Equipment 15 minutes 0 Online/Rernote
Retail 1 5 minutes 0 Online/Remote
Social Media 15 minutes 0 Online/Rernote
Club Ready (MBO) 30 mmufes 0 Online/Remote
Total hours for Module 1 of Not
Coach Training Only 5.5 hours Applicable

Authorized Coach Training: Module H

Hours of Hours of Qn-The-


Subject Classroom Job Location
Training Training

Day I : In-Studio Practical Learning

Option 1:; Remote attendance at yoUr


Studio
Introductions 0 15: minutes Option 2; Stride Corporate Office in
Costa Mesa, CA or Studio nearby
Option 3: Hosted at your Studio
Option 1:; Remote attendance<at your
Studio
Questions 0 15 minutes Option 2: Stride Corporate Office in
Costa Mesa, GA or Studiornearby
Option 3: Hosted at your Studio

©2019 Stride Franchise, LLC


2019 Franchise Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Option 1: Stride Corporate Office
Greating an Experience 0 30 minutes in Costa Mesa, CA or Studio nearby
Option 2: Hosted at your Studio
Option 1; Stride Corporate Office
Class Sthicture by Type 0 1 hour in Costa Mesa, CA or Stiidip nearby
Option 2: Hosted at your Studio
Option L Stride Corporate Office
AD Warm Up 0 20 minutes' in Gbsta Mesaj CA or Studio nearby
Option 2: Hosted at your Studio
Option 1: Stride Corporate Office
Sample Class 1 0 45 minutes in Gosta.Mesa, CA or Studio nearby
Option 2: Hosted at your Studio
Option 1; Stride Corporate Office
.Runner’s Stretch Protocol in Cbsta Mesa, CA or Studio nearby
0 15 minutes
Option 2;: Hosted at your Studio
Goaching/Cueing; Option 1: Stride Corporate Office
0 1 hour in Cbsta Mesa, CA or Studio nearby
Language + Class Etiquette
Option 2: Hosted at your Studio
Lunch 0 I hour
Option 1: Stride Corporate Office
Teach Back 1 0 10 minutes in Costa, Mesa, CA or Studio nearby
Optibn 2::Hpsted,at your Studio
Option 1; Stride Corporate Office
Peer Critique + #2 Teach Back 0 15 + 10,minutes in Costa Mesa, CA or Studio nearby
1 Option 2: Hosted pt your Studio
Option 1; Stride Corporate Office
Teach Back 2 0 10 minutes in Costa Mesa, CA or Studjp nearby
Option 2: Hosted at ypUr Studio ,
Option 1: Stride CbrporatefOffice
Peer-Critique + #2
0 15 + 10 minutes ih.Gosta Mesa,, CA or'StUdiP nearby
Teach Back 2
Optipn 2; Hosted at your Studio
Option 1: Stride Corporate Office
Floor Prbgrsmimihg and,Demos 0 1.5 hours in Costa Mesa, CA or ,Studio nearby
for Each Glass Type Option 2: Hosted at your Studio
Total hours for Module II, Not
Day’One Only Applic 8.5 hours (with
able two 15-minute
breaks)

Day 2: In-Studio “Teach-Backs "

Option 1: Stride Corporate Office


Sample Glass 2 0 45 minutes in Costa Mesa, CA or Studio nearby
Option 2: Hosted at yPur Studio
Option 1: Stride Corporate Office
Teach Back s + Peer Critique+ 0 10 t 15 + 10 minutes in Costa Mesa, CA of Studio nearby
#2 Teach Back 3 Option 2: Hosted at yPUr Studio
Optipn 1: Stride Corporate Office
Teach Back 4 + Peer Critique -F 0 10 + 15 + 10 minutes in GOsta Mesa, CA of Studib nearby
#2 Teach Back 4 Gptipn 2: Hos^ted at your Studio

©201? Stride Franchise;, LLC


2019 Franchise Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Option 1: Stride Corporate Office
teach Back 5 + Peer Critique 10 ^ 15 + 10 minutes in Costa Mesa, CA or Studio nearby
im Teach Back 5 Optioii 2: Hosted at, your Studio
Option 1: Stride Corporate Office,
Teach Back 6 + Peer 10 + 15 + 10 minutes in Costa Mesa, CA or Studio nearby
Critique + #2 Teach Back 6 Option 2: Hosted at your Studio
Option 1: Stride Corporate Office
Teach Back 7 + Peer Critique 10 15 + 10 minutes in Costa Mesa, CA or Studio nearby
+ #2 Teach Back 7 Option 2: Hosted at your Studio
Option 1; Stride Corporate. Office
60 minutes in Costa Mesa, CA or Studio nearby
Lunch Option 2: Hosted at your Studio
Option 1: Stride Corporate Office m
Role Play & FAQ’s 45 minutes Costa Mesa, CA or Studio nearby
Option 2: Hosted at your Studio
Option 1: Stride Corporate Office
S^ple Class 3 45 minutes in Costa Mesa,;CA or Studio nearby
Option 2; Hosted at your Studio
Option 1: Stride Corporate Office
Quiz 45 minutes in Costa Mesa,, CA or Studio nearby
Option 2: Hosted at. your Studio
Option 1: Stride Corporate Office
Quiz Review 30 minutes in Costa Mesa, C A or Studio nearby
Option 2; Hosted at your Studio
Total hours for Module II, Not
8 hours (with a 15-
Qay 2 Only Applic
able mih and 20-min
breaks)

TOTAL HOURS FOR


5,5 hours 16.5 hours
authorized coach
TRAINING

Ms. Leaime Pedante will oversee Our initial traiiiin^ program. Ms, Pedaiite has two and a.half (2.5) years
of experience With pur brand while as a “Master Tramer” for both us.and the active Studio operations located in
Pasadena, California, and Ms. Pedante has over three (3) years of experience m the topics on which she will be
providing instruction. We normally conduct our training monthly, ns needed, but we reserye the right to change
this schedule based on (a) demand, and (b) the availability of pur instructprs: Our primary iitstruction is through
hands-on traihing, videos, the Mariualiand other ihstruCtional materials we prepare ispecifically for one (1) or more
of the mitial training programs above ihdhis ltem. We may substitute other instructors to provide certain parts of
the different initial training modules described m this Item 11, but these individuals Will have all completed the
appropriate portion of our mitial traming program on which they provide ihstruction.,

On-Site Gfarid Opening AMstance (Discretionary)

Around the time you first open your Studio, we may send One (,1) or more representatives to your Studio
to (a) provide assistance arid recommendations regarding your operiirig and initial operations, and/or (b): provide
additional of refresher training associated with the Owner/Operator Module and/or Authorized Coach Training,,
as! we deem appropriate in our discretion. If we determine to provide sUch on-sjte assistance, then; (i) it vVill
typically last between 1-2 business days as we determine appropriate in our discretion; and (ii) we reserve the

©2019 Stride FrancKise, LLC


2019, Franchise Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
right to require that you cover the costs and expenses, that we incur in connection with sending our training
personnel to your Studio to provide such discretionaiyf assistance.

Authorized Coach Training - Fees and Involvemeni ofFranchisor

We may permit you to provide the Authorized COach Tjr’ainirig at yOiif Frarichised Busihess as part of your
Approyed Services^ provided yOu, have an Authorized Coach that has met our then-current criteria to serve as a
Master trainer of the Authorized Coach Training. We may modify the Authorized Coach Training in :any manner
we deem .appropriate , in the Manuals or otherwise in writing., (Franchise Agrefcment, Section 6.3). As of the Issue
Date of this Disclosure Docyhieht, the Coach Traiiiing Tuition is $ 1 j499/trainee, with $1,000 payable to usTor the
intellectual property and training materials associated with the Authorized Coach Training,, and the remaining
$499 is retained by the franchisee or affiliate owner of the Studio at which the Authorized COach Training is
provided (the “CTT ShidiO Remuneration”).

Additional/Remedial Training

We rriay also provide, and require that you (arid yOur Designafed Operator and Designated Manager, as
appropriate) attend, up to five (5) days of additional training each year at our designated training facility. We will
not charge any training fee in connection with such training that we require you to attend. (Franchise Agreement,
Section 6.3). We may also require you to attend certain training as part of the actiOris. you mUst take tO cUre certain
defaults under your Franchise AgreernentT‘‘Retriedial Trairiing”), and we reserve the right to chargeryou our then-
current Training Fee iri connection with such Remedial Training (Franchise Agreement, Section 6.T),

You may request that vve provide Certain additiohal Or refresher trairiing to you, either at one (1) of our
designated training facilities or-on-site at yOUr Franchised Business. We reserve the right to charge you our then-
current Training Fee based on the number of days of such training that we provide at your request (regardless of
location). (Franchise,Agreement, Section 6.3).

You will be responsible fOr the costs arid expenses associated with you and your designated personnel
Utteriding any sUch.additional training:described in,this Item. (Franchise Agreement, Sections 5.7 and,6.3).

F. Computer System - Hardware and Software

You iriust.acquire a computer for use in the operation of the Studio. You must record all of youi receipts,
experises, invoices, member lists, class and. employee schedules, and other business inforniatiOri promptly in the
computer system and use the software that we specify or oftierwise approve, CUirentlys out Required Software
includes; (i) studio niariagernent software for use in connection with, among other things, Class scheduling,
payment processings record keeping and .generating business reports; and (ii) software for use by clients of the
Studio to help measure and track performance while at the Studio. We reserve the right fO modi^ the Required
Software and/or correspondirig Approved Suppliers as we detennine appropriate upon riotice; to you., If the
Approved Supplier for a given Required Software chaftges, you must migrate your operations to the new required
sofbvare at our difectioif. The details of these standards and requirements will be described iri the Manual of
otherwise iri writing and may be modified in response to changes iri marketing conditions, buriness Operating
needs, or technology. (Franchise Agreement, Sections 5.4^ 5.6 and 10.3).

You must.allow pur approved supplier to upgrade the proprietary database configuration of the required
software for the cOriiputer in yOUr Studio as we determine necessary. Our Approved Supplier may provide you
periodic updates to maintain the software and may charge a fee for preparing the updates and rriaintaining the
software. Theresare no limitations on the frequency and cost of the updates. The system is designed to enable us,
to have immediate, independent access to the information rriOriitored by the system, and there is no contractual

©2019 Stride Franchise, LLC


2019 Franchise Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
limitation on otif independent,access or use of the information wembtain. (Franchise. Agreement, Sections- 5.4 and
10.3).

You must purchase or lease, and thereafter maintain, such computer hardware and software, dedicated
high speed communications equipment and services, dedicated,telephone and power lines, modem(s), speakers,
and other computer-related accessories or peripheral equipment as we may specify, for the purpose of, among
other fiinctions,rrecording Studio sales,;scheduling classes, anduther functions that we require; You.must provide
such assistance as may be fequired.to coimect your computer system with a computer system used by us. We will
have the right, on an occasional or regular basis, to retrieve such data and information ffom your computer system
as we,, in, our-sole and exclusive discretion, consistent with consUrner pri vacy laws, deerh necessary. You must
operate your computer system in conipliance with certain security standards specified by us, which may be
modified at our discretion from time to time. In view of the interconnection ofcomputer-systems and the necessity
that such systems be compatible with each other, you expressly agree that you will strictly comply with our
standards and specifications for all item(s) associated with your computer system, and will otherwise?operate your
computer system in accordance with our standards and specifications. (Franchise Agreement, Sections 5.4 and
10.3).

To ensure: full operational efficiency and optimal communieatidn capability between,and,among computer
systems installed by you, uSi and other System franchisees, you agree, at your expense, to keep your computer
system in good maintenance and repair, and following our determination that it will be economical Of Otherwise
beneficial to the System to promptly install such additions, changes, modificationSj substitutions and/of
replacement to yom computer hardware,, software, communications equipirient and Services, telephone and power
lines, arid other computer-related facilities, as we direct.

We. reserve the right to require you to update or upgrade; any computer hardware or software; during the
term of the franchise, ^d if we choose to do so, there are no limitations on the cOst and frequency of this
obligation. The approximate cost of the Computer System including a computer or tablet computer, hardware and
software is approximately $ 1,200 to $2,0Q0. There is no initial fee to obtain the software, the approximate cost
of any aimual maintenance upgrades or updates or maintenance support contracts varies widely from $0 to $800,
which does nOt include the monthly license fees associated with our Required Software (which are properly
disclosed in Item 6 uf thiSiDisclosure Document) We reserVe the; right to implement oUr ovvn,technology support
and maintenance service, and charge our then-current Technolo^ Fee in connection therewith. We have no
Obligation toprovide ongoing maintenance- fepairs, upgrades or updates, and any such obligations would-be those
of the Software licensors.

ITEM 12
TERRITORY

Franchise, Agreement: Authorized Eocation and Designated Territory

You will operate the Studio at a specific location approved by us (referred to as your “Authorized
Location”). Once you have secured your Authorized.Location, we will provide you a Designated Territory within
Which you, will have certain protected rights. Your Designated Territory will Contain a maximum of 5G,000people
which will be approximately a two^mile radius around your Studio, unless your Studio is located in a major
metropolitan downtown area or similarly situated/populated central business district (a “Cenfral Business
District”). If yoUf Studio is located in a Central Business District, your Designated Territory will Contairi 5.0,000
people but may be limited to a geographic area cornprised of anywhefe from a radius Of two blocks to two miles
around your Studio, as WC deem appropriate in oiir discretion. The size of your Designated Territory may vary
from the territory granted to other franchisees based on the location and demographics .sun-ounding your Studio.

The boundaries of yoqr Designated Territory may be described in terms of zip codes, streets, landmarks
(both natural and man-madC) Or county lines, or otherwise delineated on a map. The;sources we use to determine
38
©2019 Striae FrancHise, LLG
2019'Franchise Disclosure, Document;

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
the population y/ithin ypur Designated Tettitory will be publicly ava:ilable population infonnation (such as data
published by the U.S. Census Bureau or other governmental agencies and commercial sources). Except in cases
where, you are in default of your lease,, if your Studio is open and operating and you are not in default of any
provisions of your Franchise Agreemeht, you will be permitted to relocate your Studio to a new location within
the boundaries of your Designated Territoryi subjeCtto the prior written consent and approval of Franchisor.

If you haveibeen granted.a Designated Territory, neither we nor our affiliates will operate or establish, or
authorize another STRIDE franchisee to operate or establisb, a Studio within yoiir Designated Territory . For this
reason, your Designated Territory is deemed “exclusive” under applicable franchise disclosure laws (but,please
riote'our reserved rights described.later in this Item).

You Designated Territoiy will not, be modified by Franchisor for any reason so long as you are not in
default of your Franchise Agreement.

Except as expressly proyidedin the Franchise AgTeemeiit, you have ho right to exclude, controlior impose
conditions'on the Ibcatibh, operation or otherwise of present or future Studios, using: any of the other brands or
Marks that we now, or in the future, may offer,, and we may operate or license Sfudigs or distribution channels of
any type, licensed, franchised or compahy-owned, regardless of their location or proximity to the premises and
whether or not they provide services similar to those that you offer. You do not 'have any rights with respect to
other and/or related Businesses^ products and/or services, in which we may be involved, now or in the future.

While you and other System Studios will be able to provide the Approved .Services to lapy potential client
that visits or odenvise reaches out to your Studio, yoU will liot be permitted to actively solicit or recruit clients
outside your Designated Territory, unless we provide our prior written consent. Likewise, other System
franchisees are not permitted to solicit and/or recruit prospective clientele within your Designated Territoiy. You
will not be permitted to advertise and promote your Franchised Business via advertising that is directed at those
outside your Designated Territory without our prior written consent, which we; will not unreasonably withhold
provided (a) the area yoU wish to advertise in is contiguous to your Designated Territoiy, and (b) that area.has npt
been granted to any third party in connection with a System Studio (or Development: Agreement): pf any kind.

We may choose, in our sole discretion, to evaluate your Studio for compliance with the System Standards
using varibus methods (including, but not limited to, inspections, field service visits, surveillance camera
monitoring, meniber comments/surveys, and secret Shopper reports). You must meet minimum standards for
cleanliness, equipment condition, repair and function, and customer service. Your employees, including
independent contractors, must meet minimum Standards for coUrteousneSs and customer service. (Franchise
Agreement, Section 8.8A)

Unless waived by Franchisor due to unique market conditions, Frahchisee must meet a certain Minimum
Monthly Gross Revenue Quota. If Franchisee fails to achieve and maintain average monthly gross revenues of
$30,006 by the P* year anniversary of the opening of the Smdio and average monthly gross revenues of $40,000
by the end Of the 2"‘‘ year anniversary and each succeeding year thereafter. Franchisor may institute a corrective
training; program andtor require Franchisee to perform additional local marketing. If Franchisee fails to meet the
Minimum Monthly Gross Revenue Quota fOr 36 consecutive months at any time during the term of the Franchise
Agreement, Franchisor may institute a mandatory corrective training program or terminate the Franchise
Agreement upon notice to you.

Development Agreement

If you are granted the right to open three or more Franchised Businesses under Our form of Development
Agreement, then we will provide you with a Development Area upon execution of this agreement. The size of
your Development Area will substantially vary from other System developers based on: (i) the number of
Franchised Businesses we grant you the right to open and operate; and (ii) the location and demographics of the
39
©201:9 Stride Franchise; .LLC
2019 Franchise DisclbsUre.Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
general area where we mutually agree you will be opening these locations. The boundaries of your Development
Area inay he described in terms of zip codes, streets, landmarks (both natural and man-made) or county lines, or
otherwise:,delineated on a map attached to the Data Sheet.

Each Franchised Business you timely open and commence operating under our then-current form of
franchise agreement will be operated; (i) from a distinct site located'within the Development Area; and (ii) vyithin
its own Designated Territory that we will define once the site for that Franchised Busihess has been approved. We
will approve ,sites for additional Franchised Businesses developed under your Development,Agreement using our
then-current site selection criteria.

We will not own or operate, or license a third party the Tight to o^ or bpefate; a Studio utilizing the
Marks and System within the Development Area until the earlier;of:;(i) the date we define the Designated Territory
of the final Franchised Business you were granted the right to operate under the Develpprnent Agreement; or (ii)
the :expiration or termination of the Development Agreement for any reason. Your Development Area will be
exclusive during this time period.,

Upon the occurrence ofany one of the eventsdescribedin the preceding paragraph,, your teiritorial, rights
within the Development , Area will be tenninated, except that each Franchised Business that you have opened and
are continuously operating, as of the date of such oCclufence will continue to enjoy the territorial rights within
their respective Designated Territories that were granted under the franchise agreement(s) you entered into for
those Franchised Business(es).,

You must comply with your develpprnent obligations'under die Development Agreement, including your
Development Sehedulev irt order to maintain your exclusive rights within the Development Area. If you do not
comply with your Development Schedule, we may terminate your Development Agreement and any further
development rights you have under that agreement. Otherwise, we will not modi!fy the size of your Development
Area except by mutual Written agreement signed by both parties.-

Reserved Rights

We and our parenfraffiliates reserve the exclusive right to conduct the following activities under the
Franchise Agreement,:and/of Development Agreement (as appropriate): (i) establish and operate, and license any
third party the right to establish and operate, other Studios^andlFranchised Businesses using the Marks and System
at any location outside of your Designated Territoiy(ies) and, if applicable. Development Area; ,(ii) market, offer
and sell products and services that are similar to the products and services offered by the: Franchised Business
under a different trademark or trademarks at any location, within or outside the Designated Territory(ies) arid, if
applicable,-the Development Area;,(iii) use the Marks and System, as well as other such marks we designate, to
distribute any Approved Products apd/or Services in any alternative channel of distribution, within or outside the
TerritprylieS) apd Development jM'ea (including the Internet, mail order, catalog sales, toll-free numbers,
wholesale stores, etc.), as further described below; (iv) to (a) acquire, merge with, be acquired by, or' otherwise
affiliate with, any other compaiiy, and (b) have us or ariy successor/acquiring entity oWn and opefate, apd franchise
or license others to own and operate, any business of any kind, including, without limitation, any business that
offers products or services the same as or similar to the Approved Products; and Services (but under different
marks), within or outside your Designated Territory(ies) and, if applicable,, Development Area; and (v) uSe the
Marks and.System, and license othersfo use the Marks and System, to engage in any otheractivities not expressly
prohibited in your Franchise Agreement apd, if applicable, your Development Agreement.

Neither the Franchise Agreement nor Development Agreement grants you any right to engage in any of
the activities outlined in the preceding paragraph, or to share in any of the proceeds received by uS, our
parent/affiliates or any third; party from these activities, unless wb otherwise agree in writing. Further, we have
no obligafion to provide you any comperisation for soliciting, or accepting orders (via alternate channels of
distribution) within your Territory.

©2019' Stride ErancKise, LLG


2019 EranchiseiDisclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Internet Sales / Alternative Channels of Commerce

We may sell products and services to members-located anywhere, eVen if such products and servicesiare
similar to what we sell to you and what you offer at yojir Studio: We may use the internet or altemative channels
of cornmeree to sell our hraitded products and services. You may only sell the products and.services froni your
approved Studio location, and may only use the internet or alternative channels pf commerce to offer of sejl the
products and services, as permitted by us, in Order to register menibers for classes. We may require you to; submit
samples of all advertising and promotiohal materials (and ,any use ofthe Marks and/or other forms of commercial
identification) for any media, including the Internet, World Wide Web or otherwise. We retain the right to approve
Of disapprove of such advertising, in our sole discretion, Any use of social media by you pertaihihg to the Studio
must be in good taste and not linked to confrOyefsial, unethical, immoral, illegal or inappropriate content. We
reserve the right to "occupy" any sooial media websites/pages tand be the sole; provider of information regarding
the Studio On sUch websites/pages (e.g., a System-wide Facebook template for use). At our request, you will
promptly modify or remove any online communication pertaining to the Studio that does riot comply with the
Franchise A.greement or the Manual. You are not prohibited fropi obtaining, niembers over the Internet provided
your Internet presence and content comply with the reqUirerrierits of the Franchise Agreement.

Additional Disclosures

Neither the Franchise Agreement nor the;Development Agreement:provides you with any right: or option
to open and operate additional Franchised Businesses (other than as specifically provided for in your Developftierit
Agreement if you are granted multi-unit development rights). ^Regardless; each Frarichised Business you are
granted the .rightto open and operate must be governed by its Otyrtispecific form of Franchise, Agreement.

We have not established other franchises or company-owned outlets' or another distributioft channel
offering or selling sifnilar products or services under a, different trademark. We have not established, nor do we
presently intend to establish,, other franchised Of cofripany-o^ed businesses that are; similar to the Franchised
Business and that sell our Approved Products and Services under a different trade, nanie or trademark, but we
reserve, the right to do so in the future without your consent. Certain of oUr affiliates are, involved with franchising
and other activities as previously disclosed in,Item 1 of this Disclosure Documerif^and such affiliates reserve the
right to continue conducting .fi’anchising arid othef activities.

ITEM 13
TRADTIMARKS

We will grant you a limited license to use the then-current Proprieta^ Marks vve designate iri coririectibn
with the: operation of your Studio, provided your use of such marks is iri strict compliance with the terms ofthe
Franchise Agreement arid Manuals. Please riOte that the Development Agreement does not, in and ofitself, afford or
grant you any kirid Of right of license to use the Marks - such license is granted under the; form of Franchise
Agreemeflt that yoU riiust sign ih.connectiOn with each franchise you are.awarded The following Mark is-currently
pending registration on the Principal Register ofthe United States Patent and Trademark Office:

Vpp.icfc-t..„e
1 ScnalV,..

STRIDE 88/118183 September 14j 2018

©201?!Stride Franchisei.LLG
2019 Franchise Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
We: expect and intend to submit all affidavits and other filings necessary to maintain the registrations
above. We do not yet^have a federal registration for oUr current principal,Mark above. Therefore^ our trademarks
do not have many legal benefits and rights las a federally registered trademark, if our right to use either of these
trademarks iis challenged, you may have to change to an alternative trademark, which may increase your expenses,

Tkere ate no presently effective determinations of the United States Patent and Trademark Office, the
Trademark Administrator of any State, or any court, nor any pending material litigation involving any of the Marks
which are relevant to their use in.any-state. There are no pending interference actionsipr oppps;ition or cancellation
proceedings that significantly limit our rights to use or license the use pf the Marks in any manner material to the
System. We have filed all rejquired affidavits for the Marks and will continue to- do so. None of the Marks’
registratipns have cPme up for renewal at this point so we have not yet;renewed any of the Marks’ registrations.

As of the Issue Date; we are npt avvafe of any agreements currently in effect that significantly limit our
rights to use or license the use of the Marks.

You .must follow our rules when you use the,Marks. You Cannot uSe oiir name of any of the Marks as
part of a corporate name pr with modifying words, desi|gns of symbols except, for those which we license to
you. You may not usO the Marks in Connection with the sale of an unauthorized product or service or in a
manner not,authorized in writing by us. You must,not use any other trade names or trademarks in the operation
of the Studio without first obtaining our written consent. You must npt establish a website pn the Internet Using
any domain name containing the Marks or any Variation thereof without our Written CPnsent. We retain the sole right
tp advertise on the Internet and Create a website using the Marks; as,domainmames.

If it becomes advisable^ in our sole discretion,. fPr us tp modify or discPntihue use of any ofthe MafkSi or
use one or more additipnal Of substitute Mark, you must comply with, our directions to modify or otherwise
disCPntihUe the use Pf sUCh Mark within a reasonable time after notice; by us. We will not be obligated tp
cPnipensate you foriany costs you incur in connection with any such,mpdification or discontihuance.

You cannot,seek to register, re-register, assert Claim to ownership of, license or allow others to use or
ptherwise, appropriate, tP itself any of the Marks or any mark or name^confiisingly similar tp them, except insPfar
as such .action inures to the benefit of Franchisor and has ouf pripr lyritten approval. Upon the: termihatipn Pr
expiration of the Franchise Agreement, you must discontinue use of the Marks, remove copies, replicas,
reproductipns pf simulations thereof ffPm the premises and take all necessary steps to:assign„ transfer, or surrender
tp us all Marks which you may have used in connection with the Franchise Agreement,

You must immediately nptify us of any apparent infringement of of Challenge to your use of the
mark. Although not obligated to do so, we Will take.any action deemed appropriate and will control-any
litigation pr proceeding, YOU must Cooperate with any litigation relating to the Marks which we or pur affiliates,
Pr the Licensor, might undertake. We will have the right,, but the Franchise, Agreement does not fequife us, to
indemnify you for expenses or damages if you are a; party to an adrtiinistfative or judicial proceeding involving
any of the-Marks; or subject to an unfavorableiadmiriistfative or judicial determination.

We are not aware of any prior superior rights or infringing uses that would materially affect:your use of
the Marks. But, there is always a possibility that there might be one or mpre businesSeSi sunilaf tP the business
covered by the Franchise, Operating in or neaf the area(s) Where you may do business, using, a name, trademark
and/pr tfade dress similaf to the Marks and with superior rights-to the name and/or trademark. We sfrpngjy urge
yPu to reseafCh this possibility, using telephone directories, local filmgs and other rneans, before you pay any
money, sign any documents or make smy binding commitments. If you do not research the possibility of other
trademarks in this business, you may be at risk.

02019 Stride Franchise. LLC


2019 Franchise Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
ITEM 14
PATENTS, COPYRIGHTS AND PROPRIETARY INFORMAtlON

You do not, receive the. right to use any item covered by a patent or copyright, but you can use the
proprietary information in the Manual. The Manuals are described ih Item 1 L Item 11 also describes the
limitations on the’use of the Manual by you and your employees.

We have, no registered copyrights, nor are there any pending patent applications that are material to the
franchise. However, we claim copyrights on certain forms, advertisements, proniotibnal materials, software
source code and other Confidential information as defined below.

There currently are no effective determinations, of the Copyright Office (or any court regarding any of the
copyrighted materials^ There, are nO agreements in effect which,significantly limit our right to use or license the
copyrighted materials. Finally, there are no infringing uses actually Iqiown , to us that could .materially affect your
use of the copyrighted materials in,any state. No agreement requires lis to protect or defend any copyrights or you
in connection with any copyrights.

In, general, our proprietary information includes “Confidential Information” as defined in Section 12 of
the Franchise Agreement, sonie. of which is contained in our Manual, and includes, among other things,, all
information (current and future) relating tO the operation of the Studio or the System, including,, among other
things; all: (i) rnanuals, training, teclmiques, processes, policies, procedures, systems, data and' know? how
regarding the development, marketing, operation and franchising of the Studiosj (ii) designs, specifications and
information about products and seryices and (iii),all information regarding members and suppliers, including any
statistical and/or financial information and all lists. We disclose, to you Confidential Information needed for the
operation of a Stride franchise, and you may learn additional infoimatipn during the term Of yOur franchise; We
have all rights to the Confidential Infoimation and your only interest ih the Confidential' Information is the right
to use it under your Franchise Agreement.

Both, during and after the term of your Franchise, Agreement, you must use the Confidential Information
only for the operation of your Studio under a Franchise Agreement with us; maintain the Confidentiality of the
Confidential Information; not make or distribute. Or penriit tO be made Or distributed, any unauthorized copies of
any portion Of the Confidential .Information; and (iii) follow all prescribed procedures for prevention of
unauthorized use or disclosure of the Confidential Information. (Franchise Agreement, Section 12)

We have the right tp'use and authorize others to use all ideas, techniques, methods and processes relating
to the Studiothat you. or yOur employees cohceiye or develop.

You also agree to fully and promptly disclose all ideas, techniques:and other similar information relating
to the franchise business thatare conceived or developed by you and/Or your employees. We will have a perpetual
right to.use,.and to authorize others to use, those.ideas, etc, without compensation or other Obligation.

©20,19 stride Franchise, LLC


2019 Franchise Disclbsdre?Dbcuihent

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
ITEM 15
Obligation to participate
IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS

Under the Fraiichise Agreement, we do not require, but do recommend, that you (or the Designated
Operator) personally supervise the Studio. You may appoint a Designated Manager we approve to manage daily
operations of your Studio., We will not unreasonably withhold pur approyal of any Designated Manager you
propose,, provided the individual has suecessfully completed the Ovvner/Operator Module of our initial, training,
and, if that individual will, be providing any Approved Services, Authorized Coach Training.

Once approved, your Designated Manager may assist in the direct, day-to-day supervision of the
operations, of the Studio, of to be the oh-pfemises supervisor if you choose not to personally supervise the Studio.
If ydu .are a business entity, your Designated Manager need not hold an ownership interest in the business to be'
the on-premises supervisor.

You are solely responsible for the hiring and management of the? Studio employees, for the terms ,of their
emplbyment and for ensuring their compliance with any training or other requirements established by us. You
will keep us advised, in writing, pTany Designated Manager involved in the operation of the Studio and their
contact information., Your Franchised B.uSinPss.mUSt, at all-times, be managed by and staffed with at least one (1)
individual who has successfully completed the Owner/Qperator Module or, if appropriate, the Designated
Manager Module, of our Initial Training Program.

You arid your rnanagers and employees must comply with the confidentiality provisions described in Item
14. You must execute a personal guaranty concurrently with the signing of the: Franchise Agreement. If you are a
legal entity, having more than one owner, all owners, shareholders, partners, joint venturers, artd any other person
who directly or indirectly owns a 10.% or greater interest in the franchised business must execute, a personal
guaranty.

You will be solely responsible for all employment or other personnel decisions involving your Studio
because it is an independently operated and ovvned Franchised Business, including al} decisions,and policies
related to hiring, firing and appointments pf prospective Authorized Instructors. Nothing in the Franchise:
Agreement, Developnient A^eemeht or other association with us and/or our franchise system shall,, or may be
construed^ to create or support any kind of employment or joint employer relationship between (a) us, and/or (b)
you or your Studio personnel and staff.

ITEM 16
RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL

Ypu must offer for sale and self drily and all those Approved Products and Approved Services' and deal
only with those suppliers, that we authorize or require, and have authorized (See Item 8). Principally, this means
you must purchase: the amount and type of equipment,, including treadmills, ffee weights, and other exercise
equipment,, and offer only those types of exercise classes that we authorize. Failure to comply with our purchasing;
restrictipris may residt in the termination of yoUr FranchiseAgreement. We may supplement, revise and/or modify
our Approved Products and. Services as we deem appropriate from time to time, as well as our System standards
and specifications associated with the provision of these products/services: These changes will be outlined in our
Manuals or otherwise in writing,, and there are ho cdritraetual limitations on our right to make: these: types of
changes.

Only Studio personnel that has completed all criteria necessary to serve as an Authorized Coach may
provide the Classes and certain other Approved Services; and such individuals must be on-site at the Franchised

44
©2019 Str)de Franchise,;LLG
2019 Franchise Pisclosure-Document
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Business at all times the Studio is open to ensure the Approved Serviees are provided in accordance with System
Standards and.appiicable laws (which youiare solely responsible for investigating.and ensuring compli^ce with).

If we discontinue any Approved Product Or Apjiroved Service offered by the Franchised.Business, then
you riiust cease offering: or selling such product/service within a reasonable time, unless such product/service,
represents a health or safety hazard:(in which case you must immediately cOrnply upon receipt of notice from us).
You ,may not iise the location of your Franchised Business fOr any Other business, purpose other thm the operation
of yOiir Franchised Business.,

You may not advertise, offer for sale or sell, any products and/or services that we haye not authorized.
We reserye the right to change the types Of authorized products and serviees at any time in;our discretion. You, agree
to promptly undertake all changes as we require from time to time, without limit, except we wiU not require you
to thoroughly modernize; or remodel the Studio any more often than once every 5 years. YPu yvill not make any
material alterations tp yoiw Studio or its appearance as originally approved by us without our prior written
approval.

YOu must refrain from aiiy merchandising, advertising,; Or promotional practice that is imethicalor rnay be
injurious to oiir business arid/or other'franchised businesses Or to the;gOodwill .associated with the Marks; Subject to
the conditions set forth above, we do not: impose any restrictions with regards to the customers to whom you may
sell goods and serviees.

ITEM 17
RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION

THE FRANCHISE RELATIONSHIP

A. Franchise Agreement

This table lists certain important provisions of°the franchise and related agreements. You should
read these provisions in the agreements attached to this Disclosure Document.

PafeagfaSlO-t.
1 Pr^.^ision ' ; SiimniJi}

a. Length of the franchise Franchise Agreementi The term is 10: years from the date the Franchise
term Paragraph 3.1 Agreement is signed.
b. Renewal or extension of Franchise Agreement: You have the option to extend the term for two
term Paragraph 3.2 consecutiye 5 year periods,.
c. Requirernents fOr renevVal or Franchise AgreernenL You have complied with all of the Franchise
extension Paragraphs 3.2, 3.3, and Agreement provisions; you are not in default of
3.4 the Franchise Agreement; you have brought the
Studio into coinpliance witii, our current
standards; you have given us notice of renewal
no lessvthan 90 days nor more than 1'80; days prior
to the .end of the initial terni; you have signed a
then-current form of Franchise; Agreement,
which may contain materially different terms
than the ones contained in your Franchise
Agreement; you haVe ,signed a general release in
substantially the form of Exhibit F to this
Disclosure Document; and you pay us a renewal

©2019 Stride Franchise, LLC


,20f9 Franchise Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
^ P^Ion# -7- Taragfaph^Tu - /*"”■......■______________
Agreemen
fee equal to SilOiOOO.
d. Termination by franchisee Franchise Agreement: Not applicable.
Not Applicable

e. Termination by ff^chisor Franchise Agreement: The Franchise Agreement does not provide, for
without caxise Not Appiieable termination without cause.
f. Termina:tion by franchisor Franchise-Agreement: We may terminate the Fraiichise Agreement
with cause Paragraph upon delivery of notice to you if you default
under the terms of the Franchise Agreement, as
further outlined below.
g. “Cause” defined - curable Franchise Agreement; The following constitute curable defaults: you
defaults Paragraph 15.16 fail to comply with the Performance Standards;
or refuse to make payments due and do not cure
within 10 business days; or fail to comply With
any provision of the Franchise Agreement not
otherwise mentioned in (h.) below or any
mandatory specification and do not cure within
the applicable cure period. Some defaults have 10
calendar day cure periods and some have 30
calendar day cure periods.
h. “Cause” defined = Franchise Agreement: The following events constitute non-curable
non-curable defaults Paragraph 15.1 A defaults:; failure to properly establish and equip
the premises; failure to complete tfainirig; make
a material misrepresentation or omission in the
application for the franehise; eonviction or plea
of no contest to a felony, or other crime or offense
that,can adversely affect’the reputatipn of you, us
or the Studio; make unauthorized disclosure of
confidential information; abandonment of the
business for 5 consecutive days unless otherwise
approved; surrender of control of the business;
unauthorized transfer; you are adjudicated
bankrupt, insolvent or make a general assignment
for the benefit of creditors; yoUr misuse of the
Marks; failure on 3 occasions within any 12;
consecutive month period, or 4 occasions in aiiy
24 consecutive month period to pay amounts due.
Or otherwise to comply with, the Franchise
Agreement; violate any health, safety or
sanitation law or conduet your operation in a
manner creating a safety hazard;; or violating the
rights and restrictions ofyoiir territory; operating
a competing business.

©2019iStride Eianchise„LLC
2019, Franchise iSisclosure Document
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
.-•f .,5“
lyision

i. Franchisee’s obligation On Ffanchise Agreement: YOur obligations include: stop operations of the
terminatioh/noh-renewal Paragraphs 12, 13 and Studio; stop using: the Marks and items: bearing
15.3 the Marks; stop uising the Marks in any form as
part of your corporate name; assign any assumed
names to Company; de-identify the premises
from any confusingly similar decoration, design
or Other imitation ora,Studid; stop advertising as
a Stride franchise; pay all sums owed; pay all
damages and costs we incur in enforcing the
termination provisions of the Franchise
Agreement; return the Manual and other
confidential information to us; return all signs to
us; assign your telephoneiand facsimileinumbers,
electronic: mail md internet addresses to us; sell
to us, at our option, all assets of the Studio,
including inventory, equipment, supplies and
items bearing the Marks;, and comply yvith the
covenants not to compete.
j. Assignment of contract by Franchise Agreement: Weimay sell or assi^ some or all of our business
franchisor Paragraph 14.6 to any subsidiary or affiliate of Stride, any
purchaser of Sifide; or any purchaser of the
Marks and related business.
k. “Transfer” by franchisee Franchise Agreement: You may sell or assign your business, but only
definition Paragraph 14.1 with our approval. We have sole discretion over
whether to approve or disapprove an assignment.
1. Franchisor approval of Fraiichise Agreemerif: We have the right to approve all your transfers.
traiisfer by ffartchisee Paragraphs 14.1 and 14.2 We may place reasonable conditions on oUr
approval of any transfer.
m. Conditions for franchisor Franchise Agreernenf: You must be in compliance with all agreements,
approval of transfer Section 14.2 the* Manual, all contracts with any party, and
transferee must assume all obligations under
these agreements; transferee: meet our then-
current requirements and complete or agree to
complete our training program for new
franchisees; all sums due must be paid; all
obligations to third parties must be satisfied; the
Studio must be in full compliance with the
Manual and standards and specifications for new
Stride Studios; the transferee must satisfactorily
complete training;' the transferee must sign
Franchisor’s then-current form of franchise
agreement; our then-current Transfer Fee mustbe
paid; and you and/or your contemplated
transferee must pay any referral fees or
Commissions that may be due to any franchise
broker, sales agent, or any other thitd party.

47
©2019Stride.Franchise,fLC
2019 Franchise Disclosure; Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
- 'i f' " ^
ri. Franchisor’s right to acquire None- There; is no right for us to acquire yoiir Studio
franchisee’s' business except as outlined below.
0: Franchisor’s option tb Franchise Agreement; We have the option, exercisable by giving 30
purchase franchisee’s Section 15.3.1. days’ written notice to purchase any and all
business inventory; equipment, furniture, fixtures, signs,
sundries and supplies owned by you and used in
the: Studio, at the lesser of (i) your Cost less
depreciation Cpmpnted on a reasonable straight
line basis (aS determined in accordance with
generally accepted accounting principles and
consistent with industry standards and customs),
or (ii) fair market value of such assets, less (in
either case) any outstanding liabilities of the
Studio. In:addition, we have the option to assume
your lease for the lease location of the Studio, or
if ah assignment is prohibited, a sublease for the
full remaining term on the same terms and
conditions as your lease.

p. Death or disability of Franchise Agreement: Must be transferred within six (6) months.
franchisee. Paragraph 14;4
q. Non-competition covenants Franchise Agreement: You rnuSt not be involved in: (i) any Competing
during the term of the Paragraph 13 Business (as defined in the Franchise
franchise Agreement); or (ii) any business that offers or
grants franchises/licenses, or establishes joint
ventures, for the Operation of a Competing
Business.

Additionally, you,must:nOt.(a) ernploy or seek to


employ any person employed by uS or by any of
Our other franchisees, or (b) otherwise directly or
indirectly induce or seek to induce suph person,to
leave his or her employntent during the term ofj
the Fr^chise Agreement, without first obtaining
ouf consent and, if applicable, the consent of the
other System franchisee,, or (c) otherwise take
action,to divert business or clientele to any Other
Competihg Business.
r. Non-competition 1 covenants Franchise. Agreement:; For a period of 2 years following the
after the; franchise is Paragfaph 13 expiration/termination of your Fraiichise
terminated of expires Agreement, you must pot Operate a Competing
Business:; (i) at the Authorized Location; (ii)
within a id mile* radius of (a) the Authorized
Location, or (b) any other Studio that is open,,
under lease or otherwise under development as of
the date of terminatibn/expiration.

48
©2019 Stride Fr^cHise, LLC
2019 Franchise DisclosureiDocument

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
W' Prows'ion/ f
^4 . A. _ . 1. A , ■

Additionally, for a period of 2 years after


termination of the Franchise Apeemerit, you
riiust not shall not (i) solicit business from
customers-of your former Studio, (ii) contact any
of our suppliers or vendors for toy cornpetitive
business purpose, dir (iii): solicit; toy of our other
employees, or the employees of Franchisor’s
affiliates or any other System franchisee,, to
ditodhtihue empldyrhent.
s. Modification of the Franchise Agreement- The Franchise Agreement can be, modified only
Franchise Agreement Paragraph 19 by written agreement between us and you., We
can modify dr change the System through
changes in the Manual.
t. Integration/mergef clause: Franchise Agreement: Only the terms of the Franchise A^eement toQ
Paragraph 19 binding (subject fp applicable statelaw) todmay
oiily be mddified to the extent required by an
apprdpriate court to make the Franchise
Agreement enforceable. Any representations dr
promises oufside of this Disclosure Document
and other agreements may not be enforceable.
Notwithstanding, the foregoing, nothing in any
franchise agreement is intended to disclaiin the
express representations made in this Disclosure
Document;
u. Dispute resolution by Franchise Agreement: You must first submit, all dispute tod
arbitration or mediation Paragraph 16 controversies arising toder the Franchise
Agreement to duf managenient and make every
effort to resolve the dispute internally.

At our option,, all claims dr disputes arising out


of the.Frtochise, Agreement must be submitted to
nontoinding mediation, which will take place at
our then-current: headquarters (subject to
applicable state law). If the matter is mediatedi
the parties will split frru mediator’s, fees tod bear
all of their other respective costs of the
mediation.

Except for our right to seek injunctive relief in


toy court; Of competent jurisdiction and as
otherwise described above, any claim arising out
of or relating to, the Franchise Agreement or the
relationship Of the parties, and any controversy
regarding the establishment of the fair market
value; of assets of the Studio will be resolved in
binding arbitration before a single arbitrator in
Orange County, California (subject to applicable
state: law).

02019 Stride Franchise; LLC


2019 Franchise Disclosure Document
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Prov^icii uminarw'
V. Choiee of forum Franchise Agreement: Any action that is not^subject to arbitration must
Paragraph 16.6 be brought in state or federal court in Orange
County, California (subject to applicable state
law).
^v. Choice of law Franchise Agreement The. Franchise Agreement is governed by the
Paragraph 16.1 laws of the state of California without reference
to. this state’s conflict of laws principles (subject
to state law)j except that:

(i) aiiy disputes or, actibns involving any nbn-


conipetition covenants, including the
interpretation and enforcement thereof, must
be governed by the law of the state where the
Studio is located; and
(ii) the laws of California regarding franchises
including, without limitation, the California
Franchise Investment Law' (“CFIL”)„
California franchise relationship act and all
corresponding fpgulations thereunder, shall
not (and may not be construed to) apply to
your Franchised Business or Agreement
unless the Jurisdietiohal, definitional and
Other requiremehts of such laws are; met
absent and without reference to this Section
of the Agreement.

B. DeveidpiTient Agreement

This table liststcertain important provisions of the Deyelopment Agreement and related agreements;
You should read these provisions in the agreements attached to this disclosure document.

1 I*R0VISI01V /

#■ §r.

a. Length of the term of the Section 1 (B)„ Exhibit B The Development Schedule will dictate the
Development Agreement amount of time you have to open a specific
number of franchises,, which will differ for each
Developer and will be specified in Exhibit B of
the: Development Agreernent.
b. Renewal or extension of the term Not Applicable Not Applicable
,c. Requirements for developer to: Not Applicable Not Applicable
renew Or extend
,d. Terminatioii by developer Not Applicable Not Applicable
e, Terniination by franchisor Not Applicable Not Applicable
tyithout.cause

©2019 Stride: Ftancaise, LLC


'2019 Franchise.Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
f. Termination by franchisor with Section 14 "^e iiiay terrninate yOur Development
cause. Agreement with cause as described in (g)-(h) of
this Item 17 Chart.

No default under the Development Agreement


shall constitute a default under any franchise
agreement you have entered into with us, unless
your'acts or pmissioiis also violate the terms and
conditiohs of that agreement. Failure to comply
with any material term or material condition
imposed by a franchise agreement executed in
connectibh your Development Agreernent will
CQhstitute grounds for us to default, you under
your Development Agreement.
g. “Cause” defined - curable Section 14(B) We may terminate your Development
defaults Agreement after providing notice and a 30-day
cure period (uriless a diFferent cure period is
specified below) if: you fail, to meet the
iDevelopment Schedule; you fail to develop,
open, and operate each Studio and execute each
Franchise Agreement in compliance With the
Development.Agreeihent; yOu misappropriate or
misuse the: Marks or impair the goodwill of the
Marks or System; fail to m^e monetary
paymenf under the Developrrient Agreement Or
any Franchise Agreement to us or our affiliate,
and fail to cure within 14 days of receiving
written notice from us;;fail to correct a4eficiency
of a health, sanitation, or safety issue idehtified
by a local, state or federal agency or regulatory
authority; or you fail to comply with any other
material term or material condition of the
Development Agreement or ariy Franchise
Agreement.
h, “Cause” defined - ndn-curable Section 14(A) We may terminate your Development
defaults Agreement automatically upon written notice if:
you become insolvent or make a general
assignment for the benefit of creditors; file a
bankruptcy petition or are adjudicated bankrupt;
a bill in equity pr appdinfrnent of receivership is
filed in connection with you; a, receiver or
custodian of your assets of property is appointed;
a proceeding for a composition of creditors is
initiated against,you; a final judgment is: entered
against you and not satisfied within 30 days; if
you are dissolved, execution is levied against

©2019 Stride Franchise,.LLC


2019 FrancKise. DisclosureDocument

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
taDE#ED@|

you- a suit to foreclose any lien or mortgage


against, any of your Studios is levied; the real or,
personal property of a Studio is sold after being
levied upon; you fail to comply with the non­
competition covenants of the Development
Agreement; you or your principal discloses the
contents of the Manuals or other confidential
informafion; an immediate threat or danger to
public health or safety results from the operation
of ,a Studio operated by you; you or yotir
Principal has made a, material misrepresentation
in the franchise application; you fail on 3 Of more
Occasions within a Ohe;(l) year period to comply
with a provision of the Development Agreement;
or you fail to comply with the fransfer conditions*
of the Development Agreement.
i. Developer’s obligations on Section 14(D), Section Upon termination, yoii have no right to establish
termination/ non-renewal 15 or operate any Studio for which an individual
Franchise Agreement has not been executed by
us and delivered to you at the time of
termination. All of your obligations under the
Development Agreement which expressly or by
their nature survivesthe expiration or termination
of the Agreement (including the non-competitiOn
covenants of Section 11)^ continue in full force
and effect until they are satisfied or by their
nature expire.

j. Assignment of contract by Section l6(A) We have the absolute right to transfer of assign
ffanchisof the Development Agreement, and all or any part;
of its; rights, duties or obligations to any person
or legal entity without your consent.
k. “Transfer” by developer ■ Section, 16(B) A transfer includes voluntarily, involuntarily,
defined directly or indirectly, assignings selling;
conveying, pledging, sub-franchising or
otherwise transferring; any of the rights created
by the Development Agfeement or ^y
ownership interest in you.
1. Franchisor approval of transfer Section 16(C) We must approve all transfers, but we will not
by developer unreasonable withhold our approval if you meet
our conditions.
m. Conditions for franchisor Section 16(C) Our conditions, for approving a transfer include:
approval of transfer all of you and your affiliates’ money obligations
mrjst be satisfied; you and your affiliates must
not be in material default of the Development

©2019-Stride Eranchise„LLC
2019 Franchise. Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
. V '.j

Agreement or any Franchise Agreemehti you


must execute a general release in dur faVor; the
transferee must.meet our then-current criteria for
Developers; the.transferee must; either (a) sign a
written assumption agreement assuming; your
liabiJifies under the Development Agreement, or
(b) at our option,'sigh our then-current form of
area, development agreement to govern the
remainder of the original Development
Schedule; our then-cuiteht transfer Fee must be
paid; and you and/or your contemplated
transferee must pay any referral fees or
commissions that may be due to any franchise
broker, sales agent, or any other third party,
n. Franchisor’s right.of first refusal Section 16(E) Except In certaih circuihstances (death/disability
to acquirer developer’ s business or transfer from individual franchisee to business
entity), you must provide us with a period of 30
days to rnatch any third-party offer to purchase
any ownership interest in the Development
Agreement. If we do not exercise this fight, then
you will have 60 days to effectuate the transfer
to the third party that made the offer oh those
exact terms - if the transfer does not occur or the
proposed terms of the offer change in any way,
then, we will have another 30 days to exercise our
right of first refusal.
0. Franchisor’s option to purchase Not. Applicable Not Applicable
developer’s business

p. Death or disability Of developer Section 16(F) You will have a period of 90 days to find a
suitable legal representative that we approve to
continue the operation of your Franchised
Business,, provided that person completes our
training program and executes either a personal
guaranty or a new Development Agfeeineht.

During this 90-day period, we may step in and


operate the Franchised Business on your behalf
and pay ourselves a reasonable amount to.
reimburse pur costs associated with this:
opefatibn on your behalf. We are not under any
obligation to step in and operate your business
during this period.

0201:9 Stride, Franchise, LLC


2019 Franchise Disclosure Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
■.:®EiVE.d®PMBNTP"
MSI®
412 ^
q. Nonrcompetition covenants Section 11(B)(1) Neither you, your principals,, guarantors, ovyriers
during the term of the franchise or key employees, nor any immedia:te family
member of you, your principals, guarantors,
owners or key employees, may: (i) own, operate,
or otherwise be involved with, Gompetihg
Business (as defined in the Development
Agreement); (ii) employ or seek to employ any
employees of us^ our affiliates or any other
Systein fr^chisee/developer Or induce such
persons to leave their employment; or (iii) divert,
or attempt to divert, any prospective customer to
a Competing Business'.
r. Non-competition covenants after Section 11(B)(2) For a period of two (2) years after the
the franchise is terminated or terminatibn/expiration/transfer of your
expires Development Agreement, neither you, your
principals, guarantors, ovraers, nor any
immediate farnily member of ybUj your
principals, guarantors, owners, may own, operate
or otherwise be involved with any buriness that
competes with us and is involved in'the licensing
or franchising, or establishing of joint ventures
for the operation, of Competing Businesses.

For a period of two (2) years after the


Section 11(B)(3) terminaition/expiratioil/transfer of your Franchise
Agreement, neither you, your principals,
guarantors, owners, nor any immediate family
member of you, your principals, guarantors,
owners, may own, operate or otherwise be
involved with and Competing Business: (i)
within the Development: Area; (ii) within a 40-
mile radius of your Development Area ot any
Other designated territoiy or designated area
licensed by us to a, Studio as of the date of
expiration/termination of the Development
Agreement through the date you attempt to
engage in any competitive activity prohibited by
this Section.

During this two-year period, these parties are


also prohibited from: ;(i) sblicitihg busihess fi'bm
customers of your former Studios; (ii) contacting
any of our suppliers/vendors for a competitive
business purpose; or (iii) soliciting any
employees of us, ouf affiliates or any other
System franchisee or developer to discontinue

©20,19 Striae Franchise; LLC


2019 Franchise Disclosure Docuriient
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
their employment.
s. Modification of the Development Section 23(F) Your Developmeht Agreement may not be
Agreement modified, except by a writing signed by both
parties.
t. Integra:tion/ merger/clause Section 23(G) Only the terms of the Develppment Agreement
(and ancillary agreements) and this bisdosufe
Document are binding (subject to state law). Any
representations or promises outside of the
Discrosure Document and this Agreement may
not be ehforceablei Nothing in this Agreement or
any related agreement is intended to disclaim the
representations made in this Disclosure
Document.
u. Dispute resolution by arbitration Sections 22(A)-(C) You must first submit all dispute and
or mediation controversies arising under, the Development
Agreement to our management and make every
effort to resolve the dispute internally.

At our option, all claimsi or disputes arising out


of the Development Agreement must be
submitted to nonrbinding mediation, which will
take place at pur then-cUrreiit,headquarters; If the
matter is mediated, the; parties will split the
mediator’s fees and bear all of their other
respective costs of the mediation.

Except for our right to seek injunctive relief in


any court of competent jurisdiction and as
otherwise described above, any claini arising put
of or relating to the Development Agreement or
the relationship of the parties, and any
controversy regarding the, establishment of foe
fair market value of assets of foe; Studio will be
resolved in binding arbitration before a single
arbitrator in Orange County, Califomia (subject
to applicable state law).
V. Choice Of forum Section 22(A) Any action that is not subject to arbitration must
be brought in state or federal court in Qrarige
County, California (subject to applicable state
law).
w. Choice of law Sectibri 21(A) The Development Agreement is governed by the
laws of foe state of California without reference
to this state’s conflict.'of laAys principles (subject
to state law), except that:

©2019,Stride Franchise, LLC


2019 Franchise DiscIpsureJPocument
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
. pSFCi
iSfiE]pafiiTEL^‘
. i 1 . p.» «■ »<0®-
mm (i) any'disputes or actions: involving rion-
competitioh covenants, including the
interpretation and, enforcement thereof,
must be governed by the law of the state
vyhere the Studio is located; and
(ii) the laws of California regarding franchises
including, without limitation,, the
California Franchise Investment Law
(“GFIL”), California franchise
relationship act and aill corresponding,
regulations thereunder, shall not (and may
not be consfrued to) apply to your
Franchised Business or Agreement unless
the jurisdictional, definitional and other
requirements of such laws are met absent
and without reference to this: Section of the
Agreement.

Applicable state law may require additional disclosures related to the information in this Disclosure Document.
These additional disclosures appear in Exhibit G, entitled State Specific Addenda, to this Disclosure Document.

ITEM 18
PUBLIC FIGURES

We do not currently use any public figure or personality to promote the franchise.

ITEM 19
FINANCIAL PERFORMANCE REPRESENTATIONS

The FTC’s Franchise Rule permits a franchisor to provide information about the actual or potential financial
performance of its franchised and/or franchisor-owned outlets, if there is a, reasonable basis for the. information,
and.if the information is included in thedisclosure dbcument. Financial perfotTnance information that differs from
that included in Item 19 may be given only if (1) a franchisor provides the actual records of an existing outlet you
are considering buying; or (2) a franchisor supplements the infomiation provided in this Item 19, for example, by
providing, infonhatiGn about possible performance at a particular location or under particular circumstances.

In the Table below in this Item, we disclose the “Gross Revenue” generated by the only Studio that was open and
operated by the founders of the brand oveTthe entire Measurement Period utilizing the STRIDE Mark and System
components; (the ‘‘DiscIosed.Studio’’), as well as the cost of sales and-certain other operating expenses incurred by
that Disclosed Studio, over the 2018 calendar year (the “Measurenient Period”).

The Disclosed Studio is operated using the Proprietary Marks and System and continues to be owned by these
former principals. We.and'theiowners of the Disclosed Studio expect and intend to enter info franchise agreements
that will govern the operation ,once we are; able to offer/sell franchises: where the Disclosed Studio is located.

©2019,.Stride Franctiise.LLC
2019 Eranchise:Disclosurei Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Accordingly, the financial performance representations eOritained in this Item 19 are historical representations’
based oh past performance of an existihg Studio. The following,representations are: based on inonthjy profit and
loss reports provided by the owner of the Disclosed Studio. We have not independently audited these reported
figures. No other Studios Were in existence during the Measurement Period:

Written substantiation for the financial performance: representation will be made available to prospective
franchisees upon request.

Only the Disclosed Studio sold these amounts: Your individual results may differ. There is no assurance
that you’ll sell as much.

GROSS REYENUE AND CERTAIN OPERATING EXPENSES INCURRED BY THE DISCLOSED


STUDIO OVER THE MEASUREMENT PERIOD

Amount % of Total Revenue

Gross Sales' $652,162.00 100%

Certain Operating Expenses

Estimated Royalty^ ’$45,651.34 7.00%


Cost of Goods Sold^ $31,977.5.8 4.90%:
Labor Expense'' $233,783.36 3,5.85%
Rent^‘ $I 12,175.39 17.20%
Merchant Account Services* $19,989.22 3.07%
General Supplies $766.89 0.12%
1 Office Expenses $11,991.49 L84?/o
Computer and internet Expenses $5,824.12 089%.
Repairs and Maintenance' $3,961.65 0.61%
Utilities $11,930.13 1.83%
Insurance Premiurns; $8,937.04 1,37%’
Total of Certain Operating Expenses*
$486,988.21 74.67%
Gross Revenue Less Certain i
Operating Expenses* $165,173.79 ,25.33%

Explanatory Notes to Part H of this Item l9

1. Gross,Sales. The term “Gross Sales” means the total revenue geriefated by the Disclosed Studio over the
Measurement Periods including all revenue generated from the sale and provision of any and all Approved
Seryices at, from, or otherwise through, that Studio.

The term “Gross Sales”;dOes,not;include any amount of revenue the.Disclosed Studios,may have generated
by providing the Authorized Coach Traihing (because the Disclosed Studio did not offer and generate
revenue from the provision of Authorized Coach Training in the maimer contemplated in this Disclosure
Document).

2. EstmaiedRoyalty: For the Disclosed StudiOj the term “Estimated Royalty” means the Royalty Fee that
would have had to been,paid to us over the Measurement Period if thatfStudio was owned by a franchisee
57
©2019 Stride Franchise, LLC
'2019 Franchise Disclosure Document:

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
and gQxefned, by dUr current form of Franchise, Agreement, which would amount to seven percent (7%)
of the Gross Sales of that Studio over the Measurement Period-

a. It is irnpdrtant to note that the “Estimated Royalty” figure provided for the company-owned
Disclosed Studio in this Part II Chart is only an estimate. For clarification purposes, the owners
did. not actually pay us this amount because they are not required to pay us any Royalty in
connection with operating their Studios., We indluded ah Estimated Royalty in this Chart for the
Disclosed Studio amouhtihg to seven ,percent:(7%) of the Disclosed Studio’s Gross Revenue over
the Measurement Period (i) because that is the: amount you will be required to pay to us in
connection with the Gross Revenue you generate at your Franchised Business, and (ii) in a good
faith effort to provide ypu with an accurate picture of the type of expenses you might incur in
coiinection with your franchised Studio(s).

b. Under your Franchise Agreerfient, the Royalty described in Item 6 of this Disclosure Document
will only apply to your Gross Revenue - which does, not include any CTT Remuneration your
Studio recei ves via the provision of Authorized Coach Training to clients or instructors of other
Studios by your Master Trainer.

i. You will receive the CTT Remuneration from Franchisor in connection with each such
client or other trainee that is provided with Authorized Coach Training by a Master
Trainer at-or from yourStudio.

ii. Since the Disclosed Studio above did not offer and provide Authorized Coach Training
as part of its Approved Services'Over the Measurement Period, no revenue .generated frorn
such activities to Studio clientele: is: disclosed in thesChart above.

3. Cost of Goods (COGS). For the Disclosed Studio, the term “Cost of Goods (COGS)” means the cost to
replenish: existing inventory for retail merchandise over the Measurement Period.

4. Labor Expense. For the Disclosed Studio^ the term ‘^Labor Expense” means the wages paid to non-
ntanagement persdnnelj including the Authorized Instructors that provide the Approved Services at the
Studio, and part-time management personnel thathandles the day-to-day managernent of the Studio when
the Studio owner(s) are not;present.

5. Rent.. For the Diisclosed Studio, the term “Rent” means the cumulative amount that Studio expended qn
rent, common area maintenance and, other amounts due under the lease for the premises ofthat Studio
over the Measurement Period. Please note that: (i),nonetof the Disclosed Studios received ,any “free rent”
or “deferred rent” oyer the Measurement Period; and (ii) given that the,Disclosed Studio described in this
Part It was open for‘ sorhe time- as of the commencement of the Measurement Period, it did not incur or
pay the landlord any security deposit or other amounts during the JVIeasurement,Period that might typically
be due attbe beginning of a landlprdTfenant relationship.

6., Merchant Account Services. For each Disclosed Studio, theterm “Merchant Accourit Services” means the
amounts expended by that Studio over the Measurement Period on fees charged in Conhectipn with credit
card processing by the designated softyvare provider for the POS System that is, used by that ;Studio (and
which you are required to Use in connection with your franchised Studio as of the Issue Date of this
Disclosure Document);

7, Repairs and Maintenance. For the Disclosed Studio, the term “Repairs arid Maintenance” means the
amounts expended by that Studio over the Measureinent; Period on repairing and maintaining the
equipmerit and Studio premises.

©20.19;Stride'FrancHise„ LLG
20;19 Franchise Disclosure: Document

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
8. Total of COS and Certain Operating Expensesi This figure is calculated by taking the sum of all the
indiy idual line iterns detailing specific “cost of sales” and other operating expenses over the Measurement
Period, which are discussed more fully in Explanatory Note Nos. 1 through 1 aboye; If is important to
note that this figure may not include (a) eveiy single item that could bc' considered ah, ‘‘operating, cost” of
the Disclosed Studios oyer the Measurement Period, or (jb) all the costs of goods you will incur in
connectibn Withi the operation of a new Franchised Business.

Specifically, among those operating costs/expenses that are not included under Certain Operating
Expenses are those related to: (i) salary, draw or other compensation for the owner of each Disclosed
Studio; (ii) meals and expenses incurred by the owner in; connection, with promoting the Disclosed
Studios; (iii) automobile/vehiCle expenses; (iv.) certain taxes and related liabilities; (y) ceil phone charges
for the owner/manager of the Disclosed^tudios; (vi) recruiting ihitiatives; (v.ii);fees that might beicharged
by a thii'dTparty provider iii connectioh with payroll processing;; (viii) certain legal and accounting fees;
(ix)'obtaihing required permits and licenses; (x) any monthly leasing payments associated with treadmills;
used at the Studio; or (x):miscellaneous costs such as travel expenses and/Or uni fOrtn expenses (as of the
Issue Date of this Disclostire DoCUment we dO not have any branded-uniform requirements, but we reserve
the right to implement such imiform policies in the future). We; strongly recommend that you speak tp
yoiir business advisors to identify all types: of operating costs and expenses, including those related to
marketing and advertising your Franchised Business, and discuss them with your business advisor before
entering mto any agreement with iis to purchase a franchise;

9. Gross Revenue Less Certain Operating Expenses. This figure is calculated by faking the Total Revenue
figureset forth in the Part II Chart for that Studio and deducting the Total of Certain Operating Expenses
figure for that Studio also set forth in that Chart. This calculation is subjectfo the figures in the Chart:and
the yarious Explanatory Notes set forth in this portion of Item 19.

Notes Regarding the Disclosed Studio and Item 19 Generally

1. AVhen reviewing this Item 19 and evaluating our franchise offering generally, it is very important to
note-the following characteristics of the Disclosed Studio described ifi this Item 19 (as compared to a
new Franchised Business):

a. The territory wherein the Disclosed Studio operates is located in Pasadena, California, where
our brand may have obtained a reputation aiid garnered some goodwill amongst tbe. relevant
target audience (as compared to another fCgiori of the United States where there aremo Studio
locations);

b. The Disclosed Studio does not haye a written franchise or other license agreement with
Franchisor as of foe Issue Date of this DifolOsure Document, but this location (as detailed
more fully in Part IT Of this Iterri), does utilize the Marks and System in a manner similar to
how you will be required to use such intellectual property in foe Operation Of aheW-Ffanchised
Business and we expect and intend to enter into a franchise agreement that will govern foe
Disclosed Sfodio once we are able to offer and sell franchises in the area where foe.DisClosed
Studio is located-;

c. The Difolosed Studio was not required to pay us or any other party an Initial Franchise Fee
or the other initial fees described in Item 5 of fois Disclosure Document.

At the same tiinej foe Disclosed, Studio did not incur foe various ofoer pre-opCning costs and
expenses over foe Measurement Period foat yon are likely to incur in connection with the
development of a new Franchised Business - fois is because this Studio was open and
operating for some time as of foe date foe Measurement Period commenced'

€12019 Stride, Franchise, LLG


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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
e. The Disclosed Studio utilizes a total pf 25 freadmillSi "wltich js what we expect and assume
our System franchisees will use wheii equipping and operating their franchised Studio. The
DisclosuresStudio'did not lease its treadmills over the Measurement Period,and, as sUch, there
are no such disclosures in the Chart above detailing such lease payments; Unlike the
“Estimated Royalty” above; we are hot in a position ,to compliantly disclose what the range
pf such feaSe payments might be since the payments each .new System franchisee incurs over
a 12-month period will likely vaiy: from what other System franchisees paid (due to the
various factors the lessor might review and analyze).

f Certain aspects of the Disclosed, Studio are primarily managed on a day-to-day basis by a
single individual that is engaged by the Disclosed Studio to manage such matters'. While friis
engagement would be similar tp you engaging a “Designated Manager’^ or other third party
to assist in inanaging Certain aspects of your Franchised Business, we do not expect that you
will be engaging such a third party at the outset of operating your new Franchised Business
(uniess you are a multi-uiiit owner).

2. The figures provided in this Item exclude certain taxiiabilities for which you will be responsible.

3. The figures disclosed in this Item may not include all the professional fees' or other admihistfative
expenses that you might incur in Connection with opening and commencing operations of your
Franchised Business; including legal and accounting fees.

4. Interest expense, interest income; depreciation; amortization and other income, or expenses will vary
substantially from business to busihess, depending on the amount and kind of financing you obtain to
establish yoUr Franchised Business. You should consult with your tax advisor regarding depreciation
and amortization schedules and the period over which assets of ypur Franchised Business may be
amortized or depreciated, as well as’the effect, if any, of any fecent or proppsed tax legislation. Please,
note that the figures set forth in this Item 19 do not involve any depreciation or amortization.

5. Expenses and costs,, as well as the actual accounting and operational methods employed by a
franchisee, may significantly impact profits realized in any particular operation. Actual results will
vary from Frarichised Business to FrahchiSed Business, and we cannot estimate the results of a
particular Franchised Business. Thereyenues and expensesiof your business Will be directly affected
by many factors, such as: (a) your Designated Territoiy’s geographic location arid pbpulatiori
demographics; (b) advertisirig effectiveriess based on market saturation; (c) whether you operate the
business perspnally or hfreja third party to serve ,as yoUr Designated Manager; (d)‘your product and
service pricing; (e) vendor prices ofl materials, supplies and inventory; (f) personnel salaries and
benefits (life and health insurance, etc.); (g) insurance costs; (h) weather conditions; (i) ability to
generate customers; (j) customer loyalty,; (k) employm_erit coriditioriS in the market;.arid (1) the efforts
you and your personnel put into yorif Franchised Business;

6. We suggest strongly that you, consult; your financial advisor or personal accountant concerning
fmancial projections and federal, state and local income taxes and any other applibable taxes that you
may incur in operatirig a Frauchised Business.

other thari the preceding fmaricial performance representation, we do not make apy financial performance
representations. We also do not authorize our employees or representatives to make ariy such representations?either
orally or in writing. If you are purchasirig an existirig STRIDE StUdib, however, we may provide you with the
actual records of that outlet. If ydU receive ariy other financial performance information or projections of your
fiiture income, you should report it to the our management by contacting our Frarichise Administration Dept.; c/o
Stride Franchise, LLC, 17877 Von Karman Ave,, Suite 100„IrVine, C A;9’2614 of via telephorie at (949) 490-5989.
60
©2019 Stride Franchise, LLC
2019 Franchise Disclosure Document

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
ITEM 20
OUTLETS AND FRANCHISEE INFORMATION

TABLE 1
S¥STEMWIDE OUTLET SUMMARY
FOR years 2016 TO 2018

iLTHETSATTHE--! iOUTLET:
Elisa 1rtofthe\*1 EgfMSF

2016
FRANCHISED 2017
2018
COMPANY-
2016
OWNED* 2017
2018
2016
TOTAL OUTLETS 2017
2018 1 1
*This units are owned and operated, by the founders of the brand. We expect and intend to enter into franchise agreements,
with the owners ofthe Studio to be operated as a Franchised Business moving fonvard opce we are able to offer and sell
franchises in the area where, this Studio: is located. Once thefranchise agreement is signed, this unitwill be chdracterhedas
a "Franchised" outletfor purposes Of this Item 20.

TABLE 2
TRANSFER OF OUTLETS FROM FRANCHISEES TO NEW OWNERS
(OTHER THAN FRANCHISOR)
FOR THE YEARS 20l6 TO 2018

2016 0
TOTAL
.2017 0
OUTLETS
2018 0

TABLE 3
STATUS OF FRANCHISE OUTLETS
FOR YEARS 2016 TO 2018

r^.,
mm
2016
TOTAL 2017
2018

©2019 Stride Franchise, LLC


20 i 9 EfancKise DisclosureiDocument
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TABLE 4
STATUS OF company-owned OUTLETS
FOR YEARS 2016 TO 2018

iY|Ai .OUTLET^ » * ©BTEETS - ■ OBTLETSi


* @pened|* REACqUlpED glqsEd
■ : -
; 'FRANGmSEE „
CA 2016 1 O: 0 0 0 1
2017 1 0 0 0 0 1
201'8 1 0 0 0 0 1
TOTAL 2016 1 0 0 0 0 1
1
2017 1 0 0 0 0 1
1

2018 .1 0 0 0^ 0 1

TABLES
PROJECTED OPENINGS AS OF DECEMBERSl, 2018

P|^JE<fg^»f
E|®Eft:siSp|fED
|1J^UTs OU®LE5Ps|lOT
“ PEI

TOTAL

A list of the names, addresses and telephone numbers of our current ff^chisees as of the Issuance Date of this
Disclosure Document, as well as a list Of the names; addresses and telephone numbers of our jfranchisees who
have had a franchise terminated, canceled, not renewed dr otherwise voluntarily or involimtarily ceased to do
business under the franchise agreement, during the most recently completed fiscal year- or who have not
commimicated with us within 10 weeks of the issuance; date of this franchise disclosure document, are attached
as Exhibit H. We do not currently have any franchisee or former franchisee information to disclose because we
have just comrnenced franchising as of the Issue Date of this; Disclosure Document.

If you buy the franchise offered in this Disclosure Document, your contact information may be disclosed to other
buyers when you leave the franchise isystem.

In the last three fiscal, years^ we have, not required franchisees to enter into any confidentiality agreernents that
festrifct their ability to speak openly about their experience with our franchise system.

There are nO trademark-rspecific franchisee organizations.

ITEM 21
FINANCIAL STATEMENTS

Exhibit C contains our audited opening day balance sheet as of December 21, 2018. We have not: been
franchising for three or more years, artd cannot therefore provide all financial statements that would have
otherwise been required in this Item. Our fiscal year end is December 31 of each year, but w6 only commenced

©20l9'Stride Ffanch|se,.LLC
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
franchisihg for the. first time .as of the Issue Date of this Disclosure Document.

ITEM 22
CONTRACTS

The, following agreements are^attached to this Disclosufe Document:

Exhibit A Franchise, Agreement and Exhibits


Exhibit 1 Authorized Location Addendum
Exhibit;! Electronic Funds, Transfer Agreement
Exhibit 3 Electronic Debit.Authorization
Exhibit 4 Guarantee
Exhibit 5 Addendum to Lease
Exhibit D Statement of Prospective Franchisee
Exhibit F Form of General Release;
Exhibit G State (Specific Addenda
Exhibit I Develppment Agreement

ITEM 23
RECEIPTS

Exhibit J to this Franchise Disclosure Document contains a detachable document, in duplicate,


acknowledging receipt of this Franchise Disclosure: Document by a,prospective franchisee. You should sign both
copies of the Receipt. You.should retain one signed copy for your records and return the other signed copy to our
Chief Operating Officer at the following address: Attn: Franchise Administratioii c/o Stride Franchise, LLC,
17877 Von Rarman Ave;, Suite 100, IrvinCi CA 926l4 or via telephone at (949) 490-5989.

©2019. stride Franchise,, LLC


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Exhibit A
To Franchise Disclosure Document

FRANCHISE AGREEMENT AND RELATED EXHIBITS

©2019 Stride Franchise, LLC


2019 Franchise Disclosure Document - Exhibits
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FRANCHISE AGREEMENT AND RELATED EXHIBITS

©2019 Stride Franchise, LLC


2019 Franchise, Agreement

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TABLE OF CONTENTS
ARTICLE PAGE

1. GRANT OF FRANCHISE; LOCATION...................................................... 2


2. ACCEPTANCE B¥ FRANCHISEE ........................................ 3
3= TERM AND RENEWAL.......... ........ 4
4. TRADEMARK STANDARDS ................. 5
5. FEES 6
6. franchisor SERVICES..................................... 9
7. FACILITY STANDARDS, LEASE AND CONSTRUCTION....................... 12
8. STUDIO IMAGE AND OPERATING STANDARDS...................... 14
9. advertising AM) MARKETING............. 18
10. financial reports, audits, COMPUTER SYSTEM AND INSURANCE
REQUIREMENTS............................................. 20
11. RELATIONSHIP OF THE PARTIES; INDEMNIFICATION................................ 23
12. CONFIDENTIAL INFORMATION................ 23
13. covenants not to compete....................... 24
14. ' 1'l^.^^^^SI'IjIi. Ij^I'l'Iill^jillS'l' ..................................a.'......................................a..........................._^-2 6
15. DEFAULT AND TERMINATION OF AGREEMENT:...... ............................. ..... ... 27
16. RESOLUTION OF DISPUTES....................................... 32
17. MISCELLANEOUS PROVISIONS................... 35
18. ACKNOWLEDGMENTS............ 3T
19. ENTIRE. AGREEMENT........................................................................................................38

EXHIBITS

exhibit I AUTHORIZED LOCATION ADDENDUM


EXHIBIT 2 ELECTRONIC FUNDS TRANSFER AGREEMENT
EXHIBIT 3 electronic DEBIT AUTHORIZATION
exhibits GUARANTEE, INDEMNIFICATION AND ACKNOWLEDGEMENT
EXHIBITS ADDENDUM TO LEASE

© 2G19 Stride Franchise,, LLC


2019 Franchise Agreement

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STRIDE FRANCHISE, LLG
FRANCHISE AGREEMENT

In afnuiriber of places in this Franchise Agreement, you are asked to initial certain items to show that they
have been fully discussed with you, and read, understdod and agreed to by you. Initialing those^areas does
not lessen ihe impoiitanCei of other areas or mean they are not fully enforceable^ _____________

This Franchise Agreement (this “Agreement”) is entered into as of the____day of


, 20__________________ between: (i) Stride Franchise, LLC, a Delaware limited liability company
doing business as “STIHDE” as of the date of this Agreement (“Franchisor”); and (ii)
a/an with aniaddress at .(“Franchisee’^).

RECITALS

A. Franchisor, by and through the efforts of itself and its principals/affiliates, have developed and Franchisor
administers a system and franchise opportunity, including various fitness and exercise techniques and methods,
trade secrets; copyrights, confidential and. proprietary information and other intellectual property rights
(colieCtively, the “System’’) for the establishment and operation.of fitness studios that feature running classes and
instruction, as well as other authorized fitness-related services that \ye authorize (each, a “Studio’’) identified by
our then-current proprietary marks including, without limitation, onr current primary mark “STRIDE” and other
taglines, logos, trademarks, service marks and other indicia of source (collectively, the “Marks”), all of which
Franchisor niay .Supplement,and otherwise modify as it determines appropriate in its discretibn.

B. The System includes the Marks and trade seCrets, proprietary methods and information and procedures
for the establishment and operation of Studios, including,, without limitation, confidential manuals (cbllectiyely,
the “Manual”), training methods, fitness equipment, furniture and fixtures, marketihg, advertising and sales
promotions, cost controls, accounting and reporting procedures, persOnnel managemerit, distinctive interior design
and display procedures, and color scheme and decor (collectively, the ‘Trade Dress”).

C. Franchisor grants to qualified persons who are willing to undertake the required ihyestment and effort,
a fi-anchise to own and operate a Studio offering (i) proprietary running classes and instruction on designated
equipment, as well as Other fitness-related classes and services that Franchisor authorizes (collectively, the
“Approved Services”), which may include a proprietary training program that individuals that wish to provide
running instruction to Studio clientele (each, an “Authorized Coach”) as an authorized coaCh (the “Authbrized
CbaCh Prbgram”),, and (it) certain, merchandise and other products Franchisor’ authorizes for sale in conjunction
with the Approved Services and Studio operations (CblleCtively, the “Approved Products”), all while utilizing,the
System and Marks.

D- Franchisee desires to obtain^a franchise to use the System and Marks in the development and operation of
a franchised Studio at the location specified in this Agreement:(hereafter, the “Franchised.Business”).

E, Franchisee has; independently investigated the business contemplated by this Agreement, and recognizes
that the nature of the business may change over time, that an ihyestrnent in a Studio involves business risks, and
that the venture’s success depends primarily upon Franchisee’s buriness abilities and efforts.

NOW, therefore,1 in consideration bf the'foregoing, the fees and other sums payable by Franchisee
and of themutual cbvCnants contained in this Agreement, the parties agree as folfovys :

©2019 Stride Franchise, LLG


2019 Franchise Agreement
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1. GRANT OF FRANCHISE; LOCATION

1,1 Grant. You agree at all times faithfully, honestly Md diligently to perform your obligations
under this Agreement and to use your best effortsto promote the Ffarichisdr System and brand, as well the Studio.
Accordingly,, Franchisor grants to Franchisee the.non-exciusive right and license to:

A. Establish and operate a single Studio utilizing only the System and the Marks, at a location that
has been authorized by Franehisor (the “Authorized Locatioh”), in accordance with the provisions and for the
term specified in this Agreement;

B. Use only the Marks of Franchisor under the terms of this AgrOementdo identify and .promote the
Studio offered hereunder; and

C. Use the proprietary running, fitness and exercise methods and know-how, as set forth periodically
in Franchisor’s operations manual (the “Operations Manual”) and Other manuals (collectively, the “Manuals”),
training programs, Or that Franchisor otherwise communicates to Franchisee;

1.2 Site Approval Process. Franchisor will assist Franchisee in connection with site selection by; (i)
providing Franchisee with its then-current site selection criteria, to the extent, such criteria has been reduced to
writing; and (ii) providing Franchisee with access to a local reaii estate broker that is familiar with Franchisor’s
confidential site?evaluation criteria, to the extent.Franchisor has established relationships with siieh, brokers in or
around the Designated Market Area (as defined in Section 1.3 below). Franchisor will use commercially
reasonable efforts to approve or rejecta proposal for an Authorized Location within 3 0 days of the date Franchisor
receives all reasonably-requested information regarding the proposed site. Franchisor’s approval of the proposed
site shall he deemed to be a binding addendum to this Agreement upon Franchisor and Franchisee’s execution of
Exhibit 1. which is attached hereto and incorporated herein by reference; and which will set forth the Authorized
Location. Franchisor agrees nOt to unreasonably withhold approval of a,site that meets its site criteria. Franchisee
acknowledges that Franchisor’s approval of a proposed site is permission only and, not an assurance Or guaranty
to Franchisee Of the availability, suitability or success of a location, and cannot create a liabili^ for Fraichisor.
^ile Franchisor will provide site selection assistance as specified in Section 6.1 herein. Franchisee alone is
ultimately responsible for selecting and developing an acceptable location for the Studio. Franchisee agrees to
hold Franchisor harmless with respect to the selection of the Authorized Location by Franchisee: FrahehiSee must
obtain lawful possession of an Authorized Location by lease, purchase or other method and open for regular,
continuous business within six (6) months of the date that Franchisor accepts this Agreement., Tlie opening date
may be extended an additional three (3) months in certain instances, as explained in Section 2.2(D), below.
Franchisor has the right tO terminate this Agreement if Franchisee fails to select a site for the Studio that meets
Franchisor’s approval, within the time period allotted above.

1.2 Authorized Location & Designated Territory. If the Authorized Location has not been identified at
the time this Agreement is signed, Franchisee must identify a site approved by Franchisor within the following
geographical area:__________________ _______________ ^(“Designated Market Area”).

Qnce the Authorized Location for the Studio has been identified in the Authorized Location Addendum, attached
hereto as Exhibit 1. Franchisor agrees that, so long as Franchisee is in good standing, neither it nor its affiliates
will operate>or establish, or authorize another System franchisee to operate of establish, a Studio using the System
Of Marks that is physically located within a certain gedgraphicaj area surrounding the Authorized Location
(“Designated Territory”), The Designated Territdfy; ifany, will be defined in Exhibit 1,. hereto,

\A Rights Reserved to Franchisor. Notwithstanding anything contained in this Agreement„Franchisor and


its affiliate(s)/parent(s) hereby reserve the exclusive fight to: (i) open and operate, and license third parties the
right to open or operatei other Studios utilizing the Marks and System from physical locations outside the
Designated Territoiy; (ii) market, offer and sell products and services siinilaf to those offefed by the franchised

©2019 Stride Franchise, LLC


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business and other Studios (Such as privateilabel products that Franchisor may develop),through alteniate channels
of distribution, including without limitation, via the lntemet;and Other e^comraerce channels, catalog sales, direct
mail or wholesale, at any location- (iii) acquire, or be acquired,by, any company, including a company operating
One or more businesses offering products or services similar to thoseioffered by a StudiO, located within or otitside
yOUf Designated Territory, and subsequently operate (or license a third par^ the right to Operate) these lOCatiOhs;
(iv) open and operate, or liceiise third parties the right to open or operate, businesses that offer products and
services similar to the franchised business under marks Other than the Marks at any location; and (v) use, and
license others the right to use, the Marks and System to engage in any other activity not expressly prohibited by
this Agreement.

I have read Article 1, understand ii, and agree to comply with each
of its Sections.
¥our Initials: ___ / ___

2. ACCEPTANCE BY FRANCHISEE
2.1 Acceptance by Franchisee. Eranchisee accepts this Agreeihent and the license granted,herein and agrees
to develop and.operate the StudiO on the terms and conditions specified herein. Franchisee agrees to follow the
System requirements in thei operation of its :Studio, including, without limitation, its facilities, staff, advertising,
operations, and all other aspects of Franchisor’ s business and the System nOw in effect and changed periodically.
Franchisee (or, if Franchisee is an entity , one Of its operating prihcipals) and its proposed Designated Manager (as
defined in Section 5.5(B) of this: Agreement), as, well as all Authorized Coaches that wish to. provide Approved
Services at the Franchised Business, must, attend and complete the appropriate initial training to Franchisor’s
satisfaction, as set forth in Section 6.3 of this Agreement.

2.2’ Conditions. The rights being licensed herein are subject, without limitation, to the following conditions:

A. Franchisee’ s>business and the StudiO < shal 1 be identified Only by those Marks' approved hi writing
by Franchisor with at least one exterior sigh as designated by Franchisor.

B. Cohcurrently; with the signing of this Agreement, Franchisee must execute a personal guaranty
in the fonn attached hereto as Exhibit 4 (“Personal Guaranty”), In the event Franchisee is a legal entity having
more than one owner, all owners, shareholders, partners. Joint venturers, and any other person who directly or
indhectly owiis a 10% of greafei; interest in Franchisee (the “Owners”) must execute the Personal Guaranty; Ahy
person Or entity that at: any time after the date of this Agreement becomes an Owner, pursuant to Section 14 or
Otherwise, shall, as a, condition of becoming an Owner, execute Franchisor’s then-cuffent form of Persona!
Guaranty.

C. Franchisee shall submit the lease for the Studio to Franchisor for its written consent before
Franchisee executes the lease for the Authorized Location. The lease must contain the provisions outlined in
Section 7.2 and Exhibit 5 (“Lease Addendum”).

D. Franchisee agrees that it shall open the Studio for regular, COntifiuOus business no later than six
(6) months after this Agreement is signed by Franchisor. If, through no fault of Franchisee, the Studio has not
opened after six (6) months. Franchisor may agree in writing to provide Franchisee with an addifibnal three (3)
months to Open its Studio if Franchisee (a) has already secured an approved prernises for" its Studio, and (b) is
otherwise making diligent and continuous efforts to buildout and otherwise prepare its franchised business for
opening throughout the six (6) month peribd following the execution of this Agreement.

©2019 Stride Franchise, LLG


2019 Franchise Agreement
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E, Franchisee, agfees.at all times to,comply with the Manua;!, standards, operating systems,,and other
aspect'srdf the System (collectively, the‘“System Standards”)'prescribed by Franchisor, which are subject to ehange
at Franchisor’s discretion.

I have read Article 2, understand it,,and agree to comply with each


of its Sections.
Your Initials: ___ / ____

3. TERM AND RENEWAL

3.1 Term. The term of this Agreemeht shall be for a period of ten (10.) years beginning; on the date this
Agfeemeht is accepted by Franchisor, unless sooner terminated under Section 15. The conditions to obtain a
renewal of the franchise granted hereunder are those stated belo w in Section 3.2,

3.2 Renewal. Unless; tenhihated at an earlier date, upon the expiration of the initial term. Franchisee shall
have the right to renew this Agreement for two;(2) consecutive additional five (5):year terms, subject to Satisfaction
of each of the following conditions:

A. Prior to each sUCh renewal, Franchisee shall execute Franchisor’s standard form of franchise
ngfeemeht being offered at the time of each such renewal. The provisions of each such renewal franchise
agreement may dliffer from and shall supersede this Agreement in all respects, including^ vvithout limitation,
changes in royally and advertising fees, except that Franchisee shall pay the renewal fee specified in Section
3,2(F), instead of the initial franchise fee; Franchisee’s failure or refixsal to execute and:retum Franchisor’s then-
current standard form Franchise. Agreement to Franchisor within thirty (30) days after receipt by Franchisee shall
constitute Franchisee’s election not to renew;

B. Franchisee shall demonstrate that it has, the right to remain in possession of the Authorized
Location for the duration of the renewal term, or that it has been able to secure and develop an alternative site
acceptable to Franchisor;

C. In considefatioh of each such renewal of the franchise. Franchisee shall execute a general release
in the form and substance satisfactory to Franchisor, releasing any and all claims against Franchisor and its
affiliates, officers, directors,, employees and agents;;

D. Franchisee shall have completed or made arrangements to make, at Franchisee’s expense, such
renovation and,modernization of theiStudio, including the interior anci exterior of the building;, grounds^ leasehold
improvements, signs, furnishings,, fixtures, equiphient, surveillance cameras, and decor as Franchisor reasonably
requires so the Studio conforms with the then-current standards- and image of Franchisor;

E. Franchisee, during the term of this Agreement, shall have substantially complied with all of the;
provisions of this Agreement and all Other agreements with Franchisor, and shall be in compliance with the Manual
and with Franchisor’s policies, standards and specifications on the date of the notice of renewal and at the
expiration of the initial term;

F. Franchisee shall pay to Franchisor a,Renewal fee equal t0 :$10,000; and

G. Franchisee shall have given Franchisor written notice of renewal np less than 90 days Or more
than 180 days before expiration of the initial term.

3.3 Franchisor’s Refusal to Renew Franchise. Franchisor may refuse to renew theffranchjse if Franchisee
is in default under this Agreement, or any other agreement with Franchisor or an affiliate Of FranchisOri or if

©2019 Stride Franchise, LLC


2019 Franchise Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Franchisee fails to;satisiy any of the foregoing conditions. Subject tothe above. Franchisor will,not unreasonably
deny renewal of a Franchise.

3.4 Notice; of Expiration Required by Law.. If applicable law requires that Franchisor give a longer period
of notice to Ff^chisee than herein provided prior to the expiration of the initial term or any additional term.
Franchisor will give such additional required notice. If Franchisor does not give such required additional notice,
this Agreement shall remain in effect on a month-to-month basis until Ffanchisee has received such required
notice.

I have read Article 3, understand it,.and agreerto comply with each


ofjts Sections.
Yourinitiab: /

4, TRADEMARK STANDARDS

4.1 Naine arid Ownership. Franchisee aclcnowledges the validity of the Marks ,that;novy or in the future are
of will be part of the System, including without limitation the Mark STRIDE, and agrees and recognizes that the
Marks are the sole and exclusive property Of Franchisor ahd/of the affiliates of Franchisor. Franchisee further
aeknpwledges that Franchisee’s right to use the Marks is derived solely from this Agreement and is limited to the
conduct ofa Studio pursuant to and in compliance with this Agreement and all applicable standards; specifications
and operating procedures prescribed by Franchisor from time to time. Any unauthorized use of the Marks by
Ffanchisee shall be! a breach-Of this Agreement and an infringement, ofthe rights of Franchisor and, its affiliates.
Franchisee’s use of the Marks inures to the benefit of Franchisor, which owns all goodwill now and hereafter
associated with the Marks. Franchisee agrees not to contest ownership or registration of the Marks. Ffanchisbr
(and/or its affiliates) owns>.all right, title and interest in and tp the Marfc, and Franchisee has and acquifes hereby
only the qualified license panted in this Agreerhent, Ffanchisbr agrees to indemnify Franchisee from any claims,
costs or fees associated with,Franchisee’s authorized use of the Marks in connection with the franchised business,,
subject to the requirement that Franchisor be; immediately notified of any third party challenge to Franchisee’s
authorized,use of any Mark under this Agreemehtv and Franchisor haS the right to control any related litigation.

4.2 Use.

A. Franchisee shall not use any Mark as part of any corporate or business name with any
prefix, suffix or other rnodifyihg wprds, tenuS) desighs or symbols, or in any modified form. Franchisee shall
display and use the Marks only in the manner and form prescribed or authorized by Franchisor and shall conduct
no other business than that prescribed by Franchisor. Franchisee shall not use any other mark, namej commercial
symbol or logotype in*connection with the QperatiQn of the ,Studio and shall riot market any product relating to the
Studio without Franchisor’s written consent, and' if such consent is granted, such product: must be marketed in a
manner acceptable to Franchisor. Franchisor may also permit Franchisee to use; from tirne to time other
trademarks, service marks, trade names and commercial symbols asmay be designated by Franchisor in writing.

B. Franchisee agrees to give such notices of trademark and service mark registrations and
copyrighte as Franchisof specifies, arid to obtain such fictitious or assumed name registrations as may be requifed
under ;applicable law.

C. Franchisee is prohibited from, using the Marks in advertising, promotion or otherwise,


withoutthe appropriate “© Or ‘W’fcOpyright.arid registration marks) or the.designations “™” or “^“’’(trademark
and servicemark), where applicable.

4.3 Litigation. Franchisee agrees to notify Franchisor immediately in writing; if it becomes aware that any
person who is not a licensee of Franchisor is using or infringing upon any of the Marks. Franchisee fnay not

©2019 StrideTranchise, LLC 5


2019 Franchise Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
communicate with any person other than Franchisor and its counsel in connection with any such use Or
infringement. Franchisor will have discretion; tOi determine what steps, if any, are to be taken in any instance; of
unauthorized use or infringement of any of its Marks and will'haye conipiete control of any litigation or settlement
in epnriection with any claim of an. infringement or unfair competition or unauthorized use with respect to the
Marks. Franchisee will execute any and all instruments andidocuments and will assist and cooperate withjany suit
or other action undertaken by Franchispr with respect to such unauthorized ;use dr infriiigement such as by giving
testimphy dr furnishing documents. of other evidence. Franchisor will be responsible for legal expenses incurred
by Franchispf in connection with any litigation or other legal proceeding involving'such third party. Franchispr
shall not be liable for any legal expenses of Franchisee unless (a) pre^apprpVed in writing by Franchisor in its
discretion, and (b) the action proceeds or toses out of Franchisees authorized use of the Marks hereunder.

4.4 Modification, Discontinuance or Substitution. Franchisor reserves the right, if neceSsaiy in


Franchisor’s sole judgment, to change the priheipal Mark(s) of the System on a national of regional basis, and
upon reasonable notice. Franchisee Shall at its expense: adopt a new principal Mark(s) designated by Franchisor to
identify'the Studio. Franchisor shall have nodi'ability or obligation whatsoever with respect to Frmchisee’s Change
of any Mark.

4.5 Franchisor’s Revenues. Franchisor and its afriliatesimay offer to sell to Franchisee:at a reasonable profit
various goods and services, and reserve the right: to receive fees or other consideration ip connection with sales
promotion and advertising programs associated with the Marks or from System yendpfs.

I have read Article 4, understand if, and agree to comply with each
of its Sections.
Your Initials:/

. 5. FEES:

5.1 Initial Franchise Fee. Franchisee agrees to pay Franchisor an initial franchise fee in the sum of Sixty
Thousand Hundred Dollars ($60,000) for a single Studio upon execution of this. Agreement (thei“lnitial Franchise
Fee”) in the fonn of a cashier’s check or bank wire. The Initial.Franchise Fee shall be fully earned by Franchispr
upon paytnent and is hotrefuridable under,any circumstance:

5.2 Royalty Fee. Beginriing on the day the Studio starts generating reyenue from its business operations, and
continuing during: the Ternj of this Agreement, Ffahchisee agrees to pay Franchisor, weekly, without setoff, credit:
or deduction of any nature, a royalty fee equal to seven percent (7%) of the Gross Sales (as that term is defined in
Section 5.3, below) generated by the Studio over the immediately preceding week (the “Royalty” or “Royalty
Fee”).

5.3’ Gross Sales. Gross Sales means the total revenuegenerated by theiStudio, ihcluding all revenue generated
frpm the sale and provision of any and all gift cards and other approved products and services at or through the
Studio and all proceeds from any business interruption insurance related to the nomoperatibn pf the Studio,
whether such revenues are evidenced by cash, check, credif charge^ accPunti barter or exchange. “Gross Sales”
does not include (a) any sales tax and equivalent taxes that are collected by Franchisee for or on behalf of any
governmental taxing authority and paid thereto, (b) the value ofany allowance issued or granted to any client of
the Studio that is credited in good faith by Franchisee in full or partial satisfaction of the pfiCe of the approved
products or services offered in connection with the Studio, Pr'(c) the remuneratioii that Franchisee is, entitled to
receive in-connection with any AuthorizedGpach Training that is provided to clients pursuant to Section 8.4(D)(2)
of this .Agreement.

5.4 InitialEFE Package; Opening Retail Inventory.

©2019 Stride Franchise, LLC


2019 Franchise Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
A. Prior to operiing?the Studio, governed by this Agreement, Franchisee;must’purehase; (i) an, initial
package of furniture, fixtures and equipment that .is designed to provide Franehisee with certain'items needed in.
connection with outfitting, equipping and otherwise building: oiit of the Studio (the “Initial FFE Package”); and
(ii) opening inventory comprised of certain, branded and, other inventory that may be resold at the Studio (the
“Ihoprietaiy Initial Inventory Kit”). Over the term of this Agreement, Franchisee will be responsible for (a)
maintaining and/or replacing:the items comprising the Initial FFE Package^ and (b) maintaining certain levels of
inventory with respect to those items comprisirig the Proprietaty Initial Inventoiy Kit, as, set forth more fully in
this.Agreernent,

B. Franchiseefurther agrees to install at its expenseiand iise the membership accounting, cost control,
point of sale (“POS”) and, inventoiy control systems through the supplier Franchisor designates. The: designated,
or approved; supplier(s) for these services will be updated in the Manuals as changes are madCi Oyer the fenn of
'this, Agreement, Franchisee will also be required tp pay Franchisor’s then-current designated provider for the
software that Franchisor prescribes fOr use in connection with the Studio and the POS (each, a “Software Fee”),
which may be modified upon reasonable written notice: to Franchisee.

5.5 Fund Contribution. In the event Franchisor establishes a creative brand fund to promote the System,
Marks and brand generally (the: “Fund”), Franchisee will be required to contribute up to two percent (2%) of the
Gross Sales of its Studib to this Fund (the “Fund Contribution”), commencing once the Studio opens for
.operations. The Fund Contribution will typically be paid in the same manner and at the, saine interval that the
Royalty Fee is collected (based on the,Gross Sales of the Studio over the inimediately preceding reporting period).

5.6 Technology Fee. Franchisor-reserves the right to charge Franchisee its then-current technology fee (the
“Technology Fee”) as consideration for certain technology^related seiyices that Franchisor may determine to pay
for all or some portion of as part of the Systern, vvhich may include: (a) website development and hosting, (b)
establishing a System-yvide intranet or other type of website portal for the System (a “Website Porfal”) of any
kind, (c) proprietary or customized software licensed by Franchisor or its affiliates to assist with the day-to-^day
operations of the. Studio, and/or (d) any other teclmology that Franchisor determines appropriate, in its discretion,
for use in connection with your fimichised business and deterinihes to provide as part of the Technology Fee.
Franchisor may modify the Technology Fee upon thirty (30) days’ written notice to Franchisee.

5/7 Training-Related Fees;

A. Owner and De$piated Manager Training- pee. As described more, fully in this Agreement,
Franchisee and certain Of its personnel will: (i) be required to attend and complete certain initial training before
the Studio can,open for operations, as; well as certain ongoing training, as described more fully in Section 6 of this
Agreement;,and,(ii) have thesright to request that Franchisor provide certain kinds: oftraining or on-site assistance,
subject to the availability of Franchisor’s training pefsohiiel. While certain initial and ongoing, training will be
provided by Franchisor Without charging any kind of training fee, Franchisee(or its personnel)’will be responsible
for ensuring Franchisor receives, its then-current training fee, as applicable, iri connection with any training: that
Franchisor provides hereunder that, involves such a fee (the “Training Fee”);

B, Authorized Coach Trailing. As, described more fully in Section 6.3(A)(2) below, all cOaChes
authorized tO provide the Approved Services at the Studio are required to: ;(i) complete Authorized Coach
Training, subject to the conditions set forth in Section 6, at (a) Franchisee’s Studib, (b) the Studio of another
System franchisee, or (c) at Franchisor’s then-current corporate headquarters; and (ii) pay the then-current fee
associated with attending Authorized Coach Training (“Authorized Coach Training”). With respect to Authorized
Coaches and Authorized Coach Trainings the parties agree and acknowledge as follows:

I. Franchisee agrees and acknowledges' that Franchisbr’s standard franchise offering


assumes and expects,, and Franchiseemust ensure, that any individual that Franchisor contemplates to serye as an
Authorized Coach will have acquired and maintained one; of following certifications from the appropriate third-

020 f9 Stride Franchise,, LLC ■ 7


2019 Franchise Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
party certification agency: (i) NASM Personal Training Certification; (ii) AGSM Personal Training Certification
(the “Required Third-Party Certification”).

2; The parties hereby agree and acknowledge that Franchisor may supplement or modify
theikihds of certifications that will constitute a Required Third-Party CeTtificatipn for purposes of this: Aj^eemienf
as well as designate additional certifications that are recommended for Authorized Coaches, via the Manuals or
otherwise in writing as it determines appropriate in its discretion.

3. Franchisee must provide Franchisor (or, at Franchisor’s^ option, the Master Trainer at
issue) with a copy of the Required Third-Party Certificatibn before any individual that Franchisee wishes to serve
as an Authorized Coach af the Franchised Business before that individual may attend or receive Authorized Coach
Training

4. The amount the prospective coaehi or, at Franchisee’s option,, that Franchisee on the
coach’s behalf, must pay for Authorized Coach Training will vary depending on whether Authorized Coach
Training is conducted at the Studio or at another loca^tion.

5.8 Other Amounts Due in Connectibh:with Franchised Business. Franchisee will also be responsible for
timely payrnerit, of any other required fees or amounts; necessary to purchase marketing materials, inventory or
other supplies from Franchisor or its affiliates described in this Agreeirtent;

5.9 Electronic Transfer; Right to Modify Collection Interval.

A. The Royalty Fee, Fund Contribution as well as any other fees.owed to Ffanchisor or its affiliates
under this Section 5 or, otherwise in connection with the franchised business, will be automatically debited from
Franchisee’s point-of-sale Operating account administered by the designated supplier of point-of-sale services on
a weekly basis throughout the Term, unless Franchisor provides reasonable written notice that Franchisor is
modifying the collection interval (e.g.,.notifying Franchisee that Franchisor wifi be collecting Royalty Fee, Fund
Contribution and other recurring amounts due on a monthly rather than weekly basis, with such monthly fees
basedxon the Gross Sales of the Studio over the preceding calendar month).

B=: All amounts due to Franchisor for the purchase of products, services or otherwise are due upon
receipt of an invoice from Franchisor. Any payrnent or report not actually recei ved by Franchisor on or before the
due date is overdue.

C. Franchisee agrees to complete and execute an “Electronic Funds Transfer Agreement” (attached
as Exhibit 2 to this Agreement) and any other form, including, without liniitation, an “Electronic Debit
Authorization” (attached as Exhibit 3 to this Agreement! for the purpose“of authorizing an,electronic debit, and to
submit any information required by Franchisor for such authorization.

D. Franchisee is required to use Only the PCS systern provided by the designated supplier and will
pay the designated provider directly for all fees associated with the use of the designated provider’s software.
Franchisee is not alio,vyed tO use an unapproved external terminal to process transactions.

5.10 Interest and Late Charges. Amounts due to Franchisor (except interest on unpaid amounts due) not
paid when due shall bear interest from the;date due until paid at the lesser of one and one-half percent (1.5%) per
month, or the highest rate of Interest allowed by law. Franchisor may a}sO recoyer’its reasonable attorneys’ fees,
costs and other expenses incurred in collecting amounts Owed by Franchisee.

®i20l9; Stride Franchise,.LLC 8


2019 Franchise Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
I have read Article 5, understand it, and agree to comply with each
of its Sections.
Your Initials: /

6. FRANCHISOR SERVIGES

6.1 Site Selection and Lease Negotiations. Although Franchisor will provide the site selection assistance
described in Section 1.2 of this Agreement, Franchisee is solely responsible for locating, obtaining and evaluating;
the suitability and prospects of the Studio location, for the review and negotiation of its lease, and for hiring an
attorney or other adyisbr to revievv and.help negotiate the lease. The Authorized Location must meet Franchisor's
then-current System standards.ahd specifications, as set fofth in the Manuals or otherwise, in writing by Franchisor:
Franchisor reserves the right tocharge a reasonable fee for performing any Franchisee-requested.pn^site evaluation
to cover incurred expenses, including, but not limited to, travel,.lodging, meals and wages., FranChisor agfeeS not
to Unreasonably withhold approval of a site that meets its site criteria.

6.2 Unit Development. Franchisor shall consult and advise Franchisee on the: proper display of the Marks,
layout and design, procurement of treadmills and other designated equipment, ffee weights and other equipment,
furniture, fixtures, Surveillahce cameras with audio, initial inventories, recruiting persoimel, and managing
construction, or femodelihg of the Studio. After Franchisee has executed a lease; for the Authorized Location,,
Franchisor shall deliver to Franchisee specifications and standards.for building, equipment, furnishings, fixtures,
surveillance cameras with audio, layout, design, and signs relating to the Authorized Loeation and shall provide
reasonable consulfatioii in connection with the deVelopnaent .of the Studio; Franchisee’s architect,must make ariy
layout, desigii. and specifications provided by Franchisor site-specific. Franchisee agrees to make no changes,
alterations or modifications whatsoever to the selected layout and design without obtaining prior written consent
fi'om Franchisor.

6:3 Training Reauirements and Remedies. Franchiseeiagrees and acknowledges that the following training
obligations and requirements must be strictly complied with.and adhered to.at all times dUrihg the Terrn:

A, Initial Training Requirements. Prior to opening the Studio, Franchisee must ensure that: (i)
Franchisee (or, if an entity, its Operating Principal) completes the appropriate model of Franchisor’s initial training
program that is designed for the ovmer and operator .ofAe Studio (the “Owner/Operator Module”); (ii) any and all
initial coaches that Franchisee wishes to have proyi.de thd ApprOyed Services at the: Studio successfiilly complete
Authorized Coach Training and related testing, described more: frilly belovy, as required for such coaches to become
a Coach that isnuthofized to provide the;runniing classes and certain other. Approved Services at the Studio (each, an
“Authorized Coach”); and (iii) if Franchisee; has engaged a, Designated Manager as described more frilly in Section
8.6 of this Agreement, such Designated Manager has completed the module of Ffarichisor’s initial training program
designed. for this kind, of manager (the “Designated Manager Module”).

1. Owner and Designated Manager Training. The Ovyner/Operator Module and Designated
Manager Module will typically be provided at one (1) of Ffanehisof’s corporate training locations, located in
California, and Franchisee will be responsible for all costs;and expenses associated with the attending these modules.
Fr^chisor will provide each oftheforegoing modules to one (1) person tuitipn-fi-ee, provided the two (2) individuals
attend at the same time prior to the opening of the Studio and subject to the schedules and availability of its training,
staff. Otherwise, Franchisor reserves foe right to charge its foeh-curfent Training.Fee for initial training to any other
individuals foat vyish tp attend these modules.

2. Authorized CPach Training for Initial and Subsequent Coaches. In order fO provide foe
Approved Services at foe Studio,, a cpach niust complete Authorized Coach Training and, related testing to become:
an Authprized Coach. Authorized Coach Training will typically be provided on-site at a Studio foat is owned by
ahpfoer franchisee (a “Franchisee Studio”) or one (1) of our affiliates (a ‘Cbrpprate Studio”). In foe event a coach

©2019 Stride,Franchise, LLG 9


2019 Franchise Agreerhent
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
completes Authorized Coach Training at a Franchisee Studio, then Franchisor reserves the right to have one (1) of
its master trainers (each, a “Master Trainer”) review the coach’s testing results before approving that individual to
serve as an Authorized Coach and provide Approved Services from the Studio. Franchisee, or the coach at issue;
will be required to (a) pay the then-current fee associated with providing Authorized Coach Training (“Cbach
Training Tuition”) for each coach that attends Authorized Coach Training, and (b) coyer the related costs and
expenses associated With attending and completing Authorized Coach Training at a Studio that is authorized to
provide Authorized Cbach Training (as described more fully in Section 8;4(D) of this.Agreement).

a. Franchisor recpmrnends that at (east one (1) of the initial coaches at the Studio attend
Authorized Coach Training around the same time thafthe Owher/Operator Module is completed by Franchisee.

b. To the extent permittedby the laws where.the Studio is located, any and aU individuals that
wish to attend Authorized Coach Traihiiig must execute a prescribed form of agreement wherein that mdividual
a^ees to; (i) not disclose Or use the confidential Or proprietary portions of Authorized Coach Traiiung for any
competitive purpose during and after that individuars employment with Franchisee; and (ii) not solicit existing or
prospective customers of the Franchisee’s Stiidio during their employ or engagement with Franchisee and for a
period of two (2) years thereafter^

3. Remote Instruction. Franchisor has the right to provide,,and require:thatFranchisee or other


required trainee participate m and complete, portions of the training described in this Section that are provided
remotely via the Internet Of similar learning management. System that permits the Franchisor to determine whether
Franchisee and/Of other required trainee is,actively participating in the webinar or other instruction at; issue:

4., Remedies for Non-Compliance. If any of the individuals described in this Section fail to
successfully complete thesapplicable training required by this Section before the. time Franchiseeris required to open
the Studio hereunderi Franchisor may terminate this Agreement upon -written notice to: Franchisee. In the event
Franchisee permits (a) anyone other than an Authorized Coach to provide the Approved Services from tiie Studio,
or (b) the Studio to be open and operating without an Authorized Coach ohrtife at the Studio, FranchiSofmay default
Franchisee as set forth in Sectibh 15.1 of this Agreement. Frahchisofj as part of its right to inspect and audit the
operations of the franchised business on.an ongoing basis, may require that Franchisee demonstrate;thatall required
personnel have participated in andsuccessfully completed AuthorizedCoach Training; If Franchisee fails to comply.
Franchisor reserves the right to charge Franchisee its then-current penalty fee (“Penalty Fee”) for each day that
Franchisee permits anyone, other than an Authorized Coach to provide any Approved Services or related instruction
in conhectioh with tiie Studio:

B. Discretionary On-Site Assistance. Around the time the Studio is, opening. Franchisor may send
one (1) or more representatives to the Studio to (i) provide;assistance and recommendations- regarding the opening
and initial operations Of the Studio, and/or (ii) provide additional or refresher training associated with the
Owner/Operator Module and/or Authorized Coach Training, aU as Franchisor dfetermines appropriate in its
discretion (collectively^ the “Discretionary On-Site Assistaiice”). In the event Franchisor notifies Franchisee that
it will be providing the Discretiohaiy' OnrSite Assistance, such assistance typically lasts one (1) to two (2) days
and Franchisee must ensure that Franchisee (or its Operating Principal), all management personnelland Authorized
Coaches are in attendance at the: Studio during those days.

C. Ongoing/Refresher Training. Franchisor may provide, and require that Franchisee as well as any
of its management personnel attend, up to five (5) days of additional traming: each year at a training facility that
Franchisor designatesfwithout charging Franchisee any TrainingFee as described in Section 5.7 of this Agreement):
Franchisee may also-request.that Franchisor provide certain .additional of refresher training to Franchisee, either at
one (1) of Franchisor’s designated training facilities: or orirsite at Franchisee’s Studio, but: Franchisor reserves: the
right to charge Franchisee its then-current Training Fee based in connection with any training that Franchisor
provides at Franchisee’s request. Such training will be provided subject to the availability and schedules of
Franchisor’s training personnel.

©2019 Stride Franchise, LLG 10


2019 Franchise Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
D. Remedial rrai«i«g.. If Franchisor determines' that F ranchisee is operating the franchised business
in a, manner that is not consistent with the terms of this Agreement or the Manuals, or if Franchisee is otherwlsei
in material default of this Agreement, Franchisor may also require, that Franchisee, its Designated Manager (if
applicable) and/or certain Authorized Coaches of the Studio attend and complete up to five (5 ) additional days of
training at,(a) Franchisor’s designated training facility, (b) the Studio, or (c) other location Franchisor designates,,
that is designed to address the>default or other non-compliance issue (the “Remedial Training’’); Franchisor may
require Franchisee and its designated trainees to pay Frarichisdr its thenrcurrent Training^ Fee in connection with
attending Remedial Training.

E. Master Training, In the event Franchisee wishes to have one (1) Of the Studio’s Authorized
Coaches provide Authorized Coach Training at the Studio to coaches as part, of the Approved Services, as
described more fully in Section .8 .4(13) of this Agreement, then that Authorized. Coach must attend and coniplete
an additional training course provided by Franchisor’s master frainer designed to provide the Authorized Coach
with additional instruction necessary for that individual to become a master trainer that can provide Authorized
Coach Training (each,, a “Master Traihef’’). Franchisor ia not obligated to approve any Franchisee request to
prOvide,a given Authorized Coach with master training, and Franchisee must: (i);not be in default Of any provision
ofthis, Agreement as a:condition to Franchisor’s approval of such a request; and (ii) pay Franchisor its thenrcurrent
Training Fee in connection with any master training ;prOyided uhderthiS Section.

Fi Costs and Expenses. Franchisee will be responsible for the costs and expenses associated with
Franchisee and its personnel,attending:and completing all of the trairiing described in this: Sectioni including without
limitation, any costs related to trayel, lodgings rneals and (if appropriate) wages/compensation for persoimel.

6i4 Operations Manual. Franchisor will grant Franchisee online access to an electronic version of the
-Manual duririgtheterm of this Agreement. The Manual is'anticipated totcodifr: existing mandatory and suggested
'specifications, standards and operating procedures cUrreritly prescribed by Franchisor. Franchiseesacknowledges
that Franchisof may frOm time to time revise its Systems, as well as the contents of the Manual, and Franchisee
agrees to comply with each new or changed standard and specification upon notice from Franchisor. The Mamial
shall remain the sole property of Franchisor and .shall be kept Confidential by Eranchisep both during the Term of
this Agreement and subsequent to the termination, expiration. Or non-renewal ofthis Agreement. If Franchisee,
intentionally or otherwise through its gross negligence,, compromises the secure access to the online version of
the Mariual (or any hard copy of the Manual), including, but not limited to, allowing unauthorized users: access to
the Manual and,its confidential contents, Franchisee will be requifed to pay Franchisor liquidated damages in the:
amount of $l;fr,000, to:compensate Franchisor for the breach and related damage to the System.

6.5 Continuing: Services. Franchisor shall provide such continuing .advisory assistance and information to
Franchisee in-the development and operation of the Studio as Franchisor deems advisable; in its discretion. Such
assistance may be provided, in Franchisor’s discretion, by Franchisor’s directives. System bulletins,.meetings and
seminars, telephone,, comiputer, e-mail, fax, personal visits, newsletters or manuals.,

6.6 Approved Lists. Franchisor shall provide and from time to timei add to, alter or delete, at Franchisor’s
discretion, lists of specifications,, approved distributors and suppliers, approved services, and products, including,
but not limited to, running equipment and gear, and other materials and supplies used in the operation Of the
Studio. Franchisor, or an affiliate of Franchisor, may bea designated or approved supplier ofcerttim equipment,
gear, merchandise, apparel and supplies.

6.7 Pricing. Franchise has deyelOped an image ,that isbased in part on affordable prices for running and other
fitness services offered by the $ystem. To promote a consistent consumer experience:; and to maximize the value
of the products and services Studios offer. Franchisor may require fixed minirhum prices for any products or
services offered by the Systein and Franchisee. Franchisee is Obligated to use the pricing required by Franchisor,
unless Franchisor consents to changes in local pricing offered by Franchisee in order to (i) alloy/ Franchisee to

©2019;Stride Franchise, LLC 1.1


2019 Franchise Agreement
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
responds to unique, local, rharlceting conditions, competition, or expenses; or (ii) comply with changes or
interpretations in stateior federal anti-trust laws. Consistent with state or federal law. Franchisor reserves the right
to change or eliminate its pricing prograrn in the future. Or to rrioVe ;frGni a required to recommended pricing
structure.

6.8 Fund. As detailed in Section 9.1 of this Agreement, the Fund - if an when established ^ will be
maintained and administered by Franchisor with the assistance Of the marketihg.fund eomniittee (“FAC”) to meet
the costs' of conducting regional and national advertising and promotional activities (including: the cost of
advertiring campaigns, test marketing, marketmg surveys, public relations activities and marketing materials)
which Franchisor and theFAC deem beneficial to the System.

6.9 Grand Opening Advertisihg Assistance. Franchisor will consult and advise Eraaiphisee on the
advertising, marketing and promotion for the grand opening of the Studio, as Franchisor deems appropriate in its
discretion.

I have read Article 6, understand it, and agree to comply with each
of its Sections.
Your Initials: /

7. FACILITY STANDARDS, LEASE AND CONSTRUCTION

7.1 Facility Specifications. Franchisee’s Studio shall meet the following conditions:

A. The Studio shall be laid put, designed. Constructed or improved, equipped and furnished in
accordance with Franchisor’s standards,and,specifications. Equipment,,furnishings, fixtures, surveillance cameras
widi audio, decor and signs,for theStudio shall be purchased from suppliers approved or designated by Franchisor.
Franchisee may remodel or alter the Studio,,nr change its equipment, furniture Or fixtures, only with Franchisor’s
consent. Franchisee must obtain necessary perinits, licenses and other legal or architectural requirements. The
Studio shall contain or display only signage that has been specifically approved or designed by Franchisor;,

B. The Studio and all fitness equipment shall be maintained in accordance with standards and
specifications established by Franchisor oC prescribed after inspection of the Studio. Franchisee shall promptly
repair or replace defective or obsolete equipment, signage, fixtures or any other item of the interior or exterior that
is' in need of repair,.refurbishing or redecorating in accordance with such standards established (and updated from
time, to time) by Franchisor or as may be required by Franchisee’s lease,

C. Franchisee:agrees;arid aClaiowledges that; (i) the System will evolve; (ii) the fitness industry must
respond to new fads, hew forins Of exercise, new equipment and new training techniques; and (iii) the System
must change to meet customer demands. Franchisee further understands that nmning equipment and other
equipment wears out, breaks down, or becomes obsolete. Consequently, from time to time, as Franchisor requires,,
Franchisee must rnodernize and/or TeplaCe items of the Trade Dress or Studio equipment;as may bemecessary for
the Studio to conform to the standards for new Studios. Further, Franchisee will be required to thoroughly
modernize or remodel the Studio when requested by Franchisor, but ho mOre than Once every 5 years. This may
;inciude replacing rurming/fitness equipment and gear, and other updates and improvements. Franchisee
acknowledges that this obligation could result in Franchisee making extensive structural changes to. and
sigriificantly remodeliiig.and renovating the Studio, and Franchisee agrees to incur, without lirnitatioh, any capital
expenditures required in order to comply with this obligation andTfanchiSpr’s requirements. Within 60 days after
receiving written notice from Franchisor, FfanChisee shall have plans prepared according to the standards and
specifications that Franchisor prescribes and Franchisee must submit those plans to Franchisor for its approval.
Ffanchisee agrees to complete all work according to the plans that,Franchisor approves within the time period that

©201’9 Stride Franchise,.LLC


2019 Franchise. Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Franchisor reasonably specifies and in accordance with this A^eernent. Franchisor, of its; Affiliate; will hold
themselves, and the Studios they operate (if any) to thessame hi^ standard, and same frequency for replacement
and renoyation as is, expected of Franchisee.

D. The Studio shall contain signage prominently identifying Ffanchisee by name as an independently
owned and Operated franchisee‘of Franchisof.

E; The Studio must have a surveillance camera with audio purchased from a designated approved
supplier installed at the Studio; The camerafs) must be \yeb accessible. The camera(s) will be used by Franchisee
to monitor teacher performance, quality assurance and safety. Franchisor has an absolute right to also review and
monitor the camera(s) for the.same purposes asEranchisee, and to ensure/compliance with the Systeih. Franchisee
is responsible for ensuring customer consent and for any failure to obtain siich consent; Franchisee agrees to
indemnify Franchisor for any breaches of privacy from Franchisee ’s use of any surveillance camera.

12 Lease. Franchisee is;solely responsible for purchasing or leasing a,suitable siteTor the Studio. Franchisee
must utilize the retail real estate attorney designated by Ffahchisbf in writing, either in the Manual or otherwise,
to review and negotiate the lease for the Studio. Franchisee must submit theilease for the Studio to Franchisor for
its’written consent before Franchisee executesithe lease for the Authorized Location. Franchisor will not withhold
Consent arbitrarily; however, any lease must contain substantially the following provisions: (1) “The leased
premises will be used only for the operation of a STRIDE Franchise;’- (2) “The employees of Franchisor will have
the right to enter the leased premises to rtiake any modifications necessary to protect the; System and proprietary
marks thereof;’’ (3) ‘‘Lessee agrees that Lessor may, upon request of Franchisor disclose to said Franchisor all
reports, information or data in Lessor’s possession with respect to sales made ih; upon or from the leased
premises;” and (4) a conditional assignment clause to be contained in a lease rider in a form approved by
Franchlsorv which shall provide; that Franchisor (or its designee) may, upon termination,, expiratiori, non-renewal
orproposed assignment ofthis Agreement,,at Franchisor’s sole'Option, take an assignmehtofFranchisee’s.interest
thereunder, without the, consent of the Lessor or property owner , without liability for accrued obligations; payment
of additional consideration or increase in rent, and at any time thereafter, reassign the lease to a new franchisee.
Franchisor’s execution of this Agreement is conditioned upon the; above-referenced, lease addendum in tire form
attached hereto, as Exhibit 5 (“Lease’ Addendum”), which shall be signed by Franchisee and attached and made
paft.of the lease for the Studio. Franchisee acknowledges'that it has been advised to have miy lease; reviewed by
Franchisee’s own legal counsel.

7.3 Unit Development. Franchisee agrees that after obtaining possession of the Authorized Location,
Franchisee will promptly, at Franchisee’s sole expense:

A. Obtain arty standard plaits and/or specifreations from Franchisor;

B. Employ a qualified licensed architect, as required by state or local codes, to prepare all drawings,
designs, plans and specifications for the Studio, and submit same to Franchisor for review and approval prior to
commencing construction;

C. Complete the construction or remodeling of the Studio in full and strict compliance with plans
and ,specifications approved by Franchisor, and in compliance With .all applicable ordinances, building codes and
permit requirements;:

D. Purchase or lease, in accordance with Franchisor’s standards ,and specifications, all fitness
equipment,, fixtures, inventory, supplies and signs required for the Studio;

E. Hire and train the; initial operating personnel according to Franchisor’s, standards and
specifications; and

©2019 StrideFranchise, LLC


2019 Franchise Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
F. Complete development of and have the; Studio open for business not later than six (6) months
after the date that Franchisor’accepts this Agreement.

7.4 Franchisee’s Responsibility. Although Franchisor may provide Franchisee with, various standard or
sample plans and specifications with respect to constructing and equipping the Studio, it is Franchisee’s sole
responsibility to construct and equip the Studio in compliance with all applicable Federal state; and' local'laws and
regulations,, including, without limitatiOni all building codes, fire and safety codes, environmental laws,
Occupatioiial Safety and Health Administration laws, health laws, sanitation laws, Americans with Disabilities
Act and all other requirements that may be: prescribed by any federal, state or local governmental agency.,
Franchisee further acknowledges' and agrees that Franchisee is, and will continue to be at all tiines during tbe
Term, solejy responsible.for all employment decisions and to comply with all state, federal, and local hiring laws
and functions of the Studio, including without limitation, those related to hiring, firiiig, framing, vvage and hour
requirements, compensation, promotion, record-keeping, supervision, and discipline of eiriplOyees, paid or unpaid,
full or part-time. Franchisee’s employees must be cOrhpeterit, conscientious, and properly trained. Franchisee
acknowledges that nothing in this Agreement shall, or may be construed to, create any type of employer or joint
employer relationship between (a) Franchiseemr any of Franchisee’ s personnel, and (b) Franchisor in any matter;

I have read Article "7, understand it, and agree to comply with each
OfIts'suB-sectiOhs.
Your Initials: /

8. STliDIO IMAGE AND OPERATING STANDARDS

8.1 Compliance. Franchisee acknowledges and agrees that every detail regarding the appearance and
operation of the Studjo is important to Franchisor, Franchisee, the System.and other System.franchisees in order
to maintaih high and uniform Operating .standards, to increase demand for the classes sold by all fi-anchisees„ and
to'protect Franchisor’s reputation and goodwill, and, accordingly,.Eranchisee agrees to comply strictly at all times
with the requirements of this Agreement and Franchisor’s .standards and specifications (whether contained in the
Manual or any other written or oral communication to Franchisee by Franchisor) relating to the^ appearance or
operation Of the Studio. Franchisee acknowledges that other Studios may operaite; under different forms of
agreement with Franchisor,. and that the rights and obligations of the parties to other agreements inay differ from
thosei hereunder.

8.2 Franchisor’s Right to Inspection. To determine whether Franchisee is complying with this Agreement
and Frahchisor’s standards and specifications, Franchisor reserves the right to supervise, determine and approve
the standards of appearance, quality and service pertinent to the Studio iheluding, without liniitaition, the right at
any reasonable time and without prior notice tO Franchisee to: (I) inspect and examine the business premises,
fimess equipment, facilities .andmperation of the Studio in person.or by web accessible surveillance cameras with
audio, which are required to be installed in each classroom in theiStudio; (2)fnterview Franchisee and Franchisee’s
employees, including any independent contractors;, (3) interview Franchisee’s members and customers, suppliers
and any other person with Whom Frarichisee does business; (4) confer with members, and staff of government
agencies with authority over Franchisee about matters relevant to the Studio;.and (5) use “mystery shoppers,” who
may pose as customers and evaluate Franchisee and Franchisee’s ,Operations.

8.3 Personnel. Franchiseeagrees to employ in the operation ofthe;Studio only persons of high character and
ability who maintain and exhibit traits of enthusiasm, cleanliness, neatness, friendliness; honesty and loyalty, it
being recognized by Franchisee that such persons are necessary in order tO promote and maintain customer
satisfaction and the goodwill of the System. Franchisee agrees to staff the Studio at all times with a sufficient
number of qualified, competent personnel who have been trained in accordance with Franchisor’s standards.
Franchisee shall be considered the employer of all employees and independent contractors of the Studio, It is tiie
sole responsibility of Franchisee; to hire, discipline, discharge and establish Wages, hours, benefits, employment

©2019 Stride Franchise, LLG 14


'2019 Franchise Agreement
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
policies and other terms and conditiorts of'empioymeiit for itSvemployees;and independent contractors. Franchisee
is. responsible for obtaining its own independent legal advice regarding the employment of employees and
independent contractors,;and.compjyingvvith any and all applicable laws pertaining thereto. FranchisorshaHhave
no responsibility for the terms and conditions of Franchisee’s relationship with Franchisee’s employees and/or
independent contractors. Franchisee shall engage in no discriminatory employment practices and ahall in eyeiy
way comply with all applicable laws, rules and regulations of federal, state and local governmental agencies^
including,: without limitation, alj wage^houTi civil .rights, immigration^ employee safety and related employment
and payroll related lavvs. Ffanchisee shall make all necessary filings; with, and pay all taxes and fees due to, the
Internal Revenue Service; and all other federal, state and local governmental agencies or entifiesito which filings
and payments,are;required.

8.4 Products and Services to be Offered for Sale.

A. Approved Services and Approved Products Generally. Franchisee acknowledges that the
presentation of a uniform image to the public and the offering: of uniform services and products; is an essential
element of a successful franchise system. In order to insure consistency, quality and uniformity throughout the
System, Franchisee agrees: (i) to sell or offer for sale only the services or products that have been expressly
approved for sale by Franchisor; (ii) to sell or offer for sale all services and products,required by Franchisor; (iii)
not to deviate from Franchisor’s standards and specifications; and (iv) to discontinue selling and offering for sale
any seivices or products that Franchisor may, in its discretion, disapprove at any time:, Franchisor shall supply
Franchisee with a list of suppliers from which Franchisee is required tP purchase fitness equipment, running
equipment/accessories, products or services for ihe^Studio. FtanchiSor may change this list from time to time, and
upon nptifieation to Franchisee, Franchiseeshall only purchase:fimess equipment, running equipment/accessories,
products or services from approved suppliers, as specified on the changed list. Franchisor, or an affiliate of
Franchisor, may be a designated or approved supplier of certam equipment gem-, mefchandise, apparel and
supplies. Franchisee agrees to keep the Studio and fimesS equipment in clean condition, with all equipment well-
mairitaihed and operational, and be able at all times during business hours to provide members with all services
and products specified by Franchisor.

B. Required Use of Approved Suppliers. Franchisee agrees that: :(i) all exercise Cquipmentmust; be
purchased exclusively from approved suppliers .and, mUst be maintained according to manufacturer or Franchisor
specifications^ as applicable; and (ii) Franchisee must use the real estate attorney designated by Franchisor to
review and negotiate the lease for the Studio. Franchisee acknowledges and agrees that Pfanchispr is (or may at
any time in future become) an approved or designated supplier for certain running/fitrtess equipment, other
equipment,, products, logo items, signage and artwork, that Franchisor may derive income from the; sale of such
items, and that the price charged by Franchisor may reflect a profit.

C. No Deviation or Supplement with Regards to Approved Services and/or Related Methodology.


Franchiseeiand those it employs must teach classes andprovideiOther instruction exactly as specified in the Manual
and in, other fraihing materials provided by Franchisor. Franchisee agrees not to add any exercises^ running
methods, workout regimens, or other forms of instruction that are not approved by Franchisor, and Franchisee
agrees not to leave out any exercises, running methods, workout regimens, or other forms of running instruction
that are required by Franchisor.

D. Franchisor Approval of Master Trainer arid Provision ofAuthorized, Goach Training as Part.of
the. Approved Services at the Studio^ The parties ,agree.andsackno.wledge that,Franchisee;may not offer or provide
Authorized Coach Training at the Studio or otherwise, unless and until: (i) Franchisor approves an Au&orized
Coach to attend and complete the master training program described in Section 6.3(E) of this Agreehient; (ii)
Franchisee;or the Authorized Coach at issue pays Franchisor the required Coach Training Tuition associated with
the training; (iii) that Authorized Coach completes the foregoingjprogram and is approved as a Master Trainer;
and (iy) Franchisor provides written notice to Franchisee that the Master Trainer can provide Authorized Coach
Training at the Studio (the “Authorized Coach Training Supplemental Service Conditions”). In the event the

©2019 Stride Franchise, LLG


2019 Franchise Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Authorized Coach Training Supplemental Service Conditions are satisfied, only the Master Trainer(s) .that have
satisfied the conditions may provide Authorized Coach Trainingrat the Studio, subject to the. following terms:

1. Franchisee must ensure that its Master Trainer provides Authorized COach Training in
strict accordance with System sf^dards and specifications,, as well as the materials that Franchisor provides for
use imconnection with the provision of Authorized Coach Training (the “Authorized Coach Training Materials”);

2. With regards to each client that enrolls in Authorized Coach Training at the Studio,
Franchisee agrees and acknowledges that; (i) Franchisor will receive the fUlLthehrCiiirent COach Training Tuition
associated with providing the Program to that client from the client directly via. online scheduling/payment or
Other method Franchisor designa:tes; (ii) unless Franchisor agrees otherwise in a separate Writing, Franchisee rnay
not acceptiany Coach Training Tuition;, and'(iii) Franchisor will be.entitled to its then-current pOrtioh of the Coach,
Trairiing Tuition asiconsideration for the intellectual.property and,Authorized COach Tra'iningMateriais associated
with the Program before remitting the balance ofthe Coach Training Tuition toFranchisee; and

3. The revenue generated by the provisiph of Authorized Coach Training at the Studio will
not be aeeounted for in the definition of “Gross Sales” Of the Studio for purposes Of calculating the Royalties or
Fund Contribution due to Franchisor hereunder and will be accourited for separate and apart from all other Gross
Sales Of the Studio in required financial reporting;under this Agreement;.

E. Non^Approved Services, Products or Suppliers^ If Franchisee proposes tO offer for sale any other
products. Classes Or services that have .nOt been approved by Franchisor, Franchisee shall first notify Franchisor
in writing and submit sufficient information, specifications and samples concerning suCh product, classes and/or
supplier and/or service for a determination by the Franchisor whether such product, classes or supplier of service
complies with the Franchisor’s specifications and standards:and/or Whether such supplier meets the Franchisor’s
approved supplier criteria. Frahchisor shall, within ninety (9Q) days, notify Franchisee in writing whether or not
such proposed product, class and/or supplier or service rs approved, as determined in. Franchisor’s discretion.
Franchisor reserves the right to charge Franchisee reasonable costs in connection with. Franchisor’s review,
evaluation and approval of alternative suppliers. These charges may include reimbursement for travel,
accommodations, meal expenses, and personnel wages. Franchisor may firom time to time prescribe procedures
for the submission of requests for approved products and/or suppliers or services and obligations that approved
suppliers must assume (which may be ineorporated in a written agreement to be.exeeuted by approved suppliers).
Franchisor reserves^ the right to revoke its approval of a previously authorized supplier, product, class or service
when Franchisor determines in its diseretion that such supplier,, product, class or service is not meeting the
specifications and standards established by Franchisor. IfFranchisormodifies its'list.Of approved products^ classes
and/or suppliers and/or services. Franchisee .shall nOt, after receipt in writing of such modification, reorder any
product or utUize any supplier, producft class.'or service that.is no longer approved.

F. Franchisor Rights: Franchisee acknowledges and a^ees that Franchisor may sell products and
services to members located anywhere, even if such products and services are similar to what Franchisor sells to
Franchisee and wbat Franchisee Offers at the Studio. Franchisor may use. the internet or alternative channels of
cOrnmerce to sell brand products and services. Franchisee may only sell the products and services from the
Studio’ s approved,loeatiOn, and may only use: the; internet Or alternative channels of commerce to offer Or sell the
products and services, as permitted by Franchisor, in order to register members for classes. Nothing the
foregoing shall prohibit; Franchisee from obtaining members over the Internet provided Franchisee’s internet
presence and content comply with the requirements of this Agreement.

G. Advertising Outside Designated Territory. Unless Franchisor agrees otherwise. Franchisee may
not actively solicit potential members or customers, or Otherwise promote the franchised business through any
targeted advertisin^marketing. Outside of the Designated Territory. Nothing ih this Agreement, however, shall
prohibit Franchisee from servicing members and other customers that contact Franchisee Or the Studio; regardless
of where those: members/customers reside or work.

(tf201'9 Stride Franchise, LLC


;2019 Franchise Agreement
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
H. No Unauthorized Sales of Certain Items. Unless Franchisor'directs or agrees Otherwise in writing.
Franchisee agrees not'to sell vitamins, supplements or other riulritibndl products or food items, including bottled
water, at the Studio.

I. Penalty Fee,. Franchisor reserves the right to charge its then-current per day Penalty Fee for each
day Franchisee offers or sells unauthorized products of services from the;Studio, including in connection with the
offer Of provision of Authorized Coach training in,a manner that is not consistent with this Agreement.

8.5 Compliance with Laws. Franchisee agrees to comply With all fedefal, state and local laws, rules, and
regulations andishal! as soon as practicable, but.in any event prior to the opening for business of the, Studio, obtain
all municipal and state permits, certificates or licenses necessary to operate the Studio and shall file arid publish^
if required by applicable! law, a certificate of doing business (whe^er under a fictitious name or otherwise).
Franchisee acknowledges and agrees that it has the sole fesponsibility to investigate and comply with any
applicable laws in the state whefe the Studio is located that are specific to the operation of a health/fitness studio,,
For exairiple, some states, require that health/fitness facilities have a staff person available dufing all hours of
operation that is certified in basic cardiopulmonary resuscitation or other specialized,medical training. Some state
or local laws may also require that health/fitness facilities have an automated external defibrillator and/or other
first aid equipment on the premises.. Franchisee shall operate and maintain the Studio in strict compliance with
all employment laws, building codes, fife and safety codes, environmental laws, Occupatioiial Safety and Health
Administration laws, health and safety laws, sanitation laws, Americahs with Disabilities Act and any other
requirements that may be prescribed by any federal, state or local governmental agency. Franchisee agrees to
immediately provide Franchisor with a copy of any notice received by Franchisee from any state, local or
governmental agency pertaining to compliance with any codes or requirements, or the failure to cbmply with any
codes or requirements, at the Studio. Franchisee hefeby certifies and represents that Franchisee, and any of its
affiliates, any of its partners, members, shareholders or other equity owners, and their respective employees,
officers; difecfors representatives or agentSj are not acting, directly or indirectly, , for or on behalf of any person^
group, entity or nation named by any Executive Order or the United States Treasury Department as a terrorist,
“Specially Designated Natipnal and Blocked Person,” or other banned or blocked person, entity, nation or
transaction pursuant to any law, ofdef, rule or regulation that:is enforced or administered by the Office of Foreign
Assets Control. Franchisee hereby agrees to defend, indemnify and hold harmless Franchisor from and against
any and all claims, damages,, losses, risks, liabilities arid expeiises (including attofneys’ fees and costs) arising
from or related to any breach of the Certifications set forth in this paragraph.

8.6 Operational Efforts. Franchisee may appoint a Designated Manager to assist in the direct, day-to-day;
supervision of the operations of the Studio, pfoyided that Designated Managef successfully completes the
Designated Manager TraMng Program prior to conimeriCing any management responsibilities at the Studio.
Franchisee agrees to keep Franchisor advised, in writing, of any manager and all teachers involved inthe operation
of the franchised business, and their contact information. Franchisee agrees to keep the Studio open for die hours
stated in the Manuai and as deemed,appropriate by Franchisor. If Franchisee does not hay e a Designated Manager;
then Franchisee (or its Operating Principal, as applicable) must be on-rsife at the Studio during normal business
hours to manage day to day operations.

8.,7 Good Standing. Franchisee will be considered in “Good Standing” if Franchisee is.hOt ih default of any
obligation fo Franchisor or any of Franchisor’s affiliates, whether arising under this Agreement or any other
agreement between Franchisee and Franchisor (Or any of Franchisor’s affiliates), the Manual or other Systern
requirements.

8.8 Performance Standards. Franchisee and Franehisor have a shared interest ih the Studio performing at
or above the System Standards. Franchisor would not have entered into this franchise relationship if Franchisor
had anticipated that Franchisee would not meet these Performance Standards,

©2019 Stride Franchise, LLC


2019 Franchise Agreement,
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
A. System Standards. FraneKisor may choose, in its sole discretion, to evaluate the Studio for
compliance with the System Standards using various methods (includihg, but not limited tdj inspections, field
service: visits,, surveillance camera monitoring; member comments/surveys, and secret shopper reports.)
Ffarichisee;must meetminimum standards for cleanliness, equipmeritcGndition,;repair and .function; and custdmef
service: Franchisee’s employees, includiiig any independent Contractors, must meet minimum standards for
eourteousness and customer: service.

B., Minimum Monthly Gross Revenue Quota. Unless waived by Franchisor due to unique market
conditions. Franchisee must meet a certain Minimnm Monthly Gross Revenue Quota. If Franchisee fails to
achieve and!maintain average..mdnthly gross, revenues of $30,000 by the year anniversary of the opening of the
Studio and average monthly grossrevenues Of $40,0.00'by the end of the 2-year anniversary and eadh.succeeding
year thereafter, then Franchisor may institute a corrective training program and/or require Franchisee to perform
additional local marketing. If Franchisee fails to meet the Minimum Monthly Gross Revenue Quota for 36
consecutive months atanytime during the .Term of this Agreement, Franchisor, at its sole discretion, may institute
a mandatofy correctivemaining program or terminate this Agreement upon written notice to Franchisee^

I have read Article 8, understand it, and agree to comply with each
of its sub-sections.
Your Initials:;/

ADVERTISING AND MARKETING


9.1 Fund.

A. Upon Franchisee’s establishment of a Fund, Franchisee will be required to pay the appropriate
Fund Gbntribution to Franchisor as described in Section 5.5 of this Agreement;, In the; event Franchisor increases
the Fund Contribution from whatrit is as of the date this Agreement is signed. Franchisor will provide at least 60
days’ written notice of such increase in the Fund Contribution.

B. Once established, the Fund will be administered by Franchisor as it deems appropriate in its
discretiom Franchisor may establish a committee to serve in an advisory capacity only with respect to providing
guidance and advice on Fund-related matters (the “Franehisee Advisory Committee” or “FAC”); but Franchisor
is under no Obligatibn to dO so. In the event an FAC is established in connection with the Fund, Franchisor will
determine how best to structure and work with the FAC and Franchisor will have the right to dissolve any
established FAC upon 30 days’ written notice to Franchisee., The FUnd will be maintained and operated by
Franchisor, as it deems appropriate in its discretion, to meet the costs of conducting regional and nafibnUl
advertising, promotional, marketing; activities; as well as related technblbgy and other brand development
activities, that are deemed most beneficial to the; System.

C. Franchisor will have complete control and discretion over how to administer the Fund and Fund
Contributions to determine'theadVertising, Uiarketing and public.relations:progr^s and activities financed by the
Fund, including the creative concepts, materials and endorsements used and the geographic market, media
placement and a:llocation, Franchisee agreesthat the Fund may be used to pay the costs of preparing and producing
associated materials and programs as Franchisor may determine,,,including without lintitation; Use of social media;
video, audio andwritten advertising materials employing advertising agencies; sponsorship of sporting,,charitable'
or similar events; admiriistering regional, national and multirregional advertising programs including purchasihg
direct mail and other media advertising, website deVelopment/opefation and to pay Internet, Intranet, URL, (800)
or similar number, artd other charges, fees and/or expenses, including employing advertisihg agencies to assist
with marketing efforts; developing franchisee training and other development tools designed to support or
facilitate; Studio operations; and supporting public reiatibns, market research and other advertising, promotibnal

;©2019 Stride Franchise,. LLC


2019 Franchise Agreement
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
and marketing activities, A brief statement regarding the availability of franchises arid details about the franchise
offering:may be, iricluded in advertising:and.other items produced using .the Fund.

P. Franchisor may spend in any calendar year more; or less than the total Advertising Contributions’
to the Fund in that year. Franchisor may cause the Fund to invest any surplus for future use by the Fund.,
Franchisor may borrow from Franchisor or other lenders on behalfof the Furid to cover deficits of the Fund.

E. Franchisor and/or any Franchisor-Related Persons/Entities can provide goods, services„materials,.


etc. (ineludirig administrative services arid/or “in-house adyertising agency” services) and be cornpenSated and/or
reimbursed for the same by the Fund; provided that any such compensation must be reasonable in amount.
Franchisor can arraftge for goods, services, materials, etc. (including administrative services) to be provided by
independent.persons/companies and all related costs, fees,, etc. will be paid by the Fund,

F. The Fund will be accoimted for separately from Franchisor’s other funds and Franchisor will not
use the Fund for its general operating expenses. All taxes of any kind incurred in conriection with or related to
the Fund, its activities, contributionsTo the Fund and/or any other Fund aspect, whether imposed on Franchisor,
the Fund or any other related,pafty, will be the sole responsibility of the Fund. Franchisor will not be required to
audit the Fund, but will provide an annual accounting of the Fund at the written-request of Franchisee that is: made
120 days after the fiscal year at issue. All interest: earned on monies contributed to, or held in, the Fund will be
remitted to the Fund and will be subject to the restrictions Of the releyarit Franchise Agreement(s).

G. You acknowledge that the Fund Contributions are intended to maximize general public
recognition of and the; acceptance of the Intellectual Property for the benefit Of the System as a whole;
Notwithstanding the foregoing, Frarichisor undertakes no obligation, in admiriistering the Fund Contributions to
make expenditures for you that are. equivaierit or proportionate to your contribution, or to insure that any particular
Studio beriefits directly ox pro raia from advertising or promotion conducted with the Fund Contributions.

H. Franchisor maintains the right tO terminate the collection and disbursement of the FUnd
Contributions and the Fund., Upon tennination. Franchisor will disburse the, remaining funds for the purposes
authorized under this Agreement.

I. In the event Franchisor or any Affiliate Of Franchisor owns and operates a Studio utiliziing: the
System, these COipOrate Studibs will contribute to the Fund on die same basis that franchised Studios in the
System are required to contribute;

9.2 Grand Opening Advertising; Local Marketing Activities.

A. Grand Opening. Franchisee must spend a minimum of Fifteen Thousand Dollars ($15,000) in
connection with die grand opening and initial launch marketing Of the Studio around the time the Studio opens,
as reasonably directed by Franchisor (the “Grand Opening Advertising Spend”). Franchisor may also require that
Franchisee expend all or any portion, of the Grand Opening Advertising Spend on initial marketing/adyertising
and/or public relations materidls or services frat are purchased from an Approved Supplier.

B, Local Advertising Requirement: Franchisee, is responsible for local advertising and marketing
activities tO attract members to the Studio. Franchisee must expend at least $ 1,500 per mOnth on approved local
adyertising and marketing activities designed to promote the Studio within the Designated Territory. Upon-
Franchisor’s written request. Franchisee must provide Franchisor, with an accounting of all expenditures made by
Franchisee to comply with this Secfion, along with any invoices or other dbcurnentatioil to support such
expenditures.

G, Advertising Standards. Franchisee’s advertising will bean good taste and conform to ethical and
legal standards and OUT requirements. Franchisor may require Franchisee to submit samples: ofall advertising and

ig>20,19, Stride Franchise, LLC


2019 Franchise Agreement
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
promotional materials (and any use of the Marks and/or other forms of commercial idenfificatiPn) for any media,
including the Internet,. World Wide Web or otherwise. Franchisor retains the right to approve of disapprove, of
such advertisingj in its* sole discretion. Franchisee agrees not to use any materials or programs disapproved by
Franchisor.

D. Approval. Franchisor must approve any form of co-branding, of advertising; yvith other brands,
products or Services, in writing, in advance.

9.3: Social Media Activities. As used in this Agreement, the term: “Social Media!’ is: defined as a lietwdfk of
services, including, but not limited fo, blogs, microblogs, andjSocial netwbfking sites (such as Facebook, Linkedin
and MySpace), Video-sharing and photo-sharing sites (such as YouTube and Flickr),,review sites (such as Yelp!®)
marketplace sites (such as eBay and Craigslist), Wikis, chat: rooms arid virtual woflds, that allows participahts to
communicate online and fotm communities afoiind Shared interests arid experiences. While; it can be a very
effective tool for building brand awaferiesSi it Can also be devastating to a brand if used improperly. Therefore;
Franchisee must strictly follow the Social Media guidelines,, code of conduct, and etiquette as set forth in the
Manual. Any use;of Social Media by Franchisee pertaining to the Studio must be in good taste arid not linked to
controversial, unethical, unmoral, illegal Or inappropriate content. Franchisor reserves therright to “occupy” any
Social Media websites/pages and be the sole provider of information regarding the Studio on such websites/pages
(e.g.j a system-wide Facebook page). At Franchisof’s request. Franchisee will promptly modify or remove aiiy
online coimnunication pertaining to the Studio that dpes not comply with this Agreement or the Manuah

9.4 Franchisee Marketing GroupfsVf“Co-Ops”). Franchisor may decide to form one or more associations;
and/of sub-asSociafions of Studios to conduct various marketing-related activities on a cooperative basis (a “Co-
Op”). If one or more Co-Ops (local, regional and/or national) are formed covering FrariChiSee’S area, then
Franchisee mustjoin and actively participate. Each Studio will be erititledjtO one (1) vote, but in order to vote the
Studio must be in GOOdiStandirig. Franchisee may berequired to contribute such.amounts as are determined from
tiriie to time by such Co-Ops.

I have read Article 9, understand it, and agree to comply with each
of its Sections.
Your Initials: _/

10. FINANCIAL REPORTS, AUDITS, COMPUTER SYSTEM AND INSURANCE


REQUIREMENTS

10.1 Records and Reports. Franchisee shall maintain and preserve for four (4) years or such period as may
be required by law (whichever is greater) from the date of their preparation such financial information relating to
the Studio as Franchisor may periodically require, including without limitation. Franchisee’s Sales arid use tax
returns, register tapes and reports, sales reports, purchase records, and foil, complete and accurate bookSi records
and accounts prepared in accordance vvith generally aecepted accounting principles and in the form and marmer
prescribed by Franchisor. Franchisee agrees that,its financial records shall be accurate and up-to-date at all times-
Franchisee agrees to proinptly fomish any and all financial information, including tax records and retums. relating
to the :Studio to Franchisor on request.

10.2 Right to Conduct Audit or Review. Franchisor shall have the right, in its sole.determination, to require
areView by Such representative(s) as Franchisor shall choose,;of all information pertairiing to the Studio includirig,
without limitation financial records, books, tax returns, papers, and biisiness friariagemerit software programs of
Franchisee at any time during nonrial business hours without prior notice for the purpose of accurately tracking
unit and System-wide sales; .sales increases or decreases, effectiveness of advertising and promotions, and for
other reasohable business purposes. Such review will take place: at the Sfodio or Franchisee’s head office (if
different),, or both, and Franchisee agrees to provide all iriformatibn pertainirig to- the Studio requested by

©2019!Stride!FrMchise, LLG:
2019 Franchise Agreemeht
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Fr^diisorduririg its review. If the review is done because,of a,failure by Franchisee to furnish reports, supporting
records or other required information or to furnish the: reports and information on a tirnely basis, Franchise;e shall
reimburse Franchisor for all costs of the audit: Or review ineludingf without: lithitationi travel, lodging, wage
expense and reasonable accoiinting and legal expense. The foregoing remedies shall be in addition to any other
remedies Franchisor may have xmder this Agreement or applicable law.

10,3 Computer System and Software. Franchisee must acquire a coniputer for Use in the, operation of the
Studio. Franchisee agrees to record all of itsi receipts, expenses, invoices, member lists, class and employee
schedules and other business information promptly in the computer system and use the software that Franchisor
specifies or otherwise approves. Franchisor reserves the right to change the computef,system, and the accounting,
biisiness operations, customer Service and other software at any time. Data, including names, addresses, contact
infonnationi and credit card or payment information of members of the Studio will be captured on the required
software, and will become the joint property of Franchisee and Franchisor during the Term of this Agreement.
Franchisee will provide Franchisor with any passwords necessary to access the business infOrmaition for the Studio
ftiat is stored on the required Software and online. Franchisor may use such information to communicateidirectly
to thesmembers of the Studio,.and to provide updates, information, newsletters, and special offers to the meiribers.
Franchisee must upgrade and maintain the computer system and software in the Studio^ as required by Franchisor
from time to time, and pay any fees associated with such upgrades. Upon expiration or termination of this
Agreement Franchisee shall have nO further access or rights to the mernber information and Franchisor shall be
the sole Owner of Such information.

10.4 Insurance.

A. Prior to opening the Studio for business and throughout the entire term of this Agreement,
Franchisee will keep in fOrce at Franchisee’s own expenserand by advance paynrienf of the premiunt, the following
insurance coverages i

(1) Workers’ Compensation and Employer’s Liability Insurance as well as such other
insurance, with statutory limits, as required by law in the jurisdiction where the franchised business is located.
Employers Liability or “Stop Gap” insurance, with limits; of not toss than $l,00.0,000each accident;

(2) Commercial General Liability Insurance, Occurrence fonn, including a per location or
project aggregate, with the following coverages; owners and contractors protective liability,, broad form property
damage, contractual liability, severability of interest clause; personal and advertising injury; and
products/comptoted operations;.medical payments and.fire damage liability; insuring you and us: against all-claims,
suitSi obligations, liabilities and damages, including attorneys’ fees, based upon or arisiiig out of actual Or alleged
personal injuries or property damage resulting from or occurring in the Course of, or on or about or otherwise
relating to the ftanehised business including geheral aggregate Coverage in the following limits:

Required Coverage Minimum Limits of Coverage


General Aggregate $5,000,000
Products/Completed Operations Aggregate $5,000,000
Personal and Advertising Injury $1,000,000
Each Occurrence $L0O0,0O0
Participant Legal Liability $1,000,000
Professional Liability $1,000,000
Employee Benefits Liability (per employee) $1,000,000
Employee Benefits Liability (aggregate) $2,00O,OOO
Damage to Rented Premises (per occurrence) $1,000,000
Medical Expense (any one person) $5,000

©2019 Stride FrancHisei,LLC


2019 Franchise. Agreement

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
(3) “ALL,RISK’’ or special form property coverage of no less than! current replacement cost
of theiStudio’s!equipment, fixtures and leasehold improvements (tenant improvements) sufficient in the amojunt'to
restore the Studio to full operations. Glass coverage noless than a limit of $25^000 and sign,coverage no less than
a limit of $10,000 in addition to equipment, fixtures and leasehold improvements;

(4) Business interruption insurance with coverage for at .least; twelve (12)’ months for actual
losses. (For purposes of this Agreement, “Gross Sales”' shall include any proceeds received by Franchisee in
connection with a “business interruption” insurarice craim);

(5) Auto Liability (Hired and hJoh-ovwied autos) with a $ 1,0OO,00O Gombined Single Limit
Each Accident for Bodily Injury and Property Damage, if Franchisee utilizes a vehicle; in connection with the
operation of the Studio; and

(6) Employment Practices Liability with a limit no less than $1,000,000 per claim and
$1,000,000 aggregate per location. The retention may not exceed $1;000.

B. All insurance policies must be written by an insurance company licensed in the state in which
Franchisee operates its Studio. The insurance company must have at least an “A” Rating Classification as
indicated in A.M. Best’s Key Rating Guide:

C. Franchisor reserves the right, from time to time, in its discretion, to upgrade the insurance
requirements Or lower the required amounts as’to policy limits, deductibles, .scope of coverage, or fating of carriers
in response to current industry standards, market conditions and/Or landlord requirements. Within sixty (60) days
of receipt of notice from Franchisor, Franchisee a^eeS to revise its coverage, as specified in any notice from
Franchisor.

D. Franchisee’s Obligafibn to obtain and maintain insurance shall not be limited by reason of any
insurance that may be maintained by Franchisor nor relieve Franchisee of liability under the indemnity provisions
set forth in this; Agreement. All insurance policies and coverage must name Franchisor as an additibnal insured,
waive any subrogation rights or other rights to assert a claim back against Ffanchisbr and shall contain a clause
requiring, notice to Franchisor thirty (30) ,days in advance of any Cancellation or material change or cancellation
to any such policy,, Franchisee shall give Franchisor certificates of coverage at least annually. Failure to obtain
or the lapse of any bf the required insurance coverage shall be grounds for the immediate termination of this
Agreement pursuantto Section 15.1, andFranchisee agrees’that any IbsseS, Claims of causes bf action arising: after
the lapse of or termination of insurahce coverage will be the sole responsibility of Franchisee and that Franchisee
will hold Franchisor harmless from all such losses, claims, and/or causes of action. In addition, but not to the
exclusion ofthe foregoing remedy, if Franchisee fails to procure Or rnaintain the; required insurance; Franchisor
shall have the right and authority, but not the obligatioh, to procure immediately the insurance and Franchisee
shall reimburse Franchisor for thecosf Of foe insurance plus:reasonable expenses immediately upon written notice.
Franchisee is required tb submit'to Franchisor a copy of a Certificate of Insurance, with Franchisor asan additipnal
insured, showing compliance with the foregoing requirements a^t least thirty (30) days: frefore Franchisee
commences operation of foe Studio. Ffanchisbr shall have a security interest in all insurance proceeds to the;
extent Franchisee has any outstanding obligations tb Franchisor.

I have: read Article 10^ understand it, aiid agree to comply with
each of its Sections
Vbur Initials: /

C)2019-Stride Franchise, LLC:


2019 Franchise Agreement
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
11, relationship of the PARTIES; INDEMNIFICATION

11.1 Independent Contractor. The only relationship between Franchisor and Franchisee created by this
Agreement is that of independent contractor. The business conducted by Franchisee iSi completely separate and
apart frorh any business that may be operated by Franchisor and nothing;in this Agreement shall create a fiducl^
relationship between them or constitute either party as: agent, legal representative, sUbsidiaryi joint venturer,
partner, employee, servant or fiduciary of the other party for any purpose vyhatsoever; Franchisee shall hold itself
out to the public as an independent contractor, operating the business pursuant to a license from Franchisor, and
Franchisee agrees to take such action including exhibiting a notice to that effect in such content, form and place
as Franchisor may specify. It is further specifically agreed that-Franchisee is not an affiliate of Franchisor and
that neither party shall have authority tp act for the other in any niianner to create any obligations or-indebtedness
that would be binding upon the other party^ Neither party shall be in any way responsible for any acts and/or
omissions of the othert its agents, servants or employees and no representation to anyone vyill be made by either
party that would create; an implied or apparent,ageriCy or other sunilar relationship by and between the parties.

11.2 Indemnification. Frarichisee; as a material part of the consideration to be rendered to Franchisor, agrees
to indemnity^ defend and hold Franchisor, as wellas Franchisor’s directors,, officers, principals/bwners, managers,
shareholders, affiliates, subsidiaries, employees, servants, agents, sUccessofs and assignees (collectively, the
“Indemnitees”), harmless from and against any and all losses, damage. Claims, demands, liabilities and causes of
actions of every land or character and nature, as well as costs and expenses incident thereto (including reasonable
attorneys’ fees and court costsji that.arei brought against, any of the lndeffinitees (collectiyeiy, the “Claims”) that
arise out of or are otherwise ,related to Franchisee’s (a) breach or attempted breach of, or misrepresentation under,
this Agreement or in connection with the Offer/sale of the Studio prior to the execution of this Agreement, (b)
ownership, construction, development, management, or operation of the Studio in any manneri and/or (c) gross
negligence or intentional misconduct. Notwithstanding the foregoing,, at Franchisor’s option. Franchisor may
chooseto engage counsel and defend against any suCh Claim and may require irnmediate reimbursement from the
Franchisee of all expenses and fees incurred in connection with such defense.

I have read. Article 11, understand it; and agree to comply with
each of its; Sections.
Your Initials: !

12. confidential INFORMATION

12.1 Franchisor’s Confidential Information.

,A. Franchisee acknowledges and agrees that all infonhation relating to the System and to the
development and operation of the Studio, including, without limitation, the Manual, Franchisor’s training
program, members and supplier lists, or other information or toiow-how that has; been developed (aill of the
preceding information is referred to herein as the'“Confidential Information”) are cOnsidefed ;tO be proprietary and
trade secrets of Franchisor. Franchisee agrees that all Confidential Information is tO be held in the strictest of
confidence during and after the term of this Agreement and is nOt to be divulged to anyone directly or indirectly
at any time, except to Franchisee’s Studio employees, including any independent contractors, with a need to know
the information in order to operate the Studio.. Upon Franchisor’s request. Franchisee shall require the Studio’ s
employees and any independent contractors to execute a nondisclosure and non-competition agreement in a form
satisfactory to Franchisor. Franchisee shall not acquire any interest in the Confidential Information other than the
right to utilize it ;in the Studio and a^ees not to copy, duplicate, record or otherwise reproduce any Confidential
Ihfonnation, in vyhoje or in part; nor otherwise make them available to any unauthorized person, nor Use them in
any Other business or in any manner not specifically authorized or approved in'wfiting by Franchisor. Franchisee
shall adopt and implement all reasonable procedures to prevent unauthorized use, duplication or disclosure of
Franchisor’s Confidential Infortnation. If Franchisee or Franchisee's employees or any independent Contractors

©20,19 Stride Franchise; LLC


2019 Franchise Agreement
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
leam about an unauthorized use of any trade secret or confidential rhaterials, Franchisee must promptly notify
Frahchisor. Frahchisof is not obligated to take any action, but will respond to; the information as it deems
appropriate. IfFranchisee at any timesconducts, owns, consults with, is employed by or bthertyise assists a sirnilar
or competitive business to that franchised hereunder, the doctrine of “inevitable disclosure’- will appily, and itwiill
be: presumed that Frahchisee is, in yiplatibn of this covenanf; and in such case, it shall be Franchisee’s burden to
prove, that Franchisee is not in violation of this covenant.

B. Franchisee agrees that any new concept, process, or imprbvemerit in the operation or promotion
of the Studio, deyeloped by or on behalf of Franchisee that relates to or enhances the Franchised Business
dperationSi System or any other aspect of Franchisor’s business (including the franchisee netv/ork), shall be the
sole property of Franchisor, and Franchisee-shall promptly notify Franchiser and shall provide Franchisor with all
necessary information and execute all necessary dociinients to memorialize said ownership, or, if necessary.
Franchisee’s assignment of such Ownership to Franchisor, without compensation. Franchisee;acbiowledges that
Franchisor may utilize or discloseEsuch information to other Franchisees.

12.2 No Other Interests. Franchisee fiiither acknowledges that Franchisor would be unable to protect its
Gonfidential Ihforrnation against unauthorized use or disclosure and would be unable to encourage a free exchange
of ideas and information among System franchisees if its franchisees were pentijtted to hold an interest in other
fitness or S Studio businesses and dthenyise to compete with Fr^ehisor. Therefore, during the term of this
AgreernCnt, , Franchisee must .comply with the competitivexovenant provisions of Article 13 herein.

12.3 Injunctive Relief. Franchisee expressly agrees that the existence of arty claims it may have against
Franchisor,, whether or hof arising but of this Agfeement, shall not constitutea defense to the enforcement of this
Article 12. Franchisee ackribwledges, and agrees that any failure;to comply with the requirements of this Article
12 will cause Franchisor irreparable injury for which, no adequate remedy at la\y is available, and Ffahchisee
accordingly agrees that Franchisor shall be entitled to injurtctive relief as specified in Section 16.2 herein to
enforce the terms of this Article 12. Franchisee shall pay all costs, and expenses, including, without limitation,
reasonable attorneys’ fees, incurred by Franchisor in connection with the enforcement of this Article 12. The
foregoing remedies, shall be in addition to any other remedies Franchisor may have under this Agreement or
applicable law..

I have read Article 12, understand |t, and agree to comply with
each of’its Sections.
Your Initials: /

13. COVENANTS NOT TO COMPETE

13.1 Non-Competition Covenants of Franchisee.

A. During^the Term of this Agreement. Neither Franchisee, its: principals, owners, or guarantors, nor
any imniediate family of Franchisee, its principals, owners, or guarantors (“Restricted Parties”), may , directly or
indirectly, for themselves or through, qn behalf of. Or in conjunction with any Other person, partnership or
corporation-own, maintain, engage in, be employed or serve as an officer, director, or principal of, lend money or
extend credit to, leE^e/sublease space to, or have any interest, in or involvement with any (a) fitness or exercise
business, (b);anyTitness,or exercise marketing or consulting business, (cfanybusiness offering Approved Services
of a similar nature to those of the Studio, or (d) in any businessdr entity which franchises, licenses or otherwise
grants to others the right to operate such aforementibried businesses, described in subparts (a)-(c) of this Section
(each, a “Competing Business’’); Furthermore, the Restricted Parties shall not divert, or attempt to divert, any
prospective customer to a Competing Business in any manner.

©2G.19 Stride Franchise, LLC


20)9 Franchise Agreement,
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
B. After the Term of this Agreement.

(1) Prohibition on Franchising. For a period of two (2) years after the expiration and
rionfenewal, transfer or termination of this Agreement, regardless of the cause, neither Franchisee, its principals,
owners and guarantorsi nor any member of the ifnmediate family of Ffaiichiseei its pfiheipals, owners or,
guarantors, may, directly dr indirectly, for themselves or through, on behalf of^ or in conjunction with any other
pefsoni partnership of copporationj be involved with any business that competes in whole or in part with Franchisor
by offering or granting licenses or franchises, or establishing joint ventures, for the ownership or operation of a
Competing Business. Thewgeographic scope of the covenant contained ih-this.ffectidn is any location where
Franchisor'can demonstrate jt has offered or sold fi-anchises.as of the date this Agreement isterminated or expires.,

(2) Prohibition on Competing Businesses. For two (2)*years after the expiration, termination
or non-renewal (by Franchisor or by Franchisee for any reason) of this Agreement or after Franchiseelhas assigned
its interest,in this A.greeniertt, the Restricted Parties shall.not own, maintain, engage in, be employed as an officer,
director, or principal of, lend money to,, extend credit to, lease/sublease space tQ, of have. :any interest in or
involvement with, any other Competing Business: (i) at the Authorized Location; or (ii) within a ten (.10) mile
radius of (a) the Authorized Location^ of (b) any other Franchised Studio or Corporate Studio that is open, under
lease of otherwise under development as of the date this Agreement expires or is terminated.

13.2 Non-Solicitation Covenants.

A. DuringtheTerm ofthis Agreement. Franchisee;agrees notfo (a) divert or seek todivert customers
from another Studio or System firanchisee, or (b) ernploy or seek to employ any person employed by Franchisor
or by any other ffartchisee of Ftanchisor, or otherwise directly or indirectly induce or seek to induce such person
to leaverhis of her employment during the term of this Agreement, without.fifst obtaining, the'consent of Franchisor
of any pthef franchisee of Franchisor, to the extent permitted by the laws where tb? Studio is located. Coaches:
and salescstaff may work.at.more than one'Studio. Franchisee acknowledges that Ffanchisor has the, right to offer
to sell or to sell a fi-anchise to any employee of Franchisee.

B. After the Term of this Agreement. For two (2) years after the expiration, teimination or non­
renewal (by Franchisor or by Franchisee for any reason) of ftijs Agreement of after Franchisee has assigned its
interest in this Agreement, the Restricted Parties shall not: (i) solicit business from customers of Franchisee’s
former Studio; (ii) :cpntact !aiiy of Franchisor’s suppliers or vendors for any competitive, business purpose; or (iii)
solicit any of Frahchisor’S other empldyees, or the employees of Franchisor’s affiliates or any other System,
ffanchisee, to discontinue eniployment;(tG the extent,permitted by die laws where the Studio is located).

13.3 Enforcement.of Covenants.

A. Franchisee expressly agrees that the existence of any claims' it may have against Franchisor,
whether or not arising out of this Agreernent, shall notconstitute^a defense to the enforcement.of the covenants in
this Article 13. Franchisee acknowledges and agrees that in view of the nature ofthe System and the business of
Ffanchisor, the restfictions contained in this, Article 13 are reasonable and necessary to protect the legitimate
intefestS of the System and Franchisor. Ffanchisee further acknovvledges and agrees that Franchisee’s; violation
of the terms, of this Article 13' will cause irreparable injury to Franchisor for which no adequate remedy at law is
available, and Eranchisee accordingly agfees that Franchisor shall be entitled to preliminary and permanent
injunctive felief and damagCSi as well as; an equitable accounting of all earnings,, profits, and other benefits :afisihg
from such violation, which remedies-Shall be cumulative and in addition to any other rights or remedies to which
Franchisor shall beientifled. Franchisee agreeSfo waive-any bond that may be required or imposed in connection
with the issuance;of:any'prelimiriafy of provisional relief Franchisee shall pay all costs and expenses, including,
without limitation, reasonable attorneys’ fees, incurred by Franchisor in connection with the enforcemerit of this
Article 13. If Eranchisee violates any restriction contained in this. Article 13, and it, is necessary for Franchisor to
seek equitable relief, the restricfiohs contained herein shall remain in effect until two, (2) years after such relief is

©2019 Stride.Eranchise, LLG


2019 Franchise Agfeement
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granted. If Franchisee contests the enforcement of Article f3 and enforcement is delayed pending litigation, and
if Fr^chisor prevails, the period of non-competition shall betextended for an additional period equal to the period
of time that enforcement of this. Article 13 is'delayed.

B. Fr^chisee agrees that the prbvisionsiof this covenant not to compete are reasonable. If , however,,
any court should find this Article 13 or any portion of this Article 13 to be unenforceable ^d/or unreasonable, the
court, is authorized, and directed to reduce the scope or duration (or both) of the provisiori(s) in issue: to the extent
necessary to render it:eriforceable and/br reasonable and to ehfofce the pfovision so revised.

C. Franchisor shall have the right, in Franchisor’s diseretign, to reduce the scope of any cbvenant
not to compete set forth in this Agreement, Or aiiy pbrtiori therebf without Franchisee’s consent, effective
immediately upbn receipt by Franchisee of written notice thereof, and Franchisee shall comply with any covenant
as so modified.

D. Thb parties agree and acknowledge that the laws where the Franchised Business is located shall
apply and govern all claims, disputes and causes of actibns arising out of or related to the foregoing covenarits
against competition set forth in, this Article 13, without reference to that state’s conflict of law provisions.

I have read Article 13, understand it, and agree to comply with
each of its Sections..
Your Initials: /

14. TRANSFER OF INTEREST

14.1 Franchisor’s Approval Required. Ah rights and interests, of Franchisee arising from this Agreement
are personal to Franchisee and except as otherwise provided in this Article 14, Franchisee' shall nof without
Franchitor’s pribr written consenf voluntarily or involuntarily, by operation of law or otherwise, self assign,
transfer, pledge or encumber its interest in this Agreement, in toe license granted hereby, in the assets of the
Studio, any of its rights hereunder, or in die lease for thepremises at which the Studio is located, and any purported
sale,,assignment, transfer, pledge br encumbrances shall be null and void. If Franchisee is ;a corporation, limited
liabilityi partnership^ or an individual or group of individuals, any assignment (or new issuance), directly br
indirectly, occurring as a result of a single transactign or a series of traiisactigns that alters the Percentage of
Ownership Interest reflected in Section 17,.3 of this: Agreement must promptly be reported to Franchisor and is a
“transfer” Within the meaning bf this Article l4.

14.2 Conditions for Approval of Transfer. Franchisor shall not unreaspnably withhbld its .approval of a
proposed transfer, provided that the prospective transferee; in Franchisor’s reasonable judgment, is of good moral
character and reputation^ has no conflicting interests, has a good credit rating and sufficient and competent
business experience, aptitude; and financial resources acceptable to FranChisbr’S themcurrent standards for
franchisees; and that the following cgndittons are met: (1) Franchisee'pays Franchisor a transfer fee in.an amount
equal to $10,000; (2) Franchisee signs: a prescribed form of general release: in favor of Franchisor and related
parties; (3) toe^Studib andequipment must be upgraded,,refurbished or.repaired if Frahchispr, in its sole discretibn,
decides it is necessary; (4) the transferee sitois Franchisor’s then-current form of franchise .agreement; and (5) the
transferee (a) completes (gr has its' Operating Principal complete) the Owner/Operator Module and has its
Designated Manager complete the Designated Manager Training Prggram, and (b) has at least one (1) Authorized
Coach prior to reopening, and/or resuming the provision of Apprgved Services at, the Studio.

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201,9 Franchise: Agreement
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14.3 Permitted Transfers to a Corporation or LLC or. Affiliate Company. If Franchisee is an individual
or partnership, and desires to assign and transfer its rights, assets and obligations under this Agreement to a
corporation or limited liability company that is; wholly-owned by Franchisee a,nd forrned for'the conyeriience of
ownership, it may do so without approval from Franchisor; and lyithout payment of a transfer fee, so long as the
terms and conditions of this Agreement femain unchanged, and the Franchisee shall own and control all of the
equity and voting power of all issued and outstanding stock of the transferee-corporation or all of the equity and
voting power of the. limited liability company and, if Franchisee is more than one individual, each individual shall
have the same proportionate ownership interest in the cdrporati6n;or'limited liability company as he or she had.in
Franchisee prior to the transfer.

14.4 Death or Disability of Franchisee. In the event of the deathpr disability of Franchisee, if an individual,,
or of a stockholder of a corporate Franchisee; or of a partner ofa Franchisee which is a partnership, or a member
of a Franchisee which is a limited liability company, the transfer of Franchisee’s or the deceased stpckhplder’s,
partner’s or member’s interest in this Agreement to his pr her heirs, trust, personal,representative Pr conservators;
as applicable, must occur within six (6) months of the death or disability, but, shall not be deemed a transfer by
Franchisee (provided that the responsibleimanagernent emplpyees or agents of Franchisee havetbeen satisfactorily
trained at Franchisor’s Initial Training) nor obligate Franchisee to pay any transfer fee. If Franchisor determines
(i) there is no imminent transfer to a qualified successor or (ii) there is no heir or other principal person capable
of operating the Studio, Franchisor shall have the right, but not the Pbligation, to immediately appoint a manager
and cprmnence pperatihg the Studio oh behalf of Franchisee. Franchisee shall be: obligated to, and shall pay to
Franchisor all reasonable costs and expenses for such management assistance, including Without limitation, the
manager’s salary, room and board, travel expenses and all pther related expenses pf the Franchisor appointed
manager. Operation ofthe Studio during, any such period shall be for and on behalf of Franchisee, provided that
Franchisor shall only have a duty to utilize reasonable efforts; and shall not be liable to Franchisee or its owners
for any debts, loses or obligations incurred by the Studio, or to any creditpr of Franchisee fpr any supplies,
inventory, equipment, furniture,, fixtures or services purchased by the Studio during any peridd m which it is
managed by a Franchispr appointed maiiagen, Franchisor may, in its sole discretion, extend the six (6) month
period pf time for cpmpleting a transfer contemplated by this Section.

14; 5 Relocation. Except in cases when Franchisee is in default of its lease. Franchisee may identify a new
Authorized Location within the same site selection area in which the Stiidid was located, subject to the written
consent and approval pf Franchisor.

14;6 Transfer by Franchisor. Franchisor shall have the right to trarisfer or assign all or any part of its ri^ts
or obligaitions herein to any person or legal entity, directly or indirectly, by merger, assignment, pledge or other
means.

I have read Article 14, understand it, and agree to comply with
each of its Sections.
Your Initials: ,/

15. DEFAULT AND TERMINATION OF AGREEMENT

15.1 Termination of Franchise by Franchisor. Franchisor shall have the right to terminate this Agreement
for “good cause” upon delivering notice Of termination to Franchisee. FOf purposes of this Agreement, “good
cause” shall include, without limitatipn: (i) a material breach of this Agreement or any other agreement between
Ffanchisee and Franchisor Pr any of Franchisor’s affiliates, (ii) intentional, repeated or continuous breach of any
provision of this: Agreement or any other agreement between Franchisee and Franchisor pr any of Franchisor’s
affiliates, and (iii) the breaches (and, if applicable, failure to cure SUch breaches) described below in this Section
15.

©2019 Stride Franchise, LLC


2019 Franchise.Agreement
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A. Immediate Termination. Franchisee shall be deemed to be in default and Franchisor may
terminate this Agreement and all rights granted hereunder, without affording Franchisee any opportunity to cure:
the default, effective imrhediately upon receipt pf notice by Franchisee, and such termination shall be for good
cause where the grounds for termination are:

0) Franchisee has made any material misfepresehtatioh or omission in applying for the
fi-ariChiSe or in executing or perfdnnihg under this Agreement or any other agreement between Franchisee and
Franchisor dr any of FranChisor’saffiliates;

(2) Franchisee becomes insolvent by reason of Franehisee’s inability to pay debts as they
become due, or makes an assignment for the benefit of creditors or makes.an admission of Franchisee’s inability
to pay obligations as they become:,due;

(3) FranChisee:files a petition in bankruptcy, or an involuntary petitiondn bankruptcy is filed


against Franchisee or a reCeiver is appointed for Franchisee’s business, or a final judgment remains unsatisfied or
of record for 30 days or longer; or if Franchisee is a corporation, limited liability compariy or partnership,
Franchisee is dissolved;

(4) Franchisee voluntarily or otherwiseabandons the Studioi For purposes of this Agreement,
the term “abandon” means: (i) failure to actively operate the Studio for more than two (2) business days without
Franehisor’s prior written consent; or (ii) any other conduct on the part Of Franchisee or its principals that
Frmichisor determines indicates a desire or intent to discontinue Operating the Studio in accordance with this
Agreement or the Manual;

(5) Franchisee or any Of its principal Officers, directors; partners of managing members is
eonvicted of or pleads no contest to a felony of other crime or offensethat adversely affect the reputation of the
System of the goodwill associated with the Marks;

(6) Franchisee makes an uriauthorized difect or ihdifect transfer or attempted or purported


transfer of this Agreement, or makes an unauthorized direct or indirect transfer or attempted or purported transfer
Of anownership interest in the Franchise, or failsor refuses to transfer the Franchise or the interest ih the Franchise
of a deceased or disabled controlling owner thereof as required;

(7) Ffanchisee falsifies, any financial reports or records required to be provided by Franchisee
to Ffanchisorunder this Agreement;

(8) Franehisee’s:: (i) disclosure; utilization, or duplication of any portion of the: System, the
Manual or othef proprietary or Confidential Information relating, to the Studio that is contrary to the provisions of
this Agreement; or (ii) material misuse of the: Marks in any martnef not expressly authorized by Franchisor;

(9) Ffanchisee violates any health or safety law, ordinance or regulation or operates the
Studio in a manner that pfesents a health or:safety hazard to its members or to the public;

(10) Ffanchisee fails to obtain lawful possessiGn of an Authorized Location and/or open the
Studio within six (6) months after this Agreement is accepted by Franchisor, unless Franchisor agrees otherwise
in writing;

(11) Franchisee defaults under the lease agreement or otherwise loses the right to possess the
premises at the location at which the Studio is located;

(12) Franchisee fails to comply with the covenants not to compete as required in Article 13
herein; or

©2019 Stride Franchise, ,LLC


2019 Franchise: Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
(13) Fr^chisee;(a) permits the offer or sale of products and services lOther than; the Approved
Services, and Approved Products, including any (a) unauthorized provision of Authorized Cbach Training by a
part other than a Master Trainer, or (b) unauthorized provision of the classes or other Approved Services by a
party other than an Authorized Coach, in violation of the terms of this A.greement on two (2) or 'more occasions
in , any ,24-month period, regardless of whether Franchisee; subsequently cured the prior default(s); or

(14) Franchisee, after curing a default pursuaht to ,Section IS.lB herein, commits the same act
of default again vyithin any t>Velve (12) consecutive month period whether or not.such default is<cured after notice
thereof is delivered to Franchisee, or if Franchisee received three (3) or mote default notices from Franchisor
within any twelve (12),consecutive monthly period whether or not such defaults wefe felated to the same problem
or were cured after notice thereof was: del iyered to Franchisee.

B. Termination with Notice. In addition to the provisions of Section 15.1 A, if Franchisee shall be
in default under the terms of this Agreement and the default shall not be cured or remedied (to Franchisor’s
satisfaction) within thirty (3 0) days after receipt of written notice ftom Franchisor (or 10 days’ prior notice in the
event ofa default that is described iii Subsections (6), (7) or (8)below), in addition to all other remediesiaVailable
to Franchisor at law or in equity, Franchisormay immediately terminate this Agreement, If any such defauU is
not cured within the specified cure period, this Agreement shall terminate without further notice to Franchisee
effectivedmmediafely upon expiration of the cure period. Franchisee shall be in default,, andeach of the following
shall constitute good, cause for termination under this Agreement:

(1) Failure, refusal or neglect by Franchisee to obtain Franchisor’s prior written approval or
consent any time such apprOyal or consent is required by this Agreement;

(2) Franchisee’s failure to comply yyith any provision of this Agreement that does not
otherwise provide for immediate termination. Or Frarichi’see’s bad faith in carrying out the terms of this
Agreement;

(3) Failure by Franchisee to maintain books and financial records for the Studio suitable for
proper financial audit or failixre by Franchisee to permit Franchisor to carry out its rights to conduct an inspection
or audit as proyided in this Agreemerit or failure by Franchisee to submit as required by this Agreement all reports,
records and information of the Franchised Business;

(4) Frarichisee, or if Franchisee has elected not to directly supervise “on-premises” the dayr
tOrday Studio operations^ then Franchisee’s management employee, fails to complete, to Franchisor’s satisfaction,
the initial training program as provided ih this. Agreement;

(5) Franchisee fails to pay when due any amount owing, to Franchisor or its affiliates under
this Agreement or any other a^eement, or is unable to obtain adequate financing to coyer all costs of developing,
operiing and operating the ■ Studio;

(6) Franchisee fails’to pay \yhen due any amountsowing to any person or entity in connection
with the; construction, leasing, financing, operation or supply of the Studio;

(7) Franchisee closes any bank account without completing all of the following after such
closing; (i) immediately notifying Franchisor in writing, (ii) immediately establishing another bank account, and
(iii) executing and deliyering to Frahchispr all documents necessary for Franchisor to begin and continue making
withdrawals from such bank account by electronic funds transfer as Exhibit 2 to this Agreement permits;

(8) Franchisee fails to maintain Or suffers cancellation of any msurance coverage required
imder this Agreement;

©2019 Stride Franchise„LLC


2019 Franchise Agreement
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(9) Franchisee allows (a) the classes or other Approved Services to be provided by anyone
other than an Authorized Coach, or (b) Authorized Cpach Training to be provided by anyone other than a Master
Trainer that has been approved by Franchisor to provide that Pfogr^l

(10) Any transfer or attempted transfer by Franchisee or any partner^ member Or shareholder
in.Eranchisee of any rights or obligations under this Agreement to any third par^ \yitiiout,the prior written consent
of Franchisor;

(11) Franchiseeioffers inconjunction with the operation of the Studio products or Services that
have not been approved by Franchisor;

(12) Franchisee fails to abide by the. pertinent marketing and advertising requirements and
procedures and participate in marketing programs for'the business'as established by Franchisor; or

(13) Franchisee fails to comply with the Performance Standards as set forth in the provisions
of this Agreement, as prescribed by Franchisor, or in the Manual, including, but not limited to, the Minimum
Monthly Gross Revenue Quota for a period of:36 consecutive months. System Standards for cleanlihesS, customer
service, equipment maintenance, arid aiiy other System Standards which effect or enhancesthe member experience
at the Studio.

15.2 Cross-Default. If there memov/, or, hereafter shall be, other ffEmChisetagreements or any other agreements
in effect between Franchisee, and Franchisor and/or any of Franchisor’s affiliates, a default by Franchisee under
the tenns arid conditions of this or any other such agreement,, mall at the option ofFranchisOr.constitute a default
under all such agreements.

15.3 Obligations of Franchisee upon Terminatiom Expiration or Non-Renewal. Immediately upon


termination, expiration or non-renewal of this Agreement for aiiy reason:

A. All rights,; privileges arid licenses granted by Franchisor to Franchisee shall immediately cease
and be null and void arid of no further force and effect, and all such rights, privileges and licenses shall
immediately revert to. Franchisor;

B. Franchisee Shall cease to be an authorized franchise owner hereunder, and shall immediately, at
its GWri experise, remove all, signs, obliterate or remove aill letterheads, labels or any other item or form of
identification that would in any way link or associate Franchisee; its goods and/or services with Franchisor, and
shall immediately cease to use, in any manner, the Marks; System and any other copyrighted informatiori or
materials or any confidential irifonnatiOn Franchisee obtained as a result Of the franchise granted to Franchisee;

C. Franchisee, shall immediately terminate all advertising;and promotional efforts and any other act
that would in^any way indicate that Franchisee is or was ever ari authorized System franchisee;

P, Franchisee shall cariCel any assumed name of Franchisee or equivalent:registration that contains
any Pfopfietaiy' Mark, and Franchisee shall furnish Franchisor with evidence satisfactory to Franchisor of
compliance with this obligation, within five (5) days after termination, expiration or non-repewal of this
Agreement;

E. Franchisee agrees not to use any reproduction, counterfeit, copy, or colorable imitation of the,
Marks that is likely to cause confusion, mistake or deception, or that is likely to dilute Franchisor’s rights in and
to the Marks, and forther agrees not to use any trade dress or desi^atibn of origin or description or representation
that falsely suggests or represents an association or connection withi Franchisor;,

©2019 Stride Franchise, LLQ


2019 Franchise. Agreement
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F. Franchisee shall pay all sums owing to Franchisor and its approved suppliers for outstanding
amounts owed under the Franchise Agreement and otherwise in connection with the Studio. In the event of
termination for any default of Franchisee, Such sums shall include all damages, costs and expenses, including
reasonable legal, fees, incurred by Franchisor'as a result of the default;

G. Franchisee shall comply with the covenants set forth in Articles 1'2 and 13 of this Agreement; and

H. Franchisee shall, at Franchisor’s option, assign to Franchisor any interest that Franchisee has in
any lease for the prernises of the Studio;

I. Franchisor shall have the option, exercisable by giving written notice thereof within thirty (30)
days from the date of such termination, expiration or non-renewal to purchase any and ajl equipment, furniture,
fixtures,, signs, sundries and ,supplies owned by Franchisee and used in the Studid,.at the lesser of (i) Franchisee’s
cost less depreciation computed ori a reasonable straight line basis (as determined in accordance with generally
accepted accounting principles: and consistent with industry standards and customs) or (ii) fair market value of
such assets, less(in either case) any outstanding liabilities of the Studio. In additioni Franchisor shall have the
option to assumeFranchisee’s lease for the lease location of theStudio, or if an assignment isprohibited, a sublease
for the frill remaining term oh the same terms and conditions as Franchisee’s lease. No value will be attributed to
the value of the Marks or the System or to, the assignment of the lease (Or sublease) for the prernises or the
assignment of any other assets used in conjunction with the Studio, and Franchisor wiU not be reqUifed to pay any
separate considefation for any such asSignmerit ior sublease. If the parties cannot agree: on fair market value within
thirty (3b) days of Franchisor’s notice of intent to purchase, fair market value shall be determined by an
experienced, professional and impartial third party appraiser withputfegard to goodwill or going concern yalUe,
designated by Franchisor and acceptable to Franchisee, whose deterniinatibri shall be; final and binding on both
parties. The cost of such appraisal Shall be borne equally by Franchisor and Franchisee. If the parties cannot
agree upbii ah appra:iser one shall be appointed by the American Arbitration: Association, upon petition of either
party. Franchisor shall have the right to withhold from the purchase, price funds sufficient tp pay all outstanding
debts and liabilities of Franchisee and the Studio and to pay such debts knd liabilities: from such funds.

J. Termination, expiration or non-renewal of this Agreement shall not affect, modify or discharge
any claims, rights, causes of action or remedies, which Franchisor may have against Franchisee, whether Under
this Agreement or otherwise, for any reason whatsoever, whether such claims or rights arise .before or after
termination.

1 j.4 Franchisor’s Rights and Remedies in Addition to Termination.

A. If Franchisee shall be in default in the performance of any of its obligations or breach any term
or condition of this Agfeerhenqin addition to Franchisor’s rightto terminate this Agreement, and without limiting
any other rights,or remedies to which Franchisor may be entitled at law or in equity. Franchisor may, at its.electiort,
immediately or at any time thereafter, and without notice to Franchisee cure,such default for the account ofand
on behalf of Franchisee including, withoutTimitation, entering upon and taking possession of the iStudio and to
taking in the name of Franchisee, all other actions necessary to effect the provisions of this Agreement.and any
such entry or other action shall not be deemed a trespass or other illegal act, and Franchisor shah not be liable in
any manner to Franchisee for so doing,, and Franchisee shall pay the entire cost thereof to Franchisor on demand,
including reasonable cornpensatign to Franchisor for the management of the Studio.

Br As an alternative to Franchisor’s exercising its rights under Section 15.5A, above, and oiily in the
event of a premature termination of this Agreement, Franchisee shall pay Franchisor liquidated damages in an
amount equal to the sum of the royalties paid to Franchisor for the twenty four (24) months prior to the termination
of this Agreernenf; provided,;however exercise of this right shall not preclude Franchispr’sright to seek injunctiye
relief as outlined in Section 16.5. Franchisee’s payment to Franchisor would not be a penalty for breaching this
Franchise Ajgreement, but rather a reasonable estimate of the losses Franchisor would incur in the event of the

©2019?Stride Franchise, LLC 3,1


2019 Franchise Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
closure of Franchisee’s; franchised business. Should Franchisor elect to enforce its right to liquidated damages
under this Section, Franchisee’s obligation to payisuch damages; wpuld be ih;additiori to Franchisee’s obligations
to (i) pay all arnOunts still owed to Franchisori and (ii) adhere to Franchisee’s other post-termination,obligations:
Franchisor’s right to payment of liquidated damages would be in addition to all other post-termination remedjes
available to Franchisor under the law.

I have read Article 15, understand it, and agree to comply with
each of its Sections.
Your Initials: ______ /

16. RESOLUTION OF DISPUTES

16.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the
State of California, without reference to this state’s ,conflict of laws principles. Notwithstanding the foregoing, the
parties specifically agree and acknowledge that: (i) all claims, causes' of actions or disputes related jto Franchisee’s
covenants not to compete set forth in Article 13 of this Agreernent, including the interpfetatiori, validity and
enforcernent thereof,, shall be governed by the laws of the state where the Studio is located; and (ii) the laws of
Califdmia.fegarding franchises including, without limitation, the California Franchise Investment Law'(“CFlL”),
California franchise relationship act and corresponding regulations thereunder, shall not apply to this Agreement
or the Studio unless the jurisdictipnal, definitional and other requirements set forth in such laws are fully met and
satisfied independently and without reference to this Section.

16.2 Internal Dispute Resolution. Franchisee must first bring any claim Or dispute betvyeen Franchisee and
Franchisor to Franchisor’s management and make every effort to resolve; the dispute internally. Franchisee must
exhaust this internal disputeiresOlution pfocedufe before Franchisee may bring Franchisee’s dispute before a third
party. This agreement to first attempt resolution of disputes internally shall survive termination or expiration of
this Agreement:

16.3 Mediation. At Franchisor’s Option, all claims or disputes between Franchisee and Franchisor (or its
affiliates) afisihg out of or in any way relating to, this. Agreement or any other agreement by and between
Franchisee and Franchisor (or its affiliates), or any of the parties’ respectiye rights and obligations; arising from
such agreement, which are not first resolved through the internal dispute resolution procedure set forth in Section
16.1 above, wiU be submitted first to mediation to take place at Franchisor’s then-current corporate headquarters
under the auspices of the American Arbitration Association (“AAA”)„ in accordance with AAA’s eommercial
Mediation Rules then in effect. Before commencing any legal action against Franchisor Or its affiliates with
respect to any such claim or dispute. Franchisee must submit a notice to FfanchisOri \vhich specifies, in detail, the
precise nature and grpunds of such claim or dispute. Franchisor will have a period of thirty (30) days following
receipt of such notice within which to notify Franchiseeas to whether Franchisor or.its affiliates elects to exercise
its option to submit such claim or dispute to mediation. Franchisee may not Commertce any action against
Franchisor or its affiliates with respect'to any such claim or dispute in ahy cdiirt unless Franchisor fails to exercise
its option to submit such claim or dispute to mediation, or such mediation proceedings have been terminated
eithert (i) as the result of a written declaration of the mediator(s) that further mediation efforts are not worthwhile;
or (ii),as a result of a written declaration by Franchisor. Franchisor’s rights to mediation, as set forth herein, may
be specifically .enforced by Franchisor. Each party will bear its own cost of mediation and Franchisor and
Franchisee will share mediator fees equally. This agreementto mediate will survive any termination or expiration
of this Agreement. The; parties will not be required to first: attempt to mediate a controversy^ dispute; or claim
through mediation, if such controversy, dispute, or claim concerns an allegation that a party has violated (pr
threatens to violate, Or pPses an immiherit risk Pf violating): (a) any federally protected intellectual property rights
in the Marks, the System, or in any Confidential Information or other confidential ihfomiatipni (b) any pfthe
restfictive covenants contained in fois Agreement; and (c) any of Franchisee’s payment obligations Under this
Agreement.

.©2019 Stride.Franchise, LLC 32


2019 Franchise Agreement
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16.4 Mandatory Binding Arbitration. Except as provided in Section 16.5 of this Agreement, Franchisee and
Franchisor agree that any claim, dispute, suit, action, controversy, or proceeding of any tj^e whatsoever including
any c]airn,for equitable relief and/Or where either party is acting;as a “priyateKattomey general,” suing;pursuant to
a statutory Claim or otherwise, between or involving Franchisee and Franchisor on whatever theory^ and/or facts
based and whether or not arising out of this Agreement (each, a “Claim”) will be processed in the, following
manner;
A. Franchisee and Franchisor each expressly waives all rights to any court proceeding,, except as
expressly provided in Section 16.5 belpw-;

B. All Claims shall, be submitted to and resolved by binding arbitration that will take place at
Franchisor’s headquarters or other location that Franchisor designates in Irvinej California, before and in
accordance with the arbitration mles of the American Arbitration Association. Judgment upon theaward; rendered
by the arbitrator shall be entered iii any Courfhavihg jurisdiction thereof

C. Franchisor and Franchisee agree that any arbitration between Franchisor and Franchisee shall be
of Franchisee’s individual claim and that the claim subject to arbitration shall not be arbitrated on a class-wide
basis.

D. This arbitration provision shall be deemed to be .self-executihg„and in the event either party fails
to appear, at any properly noticed arbitration proceeding, an award may be entered against ,sUch party
notwithstaridihg said failure to appear;

E. In no event.shall Franchisor be liable-to Franchisee for punitive damages in any action arising out
of or relating to this Agreement, or any breach, termination or cancellation hereof

F. Any arbitration proceeding involving this Agreement or the Studio generally, including all
demands, other filings and evidence submitted in coimectipn with such proceeding, mUst be kept strictly
confidential by Franchisee and its representatives, unless Franchisor agrees otherwise in writihg.

16;5 Right to Injunctive Relief Franchisee acknowledges and agrees that irreparable harm could be caused
to Franchisor by Franchisee’s violation of certain provisions of this Agreement and, as sUch, in addition to any
other relief availableat law or equity. Franchisor shall be entitled to obtain ih;any court of competent jurisdiction,
without bond, restraining orders Or temporary Or permanent injunctions in order to enforce, among; other items,
the prOvisioiis of this. Agreement relating to: (i) Franchisee’s use of the Marks and Confidential Information
(including any proprietary software used.in coimection with the Studio); (ii) the in-term covenant nOt tO compete,
aswell as any other violations of the restrictive covenants set forth in this; Agreement; (iii) Franchisee’s'obligations
on termination or expiration of this; Agreement; (iv) disputes and controversies based on or arising under the
Lanham Acts Or otherwise involving the Marks, as now or hereafter amended; (v) disputes and controversies
involving enforcement of the Franchisor’s rights with respect to confidentiality Under this Agfeemerit; and (vi)
the prohibition of any act or omission by Franchisee of its employees that constitutes a violation of applicable
law, threatens Franchisor’s franchise system Or threatens other franchisees of Franchisor. Franchisee’s only
remedy if such an injunction is entered will be the dissolution of the injunction, if appropriate, and Franchisee
waives all damage claims if the injunction is wrongfully issued.

16.6 Choice of Forum.,

A. Franchisee acknowledges and agrees that this Agreement is. entered into in California and that,
subject to the requirements of Sections 16;4 ahd Section 16.5 above, any action, brought by either party against
die Other for the pUrpoSe of enforcing the terms; and provisions of this Agreement (provided such action is not
subject to the arbitration proceeding pursuant to the terms of this Agreement or applicUble law) shall be instituted

©2019, Stride Eranchise„,LLC 33


2019 Franchise Agreement
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solely in a.state; or federal court having isiibject matter jurisdiction thereofonly in California in the judicial district
in which Franchisor has its principal place of businessiand in no other court.and that Franchisee irrevocably waives
any objection; Franchisee may have.to the exclusive jurisdiction or the exclusive venue of such court.

B. If Franchiseediistitutes any arbitration or other legal proceedings in;any venue or other court other
than those specified, Franchisee shall assume all of Franchisor’s costs in connection therewith, including, without
limitation, reasonable attorney fees regardless of the outcome of such arbitfatipn or legal proceedings.

C- Franchisee acknowledges that Franchisor may bring an action in any other court of competent
jurisdiction to seek and obtain injunctive relief as set forth.in Section 16.5 above, including to enforce Franchisee’s
non-compefe'obligations hereunder.

16.7 Waiver of Punitive Damages., Franchisee hereby waives to the fiillest extent permitted by law, any right
to or claim for any punitive, exemplary, incidental, indirect, special or consequential damages (including, vvithout
limitation, lost profits) against Franchisor arising out of aiiy cause whatsoever (whether such cause be based in
contract, negligericCi strict, liability^ other tort or otiierwise) and agrees that in the event of a dispute, that
FrarichiSee’s recovery is limited to actual damages. If any other term of this Agreement is found or determined
to be unconscionable or unenforceable for any reason, the foregoing provisions shall continue m full force and
effect, including, without limitation, the waiyer of any right to claim any consequential damages. Nothingin this
Section Or any Other provision Of this Agreement shall be construed to prevent Franchisor from claiming and
obtaining expectation or consequential damages, including lost future royalties for the balance of the term of this
Agreement if it is terminated due to Franchisee’s default,, which the parties agree and acknowledge Franchisor
may claim under this Agreement.

16.8 WAIVER OF JURY TRIAL. THE, PARTIES HEREBY AGREE TO WAIVE TRIAL BY JURY IN
ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER AT LAW OR EQUITY, REGARDLESS
OF WHICH PARTY BRINGS SUIT. THIS WAIVER SHALL APPLY TO ANY MATTER WHATSOBVER
BETWEEN THE PARTIES HERETO WHICH ARISES OUT OF OR IS RELATED IN: ANY WAY TO THIS
AGREEMENT, THE PERFORMANCE, OF EITHER PARTY, AND/ORERANCHISEE’S PURCHASE FROM
FRANCHISOR OF THE FRANCHISE AND/OR ANY GOODS OR SERVICES;,

16.9 WAIVER OF CLASS ACTIONS. THE PARTIES AGREE THAT ALL PROCEEDINGS ARISING
OUT OF OR Related TO this agreement, or the sale of the franchised business, will
BE CONDUCTED ON AN INDIVIDUAL, NOT A CLASS-WIDE BASIS, AND THAT ANY PROCEEQING
BETWEEN FRANCHISEE, FRANCHISEE’S GUARANTORS AND FRANCHISOR OR ITS
affiliates/officers/emplqYeeS may not be consolidated with any other
PROCEEDING BETWEEN FRANCHISOR AND ANY OTHER THIRD PARTY.

16.10 Attorneys’ Fees and Costs.

A. If legal action or arbitration is necessary to enforce the terms and conditions of this Agreement, the
prevailing party shall be entitled to recover reasonable compensation for preparation, iiivestigation, court costSi
arbitration costs (if applicable) and reasonable attorneys’ fees, from the non-prevailing party as fixed by an
arbitrator or court of competent jurisdietion.

B. Separate and distinct from the right of a prevailing party to recover expenses, costs and fees in
connection, with any legal proceeding or arbitration, the; prevailing party shall also be, entitled to receive all
expenses, costs and reasonable attorneys’ fees incurred in eonnection with the enforcement of any arbitration
award of judgment entered. Furthermore, the right to recover post-arbitration award and post-judgment expenses,
costs and attorneys’ fees shall be severable and shall survive any award or judgment and shall not be deemed
merged into, such judgment.

©2019, Stride Franchise,LLC


2Q19 Franchise Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
C, Apart from thejobligations above in this Section 16. l:0„Eranchisee agrees and.acknowledges.that
it will be responsible for the legal fees and other costs that Franchisor incurs in connection with certain
modifications that Franchisor agrees to make to the Franchise Agreement, including without, limitation,
modifications rnade to address the following .situations: (i) relocation; or (ii) any other amendment to extend a
given performance deadline of Franchisee, modify the territory awarded hereunder, or otherwise mpdi^, ^end
or supplement this A.greement in any way at the request,of Fr^chisee or as necessary for Franchisee to avoid this
Agreement being in default or subject to termination. Franchisor may set forth flat fee ainounts designed to help
defray the costs associated tvith addressing certaiii of the foregoing situations in the context of this Agreement or
any other agreement with Franchisor, whether in the Manuals or otherwise in a writing distributed to System
franchisees.

16.11 No Withhdlding-of Payments. Franchisee shall not withhold all or any part of any payment to Franchisor
Or any of its affiliates on the grounds of Franchisor’s alleged nonperformance ot as an offset against any amount
Franchisor or aqy of Franchisor’s affiliates allegedly may o\ve Franchisee under this Agreement or any related
agreements:
16.12 Limitation of Actions. Franchisee further agrees that no cause of action arising out of or under this
Agreement may be maintained by Franchisee against Franchisor unless brought before the expiration of one (1)
year after (a) the act, transaction or occurrence upon which such action is based, or (b) Franchisee becomes aware,
or should have become aware after reasonable investigation, of facts or circumstances reasonably indicating that
Franchisee may have, a claim against Franchisor hereunder, whichever Occurs sooner. Any claim, action or other
proceeding not brought against Franchisor or its affiliates within this period shall be barred as a claim,,
counterclaim, defense, or set-off. Franchisee, hereby waives the right to obtain any remedy based on alleged fraud,
misrepresentation, or deceit by Franchisor, including, without liniitation, rescission of this Agreement, in any
mediation, judicial, or other adjudicatory proceeding arising hereunder, except upon a groiind,expressly provided
in this Agreement, or pursuant to any right expressly granted by any applicable statute expressly regulating: the
sale of franchises, or any regulation Of rules promulgated thereunder.

16.13 Third Party Beneficiaries. Franchisor’s officers, directors. Shareholders^ agents and/or employees are
express; thirdrparty beneficiaries Of the provisions of this, A-greemenh including the dispute resolution provisions
set forth in this Section 21, each having authority to .specifically enforce the right to mediate/arbitrate claims
asserted againsfsuch person(s) by Franchisee.

I have read Article 16^ understand it, and agree to comply with
each of its. Sections.
Your Initials: _____ /

miscellaneous provisions

17.1 Severability: Except,as provided in Section 13.4, each article^, section, paragfaphi term and provision of
this Agreement, or any portion thereof, shall be cortsidered Severable and ifi for arty reason, any such portion of
this Agreement is held by an arbitrator or'by a court of competent jurisdiction to be unenforceable due to any
applicable existirig or future law or feguiatiort; such portion shall not impair the operation of of have any effect
upon; the remaining portions of this Agreement which will remain in full force and effect, No right or femedy
conferfed upon or reserved to Franchisor or Franchisee by thisiAgreement is intended to be, nor shall be deemed,
exclusive of any other right or rernedy herein or by law or equity provided or permitted, but, each shall be
cumulative of every other right or remedy;

17.2 Waiver and Delay: No failure, refusal of neglect of FranchisOf to exercise any right, power, remedy or
option reserved to it under this Agreement, or to insist upon strict compliance by Franchisee with any obligation,
condition,, specification, standard or operating procedure in this Agreement, shall constitute a waiver of any

©2019 :Stride Franchise, LLC 35


2019 Franchise Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
provision of this Agreement and the right of Franchisor to demand exact compliance with this Agreement, or to
declare any subsequent breach or default or nullify the effectiveness of any provision of this Agreement.
Subsequent acceptance by Franchisor of any payrnent(s). dUedt under this Agreement shall not beideemed to be a
waiver by Franchisor of any preceding breach by Franchisee of any terms, covenants or conditions of this
Agreement;

17.3 Designation of Responsible Parties. Ffanehisee represents and warrants to Franchisor that the list below
states: (i) the name, mailing address and equity interest of each person holding any shares or other form of
ownership, of security interest:conyertible into an equity interest, in Franchisee, showing,percentage of ownership
held by each and (ii) the name and mailing:address of the indiVidual(s) vvho will be the Operating Prihcipahs) of
the Studio. Each Operating Principal named below has the authority to act for Franchisee in all matters relating to
the franchised Studio ^aiited hefeimder, including voting responsibilities. Only those individuals who are party
to this Agreement;and have an o.vmership interest in the franchise entity may be> listed as an Operating Principal.
Franchisee shall promptly notil^ Franchisor of any change in any such information. Any change in the Operating,
Principal(s), or in ownership information of Franchisee, is subject to Article 14 and the training requirements of
this Agreement;

Franchisee's a □ _, organized under the laws of _


or [□ Franchisee is an individualorgroup of individuals, and hereby represents and warrants that the: information
stated below is true and.acCurate as of the date set forth below:

Shareholder, Partner, Member Percentage of


or Individual Name and Address Ownership Interest

Operating Principal (may also be referred to as the “Designated Operator” in the FDD,):

17.4 Franchisor’s Discretion. Except as otherwise specifically referenced herein, all acts, decisions,
determinations,; specifications, prescriptions, authorizations, approvals, consents, and similar acts by Franchisor
may be taken or exercised in the sole and absolute discretion of Franchisor, regardless Of the impact upon
Franchisee; Franchisee, acknowledges and agrees that when Franchisor exercises its discretion Of judgmeiit, its
decisions may be for the benefit ofFranchisor or the System franchise network andmay not be in the best interest
ofFranchisee as an. individual franchise O^nef.

17.5 Notices.

A. All notices which the parties hereto may be. required or permitted, to give under this Agreement
shall be in writing and shall be pefsOnally delivered or mailed by certified or registered mail, return receipt
requested, postage paid, or by reliable overnight delivery service, addressed as follows;

If to Franchisor:
Stride Franchise, LLC
17877 Von Karman Ave., Suite; 100
Irvine, GA 92614
Attention: [INSERT]

If to Franchisee:

©2019 Stride Franchise„ LLC


2019 Franchise: Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
B. The addressees herein given for notices may be changed at any time by either party by written
notice given to the other party as herein provided. Notices delivered by certified or registered mail shall be deemed
to have been given three (3) business days after postm^k by United Spates Postal Service, or the next business
day after deposit vvitii reliable overnight delivery service dr when delivered by hand.

17.6 No Recourse Against Nonpartv Affiliates. All claims, obligations, liabilities, or causes of action,
(whether in contract or in tort, in lavy or in equity, or granted by statute) that may be based upon, in respect of,
arise under, out dr by reason of, be coimeeted vvith, or relate in any manner to this Agreement, or the negotiation,
execution, of performance of this Agreement (including any representation or warranty made in, in connection
with, or as an inducement to this Agreement, but not including separate undertakings Such as guarantees of
performance, personal guaranties, of corporate guararitees), may be made only against (and are those solely of)
the entities that are expressly identified as parties in the prearrible to this Agreement (“Contracting Parties”)- No
Person; who is not a Contracting Party, including without limitation any director, officer, employee, incorporator,
member, partner, manager, stockholder, affiliate, agent, attorney, or representative of, and, any financial advisor
or lender to, aiiy of the foregoing (‘TSlonparty Affiliates”), shall have any liability (whether in contract or in tort,
in law of in equity, or granted by statute) for any claims, causes of action, obligations, or liabilities arising imder,
out of, in connection with, or related in any manner to this Agreement or based on, in respect Of, or by reason of
this Agreement or its negotiation, execution, performance. Or breach; and, to the maximiun extentrpermitted by
law, each Contracting Party hereby waives.and releases all suchliabilities, claims,;causes of action, and obligations
against any such Nonpafty Affiliates, unless such liabilities, claims, causes of action, and obligations arise from
deliberately fraudulent acts. Without: limitihg the foregoing, to the maximum extent pemiitted by law, (a) each
Contracting Party hereby waives and releases Miy and all rights, claims, derriands or causes of action that may
otherwise be available, at law of in equity, or granted by statute, to avoid or disregard the entity form of a
Contfactihg Party or otherwise impose liability of a Contracting Party on any Nonparty Affiliate, whethef gfanted
by statute or based on theories of equity, agency. Control, instrumentality, altef ego, domiriation, sham, single
business enterprise, piefcing the veil, Unfairness, undercapitalizatibn,.or otherwise; and (b) each.Contracting Party
disclaims any reliance upon any Nonparty Affiliates with to the performance of this Agreement or any
repfesehtation or warranty made in, in connection with, or as an inducement to this Agreement. Nofhihg, herein
is intended to prevent a Contracting Party from pursuing my distinct legal rights it may have against a Nonparty
Affiliate which arise from a separate document, such as a guaranty of pefformailce, personal guaranty, corporate
guaran^ or similar agreement. Notwithstanding any other provision of this Agreement which limits the right of
prospective Third Party Beneficiaries, any Nonparty Affiliate, may rely on this provision and enforce it against
any Contracting Party or other Person or entity.

I have read.Article 17, understand it, and agree to comply with


each of its,Sections.
Vour Initials: /

18. ACKNOWLEDGMENTS

18.1 THE SUBMISSION OF THIS AGREEMENT DOES NOT CONSTITUTE AN OFFER AND THIS
AGREEMENT SHALL BECOME EFFECTIVE ONLY UPON THE EXECUTION HEREOF BY THE
FRANCHISOR AND THE FRANCHISEE. THE DATE OF EXECUTION BY THE FRANCHISOR SHALL
BE CONSIDERED TO BETHE DATE OF EXECUTION OF THIS AGREEMENT.

18.2 THIS AGREEMENT SHALL NOT BE BINDING ON THE FRANCHISOR UNLESS AND UNTIL IT
shall HA.VE Been Accepted and signed by an.authorized.officer of the franchisor.

©2019 Stride Franchise, LLC


2019 Franchise Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
18.3 FRANCHISEE ACKNOWLEDGES THAT IT RECEIVED A COMPLETE COPY OF THIS
agreement FOR A PERIOD NOT LESS THAN FOURTEEN.(l4) CALENDAR DAYS, DURING WHICH
time franchisee CONDUCTED' AN INDEPENDENT INVESTIGATION OF THE BUSINESS
licensed HEREUNDER TO THE EXTENT OF FRANCHISEE’S DESIRE TO DO SO. FRANCHISEE
RECOGNIZES AND ACKNOWLEDGES THAT THE BUSINESS VENTURE CONTEMPLATED BY THIS
agreement involves business risks, ANO that its SUeCESS WILL BE LARGELY
dependent upon the Ability Of the- franchisee as an independent businessperson.
FRANCHISOR EXPRESSLY DISCLAIMS THE MAKING OF, AND FRANCHISEE ACKNOWLEDGES
THAT IT HAS NOT RECEIVED, ANY WARRANTY OR GUARANTEE, EXPRESS OR IMPLIED, THAT
franchisee WILL BE SUCCESSFUL IN THIS VENTURE OR THAT THE BUSINESS WILL ATTAIN:
ANY LEVEL OF sales VOLUME, PROFITS, OR SUCCESS. FRANCHISEE ACKNOWLEDGES THAT
THIS AGREEMENT, THE FRANCHISE DISCLOSURE DOCUMENT (“FDD”), AND THE, EXHIBITS
HERETO CONSTITUTE THE ENTIRE AGREEMENT OF THE PARTIES. THIS AGREEMENT
TERMINATES AND SUPERSEDES ANY PRIOR AGREEMENT BETWEEN THE PARTIES CONCERNING
the: SAME SUBJECT MATTER. FRANCHISEE REPRESENTS, WARRANTS AND ACKNOWLEDGES
THAT IT HAS NOT RELIED ON ANY INFORMATION NOT SPECIFICALLY DISCLOSED IN THE FDD
IN MAKING ITS determination TO ENTER INTO THIS AGREEMENT.

18.4 franchisee agrees AND ACKNOWLEDGES THAT FULFILLMENT OF ANY AND ALL OF
FRANCHISOR’S OBLIGATIONS WRITTEN IN THIS AGREEMENT OR BASED ON ANY ORAL
COMMUNICATIONS WHICH MAY BE RULED TO BE BINDING IN A COURT OF LAW SHALL BE
FRANCHISOICS SOLE RESPONSIBILITY AND NONE OF FRANCHISOR’S AGENTS,
representatives, nor any individuals associated with FRANCHISOR’S FRANCHISE
COMPANY SHALL BE PERSONALLY LIABLE TO FRANCHISEE FOR ANY REASON.. THIS IS AN
IMPORTANT PART OF THIS AGREEMENT: FRANCHISEE, AGREES THAT NOTHING THAT
franchisee believes franchisee Has been tOld by franchisor or franchisor’s
representatives shall be binding unless it is written in this agreement: this is an
important part of this agreement, do not sign this agreement if there is any
question concerning its contents or aNy representations Made.

I have read Article 18, understand it, and agree to comply with
each of its Sections.
Your Initials: /

19. ENTIRE AGREEMENT

This Agreement, the documehtSTeftrred to Herein, and the.exhibits,hereto„constitute the entire and only agreement
between the parties concerning the granting, awarding and licensing of Franchisee as m authorized System
franchise at the Studio location, and supersede all prior ^d contemporaneous agreements., There are no
representations, indueernentsi promises, agreements, arrangements or undertakings, oral or written, between the
parties other than those set forth herein. Except for those permitted to be made unilaterally by Fra.nchispr
hereunder, no amendment, change- or variance from this A^eement shall be binding on either party unless
mutually agreed to by the parties and executed by their authorized officers or agents in writiiig; This Agreement
does not alter agreements between Franchisor and Franchisee for other locations. Nothing in this Agreement or
in any related agreement, however, is intended to disclaim the representations Franchisor made in the FDD that
Fimichisof furnished,to Franchisee.

©20’i9 Stride Franchise, LLC


2019 Franchise Agreement
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THE REST OF THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK
SIGNATURES ON THE FOLLOWING PAGE

IN WITNESS WHEREOF^ the parties have executed this Agreement on the dates set forth below to be,effective
upon execution by Franchisor.

“FRANCHISOR” “FRANCHISEE”

STRIDE FRANCHISE, LLC If Franchisee, is an individual-

signature:_______________

Date: __________________
Title:;

Signature:

Accepted: Date:

If Franchiseei is a corporation or other entity:

[Name of Franchisee]

Title:;

Date::

By::_

Title:

Date:

©2019'StrideTranchise, LLC!
,2619 Franchise Agreement

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
©2019 Stride Franchise, LLC
2019 Franchise; Agreement,
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
EXHIBIT i TO
FRANCHISE AGREEMENT

authorized location addendum

This Addendum is m^de tp the Franchise Agreement,(the “Franchise Agreement”) between Stride pr^chise, LLC
C‘Franchisor”), and(“Franchisee”), dated____________ , 20 .

1. Preservation of Agreement. Exceptas specifically setforth in this Addendum, the Franchise Agreement
shall remain in full force and effect in accordance with its terms and conditions. This Addendum is attached to
and Upon execution becomes an integral part of the Franchise A^eemenf,

2. Authorized Location. The parties hereto agree that the Authorized Location referred to in Section 1,3
of the Franchise Agreement shall be &e following:

3., Designated Territory, if any; Pursuant to Section 1.3 of the Franchise Agreement, Franchisee’s
Designated Territory will be defined as follows (if identified on a map, please attach map arid refererice attachment
below):

This Addendum is agreed to and accepted by the parties this.___day of ,20

FRANCHISOR:

Title:

FRANCHISEE:

Title:

By:

Title:

©2019 Stride Franchise; LEG


2019 Franchise Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
EXHIBIT 2 TO THE
FRANCHISE AGREEMENT

ELECTRONie FUNDS TRANSFER AGREEMENT

This Electronie Funds Transfer Agreement (the “Agreement”) is made on this __ ;day of
___________________ 20;___ by and between Stride Franchise, LLC. (“Franchisor”), and
_____________________ or their assignee, if a partnership, corporation or limited liability company is
later formedj(“Franchisee”).

Whereas^ Franchisor and Franchisee are parties to a Franchise Agreement executed on even date herewith
(the “Franchise Agreement”) and desire to;enter into an Addendum to the Franchise Agreement;,

Now, therefore! in consideration of the mutual promises contained herein and asi an inducement to
Franchisor to execute the Franchise Agreement, the parties agree as follows:

A. Franchisee shall pay any and all fees and other charges in connection with this Acidehdum and the
Franchise Agreement (ihcluding, without limitation, the Royalty Fees, contributions to the Fund and any other
payments dUe to Franchisor by Franchisee, and any applicable late fees and interest charges) by electronic,,
computer, wire, automated transfer, ACH debiting, and bank clearing services (collectively “electronic funds
transfers” or “EFT”*), and Franchisee Shall undertake all action necessary to.accomplish such-transfers.

B; Upon execution and delivery of this Agreement, Franchisee shall execute and deliver two (2) originals of
the “Electronic Debit Authorization” attached as Exhibit 3 to the Franchise Agreement, which authorizes
Franchisee’s bank or other financial institution to accept debit originations, electronic debit entries, or other EFT,
and electronically deposit feesfand coritributiOns owing Franchisor directly to Franchisor’s bank account(s). Upon
Franchisor’s request. Franchisee shall deliver to Franchisor all additional information that Franchisor deems
necessary (including, without limitation, financial institution of origin and relevant accounts and ABA/transit
numbers for any new bank accounts that Franchisee opens after the dalte of this: Addendum) in coimection with
sUch EFT).

G. By executing this Addendum, Franchisee authorizes Franchisor to withdraw funds at such days and times
as Franchisorshall determine via EFT &omTranchisee’s bank,account fOr all fees and other charges in connection
With die Franchise Agreement and this Addendum, as described in.the first sentence of this,paragraph. Franchisee
authorizes weekly ACH debits via EFT based on an amount equal to, the: total weekly amount due Franchisor, as
set forth in Section 5 of the Franchise Agreement.

D, Franchisee is respohsible for paying a;ll service charges and other fees imposed or otherwise: resulting
from action by Franchisee’s bank in cormection with EFT by Franchisor, including, without limitation, any arid
all service charges andother feesiarising in connection with any EFT by Franchisor not being honored.or processed
by Franchisee’s bank for any reason and a Fifty Dollar ($50) charge; by Franchisor for processing the EFT. Upon
written notice by Frahchisor tO Franchisee, Franchisee may be required to pay any amount(s) due under the
Franchise Agreement aiid/br this Addendum directly to Franchisor by check or other non-electronic means in lieu
of EFT at Franchisor’s discretion. It shall be a nonTCurable event of default under Article 15 of the Franchise
Agreement if Franchisee closes any bank account without, completing all of the following forthwith after such
closing: (1) inuiiediateiy noticing Franchisor thereof in writing, (2) immediately estabiishing another bank
account, and (3) executing and delivering to Franchisor all documents necessary for Franchisor to begin and
continue making withdrawals from such bank .account by EFT as this Addendum permits.

E. Except as specifically set forth in this. Addendum, the Franchise Agreement shall remain in full force and
effect in accordance with its terms and conditions. This Addendum is attached to and upon execufion becomes an
integral part of the Franchise Agreement,

©2019 Stride; Franchise, LLC


2019 Franchise Agreement
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WHEREFOIIE, the parties have set forth their HAND AND SEAL ON THE DAY AND
DATE FIRST ABOVE WRITTEN,

FRANCHISOR:

By: __________

Title:

FRANCHISEE:

Title:

By:

Title:

©2019 Stride Franchise; LLC


2019 Franchise Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
EXHIBIT 3 TO THE
FRANCHISE AGREEMENT

ELECTRONIC DEBIT AUTHORIZATION

FRANCHISOR: Stride Franchise, LLC

FRANCHISOR ID NUMBER:

The undersigned hereby authorizes Stride Franchise, LLC ;(the “Franchisor”), to initiate debit entries to the
undersized’s checking account indicated below and the depository named below (the “Depository’’), to debitJthe
saihe tp'such account.

Depositoiy Name: _____________________________________


Branch: _____________________________________
City State and Zip Code: _____________________________________

Ti^sit/ABA No,:
Account Nuniber:

This authority is to remain in full force and effect until the underlying dbUgatibns under the Franchise Agreement
have been.satisfied in full or released in writing by Franchison

This authorization further confirms my understanding of Exhibit to the Franchise Agreernent signed by me/us in
which I/we expressly agree that this authorization shall apply to any and all Depositories and bank accdurits with
which I/we Open accounts during the tenii Of the Franchisee, Agreement and any renewals. Without limiting the
generality of the forgoing^ I/We Understand that if I/we close any bank account. I/we! are obligated immediately
to: (i) notify Franchisor thereof in writing,, (ii) establish another bank account, and (iii) execute and deliver to
Franchisor all documents necessary for Franchisor to begin and continue making Withdrawals frdm such bank
aceount/depositOiy by ACH debiting or other electronic means, I/we specifically agree, arid declare that this
Authorizatidn shall be the only written authorization needed from me/us in order to initiate debit entries/AGH
debit originations:to my/our bank account(s) established with any Depository in the future,

DATE:

ID NUMBER: _______________________ _

PRINT NAME(S): SIGNATURE(S:):

©2019. StrideFranchise, LLC


2019. Franchise Agreement
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EXHIBIT 4 TO THE
FRANCHISE AGREEMENT

GUARANTEE, INpEMNIFICATION AND ACKNOWLEDGEMENT

For v^ue re;ceived,iand in consideration for, and as an inducement to Stride Franchise; LLC (the “Franchisor”) to
execute theFranchise; Agreement (the “Franchise Agreement”), of even date herewith, by and between Franchisor
and^or his assi^ee, if a partnership, corporatibn or limited liability eompmiy is later
formed (the “Franchisee”),(the^ “Guarantor(s)”), jointly and severally,
hereby unconditionally guarantee to Franchisor and Its successors and assigns the full and timely performance by
Franchisee of each obligation undertaken by Franchisee under the terms of the Franchise Agreemerit, including
all of Franchisee’s mphefary obligations arising under Of by virtue of the.Franchise Agreement.

Upon demand by Franchisor,, Guarantor(s) will immediately make each payment required of Franchisee under the
Franchise Agreement. Guarantor(s) hereby waive any right to require Ffanchisof to: (a) proceed agaiiist
Franchisee for any payment required under the Franchise Agreement; (b) proceed against or ekhaust any security
from Franchisee; Or (c) pursue or exhaust any remedy, including any legal or equitable relief, against Franchisee.
Without affecting the obligations of Guarantor(s) under this Guarantee, Indemnification and Acknowledgment,
Franchisor may, without, notice to Guarantor(s), extend, modify, or release any ihdebtedhess or obligation of
Franchisee; pr settle, adjust or cotriprofhise any claims against Franchisee;

Guarantor(s) waive notice of amendment of the Franchise. Agreement and notice of demand for payment
by Franchisee,, and agree to be bound by any and all such aniiendinents and changes to the Franchise
Agreement.

Guarantor(s),hereby agree to defend, indemnify and hold Franchisor harmless against any and all losses, damages,
liabilities, costs, and expenses (including, without liniitatiph, reasonable attorneys’ fees, reasonable costs of
investigations, cpuft costs, andarbitfatiott fees and expenses) resulting from, consisting of, or arising out of or in
connection With any failure by Franchisee to perform any obligation of Franchisee under the Franchise Agreemerit,
any amendment,, or any other agreement executed by Franchisee'referred to therein.

Guarantor(s) hereby acknowledge and agree to be individually bound by all obligations and covenants of
Franchisee contained in the Franchise Agreement, including those related to non-competition and confidentiality.

This Guarantee shall terminate upon the expiration or ferminatipn of the Franchise Agreement, except that all
obligations and liabilities of Guarantor(s) that arise front events that occurred on or before the effective date of
such termination shall remain in full force and effect until satisfied or discharged by Guarantpr(s)„ and all
covenants that by their terms continue in force after ferrninatipn pr expiration pf the Franchise Agreement shall
remain in force according to their terms. Uppn the death pf an individual Guarantor, theiestate of such Guarantor
will be bound by this Guarantee, but only for defaults and obligations existing at the time of death, and the:
obligations of the.dther Guarantor(s) will continue: in full force and effect.

The validity of this Guarantee and the obligations of Guafantor(s) hereunder shall in no way be terminated,
restricted, diminished, affected of impaired by reason of any action that Franchisor might take or be forced to take
against Franchisee, or by reason of any waiver or failure to enforce any pf the rights or remedies reserved to
Franchisor in ,the Franchise.Agreement pr otherwise.

The use of frie singular'hereih shall include the plural. Each term used in this Guarantee; unless-otherwise defined
herein,,shall have the same meaning as when used in the Franchise Agreement.

This Guarantee is to be performed in Orange County; California and shall be governed by and construed in
aceordance with the laws of the State of California. Notwithstanding:the foregoing, the undersigned specifically

©20,19 Stride Franchise, LLC


2019 Franchise Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
agree arid acknowledge that any claims, causes of action or'disputes, arising out of or related to Franchisee’s or
any of'Guarantor’s covenants not to compete (set forth in the Franchise Agreemerit and now incorporated by
reference.-as if fully set forth in this Guararity), including the iriteipretatiorij validity arid eriforcerrieritthereof, shall
be governed by the laws Where the. Studio' is located. Guarantor(s), specifically agree that the provision of the
Franchise Agreement related to dispute resolution (iritemal dispute resolution, nori-biriding mediation and
arbitration), injunctive relief, waivers, attorneys’ fees and 0,ther enforcement: Of the Franchise Agreemerit shall
apply equally with respect to all claims Or causes of action arising out Of or related tOithisiGuararity in;any manner
(including the inteipretaitiOn thereof). Franchisor and Guarantor(s) agree that any dispute under this Guarantee
shall be resolved by arbitration as set forth in the: Franchisei Agreement (subject to the exceptions described
therein).

In connection therewith, each of the undersigned hereby appoints the Secretary of State for the State of CalifOmia
as his,agent for service of process to receive summons issued by the court ip coimectibn with any such litigation.
Franchisor and Guarantor(s) agree that any dispute urider this Guarantee shall beiresolved by arbitration pursuant
to.ArtiCle 16 ofthe Franchise Agreemerit (except as Otherwise provided in Article 16 of the Franchise Agreement).

IN WITNESS WHEREOF, each of the undersigned has signed this Guarantee as of the date Of the Franchise
Agreement.

WITNESS: GUARANTOR(S)

By: ___________

By:

©2019 Stride Franchise,, LLC


2019 Franchise,Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
EXHIBIT 5 TO THE
FRANCHISE AGREEMENT

ADDENDUM TO LEASE

This Addendum to Lease (this “Addendurri”) modifies and supplements that certain lease dated
_ __________________ and entered into by Teriarit and Landlord concerning the Location at
^ __________ _(the “Lease”).

Landlord and Tenant, intending that Stride Franchise, LLC, a Delaware limited liability cprapany, (“Franchisor”),
(and its successors and assigns) be a third-party beneliciary of this Addendum, agree as follows:

(1) Landlord shall, during the term of theLease and thereafter, provide Franchisor all sales and other
information it may have, whether provided by Tenant or otherwise, related to theioperation of Tenant’s Studio as
Franchisor may reasonably request;

(2) Tenant may display the trademarks, service marks and other commercial symbols owned by
Franchisor and used to identify the service and/or products offered at the Studio, including the name “STRIDE,”
the Studio design and image developed, and owned by Franchisbr, as it currently exists and.as it may be revised
and further developed by Franehispr front time to time, and certain associated logos in accordance with the
specifications required by the Franchisor’s operations manual and other manuals (collectively, the “Manual”),
subject only to the provisions of applicable law and in accordance with provisionsTn the Lease no less favorable
than those applied to other tenants of Landlord;

(3) Tenant shall not, and the Landlord shall not pennit the tenant to, .sublease or assign, all or any part
of the Lease or the Premises, or extend the terrh or renew the Lease, without Franchisor’s prior written consent;

(4) Landlord shall, concurrently provide Franchisor with a Copy of any written default notice sent to
Tenant and thereupon grant Franchisor the right (but not the obligation), to cure any deficiency or default under
the Lease, should Tenant fail to do so, within fivei(5) days after the expiratiomofthe period in which Tenant may
cure the default;

(5) The Premises shall be used only Tor the operation of a Studio;

(6) Tenant may, without Landlord’s consent (but subject to providing Landlord with written notice
thereolQs at any time assign this Lease or sublease the whole or any part of the Premises to Franchisor or any
successor, subsidiary or affiliate of Franchisor;

(7) In the event of an assignment of the Lease to Franchisor as described in (6) above. Franchisor
may further assign this Lease, subject to Landlord’s consent, such consent not to be unreasonably withheld based
on the remaining obligations of assignee under the Lease, to a duly authorized franchisee of Franchisor, and
thereupon Franchisor .shall be released from any further liability under the Lease;,

(8) Until changed by Franchisor, notice to Franchisor shall be sent as follows:

Stride Franchise, LLC


17877 Von Karman Aye., Suite 100
Irvine, GA 92614

©20,19 Stride Franchise, LLC


2019 Franchise.Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Attii: [AUTHORIZED OEFICER NAME AND TITLE]

(9) None of the provisions in this Addendum or any rights granted Franchisor hereunder; may he
amended absent Franchisor’s prior written»consent.

AGREED:

Tenant LANDLORD

By: By:

Its: Its:

Date:. Date:

©2019 Stride Franchise, LLC


2019 Franchise Agreement
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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Exhibit B
To Franchise DisfclbsuFe Document

LIST OF STATE AGENTS FOR SERVICE OF PROCESS


AND STATE ADMINISTRATORS

©2019 Stride, Franchise, LLC


2019 Franchise Disclosure Document - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
LIST OF STATE ADMINISTRATORS AND AGENTS FOR SERVICE OF PROCESS

CALIFORNIA ILLINOIS
Commissioner of Business Oversi^t Franchise Bureau
One Sansome Street Illinois Attorney General
Suite!6G0 500 South Second Street
San Francisco, CA 94104 Springfield, Illinois 62706
Tel: (415) 972-8559 (217) 782-4465
Fax: (41.5) 972-8590
Toll Free:: (866) 275-2677 INDIANA
(for service: of process)
CONNECTICUT Indiana Secret^ Of State
Department of Banking .201 State House
Securities Md Business Investments Division Indianapolis, Indiana 46204
260 Constitution Plaza
Hartford, Connecticut 06103-1800 (state agency)
Tel: (860) 24Q-8230 Securities Commissioner
Indiana Secretary of State
Florida Securities Division, Franchise Section
Tom Kenny, Regulatory Consultant ,302 West Wa&hington Street,
Department of Agriculture & Consumer Services RoomE-lli
Division of Consumer Services Indianapolis, Indiana 46204
P.O. Box 6700 Tel: (3I7)'232-6681
Tallahassee,Florida 32314
Tel:. (850); 488-22:21 IOWA
Fax: (850),410-3804 Dennis Britson
Director of Regulated Industries Unit
HAWAII lOwa Securities Bureau
(for service, ofprocess) :340 Maple
COmmissionef of Securities of the State Of Hawaii Des Moines, Iowa 50319-0066
Department of Commerce and Consumer Affairs. Tel:(515);281-4441
Business Registration Division; Fax: (515) 381-3059
Securities Compliance Branch email: iOwasec@iid:State.ia.us
.335 Merchant Street, Room 203
HohOlulu,.Hawaii 96813 MARYLAND
(for service of process)
(state:agency) Maryland Securities Commissioner
Department of Commerce &. Division of Securities;
Consumer Affairs 200 St. Paul Place
Ring Kalakaua Building Baltimore, Maryland 21202-2O2O
335 Merchant Street, Rm 203
Hondlulu„Hawaii 968 f3 (state agency)
Tel: (808)586-2722 Office of the Attorney General
Fax: (808) 587-7559 DiyiSioh .Of Securities
200 St. Paul Place
Baltimore, M^land 21302-2020
Tel: (410) 576-6360

©2019 Stride Eranchise„LLC


>2019 Franchise Disclosure Docurnent - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
MICHIGAN NE W YORK
(for service of process) (state agency)
Michigan Department of Consumer and. Industry Services NYS Department of Law
Bureau of Commercial Services Investor Protection Biireau,
Corporations Division 28 Liberty Street, 2D‘ Floor
PO Box 30054 New, York, NY 10005
Lansing, Michigan 48909 (212)416-8236 Phone
Tel: (517) 241-6470 (212)416-6042 Fax

MICHIGAN NORTH DAKOTA


(state agency) (for’ service of process)
Department of the Attorney General North Dakota Securities Conuriissibner
Consumer Protection BiVisioh North Dakota Securities Department
Antitrust and Franchise Section 600 East Boulevard, 5th Floor
670 Law Building Bismarck, North Dakota 58505^051.0
Lansing, MI 48913
Tel> (517)373.7117 (state agency)
North Dakota; Securities Department
MINNESOTA 600 East Bduleyard, 5th Floor
Commissioner of Commerce Bismarck, North Dakota 58505-0510
85 Seventh Place East, Suite 280 Tel: (701) 328-2910
St. Paul, MN 55101-2198
Tel: (651) 539-1600 OREGON
Director, Department of Consumer &
NEBRASKA Business Services
Gene Sdienkelberg, Securities Analyst Division of Finance & Corporate
Department of Banking & Finance Securities
1200 N. Street, Suite 311 Labor and Industries Building
P.O. Box 95006 Salem, Oregon 97310
LincolnLNebraska 68509 Tel: (503), 378-4140
Tel: (402) 417-3445 Fax:: (5031947-7862
Email: dcbsidfcsmail@state>.or;us
NEW YORK
(for service of process) RHODE island
Attention: New York Secreta^ of State Director
New York Department of State Securities Division
One Commerce Plaza, Department of Business Regulation,
99. Washington Avenue, 6* Floor Building 69, First FloOr'
Albany, NY 12231-0001 John O. PastOre Center
(518)473-2492 l511 Pontiac Avenue,
Cranston, Rhode Island 02920
TEXAS Tel: (401);462 9582
Statutory Document Section
Secretary of State SOUTH DAKOTA
1719 Biuzos Division of Insurance
Austiri, Texas 78701 Securities Regulation
Attn: Dorothy Wilson 124 S..Euclid, Suite l04
Tel: (512) 475-1769 Pierre, South Dakota 57501
(605) 773-3563

©2019 Stride Franchise, LLC


2019 Franchise:Disclbs'ure D6cument -Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
UTAH WASHINGTON
Director, Division of Consumer Prpjtectioii (state agency)
Utah Dept., of Commerce Administrator
160 East Three Hundred iSouth Department of Financial Institutions
SMBox 146704 Securities Division
Salt Lake City, Utah 84114-6704 P.O. Box 9033
Tel: (801) 530-6601 Olympia, Washington 98507-9033
Eax:(801)530-6001 Tel: (360) 902-8760
Fax: (360) 902-0524
VIRGINIA
(for sefvice of process) WISCONSIN
Clerk of the State Corporatibn Commission Commissibner of Securities
1300 East Main Street, 1 st Floor Department of Financial Institutions
Richmond, yirginia 23219 P;0. Box 1768
Madison, Wiscbnsin 53701-1768
(state'agency) Tel: (608) 266-2801
Director
State Corporatibn Cbmmission
Diyisibri of Securities and Retail Franchising
1300 East Main Street, 9th Floor
Richmond, Virginia 23219
Tel: (804) 371-9051

WASHINGTON
(for service of process)
Administfator
Dejj'artment of Financial Institutions
Securities Division
150 Israel Road S W
Tumwater, Washington 98501

©2019:Stride FrancKise; LLC


2019 Franchise.Disclosure.Document - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Exhibit D
To Franchise Discloisure Document

STATEMENT OF PROSPECTIVE FRANCmSEE

©2019 Stride, Franchise, LLC


:2019Franchise Disclosure Document - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
STRIDE
STATEMENT OF PROSPECTIVE FRANCHISEE

[Note: Dates and Answers Must Be Completed


in the Prospective Franchisee's Own Handwriting.]

Since the Prospective Franchisee (also called “me,” “our,” ‘-us,” “we” and/or “I” iii this document) and
Stride Franchise, LLC (also called the “Franehisdr” dr ‘‘STRIDE”) both have an interest in making sure that no
misunderstandings exist between them, and to verify that no violations of law might have occurred, and
understanding that the Franchisor is relying on the statements I/we inake in this document^ I/we assure the
Franchisor as follows:

A. The following dates and information are true and correct:

I. _.20_ The date dh which I/we received a Uniform Franchise Disclosure


Document about a Franchise.
Initials

2. _.20_ The date when I/we received a fully coinpleted copy (other than
signatures):of the Ffarichise Agreement, Development Agreement
Initials (if appropriate) and all other documents I/we later signed.

The earliest date on which, I/we signed the Franchise Agreement,


Development Agreement or any other binding document (not
Initials including any Letter of other AcknoWledgrtient of Receipt.)

4. The earliest date oh which Kwe: delivered cash, check or other


consideration to the Franchisor, or any other person or company.
Initials

B. Representations and Other Matters:

1. No oral, written, visual or other promises, agreemeritSj commitments, representatidns, understandings,


"side deals," options^ rights-oLfirst-refUsal or otherwise of any type (collectively, the “representations”),
including, but not limited to. any which expanded upon or were inconsistent with the Disclosure Document, the
Franchise Agreement, or any other written documents, havebeen made td dr'with me/us with respect to any matter
(including, but,not limited to, advertising, marketing, site location ahd/dr development, operational, marketing or
adm.inisttatiye assistance, exclusive fights or exclusive or protected territory or otherwise) nor have I/we relied in
any way on any such representations, except as expressly set forth in the Franchise Agreement, or a written
Addendum thereto signed by the Prospective Franchisee and the Franchisor, except as; follows:

(If none, the Prospective Franchisee should write,NONE in his/her/their pwn h^dwriting.)

Prospective Franchisee's Initials: ,

2. No oral, written, visual or other claim, guarantee or representatidn (including, but not limited td^ charts^
tables, spreadsheets or mathematical calculations to demonstrate actual of pdssible results based on a combination
of variables, such as multiples of pricei arid quantity to reflect gross sales, or otherwise), which stated pr suggested
any specific level or range of actual or potential sales, costs, income, expenses, profits, cash flovw, tax effects or

©20194Stride ErancKise, LLC


2019 Franchise Disclosure Ddcument - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
otherwise^or from, \yhich such items might be ascertained), from franchised or non-franchised units, was made to
me/us by Franchisor, its affiliates or agents/representatives, nor have I/we relied in any ^ay on any such' except
for information (if any) expressly set forth in Item 19 of the FrahChisor's Disclosure Document (or an exhibit
referred to therein), except as follows:

Prospective Franchisee’s Initials:

3. hip contingency, prerequisite, reservation or otherwise exists with respect to any^matter (including, but
not limited to. the Prospective Franchisee Obtaining, any financing, the Prospective Franchisee's selection,
purchase, lease; or otherwise of a location, any operational matters or otherwise) or the Prospective Ffarichisee.
fully performing any of the Prospective Franchisee's obligations, nor is the Prospective Franchisee relying on the
Franchispr or any other entity to provide or arrange financing of any type, nor have I/we relied in any way on
such, except as expressly set forth in the Franchise Agreenient, Development Agreement (if and as. appropriate)
or a written Addendum theretp signed by the Prospective Franchisee and the Franchisor, except as follows:

(If none, the Prospective Franchisee should Write NONE in his/her/their ovim handwriting,)

Prospective Franchisee's Initials:

4. The individuals signing for the "Prospective Franchisee" constitute all of the executive officers, partners,
shareholders, investors and/or principals ofthe Prospective Franchisee and each of such individuals has received
the Uniform Franchise Disclosure Document and all exhibits and carefully read,,discussed, understands and agrees
to the Franchise Agreement, Development Agreement: (if and as appropriate), each written Addendum ani any
Personal Guarantees.

Prospective Franchisee's Initials:

5. I/we have had an opportunity tO'ConsUlt with an independent;prOfessional advisor, suCh as an.attomey or
accountant, prior to signing any binding documents or paying any sumsj and the Franchisor has strongly
recoinraendedThat I/wCiobtain such independent professional advice: I/wehave also been strongly advised by the
Franchisor to discuss my/our proposed purchase of, or investment in, a STRIDE Studio Franchise with existing
Franchisees prior to signing: any binding documents Ot paying any sums and I/we have been supplied with a list
of existing STRIDE Studip Franchisees.

Prospective Franchisee's.Initials:

6. I confirm that, as advised, I’ ve spoken with past and/or existing STRIDE Studio Franchisees, and that I
made/the decirion as to which, and how many, STRIDE Studio Franchisees'to speak with.

Prospective Franchisee's Initials: ^

7. I/we understand that; entry into any business venture necessarily involves some imavoidable risk of loss
or failure; the Purchase of a STRIDE Franchise (or any other.Y is a speculative investment, an investment beyond
that outlined in the Disclosure Document may be required to succeed, there exists no guaranty against possible
loss or failure in this or any other business and the.most important factors in the,success of anv STRIDE Franchise
including the: one to be operated bv me/us. are mv/our personal business, marketing, sales, management, judgment
and other skills.

Prospective Franchisee's Initials:

If there are.an v matters inconsistent with the statements in this dOcumenL or if anvone has suggested that

©2019:Stride Eranchise,:LLC
2019 Franchise,Disclosure Document— Exhibits

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
I sign this document without all of its statements being true; correct and complete. I/we will (a) immediately
inform :Stride Franchise. LLC (949-490-5989’>. and (V\ m^e a written statement regarding such next to mv
signaturci below so that the Franchisor may address and resolve any such issuefs) at: this time.and before either
party goes forward.

I/we understand and agree that the Franchisor does not fumish or endorse, or authorize its salespersons or
others to furnish or endorse, any prah wntfen or other informatipn concerning actual Of potential sales. Costs,
income, expeiises, profits, cash flow, tax effects or otherwise (of fi-om which such items might be ascertained),
from franchised or non-franchised units,, that such information (if any) not expressly set forth in Ifem 19 Of the
Franchisor's Disetosure Document, (or an exhibit referred to therein) is nOt reliable and that I/we have not relied
on it. that no such results Can be assured Or estimated and that actual results will vary fi-om unit to unit, fi-anchise
to franchise, and.mav vary significantiv.

Prospective Franchisee's Initials:

I/We understand and,agree to all ofthe foregoing and represent and warrant that all ofthe above statements
are true, correct and complete.

Date:

PROSPECTIVE FRANCHISEE andividual) PROSPECTIVE FRANCHISEE (Cbrp., LLC of


Partnership) [Must be:accompanied by appropriate
personal guarantee(s)];
Signature

Legal Name of Entity


Printed Name
a_____________________
State of incorporation, formation, etc .
Signature
By:___________________________
Name;
Printed Name

Signature

Title:,______

©2019 Striae.FrancKise. LLC:


2019 Franchise Disclosure Docuuieht^T-.E^diibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Exhibit E
To Franchise Disclosure Pocument

TABLE OF GONTENTS OF THE OPERATIONS MANUAL

©2019 Stride,Franchise, LLG


2019 Franchise Disclosure Document ^ Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
STRIDE
OPERATIONS MANUAL
TABLE OF CONTENTS

©26l9iStride Franchise, LLC


2019 Fi^chise DisclosureiDocument - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Operations Brand Standards Manual
TABLE OF CONTENTS
CHAPTER 1: GENERAL INFORMATION..... 1
.................................... . ••••••••••••••>•
Section t:i - The,Purpose of the;Manual...................................................................................... 2
SECTION 1.2— How to Use This Manual.......... ..... ..........................................................................3;
SECTION 1.3- The STRIDE STORY......................................................................... ................. .........5
SECTION 1.4 -;STRIDEiCOR£ VALUES ........................................................................................7
CHAPTER 2i THE FRANCHISE RELATIONSHIP ................... ......................................................
Section 2.1-The Franchisee/'Franchisor Relationship..,...,..,....................,..,.....^..;.;.....................I
Section 2;2 - our Responsibilities................................................................................. 4
Section 2:3 - Your Obligations ..................................................................................................... 6
Section 2.4 - Establishing your Business Entity .................. ............................................17
Section 2:5 - Transfer Your Franchise Agreement................. ...... ,......... ,.... .................,.;..;...;.;20
Chapter 3: franchise requirements i
Section 3.1 - The Franchisee /'Franchisor Relationship ................................................. ;2
CHAPTER' 4i OPERATIONAL STA^IDARDS 1
Section 4.:l - The Importance of Standards..................................................................................2
Section'4.2 - The Standards.............. ;....,............................................................. 4
CHAPTER 5: PERSONNEL....................................................... .................................................... . 1
Section 5.1 ^ Qvervievv And Disclaimer.......................................................................2
Section 5.2 - Laws'and Requirements ............................................................. 3
SectIoni5.3-Job Descriptions,................ 4
Segtion,5.4 - Lead Sources for Hiring..........................................................,,.... .............9
SECTION 5.5 -STRIDE Support Galls ... ....................................................................... .10
CHAPTER 6: STUDIO OPERATIONS BEST PRACTICES.......................................................... . 1
Section 6. l - overview................................................................. ............................................... 2
Section 6.2 - STRIDE Services ...;................................................................................... . 3
Section 6.3- FreeTPial 5
Segtion;6.4 - Attire & Retail............................ ............................... ............... , 6
SEGTI0N;6.5'-THE CLIENT....;..................!......................................................... ................................8
Section;6.6 - Retail .........................................................................................................11
SEcTiONi6.7 - Daily Activities.................................................,....... .......... .................................. 12
Section;6.8 -Club Ready........................................................................................................ .......13
CHAPTER 7: SALES..
SECTI0N’7.1 -THECLIENT ......... .......................................................... 2
Section 7.2-COMPETITION................................................................................... 3
Section 7.3 - Membership Rates ..........................................................................,..... 5
Section 7.4-STRIDE LAUNCH......,,.,,,.,........,....,........,..............;..;.v...::.v.;..;.;,..;.................................. 6
Section 7;5 - Pre-SAle .................................................................................................... 7
Section 7.6 -OBIECTlONSi.;................................................................................................. 8
Section 7.7 - Sign Them up........................ ,,....... ............................................................................9
Section 7.8 - Turnover.............................................................. ......................... .................. ...;....IQ
Section 7.9 - Sales Management Best Practices....................................................................! 1
Section 7.10 - Sales Tools............................................ ................................................................. 12
Section 7.11 -.Sales Timeline........................................................................................... 13
CHAPTER 8: CRISIS MANAGEMENT 1
Section 8,1 - Defining a Crisis,......,,,,..,.,...,..,...,............................. .................................................2
Section 8;2 - Crisis Communication.................................................... .......;... ;.... 3
CHAPTER 9: STUDIO ADMINISTRATION ..... ........................ ....... . 1
SECTION 9,1 - Key Performance Indicators and Profitability.... ................................................2
Section 9:2-ManAgingtHeNLimberS................................ ............................,,,...........4
Section 9:3 - Inventory Control..;.... ................................................................ ................ 6
section 9:4 - Risk Management ......, ..............................................7
Section 9:5 - DATASEcurity......................................................................................11
Total Pages: 94

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Exhibit F
To Franchise Disclosure Document

SAMPLE RELEASE AGREEMENT

©2019 Stride Franchise, LLQ


.2019 Franchise Disclosure Document - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
GENERAL RELEASE OF ALL CLAIMS

(FRANCHISEE”) and _________, an individual


(“GUARANTOR”) enter into this General' Release on j with reference to the following
facts:

1. Qn Stride Franchise, LLG, a Delaware limited liability company


(“FRANCHISOR”), and FRANCHISEE entered into a Franchise Agreement (the “Franchise Agreemehf”) to
operate a STRIDE Franchised Business located at(the “Premises”).
GUARANTOR guaranteed FRANCHISEE’S performance under the Franchise Agreement pursuant to a
Guarantee and Assumptipii of Obligations (the “Guarantee’^. In consideration of FRANCHISOR’S processing
and approval of, the Franchise A^eeinent
provides that FRANCHISEE must sign this General Release as a cohdition to such. All capitalized
terms not otherwise defmed in this General Release shall have the same meaning as in the Franchise; Agreement
and/or the Guarantee;

2. For valuable consideration, the receipt arid sufficiency of which is hereby acknowledged^
FRANCHISEE and GUARANTOR hereby release and forever discharge FRANCHISOR, its parents and
Subsidiaries and the directors, officers, employees, attorneys and agents of said corporations, arid each of thepij
frbm.aiiy and all claims, obligations, liabilities, demands, costs, expenses, damages, actibris and causes of action,
of whatever nature, character or description, known or unknown (collectiyely “Damages”), which arose on or
before the date of this General Release, including any Damages with respect to the Franchise Agreernent, the
Franchised Business, the Premises and the Guarantee. FRANCHISEE waives any right or benefit which
franchisee or GUARANTOR may have under Section I542.of the California Civil Code or any equivalent law
or statutenof any other state, Section 1542 of the California Ci vil Code reads as . follows:

"Section 1542. Certain claims not affected by general release. A general release does not extend to
claims which the creditor does not know or suspect to exist in his favor at'the time of executing this
release, which if know by him must have iinaterially affected hi's settlement with the; debtor."

3. This General Release sets, forth the entire agreement and understanding of the parties regarding
the subject.inatter of this General Release and any agreement, represehtatiPri or understandihg, express or implied,
heretofore made by any party or exchanged between the parties, are'hereby waived and canceled.

4. This: Agreerhent shall be binding upon each of the parties to fiiis General Release and their
respective heirSj executors, administrators, personal representatives, successprs and assigns.

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year set
forth above.,

FRANCHISEE:

By;.

PrintName:

Title:_____

GUARANTOR:
an individual

.©2019 Stride Franchise, LLC


2019 Franchise Disclosure Document - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Exhibit G
To Franchise Disclosure Document

STATE SPECIFIC ADDENDA

©2019:StrideErancKise,LLC
2019, Eranchise DisclosureiDocument - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
ADDITIONAL STATE DISCLOSURES

If the franchise is located in or if franchisee, is .a resident of any of the following, states; then the designated
provisions in the Franchise Disclosure Docunient (“Piscldsure Document”) and Frmchise Agreement will be
amended as follows;

CALIFORNIA

ADDENDUM TO DISCLOSURE DOCUMENT

California Corporations Code,, Section 31125 requires the franchisor to give the franchisee a disclosure
docurnent, approved by the Department of Business Oversight^ prior to a solicitation of a proposed material
modification of an existing franchise.

Our website has not been;reyiewed or approved by the California Department of Business Oversight. Any
complaints concerning the Content of this website may be directed to the California Department of Business
Oversight: at Www.dbo.ca.gov.

THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL


PROPOSED agreements RELATING TO THE SALE OF THE.FRANCHISE BE DELIVERED TOGETHER
WITH THE DISCLOSURE DOCUMENT.

1. The following language is added to die Risk Factors on the State Cover Rage;

franchisee MUST SECURE A SITE IN AN AUTHORIZED.LOCATION WITHIN 6 MONTHS


OF EXECUTING THE FRANCHISE AGREEMENT, OR FRANCHISOR MAY TERMINATE
THE FRANCHISE agreement.

FRANCHISOR HAS THE OPTION TO TERMINATE THE FRANCHISE AGREEMENT IF


FRANCHISEE FAILS TO OPEN THE BUSINESS WITHIN THE TIME SET FORTH IN THE
frtumchise agreement.
2. The following language is added to the end of Item 3 of the Disclosure Document;

Neither Stride Franchise, LLC, nor'any person identified in Item 2, or an affiliate or


franchise broker OfFering franchises under our principal trademark is subject to any currently
effective order of any national securities association or national securities exchange, as defined in
the Securities, and Exchange Act of 1934,, 15 U.S.CA^ ^^a et seq.. suspending or expelling .such
person from membership in such association of exchange.

3. The following, paragraphs are added at the end of Item 17 of the Disclosure DOcuihent:

■The Franchise Agreement requires franchisee tO execute a general release of claims upon
renewal Of fransfer of the Franchise Agreement: California Corporations Code Section 31512
provides; that any condition, stipulation or provision purporting to bind any person acqiiirihg any
franchise to waive compliance with any provision of that law or any;rule or order thereunder is void.

Califomia.BusinesSiand Professions Code Sections 20000 through 20043 provide Aghts to


franchisees concerning termination or non-renewal of a fr^clnse,. If the Franchise Agreement
contains a provision that is inconsistentwith the la\y, the, law will control.

©2019 .stride ErancHise; LEC


2019 FrancHise.Disclosure.Document - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
The Franchise Agreeinent provides for tenriination upon bankruptcy. This provision may
not be eriforceable under federal bankruptcy law'( 11 tl.S.CA. Sec. 101 et seq.T

The Franchise Agreement contains a covenant nOt to compete which extends beyond the
termination of the ff^chise. This provision may not be enforceable under Galifomia law but. we
Will enforce it to the extent enforceable.

The Franchise A^eement requires application . Of the laWs of the states where the business
isdocated. This provision may not be enforceable imder California law, but we will enforce it to,the
extent enforeeable.

The Franchise Agreernent requires binding arbitration. Theiarbitration will occur in; Orange
County, California, with the costs being borne by the non-prevailing,party. The prevailing party
shall be entitled to recover reasonable compensation for expenses, costs and fees in connection With
arbitration, including reasonable attorney’s fees, Prospectiye fi^chisees are eiicouraged to, consult
private legal counsel to detertnirie the;applicability of California and federal laws (such as Business
and Professions Code Section 20040,5 Code of Civil Procedure Section 1281, and the Federal
Arbitration Act) to any provisions of a franchise agreement restricting venue to a fOnim outside the
State of Galifomia.

©2019 Stride: Franchise, LLC


20f9 Franchise Disclosure Document - Exhibits

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
HAWAn

ADDENDUM TO DISCLOSURE DOCUMENT

These franchises will he/ have been filed under the Franchise Investment Law of the State of Hawaii. Filing;
does not constitute approval, recommendationi or endorsement by the Director of Comrnerce and Cbnsutner Affairs
or a finding by the Director of Commerce and Consumer Affairs that, the information provided herein is true,
complete, and not misleading.

The Franchise Investment Law makes it unlawfirl to offer or sell any franchise in this state \yithOut first
providingjto the prospective:franchisee„or subfranchispri at least seyen days prior to; the executiOn by the prospective
franchisee of any binding firanchise or other agreement, or at least seven days prior to the payment of any
consideration by the franchisee, of subfranchisor, whichever occurs first, a copy of the Disclosure Document,
together with an copy of all proposed agreements relating to thesale of the franchise.

This Disclosure Document contains a summary only of certain material provisions of the franchise
agreement, The contract of agreement shouldbe referred to for a statementiof all fights, conditions, restrictions and
obligations of both the franchisor, and the franchisee.

©2019 Striae Franchise, LLG


2019 Eranchise'Pisclosure.Document - Exhibits

This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
ILLINOIS

ADDENDUM TO DISCLOSURE DOCUMENT

1. The “Suraraai^f” section of Item 17(v,), ehtitied Choice of forum, is deleted in its entirety.

2. The “Summary” section,of Item l,7(w), entitled Choice of laVy. is deleted and replaced with the following:

Illindis law applies,

3. Illinois law governs the agreement(s) between the parties to this franchise.

4. Any provision in a. franchise agreement that designates jurisdiction or venue in a forum outside of Illinois
is void, provided that; arbitration may take place outside of Illinois. ,8l5 ILCS 705/4 (West 2010)

5. Any condition, stipulation, or provision purporting to bind any person acquiring any franchise to vvaive
compliance with any provision of the Illinois Franchise Disclosure Act or any other law of Illinois is void. 815
ILGS 705/41 (West 2010)

©2019:Stride Erancliise, LLC


2019 Franchise.DisclosureiDocument - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
ILLINOIS

AMENDMENT TO FRANCHISE AGREEMENT AND DEVELOPMENT AGREEMENT

The Franchise Agreement and Development Agreement are specifically amended as follows:

In recoghition of the requirements of the Illinois Franchise Disclosure Act of 1987 (as amended), the parties
to the attached Ffarichise Agreement (“Agreement”) agree as follows:

1. GovemingXaw.

a. Section 16.1 of the Franchise Agreement, “GOVERNING LAW,7 is deleted in its entirety arid
replaced with the following:

EXCEPT TO THE EXTENT GOVERNED BY THE UNITED STATES TRADEMARK. ACT OF


1946 (LANHAM ACT, 15 U.S.G. SECTIONS 1051 ET SEQ.), THE FEDERAL ARBITRATION
ACT,, OR OTHER FEDERAL LAW, THIS AGREEMENT aNd THE RIGHTS. OF THE PARTIES
HEREUNDER SHALL DR INTERPRETED AND CONSTRUED UNDER THE LAWS OF THE:
STATE OF XLINOIS.

b. Section ;21(A) of the Develbpmerit Agreement is hereby amended to providerthat Illinois law governs
the agfeements between the parties to this,franchise.

2. Section 4 of the Illinbis Er^chise IDisclosure Act provides that ,any provision in a .franchise
agreement/development agreement that designates jurisdiction or venue outside of the State of Illinois is
void. However, a franchise agreement/development agreement may provide for arbitration in a Venue
outside of Illinois.

3. Section 41 of the Illinois Franchise Disclosure Act provide that, any condition, stipulation or provision
purporting to bind any person acquiring; any franchise to waive compliance with theTllinois Franchise
Disclosure Act or any other law of Illinois is void. Accordingly, insofar as the Franchise Agreement
requires you to waive your rights under the Illinois franchise law, these requirements are deleted from the
Franchise Agreement, This provision will hot prevent the franchisor from requiring,you to sign a general
release of claims as part of a negotiated settlement of a dispute or acmal lawsuit filed under any Of the
provisiohs bfthe Act, nor shall it prevent the arbitration of any claim pursuant to the provisions of Title
9 of the United States Code.

IN WITNESS WHEREOF, each bfthe undersigned, hereby acknowledges having:read this Ainendment,
understands arid consents to be bound by all of its terms.

Stride Franchise, LLC Franchisee:,

Byt_____________ By:,_____

Title: Title:

©2019 Stride Franchisei ;LLC


:2019 Fi^chise Disclosure Document - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
MARYLAND

ADDENDUM TO DISCLOSURE DOGUMENT

1. The “Summai7” section of Item 17(c) entitled Requirements for renewal or extension of term, and the
“Summary” section of Item 17(m) entitled Conditions for franchisor approval of transfer, are amended by
adding the following:

Any geiiefal, release you sigh shall not apply to the extent prohibited by the Maiyland Fr^chise
Registration and Disclosure Law.

2. The “Summary” section of Item 17(h) entitled “Cause” defined - non-curable defaulfe. is amended by
adding the following::

The Franchise Agreement provides for'temi'ination upon your bankruptcy. This provision might
not be enforceable under federal bankruptcy law (11 U.S.C. Sections 101 et seq.). but we will
enforce it to the extent enforceable.

3. The following are added to the end of the chart in Item 17:

Despite any contradicting provision in the Franchise;Agreement, youihaye 3 years from the date on
which we grant you the franchise to bring a Claim under the Maryland Franchise Registration and
Disclosure Law.

A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise
Registration and Disclosure Law.

©2019 Stride Franchise, LLC,


20F9 Franchise Ilisclosure Docurnent - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
MARYLAND

AMENDMENT TO FRANCfflSE AGREEMENT

The Franchise Agreement is specifically amended as follows:

Any prdvisign requiring Franchisee to execute a general release of any and a:ll claims against Franchisor shall not
apply to claiihs :arisihg;under the Maryland Franchise Registration and Disclosure LayVi,

Termination upon bankruptcy of the Franchisee might not .be enforceable under federal bankruptcy law;(11 U.S.C.
Sections 1.0:1 et^^.)> but:Ffanchisor intends to enforce it to the extent enforceable.,

Section 16.12 shall be supplemented by the following; additional language:

PROVIDED, HOWEVER, THAT THIS LIMITATION OF CLAIMS SHALL NOT


ACT TO REDUCE THE THREE (3) YEAR STATUTE OF LIMITATIONS
AFFORDED FRANCHISEE FOR BRINDING A claimUNDER THE MARYLAND
FRANCHISE REGISTRATION AND DISCLOSURE LAW.

Section 14-226 of the Maryland Franchise Registration and Disclosure La\y prohibits a fraitchisof from fequiring a
prospective franchisee to assent to any release, estoppel. Of waiver of liability as a condition of purchasing a
franchise. Any proyisibn of this Franchise Agreement which requires a prospective franchisee to disclaim the
occurrence and/or non-Occurrence oTacts that would constitute a violation of the Maryland Franchise Registration
and Disclosure Law in order to purchase a franchise are not intended to, nor shall they act as a release, estoppel or
waiver of any liability incurred under the MarylandEranchiseRegistfatibri and Disclosure Law.

IN WITNESS WHEREOF, each of the undersigned hereby acknowledges haying read, this Arnendment,
understands and consents to be bound by all of its terms.

Stride Franchise; LLC Franchisee;

By:.

Title: Title:

©2019 Stride ErancHi'se, LLC


2019 Eranchise;Disclosure Document - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
MARYLAND

AMENDMENT TO DISCLOSURE QUESTIONNAIRE

The Franchise Disclosure Questionnaire is specifically amended as follows:

In recognition of the requirements of the Maryland Franchise Registratibn ;ahd Disclosure Law (as
amended), Md. Code Bus. Reg. Sections 14r20,l through 14-233, the following paragraph is added to the Franchisee
Disclosure Questionnaire:

Maryland Franchise Registration and Disclosure La\y prohibits a franchisor from requiring a
prospective franchisee to assent to any release, estoppel, or waiver of liability as a condition of
purchasing a franchise. Representations in this questionnaire are not intended to nor shall they act
as a release, estoppel, or waiver of aiiy liability incurred under the Maryland Franchise Registration
and Disclosure; Law.

Name oTFrarichisee/Applicant

Date:

Signature

Name and Title Of Person Signing

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MICHIGAN

ADHENDUM TO DISCLOSURE DOCUMENT

The following disclosures are required by the State of.Michigan:

1. THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE


SOMETIMES IN franchise DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN'THESE
FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST
YOU.

Each of the following; provisions; is void and unenforceable if contained in aiiy docviments related to a
franchise:

A. A prohibition oh the right of a. franchisee to join an association of franchisees.

B. A requirement that a franchisee assent to a rele^e. assighmehti novation, waiver Or estoppel which
deprives a franchisee of rights and protections provided ih' the MichigahEranchise Investment Act. This shall not
preclude a franchisee, after entering into, a franchise agreement,.from settling any and all claims.

C. A provision that permits a franchisor to terminate a franchise prior to the expiration of this term
except for good cause. Good cause shall include the failure of the franchisee to comply with any lawful provision
of the franchise: agreement and to cure such failure after being given written notice: thereof and a reasonable
Opportunity, which in no event need be more than 30 days, to cure such failure.

D. A provision that pemiits a frarichisof tO refuse to renew a franchise without fairly compensating the
franchisee by repurchase or other means; for the fair market value at the time of expiration of the franchisee’s
inventory, supplies, equipment, fixtures and furnishings. Personalized materials which have no vNuC to the
franchisor and inventory,, supplies, equipment, fixtures and furnishings nOt reasonably required in the conduct of the
franchise business are not subject-to compensation. This subsection applies only if: (i) toe term of frie franchise is
less than 5 years, and (iij the franchisee is prohibited by toe franchise or otoer agreement from continuing to conduct
substantially the same business under another trademark, service mark, trade name, logotype, advertising or other
commercial symbol in the isame area .subsequent totheexpiration of toe franehise or toeEanehisee does not receive
at least 6 mOnthS advance notice Of franchisor’s intent not to renew the franehise.

E.. A provision that permits the fiunchisor fo refuse to renew a franchise- On terms generally available
to other franchisees of toe same class of’type Under rimilar circumstances., This section does-not require a renewal
provision,

F. A provision requiring that arbitration or litigation be conducted outside this State. This shall not
preeludesthe franchisee from entering into; an agreement, at the time ofarbitration, to conduct.arbitration.at a location
outside;this state.

G. A provision which permits a franchisor to refuse to permit a transfer of ownership Of a franehise,


except for good cause. The subdivision does not prevent a franchisor from exercising a right of first refusal to
purchase the franchise. Good cause shall include, butiis nOt limitedto:

1) The failure of toe proposed transferee to meet toe franchisor’s toen-cUrfent reasonable
qualifications or standards.

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2) The fact that the proposed transferee is a competitor of therfranchisor or subfranchisor,

3) The unwillingness of the proposed transferee to agree in writing to comply with all lawful
obligations.

4) The failure of thefr^chisee or proposed transferee to, paytany sums owing to the franchisor
or to cure any default in the franchise agreement existing at the time of the proposed transfer.

H. A provision that requires the franchisee to resell to the franchisor items that .are not uniquely
identified with the franchisor. This subdiyision does not prohibit ;a provision that grants to a franchisor a right of
first refiisalto purchase the assets of a franChise on the same terms and conditions as a bona fide third party willing
and able to purchase thosesassets, nor does.this subdivision prohibit a provision that;grants the franchisor the nght to
acquire the assets of a franchise for the market or appraised value of such assets if the franchisee has, breached the
lawfiil provisions of the franchise agreement and jias failed to .cure the,breach in themaimer provided in subdivision
(C);

I. A provision which permits the franchisor to directly or indirectly convey, assign or otherwise
transfer its obligations to fulfill contractual obligations to the franchisee unless a provision has been made for
providing the required Contractual services.

2. If the franchisor’s mqst recent financial statenients are unaudited and shOw a net; worth of less than
$100,000.00 the franchispr shall, at therequest of a franchisee, arrange for the escrow of initial investment and other
funds paid by the franchisee until the obligations to provide real estate, irnprovements; equipmenfrinventoty, training
or other items included in the franchise offering are fulfilled. At the , option of the franchisbr; a surety bond may be
provided in plaee ofescrgvw.

3. THE FACT THAT THERE IS A NOTICE QF THIS OFFERING ON FILE WITH THE ATTORNEY
GENERAL DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENFORCEMENT BY THE
ATTORNEY GENERAL-

Any questions regarding, this noticesshould be direct to;

State of Michigan
Consumer Protection Division
Attention:, Franchise
670 G. Mermen Williams Building
525 WesrOttawa
Lansing„MI 48933
(517)373-1160

Note: Despite paragraph F above, we intend to enforce fully the provisions of the arbitration section
contained in the Franchise Agreeihent;, We believe tiiatpafagraph F is unconstitutional and cannot preclude us front
enforcing pur arbitration section^ You acknowledge that we will seek to enforce this section as weU.

C)2019 Stride Franchise. LLC


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MINNESOTA

ADDENDUM TO DISCLOSURE DOCUMENT

In accordance with the requirements of the state of Minnesota the followirig disclosure should be read in
conjunction with the Disclosure Document. Any inconsistency with the information contained in the Disclosure
Document will beresolved in favor of this Minnesota Addendum.

1. Item 13 Trademarks is amended by adding the following;

As required by the Minnesota Franchise Act, Nfinn. Stat. Sec. 80G. 12(g), we willreimburse you for
any ofyour costs incurred in tfie defense of your right to use the Marks, so long as you were using
the Marks in the manner authorized by us, and so long as we are tirnely notified of the claim and
are given the right to manage the defense of the claim including the right to compromise, settle or
Otherwise resolve the claim, and to detemtine whether to appeal a fmal determination of the claim.

2. Item 17 Renewal. Termination, Transfer and Dispute Resolution is amended by adding the following:

A. Renewal and Termination


With respect to franchises governed by Minnesota law, we will comply with Minn. Stat.
Sec: 80C.14, Subds, 3,4 and 5 which require, except in certain specified cases, that you be
given 90 d[ays’ notice; of termination (with 60 days to cure) and 180 days’ notice for non­
renewal of the Agreement.

B. Choice of Forum
Nothing in the Disclosure Document or Agreement can abrogate or reduce any of your
rights as provided for in Minnesota Statutes 1984, Chapter 80C, or your nghte to any
procedure, forum, or remedies^provided for by the -laws of the juri sdiction.

C; Releases
A general release shall not relieve any person from liability imposed by the Minnesota
Franchise Law, Minn. Stat., Chapter 80C, Sections 80G,22.

These franchises have been registered under the Minnesota Franchise; Act, registration does not constitute
approval, recornmendatibn, or endorsement by the Commissioner of Commerce of Minnesota or a finding by the
Cbmmissibner that the information provided herein is true, complete, and not misleading.

The Miiuiesota Franchise Act makes if unlawful to offer or sell any franchise in this state which is subject to
registfatibn without first providing to the franchisee, at least 7 days prior to the execution by the prospective
franchisee of any binding franchise or other agreement. Or at least 7 days prior to the payment of any consideration,
by the franchisee, whichever occurs firsts a copy ofthis Disclosure Document, together with a copy of all proposed
agreements relating to the franchise. This Disclosure Document contains a summary only of certain material
proyisipns of the Franchise Agreement. The contract or agreement should be referred tO fOr an understanding of all
rights and Obligations of both the franchisor and the franchisee.

©2019. Stride Franchise. LLG


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MINNESOTA

AMENDMENT TO FRANCHISE AGREEMENT

The Fi'anchise Agreement is spedfically amended as follows:

In recognition of the; Minnesota Franchise Law, Minn. Stat , Chapter 80G, Sections 80C.01 through 86C.22, and the
Rules and Regulations promulgated pursuant thereto by the Minnesota Commission of Securities, Minnesota Rule
2860;4400, et seq., the parties to the attachedFranchise Agreement (“Agreement”) agree as follows-

With respect to franchises governed by Minnesota law. Franchisor will comply with Minn. Stat. Sec.
80C. 14, Subds; 3, 4 and 5 which require; except in, certain specified cases, that Franchisee be given
90 days’ notice of termination (with 60 days to cifre) and 180 days’ notice of non-renewal of the
Agreement.

As required by Minnesota Franchise Act, Minn. Stat. See; 80C. 12(g), Franchisor will reimburse
Franchisee for any costs incurred by Franchisee in the defense of Franchisee’s fight to use the Marks,
so long as Franchisee was Using the Marks in the mainner authorized, by Franchisor, and so long as
Franchisor is timely notified of the claim and is. given the right to manage the defense of the claim
including the right to compromise, settle or otherwise resolve; the claim,; arid to determine Whether tO
appeal a final determination of the;claim,

With respect to franchises governed by Minnesota law. Franchisor will comply with Minn. Stat. Sec,
80C.l4i Subds. 3, 4 and 5 which require, except in certain specified cases, that Franchisee be giyen
90 days’ notice of termination (with 60 days to cure) and 180 days’ notice of non-feneWal of ithe
Agreement.

A general release shall not relieve any person from liability imposed by the Minnesota Franchise
Law, Minn. Stat., Chapter 80C, Section 80C.22.

The fimjchisee cannot consent to ffanchisor obtaining injimctive relief The franchisor may seek
injunctive relief ,5ec Minn. Rule 2860;4400J. A court will determine if a bond is required.

Nothing in the Disclosure Document Or Agreemeht can abrogate or reduce any of your rights as
provided for m Miiinesota Statutes 1984, Chapter 80C, or your rights to any procedure, forum, or
remedies provided forhy the laws of thejurisdiction.

Any claims brought pursuant to the Minnesota Ffanchises Act, § 80.C.01 et seq. must be brought
withih 3 years after cause Of action accrues. To the extent that any provision of the Franchise
A^eement imposes a different limita:tions period, the provision of the Act shall control.

IN WITNESS WHEREOF, each Of die undersigned hereby acknowledges having read this Amendmenf
understands and consentsfto be boimd by all of its terms.

Stride Franchise,, LLC Ffahchisee:_

By;,______ _______ By:______

Title: Tide;

©2019 StrideiFranchise, LLC


2019 Franchise Disclosure Document- Exhibits

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NEW YORK

ADDENDUM TO DISCLOSURE DOCUMENT

1. The following information is added to the ebver page of the .Franchise Disclosure
POcument:

INFORMATION COMPARING FRANCHISORS iS AVAILABLE. CALL THE STATE


administrators listed IN EXHIBIT A OR YOUR PUBLIC LIBRARY FOR
SOURCES OF INFORMATION. REGISTRATION OF THIS FRANCHISE BY NEW
YORK STATE DOES NOT MEAN THAT NEW YORK STATE RECOMMENDS IT OR
HAS VERIFIED THE INFORMATION IN THIS FRANCHISE DISCLOSURE
document, if You Learn that anything in the franchise disclosure
DOCUMENT IS UNTRUE, CONTACT THE FEDERAL TRADE COMMISSION AND
NEW YORK STATE DEPARTMENT OF LAW, BUREAU OF INVESTOR
PROTECTION AND SECURITIES, 120 BROADWAY, 23RD FLOOR, NEW YORK, NEW
YORK 10271. THE FRANCHISOR MAY, IF IT CHOOSES, NEGOTIATE WITH YOU
ABOUT ITEMS COVERED IN THE FRANCHISE DISCLOSURE DOCUMENT:
HOWEVER, THE FRANCHISOR CANNOT USE THE NEGOTIATING PROCESS TO
PREVAIL UPON A PROSPECTIVE FRANCHISEE TO ACCEPT TERMS WHICH ARE
LESS FAVORABLE THAN THOSE SET FORTH IN THIS FRANCHISE DISCLOSURE
DOCUMENT.

2. The follQwing is added at the end of Item 3;

Except as provided above, with regard to the franchisor, its predecessor, a person identified, in Item 2, Or an
affiliate offering franchises under the franchisor’s principal trademark:

A. No such party has an administrative, criminal or civil action pending against that person
alleging: a, felony, a violation of a franchise, antitrust or securities law,, fraud, embezzlement
fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable
civil or misdemeanor allegations;

B.. No such party has pending actions^ other than routine litigation incidental to the business; Which
are significant in'the .context of the nurnber of franchisees and the size, naiture or financial condition,
of the franchise system or its, business operations.

G. No such party has been convicted of a felony or pleaded nolo cOntendere to a felony charge or,
within the 10 year period immediately preceding the application for registration, has been: convicted
of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a ciyil action
alleging: violation of a franchise, antifraud, or securities law- fraud; embezzlement; fraudulent
conversion or misappropriationhf property; Or unfair Of deceptive practicess or comparable
allegations.

D. No such party is subject to a currently effective injunctive Or restrictiye Order of decree


relating to the franchise, or under a Federal, State, or Canadian franchise, securities, antitrust,
trade regulation or trade practice law, resulting from a concluded or pending action or
proceeding brought by a public agency; or is subject to any currently effective order of ally
national securities associatibn or national securities exchange, as defined in the Securities
and Exchange Act of 1934; suspendmg or expelhhg such person frommembershiptin such

©20 f9 Stride Franchise, LLC


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association or exchange;,oris subject to a currently effective! injunctive or restrictive order
relating to. any other business activity as a result of an action brought by a public agency or
department, including, without limitation, actions affecting a license as a real estate broker or
sales-agent.

3. The following is added to the end.of Item 4:

Neither the franchisor, its affiliate^, its predecessor, officers, dr general partner during the 10-year period
immediately before the>date of the offering circular; (a) filed as debtor (or had filed against it) a ,petition to start
art action under the U.S. Bankruptcy Code; (b) obtained a discharge of its debts underthe bankruptcy code; or
(c) was a principal officer of aicompany or a general partner in a partnership that, either fifed as a debtor (Or had
filed against it) a petition to start an action under the U S. Bankruptcy Code or thatiobtained a discharge of its
debts ijnder the U.S. Bankruptcy Code during or within 1 year after that officer or general partner of the
franchisor held this position in the company or partnership.

4. The following is added to the end of Item 5:

The initial franchise fee constitutes part of our general operating funds and vviU bes used as such.in our
discretion.

5. The following is added to the end of the “Summary” sections of Item 17(c),, titled
“Requirements for franchisee to renew or extend,” and Item 17(m), entitled “Conditions for
franchisor approval of transfer”;

However; to the extent required by applicable law, all rights you enjoy and any causes of action arising in yOur
favor from the provisions of Article 3T of the! General Business Law of the State of New Yotk md'the
regulations issued thereiinder shall remain in force; it being the intent of this proviso thait the
non-waiver provisions of General Business Law Sections 687.4 and 687.5 be satisfied.

6. TheTollowing language replaces the “Summaiy” section of Item 17(d), titled


“Termination by franchisee”;
You may terminate the agreement on any grounds available by law.

7. The followiiigts added to the end of the “Summary” section of Item 17(j), titled “Assignment.of
contract by franchisor”,!

However, no assignment will be made;except to an assignee who in good faith and judgment of ;the franchisor,
is willing and financially able to assume the franchisor’s obligations under the Franchise Agreement.

8. The following is addedio the end of the “Summary” Sections of Item I7(v), titled “Choice of
forum”, and Item 17(w), titled “Choice of law’’:j

The fotegoing choice of law shouldnot be considered a waiver of any right conferred upon the franchisor dr
upon the franchisee by Article 33 ofthe General Business Law of the State of New York.

©2019 Stride; Franchise, LLC


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NORTHDAKOTA

ADDENDUM TO DISCLOSURE DOCUMENT

1., The following language is added to the “Summary” section of Item 17(c) entitled Requirements for
renewal or extension and Item 17(m) entitled Conditions for franchisor approval of a transfer:

The execution of a general release upon renewal, assignment or termination will be inapplicable to
franchises operating under the North Dakota Franchise Investment Law.

2. The applicable portion of the “Summary” section of Item I7(i) entitled Franchisee’s obligations
on termination/noiiTrenewal is amended to read as follows;

If we prevail in any enforcement action you wil] pay all damages and costs we incur in
enforcing the termination provisions of the Franchise Agreement

3. The following is added to the “Summary” section of Item 17(u) entitled Dispute resolution by
arbitration.or mediation:

To the extent required by the North Dakota Franchise Investment Law (unless such
requirement is preempted by the Federal Arbitration Act), arbitration will be at a site to
which we and you mutually agree,

4. The following is added to the “Summary” section of Item 17(r) entitled N&n-competition
covenants after the franchise;is terminated or expires:

Covenants not to compete upon termination or expiration of the Franchise Agreement are
generally unenforceable in the State ofNorth Dakota except in limited ihstances asprovided
by law.

5. The following is added to the “Summary” section of Item 17(vTentitled Choice of fonim:

However, to the extent allowed by the North Dakota Franchise Investment, Law, you may
cornmeiice any cause of action against us in any court;of competent jurisdiction, including
the state or fedefalcourts of North Dakota.

The “Sumniary” sectibn Item 17(w) entitled Chbice of law is deleted and replaced with the
follbwing;i

North Dakota law applies,

:©201i9'Stride ErancHise,,LLC
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NORTH DAKOTA

AMENDMENT TO FRANCHISE AGREEMENT AND DEVELOPMENT AGREEMENT

1. The following is added to Section 3.2 of the Franchise Agreement, “RENEWAL” and Section 14 of the
Franchise Agreement “TRANSFER; OF INTEREST”:

The execution of a general release upon renewal, assignment or termination will be


. inapplicable to franchises operating under the North Dakota Franchise Investment Law.

2, The followingis added to;Section 16.6 of the Franchise Agreement, "CHOICE OF FORUM" and.Section
22 of the Development Agreement:

However, ,t0 the extent .allowed by the North Dakota Franchise Investment Law, Franchisee may
cdriimence any cause of action aga!inst Franchisor in any court of competent jurisdiction, including
the statesor federal courts of North Dakota.

Franchisor acknowledges that pursuant to Section 51-19-09 of the North Dakota Franchise
Investment, Law, all provisions in the Disclosure Document requiring Franchisee to.consent to the
jurisdiction of courts outeidesof North Dakota are hereby void.

3, The follovving is added to Section 16.4 of the Franchise Agreement, “MANDATORY BINDING
ARBITRATION” and Section 22(B) of the Development Agreement:

To the extent required by the North Dakota Franchise Investment Law (unless such
requifement is preempted by the FederalArbitration Act), arbitration and/or mediation will
be at a site not remote from Franchisee’s place of business, to which Franchisor and
Franchisee mutually agree,

4, Sectibri 18 of the Franchise Agreement, “ACKNOWLEDGMENTS” is amended by the addition of the


following language to the original language that appears therein to read; as follows:

Franchisee acknowledges that Franchisee received a copy of this Agreement, the


;attachments hereto, if any, and, agreements relating thereto, if any, at least seven (7) days
prior to the date on which this Agreement was executed.

5. Section 13.1 Of the Franchise; Agreement and Section 11 of the Development Agreement (regarding post-
terihirestrictibns) are amended by the addition of the following language to the original language that appears
therein:

Covenants npt to compete upon termination or expiration of the; Franchise Agreement are
generally uhenforeeable in the State ofNorth Dakota except in limited instances asprovided
bylaw.

6. iSection 16 of the Franchise Agreement and Section 21 of the Development Agreement are hereby
amended to provide that North Dakota law governs the agreements between the parties to this
franchise. Further, Section 16.1 ofthe Franchise Agreement, “GOVERNING LAW” isrdeletedin
its entirety and replaced with the following;

EXCEPT TO THE EXTENT GOVERNED BY THE UNITED STATES TRADEMARK.


ACTOE 1946(LANHAM ACT, 15 U.S.C. SECTIONS 1051 ET SEQ.),THEFEDERAL
ARBITRATION ACT, OR OTHER FEDERAL LAW, THIS AGREEMENT AND THE

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RIGHTS OF THE PARTIES HEREUNDER SHALL BE INTERPRETED AND
GONSTRUED under the laws of the state, of north DAKOTA.

7. Section 16;8 of the Franchise Agreement and Section 22(J) of the Development Agreement
requiring waiyer of jury trial, and Section 16.7 of the Franchiise Agreement and, Section 22(1) of
the Development Agreement requiring waiver of exemplary and punitive' damages, are hereby
deleted in their entirety .

8. Section 16.12 of the Franchise; Agreement and Section 22(H).of the Development,Agreement shall
be supplemented by the following additional language:

Provided, however, that this limitation of claims shall not act to reduce the applicable statute
of limitations afforded franchisee for bringing a claim under the applicablelaws of North
Dakota.

IN WITNESS WHEREOF; each of the undersigned hereby acknowledges having read this Amendment,
tmderstands and consents to be:bound by all of its terms.

Stride Franchise, LLG Franchisee:,

By:;______________ By:_____

Title: Title:

©2019' Stride Franchise, LEG


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RH0DE ISLAND

ADDENDUM TO DISCLOSURE DOCUMENT

The following Imguage is added to Item l7(v) entitled Choice of forum:

, except as otherwise required by tiie Rhode Island Franchise Inyestment. Act

©2019 Stride Franchise, LLC


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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
RHODE ISLAND

AMENDMENT TO FRANGHISE AGREEMENT

In recognition of the requirements of the Rhode Island FraneMse Investment Act (Section 19-28.1-14), the
parties to the attached Franchise Agreement agree as follows:

Section 16.6, “CHOICE OF FORUM” is amended.by adding the following;

§19-i24.1-14 of the Fthpde Island Franchise Investment Act provides that “A^provision in a
franchise agreement restricting jurisdiction or venue to a forum outside this state or
requiring the application of the laws of another state is void with respect to a claim
otherwise enforceable under this Act.”

IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Amendment,
understands and consents to be bound by ah of its'terrns,

Stride Franchise, LLG Franchisee;^

By:______________ By:._____

Title;. Tide:

©2019 Stride Franchise, LLC


‘2019 Franchise Disclosure Document - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
VIRGINIA

ADDENDUM TO DISCLOSURE DOCUMENT

In recognition of the restrictions contained inSection 13.1-564 of the Virginia Retail Franchising Act, the
Franchise Disclosure Document for Stride Franchise, LLC for use in the Commonwealth of Virginia shall be
amended as follows:;

The following statement is added to Item 17.h:

“Pursuant to Section 13,1-564 of the Virginia Retail Franchising, Act, it is unlawful for a
franchisor to cancel .a franchise without reasonable cause. If any ground for default or termination stated
in the franchise agreement does not constitute “reasonable cause”, as that term rhay be deined in the
Virginia Retail Franchising Act or the laws of Virginia, that provision may hot be enforceable.”

©2019 Stride Franchise, LLC!


.2019 Franchise Disclosure Document - Exhibits

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WASHINGTON

ADDENDUM TO DISGLOSURE DOCUMENT

In recognition of tiie fequifements of the Washington Franchise Investment Protection Act (RCW
19.100.180), the Franchise Disclosure Document is revised as follows;

The following paragraphs are-aidded at the end of Item 17;

The state of Washington has a statute, RCW 19.100.180, which may supersede the Franchise
Agreement in your relationship with the fimichisor including the areas of termination and renewal
of your firanchisei; Theremayalso bOcourtidecisions which may supersede the franchiseagreement
in your relationship with the franchisor including the areas of termination and renewal of yoUr
franchise.

In any mediation^ arbitration, or litigation involving a franchise purchased in Washington, the site
thefeofshall be either in the state of Washington, or in a.place mutually agreed upon at the time of
the arbitration,, or as determined by the mediator, arbitrator, or judge, as ..applicable.

In theevent of a conflict.of laws, the provisions ofthe Washington Franchise Investment Protection
Act, Chapter 19.100 RGW shall prevail.

A release or waiyer of rights executed by a fidnchiSee shall rtot,ihclude rights under the Washington
Franchise Investment Protection Act except when executed pursuant to>a negotiated settlement after
the agreement is in effect and where the parties are;represented by independent counsel. Provisions
such as those which unreasonably resfricf or limit die statute of limitations penod for claims linder
the Act, ri^ts or remedies under the Act such as a right to a jury trial may not he enforceahle.

Transfer-fees are collectable to the extent that they reflect the franchisor’s reasonable estimated or
actual costs in effecting a transfer;

The following sentence is added to the “Remarks” column of the Item 6, chart for the fee titled “Indenmification”;

All indemnification obligations will be Subject to the applicable laws ofthe state of Washington.

The following sentence is added to the end of the first paragraph in Item 1 l„Section F titled “ComputerHardware
- Hardware and Software”:

As a result of Franchisor’s independerit access to your computer system, there may be an increased, risk
of disclosure of your sensitive client/customer, employee, or company information resulting from cyber
security events and/or data breaches.

The “Summary” section of Item 17(c) entitled Requirements, for renewal or extension of term ,is amended by
adding the folldvving:

Any general release youtsign shall not.apply to the extent prohibited by applicable Washington state
law,

The “Summary” section of Item 17(d) entitled Termination by francliiseeis amended by adding the following:

Franchisee may terminate the frahchise agreement under any grounds permitted by applicable
Washington,state la\v.

.©2019 Stride Franchise, LLC


:2019 Franchise Diisclosure Document - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
The “Summary” section of Item 17(o) entitled Franchisor’s option to purchase franchisee’s business is
amended by adding the following;

Pursuant to RGW 19.100.180(2)(i) and (j), Franchisor may be required to: (i) cornpensate franchisee for the
fair market value of the franchise upon expiration in the event Franchisor fefiises to renewthe franchise; and
(ii) purchase from franchisee at fair market value certai’n.of franchisee’sdnventory and supplies required by
law:. To the extent required by lavv, RCW 19.1OO.180(2)(i) and (j) will supersede contrary terms in the
Franchise: Agreement.

©2019 Stride Franchise, LLC


2019 Fi^cHise Disclosure Document- Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
WASfflNGTQN

AMENDMENT TO FRANCHISE AGREEMENT AND DEVELOPMENT AGREEMENT

In recognition of the requirements; of the Washington Franchise Investment Protection Act (RGW
19.100.180), the parties to the attached,Franchise Agreement and/or Development Agreement agree as follows:

The state of Washington has a statute, RGW 19.100.180, which may supersede the Franchise
Agreement in your relationship with the franchisor, including the areas of termination and renewal . -
of your franchise. There may afsd be court decisions which may . supersede the franchise agreement
in your relationship with the‘franchisor including, the areas of termination and renewal of your
franchise;

In any rnediation, arbitration, or 1 itigatioh irivolvihg a franchise?purchased in Washington, the site


thereof shall be either in the state of Washington, or in a place mutually agreed upon at theftiine of
the arbitration, or as determined by the mediator, arbitrator, or judge, as applicable.

In the event of a confliet of la\ys, the provisions Of the Washington Eranchiseiinvestment Proteetion
Act, Ghapter 19.1(10 RGW shall prevail.

A releases waiver of rights executed by a franchiseeishall liOfiiiclude rights under the Washington
,Franchise Inyestment ProtectiohAet except wheniexecuted pursuant to a negotiated settlement after
the agreement's in effect and where the parties are represented by independent counsel. Provisions
such as those which unreasonablyrestrict or limit the statute of limitations period for claims, under
the Act, rights of rernedies. Under the Act such as a right to a jury trial may not be enforceable:

Transfer fees are collectable to the extent that they reflect die fi;anchisof’s reasonable estimated of
actual costs in.effecting'a transfer.

IN WITNESS whereof, each of the undersigned hereby acknowledges having read , this Amendment,
understands and consents to be bound by all of its terms.

Stride Franchise, LLG Franchisee:,

By-_____________ By;____
Title: Title:

©2019 Stride Franchik. LLC


2019 FfanchisejDisclosure Document-^ Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
lExhibit H
To Franchise Disclosure Document

LIST OF FRANCHISEES AND THEIR OUTLETS AS OF THE ISSUE DATE OF THIS DISCLOSURE
DOCUMENT

None (because we are a new franchise offering,as of the lssue Daie)

LIST OF FRANCHISEES THAT HAVE LEFT THE SYSTEM IN THE PAST FISCAL YEAR OR THAT
HAVE FAILED TO COMMUNICATE WITH US IN THE 10 WEEKS PRECEDING THE ISSUE DATE
OF THIS DISCLOSURE DOCUMtENT

None (because we. are a newfranchise offering as ofthe Issue Date)

©2019!StrideTrancHise, LLC
■2019 EfancKise' Disclosiire Document - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Exhibit I
To Franchise Disclosure Ddciiihent

DEVELOPMENT AGREEMENT

©2019 StritfeTranchise, LLC


2019'Frahchise Disclosure Docurnent - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
STRIDE FRANCHISE, LLC

area DEVELOPMENT AGREEMENT

DE’^LOPER

DATE OF AGREEMENT

©2019 Stride Franchise, LLG


2019 Development A^eement

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TABLE OF CONTENTS

REFERENGES AND DEFINITIONS........................................................... ..,,.....,,,.,,.,...,..........,..,2.


2. USE'OF SYSTEM,.,.,,...................,.........;......... .vr.,..:..^................................................................ 2
3. GRANT OF DEVELOPMENT 3
4 DEVELOPMENT RIGHTS AND OBLIGATIONS........................................ .,..,.,.......,,...,.........,...4
5. STUDIO CLOSINGS....,,............. .......... =................,:.v...........;......................................................6
6. PROCEDURE FOR EXERCISING DEVELOPMENT RIGHTS ................................................... 6
DUTIES OF DEVELOPER.......................................................... ...6
8. SITE SELECTION,, LEASES. FRANCHISE -AGREEMENT......................................................... 8
9., DEVELOPMENT FEE................... 9'
fo. SUPERIORITY OF INDIVIDUAL FRANCHISE AGREEMENT.......... ............................... ........9
n. COVENANTS:,,....,..,.....................................„................v..,...v.......................................................9
1:2: RELATIONSHIP OFTHE parties...,.,,.,,..,....,.,.....,..... II
1-3. proprietary marks.-........................................................... 13
14. TERMINATION......... .................................... ............................................................. 13
15. EFFECT OF TERMINATION AND EXPIRATION.,...,.,..,,........................... ....................... . 15
16. TRANSFER OF INTEREST............................................................................. ..,....,.,,.,,.,..,...,....15
17. APPROVALS.,...,.........,....,.............V............................... ...........................................................19
18. NONWAIVER........................................................ 20
1,9. DEVELOPER’S RECORDS,AND REPORTS......................................................,...,...................20
20. NOTICES AND PAYMENTS..................................................................................................... 20
2:1. GOVERNING LAW. ................ 24
....................
22, ARBITRATION AND OTHER DISPUTE RESOLUTION PROVISIONS..,..,...............:....... 24
23. ENFORCEMENT,.,,........................ 24
24. CAVEAT................................................................. 27
25. MISCELLANEOUS................................................................. ...........,.,..,.,...,....,.,.27

EXHIBITS

ATTACHMENT; GUARANTY AND ASSUMPTION OF OBLIGATIONS


EXHIBIT A - DEVELOPMENT AREA
EXHIBIT B - development:schedule
EXHIBIT G - franchise AGREEMENT
EXHIBIT D - STATEMENT OF OWNERSHIP INTERESTS AND PRINCIPALS
EXHIBIT E -confidentiality AGREEMENT AND ANCILLARY COVENANTS NOT TO COMPETE

©2019 Stride Franchise, LLG


2019 Development Agreement
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STRIDE FRANGfflSE, LLG
AREA DEVELOPMENT AGREEMENT

THIS AREA DEVELOPMENT AGREEMENT (the “Agreement”), is made and entered into
this_______ day of., 20__________, by and between: (i) Stride Franchise, LLC, a limited liability
company formed and operating under the laws of the State of Delaware whose principal business address
is 17877 Von Karman Avenue, Suite 100^ Iryine, California ,92614 (the ‘‘Franchisor”); and
(ii)________ , a/n with, a business address at
' (the “Developer”).

WITNESSETH:

WHEREAS,, Franchisor, by and through the efforts 0f itself and its priricipalS/affiliates, have
developed and Franchisor administers a system and franchise opportunity, including various fitness and
exercise techniques and methods, trade secrets, copyrights, confidential and proprietary information and
Other intellectual property rights (collectively, the“System”) for the establishment and Operation of fitness
studios that feature running classes and instruction, as well as other authorized fitness-related services that
we authorize (eaclb a “Studio”) identified by our then-current proprietary marks including, without
limita(ionj Franchisor’s current mark “STRIDE^’ and other taglines,, logos, trademarks; service marks and
other indicia of source (collectively, the: “Marks”), all of which FranChisOr may supplement, and otherwise
modify as it determines appropriate in its discretion,

WHEREAS, the System includes the Marks and tradefsecrets, pr0prietai7 methods and;infofmation
and procedures fOr the establishment and operation of StudiOSj including, without limitation, confidential
manuals (Collectively, the “Manual”), training methods, fitness equipment, furniture and fixtures,
marketing,;adyertising and.sales prornotions, cost controls, accounting;and=reporting,procedures, personnel
management, distinctive interior design and display procedures, and color scheme and decor (eollectively,
the “Trade Dress”).

WHEREASi Franchisor grants to qualified persons who are willing to undertake the required
investment and effort, a franchise to own and operate a Studio Offering (i) prOprietaiY running classes and
instruction on designated equipment, aS well as other fitness-related classes and services that Franchisor
authorizes (Collectively, the “Approved Services”), which may include a proprietary training program that
indiyiduals that wish to providci running instruction to Studio clientele (each, an “Authorized Coach”) as
an authorized coach (the “Authorized Coach Program”), and (ii) Certain merchandise and other products:
Franchisor authorizes for sale in conjunction with foe Approved Services and Studio operations
(collectively, foe “ApproYed.ErOducts”), all while utilizing the System and Marks.

WHEREAS, Developer desires the right to develop, own and Operate multiple Studios imder foe
System in a defined geographic area under a Development Schedule (foe “Development Schedule”) set
forth in this Agreement; and

WHEREAS, Developer acknowledges that Developer hastconducted an independent investigation


ofthe business contemplated by this Agreement and recognizes that, like any ofoer business,, foe nature of
the business'conducted as a Studio may evolve and.change over time, foafah investment in a Studio involves
a business risk and foe success’of foe venture is largely dependent upon Developer’s business abilities and
efforts.

NOW, THEREFORE, foe parties, in consideration of the; mutual undertakings; and cOmirtitments
set forth in this Agreement, foereceipt and sufficiency of which ^efoereby acknowledged, agree as follows:

©2019 iStrideFrancKise, LLG


2019 Development Agreement

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1. REFERENCES AND DEFINITIONS

A. development area
“Development Area” means the geographic area described in Exhibit A.

B. DEVELOPMENT SCHEDULE/DEVEL0PMENT PERIOD

“Development Schedule” means the schedule for Developer to open arid operate a specific
curnulative nuinber of Studios as set forth in Exhibit B to this Agreement. Each “Development Period” is
a period of time set forth in the Development Schedule wherein Developer must meet each specific
development obligations.

G. FRANCfflSE AGREEMENT

Except for the royalty fee and the advertising contributions, which shall remain the same in each
franchise agreement executed pursuant to this Agreement and any extensions of this Agreement, the term
“Franchise Agreement” means the then-current fOrm of agreements (including the franchise agreement and
any exhibits, riders, collateral assignments of leases Or subleases, shareholder guarantees and preliminary
a^eements) that Franchisor customarily uses in the,granting of a franchise for the ^ownership and operation
ofa Studio;

Concurrent with the execution of this Apeement, Developer shall execute the Franchise Agreement
for the first: Studio that Developer is granted the right; to open within the Development Area hereunder.
Franchisor,, in its sole discretion, but subject to the express provisions contained herein, may modify or
amend jn any respect the. standard form ofFranchise Agreement it customarily uses in granting a franchise
fOr a Studio.

The parties agree arid acknowledge that: (i) Developer must timely execute Franchisor’s then-
current form of Franchise Agreement fOr each Studio that Developer is required to open and commence
Operating pursuant to the Development Schedule; and (ii) Franchisor may, in its discretion,, modify or
amend the form of Franchise Agreement that Franchisor is using as of the date this Agreement is executed
as it deems appropriate for (a) use in the System; generally, and (b) execution by the parties in connection
with the Studios that DevelOper must subsequently open and Commence Operating under this Agreement.

D. PRINCIPALS

The term -Principals’’ includes, collectively and individually, Developer’s owners; if Develpper is
an entity, any officers and directors of Developer (ihcluding.the officers and directors'of any genefal partner
of Developer) and any person, and of any eritify directly owning and/Of ContrOHihg ten percent (10%) or.
more of Developer, or a managing member or manager of a limifedliability company. The initial Principals
:shall be listed in Exhibit D: The Principals must execute an agreement in substantially the form of the
attached Guaranty and Assumption of Obligations (immediately following this Agreement) uridertaking to
be bound jointly and severally to a\\ provisions Of this Agreement,

2. USE OF SYSTEM

DeVeloper;aCkiiowledges, and;does;not contest, Franchisor’s exclusive.ownership and rights to each


and every aspect of the System. Developer’s right to developer Studios is specifically limited to the
Development Area, as well as the tenns and conditions of this Agfeement and Franchise Agreements
executed pursuant thereto.

©201?.Stride Franchise, LLG


2019 Development A^eement
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GRANT OF DEVELOPMENT RIGHTS

A. GRANT AND TERM

In reliance on thei representations and warranfies of Developer and its Principals, FirancHisof grants
to Developer, and Developer hereby accepts flie right and obligation to develop,; a designated number of
Studios within the Development Area in foil compliance with the terms of this Agreement, including the
timely developitient obligations to open a specific; cumulative number of Studios over prescribed periods
of time as established in the Development Schedule; and in full compliance with all obligations and
provisions under the f6nn(s) of Franchise Agreement entered mto for the right to own and operate each
individual Studio,

The term of this Agreement shall commence upon full execution of this Agreement and,, linless
earlier terminated by Franchisor pursuant to the terms hereof, this Agreement shall expire upon the earlier
of: (i) the date peyeloper timely opens the last .Studio it is required.to open and commence operations within
the Development Area pursuant to this Agreement; or (ii) the last day of the last Development Period on
the Development Schedule. Developer acquires npirights under this, Agreement to develop Studios outside
the Development Area, Upon expiration or termination of this Agreement for any reason. Developer will
have no rij^ts whatspevef within the Development Area (other than any territorial ri^ts that Franchisor
has granted to Developer in connection with any Studio(s) that Developer has timely-opened pursuant to a
Franchise Agreement as required by the Developinent Schedule prior to the date this Agreement is
terminated or expires).

B. COMMITMENT OF DEVELOPER

Fratichisof has granted these rights^ in reliance on the business skill, financial capability, personal
character and expectations of performance by the Developer and its Principals'. This Agreement is for the
purpose of developing and operating the Studios, and is not for the purpose of reselling the rights granted
by this Agreement.

C. DEVELOPMENT PLAN

The following conditions and approvals are conditions precedent before the right of Developer to
develop each Studio becomes effective. At the time Developer selects a site for each Studio, Developer
must satisfy the operational, financial and traihing requifementSi set foith.below:

(1) Operational:; Developer must be in substantial compliance with the material terms
and cpnditipris of this A,greemerit and all Franchise; Agreements granted Developer. FOr each Studio
operated by Developer, Developer must be in; substantial compliance with the standards, specifications, and
procedures set forth and described in the Manuals (defined in the Franchise Agreement).

(2) Financial; Deyeloper and the Principalsmust satisfy Franchisor’s financial criteria
for Deyelppers and Principals with respect to Deyeloper’s operation of its existing Studios, if any, and the
proposed Studio. Developer must be in compliance and not been in default during the tVyelVe (12) months
preceding Developer’s request for approval, of any monetary pbligatiohs of Developer to Franchisor or its
affiliate under any Franchise Agreement granted under this Agreement.

D. EXECUTION OF FRANCfflSE AGREEMENT

This Agfeefhent is; not a Franchise Agreement and does not grant Developer any right or license to
operate a Studio, or to provide services, or to distribute goods’, or any right or license in the Proprietary

©2019 Stride Franchise, LLC


2019' Developrnent Agreement

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Marks. Developer must timely execute Franchisor’s then-current form of Franchise Agreement for each
Studio that Developer is .required to open under the Development Schedule.

4. DEVELOPMENT RIGHTS AND OBLIGATIONS

A. RESERVATION OF RIGHTS

Franchisor (bn behalf of itself and.its.affiliate(si),parent(s) and subsidiaries) retains the rights, in its
sole discretibn and widiout granting any rights to Developer: (1.) to itself operate, or to grant other persons
the, right to operate. Studios at locations and on terms Franchisor deems appropriate outside the
Development Area granted Developer^ and (2) to sell the products and servicesauthorized for Studios under
theProprietary Marks: of under other trademarks, service marks, and commercial s^bols thrOu^ dissimilar
channels ofdistribution and under terms Franchisor deems appropriate within and Outside the Deyelopment
Area,, including, but not limited to, by electronic means, such as; the Internet, and by web sites established
by Franchisor^ as^e; determine, in our sole discretion.

In addition, Ffanchisor, any other developer and any other authorized person or entity shall haye
the right, at any time; to advertise and promote the System,. Ih the Developiiient Area. Developer
acknowledges and agrees that Developer is only granted the right to develop and operate Studios within the
Development Area. Accordingly, within and Outside; the Development Area, Franchisor and its affiliate^
and,its subsidiaries may also offer and sell, and may authorize others to offer and sell products and services
identified.by the Proprietary Marks (including;memberships and gift cards) at or from any location^

Franchisor andits:affiliate(s)/parent(s) further reserve the rightto:;(i) open and operate, and license
others the right to open and operate. Studios using the Proprietary Marks and System at any location outside
of your Deyelbprnent Area; (ii) open and operate, and license others the right to open and operate,
businesses that.bperate under marks other than theProprietary Marks the-offer similar products and-services
that are offered by a Studio, regardless of location; (iii) otherwise market. Offer and sell products and
seryices that are; similar tb the Approved Products and Approved Services offered by a Studio under a
different trademafk or trademarks, regardless of location; (iy) use the Proprietary Marks and System, as
well as other such marks we designate, to distribute any Approved Products and/or Services in any
alternati ve chaimel of distribution at, any location, including via .th'e Internet, mail order,, catalog sales, toll-
free numbers, wholesale stores, etc,); (V) to acquire, merge with, of otherwise affiliate with, and after that
own and Operate,, and franchise or license others to own and operate, any business of any kind, including,
without limitatibni any business that offers products; or services the same as or similar to the Approved
Products and Approved Services (but imder different marks), regardless of location; and (vi) use the
Proprietary Marks and System; and license others to use the Proprietary Marks and System,, to engage in
any other activities nqt expressly prohibited by this Agreement.

Franchisor may be acquired (whether through acquisition of assetSj ownership interests or


otherwise, regardless of the forrn of transaction), by a busihess prbvidmg products and similar services to
thoseiproyided at a Studio, or by another business, even if such business operates, franchises and/or licenses
competitive businesses within the Development Area granted by toe Area Development Agreement and
within toe Designated Territory granted by a,Franchise Agreetnent.

Franchisor has the right to own. Operate and license others to own and operate other business
concepts in andputside toe Develbpmerit Area consistent with toe: terms of this Section.

Franchisor has no obligation and will not pay Developer if it exercises any of the rights specified
above within, toe Development Area granted by the Area Development Agreement or within toe;Designated
Territory granted by a Franchise Agreernent.

©2019 Siride.Franchise, LLC


2019 Development Agreement

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B. RIGHTS DURING DEVELOPMENT PERIODS

Subject, to Section 4(A) and the: other terms of this Agreement, if Developer (i) is in compliance
with the material terms and conditions contained in this Agreement, including Ae timely development
obligations to open a specific cumulative number of Studios over prescribed periods of time as established
in Exhibit B (the; “Development Schedule”), and (ii)i is in substantial compliance with all material
obligations under Franchise Agreements executed by Developer for individual Studios uiider this
Agreement; then during: the Development Schedule, Franchisor: (i) will grant Developer the right, to own
and operate Studios located within the Development Area pursuant to the terms of this Agreement; and (ii)
will not operate (directly or through its affiliate), nor grant a firanchise:for the locationof, arty Studio within
the Development Area, except for franchises granted to Developer under this Agreement.

If Developer, for any reason within his control, fails to comply with the Development Schedule,
this failure constitutes a material default of this Agreement, and Franchisor has the right to terminate this
A^eement pursuant to Section 14 of this Agreement. In the event Developer fails to cure die fioticed
default within the time allowed under Section 14, Franchisor rnay terminate this Agreement and grant
individual or area development franchises within the Development Area to third parties or own: and operate
Studios owned by Franchisor Or by the affiliate of Franchisor. Franchisor and Developer agree that the
timely development of Studios by Developer in compliance with the Development Schedule: will control
the. rights granted Developer by this Agreement, regardless of the time period Ranted Developer to open a
Studio pursuant to a Franchise Agreement for such Studio., Upontermination ofthis. Agreement, all rights
granted Developer revert to Franchisor, who is free to franchise any other person to use the System within
the Development Area or to itself own and operate Studios within the Development Area.

Notwithstanding;aiiything;contained in this Section, Franchisor'\vill provide Developer with a One­


time reasonable extension of timemot to exceed 90 days to comply with its development obligations in any
one of the Development Period as> set forth in the Development Schedule (see Exhibit B), provided: (i)
Developer has: already executed a lease for, or otherwise obtained, a Premises that Franchisor approves for
:any StUdio(s),it isirequired to open and operate during that Development Period; and (ii) Developer notifies:
Franchisor of its need for such an extension no less than ,30 days prior to expiration of that Development
Period. The parties agree and acknowledge that Franchisor’s grant of this one-time extension under this
Section will OQt extend, modify Or otherwise affect the expiration of any of Developer’s subsequent
Development Periods or subsequent .development obligations.

C. DEVELOPMENT OBLIGATIONS
Developer will at all times faithfully, honestly^ and diligently perform his obligations under this
Agreement and will continuously exert his best efforts to timely promote and enhance the development Of
Studios within the; Development Area. Developer agrees to open and operate the cumulative number of
Studios at the end of each Development Peripd set forth in the Development Schedule (see Exhibit B).
Developer agrees that compliance with the Development Schedule is the essence of this Agreement;,

D. EXPIRATION OR TERMINATION

After this Agreement expires or terminates for any reason. Franchisor shall have the abtoltite right
to Own and operate,,orlicense,other parties thefright to own and operate Studios, in the Development Area,
except in those Designated Territories granted under each Franchise Agreement that Developer enters into
pursuaiit to this Agreement.

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20I9':DeyeIopment Agreement

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STUDIO CLOSINGS
If during the terrfi of this Agreement, Developer ceases to operate any Studiodeveloped under this
Agreement for any reason, Developer must develop a replacement Studio to fiilfill Developer’s obligatipn
to have open and in operation the, required number of Studios upon the expiration of each D.eyeloprrieiit
Period. The replacement Studio must be open arid in bperatibn vvithin nine (9) months after Developer
ceases to operate the Studio to be replaced or Developer will be in material breach of this Agreement. lf„
during the term of this Agreement, Developer, in accordance with the terms of any Franchise Agreement
for a Studio developed under this Agreement, transfers its interests in that StUdio„a transferred Studio shall
continue; to be counted in determining whether the Developer has complied with the Development Schedule
so long-as it continues to be operated as a Studio. If the transferred Studio, ceases to be operated as a Studio,
it \vill not count toward Developer’s compliance with the Developrnent Schedule.

6. PROCEDURE FOR EXERCISING DEVELOPMENT RIGHTS

Developer shaU enter- into a separate Franchise Agreement with Franchisor for each Studio
developed pursuant to this Agreernent. The Franchise Agreement to be executed for the first Studio to be
developed by Developer under this Agreement must bei’executed and delivered to Franchispr concurrently
with,the execution and delivery of this Agreement, All subsequent Studios developed under this Agreement
must be established, and operated under the themcurrent form Of Franchise: Agreement then being used by
Franchisor for StudiOs under the System. The then-current form of Franchise Agreement may differ ftom
the form attached as Exhibit C;; however, the provisions regarding royalty fees and advert! sing contributions
shall remain as established in Exhibit C. Developer must execute the then-current form Of Franchise
Agreement for each Studio to be developed under .this Agreement

Developer acknowiledges that the projected opening dates for each Studio set forth in the
Development Schedure are reasonable requirements. Developermust execute a Franchise Agreement for
each;Studio,by the earlier of: (i):fifteen (r5) days from the date a,lease is,signed for a location that Franchisor
approves for the Studio at issue; and (ii) the date necessao^ for Developer to otherwise comply with its
development obligations Under this Agreement.

7. DUTIES OF DEVELOPER

A. ORGANIZATION OF DEVELOPER

Developer makes; the following representatiohs, yvarranties and covenants and accepts the
following;continuing obligations::

(1:) If Developer is a corporation, limited liability company or a partnership. Developer


represents, warrants and covenants that: (i) Developer is duly organized and vaijdly existing under the state
law of its formation; (ii) Developer is duly qualified and is authorized tO do business in each jurisdiction
which requires such qualification; (iii) the execution and performance of this Agreement are within
Developer’s corporate power, if Developer is a corporation or if Developer isa partnership permitted under
Developer’s, written partnership agreement, or if Developer is a lirhited liabjlirtf company, permitted under
the management agreement;

(2) If Developer is a corporatiOnj copies Of its articles of incorporation, bylaws,; other


governing documents, any amendments, resolutions of the Board of Directors authorizing entry info and
performance Of this Agreement, shall be. promptly furnished to Franchisor. If Developer is a parmership,
copies of Developer’s written partnership agreement and Other governing documents shall be promptly
furnished to Franchisor before'the execution of this Agreement., IfDeveloper i&a limited liability company.

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copies of Developer’s organiMtional dbcurhehts arid management agreement shall be promptly furnished
to Franchisor;

(3) If Developer is a corporation, partnership, limited liability cbmpany,, pr other form


of legal entity other than, an individual,, Developer ishaU maintain at all tirries a current list of all owners of
record and all beneficial ovyners of any class of voting securities in Developer or, if Developer is a
partnership,, Developer shallimaintairi at.all times a current list: of all owners ofan interest in the partnership,
br, if Developer is a limited liability company, it shall maintain at all times a-current list of fiiariagefs and
members of the limited liability company;

(4) If, after the execution bfftiis, Agreement, any person ceases to quality as one of the
Developer’s Principal’s (as defined in Section 1), or if Developer believes in the event any individual later
qualifies as one of Principals, Developer shall promptly nbfify Franchisor and that person shah exeeufe any
documents (including, as applicable, this Agreement) as Franchisor may reasonably require;

(5) If Deyelbper is' a corpofatibn. Developer must maintain stop-transfer instructions


against the transfer of its records bf any equity security and each stock certificate of the corporation shah
have cbnspicuously endorsed upon.it a statement in a form satisfactory to Franchisor that it is held subject
to all restrictions imposed upon assightnents by this Agreement; provided, however, that the requirements
of this Section T shall nbt, apply to a publicly held corporation. If Developer is a partnership,, its written
partnership agreement shall provide that ownership of an interest in;the partnership is beld,subject to and
that further assignment or transfer is subject to restrictions imposed On assignments by this Agreement. If
Developer'is a limited liability company, its articles of organization and operating agreement musfprovide
that ownership interests: are subject,,to restrictions on transfers imposed on assignments by this Agfeement;

(6j Developer ^ees?to maintain at all times throughout: the term bf this Agreernent,
sufficient working capital to fulfill its obligations under this Agreement; and

(7) Each Principal who has right, title, or interest of ten percent (10%) or more in the
ownership of Developer, must each execute and bind themselves to the confidentiality and noneompetitibn
covenants set forth in.the Confidentiality Agreement and Ancillary Covenants Not: to Cbmpetef Exhibit E).
The Principals agree to jointly and severally guarantee the performance of all of Developer’s obligations,
under the terms of this Agreement, except the obligation to open Studios.

B. REQUIREMENTS OF REPRESENTATIVE

Upon the execution of this Agreement, Developer must designate and retain an individual
throughout the term of this Agreement to act on behalf of Pevelbper in all transactions with Developer
concerning Developer’s obligations under this Agreement, (the “Representative”), if Developer is an
individual. Developer must: perform all obligations of the Representative: The Representative must use
reasonable efforts to do the following, during the; entire period he serves in that capacity• (1) maintain a
direct Or indirect ownership interest ,in the Developer; (2) devote substantial time and reasonable efforts to
the. supervision and conduct of the business contemplated by this Aj^eemerit and execute this Agreement
as one of the Principals; and (3) meet Franchisor’s standards and criteria for a Representative as set forth
in the Manuals or otherwise in \yriting by Franchisor. If the Representative or any designee is not able to
continue to serve in thenapacity of Representative or no longer qualifies,, Developer must,promptly notify
Ffahchisbr and designate a replacement.

©20 i 9 Stride Franchise, LLG-


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c. BEST EFFORTS

Developer must use:his best'efforts to substantially comply with all requirements' of federal, state
and local rules, regulations and orders.

8. SITE SELECTION, LEASES, FRANCHISE AGREEMENT

A, SELECTION OF SITE BY DEVELOPER

Developer assumes all costs, liabilities, expenses and responsibilities for locating, obtaining,
financing and developing sites for Studios, and for constructing and equipping Studios at,those,sites. The
selection of a site and the development of a Studio at any site is the responsibility of Developer. The
selection of a site by Developer is subject to our approval and must bean compliance with Franchisor’s site
selection procedures and its standards, for demographie characteristics, parking, traffic patterns and the,
predominant character of the neighborhood, and other comniercial characteristics of the site and any other
factors Franchisor may consider relevant in feviewirig a site selected by Developer. Developer must not
enter into a binding cornmitment witha prospective; seller or lessor of real estate with respect to the site for
a Studio until Franchisor has approved the proposed site. Developer specifically acknowledges that, the
selection of a site by Developer in cornpliance with Franchisor’s! site selection prbcedures .and thesapproval
of a.site by Franchisor does not eonstitutea representation, promise or guarantee by Franchisor that the site
and the Studio to be operated at that site will be profitable or successful. Developer acknowledges that
factors governing the success of a Studio are unpredictable and beyond Franchisor’s Control. Franchisor is
not responsible to Developer or’to any other person or entity if a site approved by Franchisor fails to meet
Developer’ s expectations for revenue or operational criteria.

B. DEMOGRAPHIC INFORMATION

Before acquiring a site for any Studio by lease or purchase, Deyeldper must locate a site for the
Studio that satisfies the site selection guidelines Franchisor provides to Developer and must submit to
Franchisor, in die form Franchisor specifies, a description of the site, a demographic study and other
information and,materials Franchisor may reasonably require and shall'represent in writihg that Developer
has the Option or other firm commitment to Obtain the.site, Franchisor wiUTeview'informatioh provided by
Developer for the site which may include the population of the wOfk force or residents, character of the
neighborhood, household incdmej ingress arid egress, and trade area. If on-site evaluations by Franchisor
are requested by Developer dr determined to be necessary by Franchisor, then Franchisor or its designee
will, at Franchisor’s expense, provide a single on-site inspection in connection with each Studio that
Developer is required to open hereunder at Franchisor’s expense. Developer must reimburse;Franchlsor for
the reasonable expenses Franchisor incurs for any additional on-site evaluations, including, but not limited
to, the cost Of travel, lodging, meals and wages of Franchisor’s ,representatives and employees.

C. LEASE OR PURCHASE OF SITE

Developer shall not make any binding cOminitmerit to purchase or lease real estate for a proposed
site for a Studio until the proposed site has been approved by Franchisor and a Franchise Agreement; has
been executed by Franchisor iand Developer (or its affiliate) for a Studio, at such site. Developer shall
provide Ffahchisor with a copy of either the proposed contract of sale or lease-relating to thessite before ;the
Franchise Agreement is executed. Developer must comply with the coiiditions set forth in the Franchise
Agreement at issue in comiectipn with the signing of such a lease, including ensuring that both ,Developer
and thedandlOrd for the, proposed site execute Franchisor’s prescribed from of Collateral Assi^ment of
Lease. Developer must, use any approved or designated suppliers that Franchisor desigriates in connection
with the site selection and. acquisition process.

©2019 Stride Eranchise, LLC


2019 Development Agreement

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D. FRANCfflSE AGREEMENT

Franchisor will deliver a Franchise: Agreement, in the then-rcurrent form, to Developer for execution
by Developer (or'its affiliate). With the.exeeution of this Agreement, Developer rnust concurrently execute
the Franchise A^eement establishing Developer’s first Studio and return both this. Agreement and the
Franchise Agreement to Franchisor If Developer fails, to execute the Franchise Agreement, Franchisor
ttiay, at its sole discretion, revoke its approval of the: site and its offer to grant Developer a ff^chise to
operate a Studio at the site: -

9. DEVELOPMENT FEE
Concurrently with the execution of this Agreement, Developer must pay to Franchisor a
nonrefundable area development fee equal to $(the “Development Fee”). The
Development Fee is deemed fully earned by Franchisor upon execufibn Sf this Agreement in consideration
of lost development opportunities and is nonrefundable under any circumstances. Developer will not be
required to pay any additional initial franchise fee for each Studio; opened pursuant to this Agreement upon
executing a Franchise Agreement for that Studio.

10. SUPERIORITY QFTNDIVlDUAL FRANCmSE AGREEMENT

Developer understmids and agrees that any and all individual Franchise Agreements executed by
Developer and Franchisor for Studios within the Development Area are independent of this Agreement.
The eontinued effectiveness of any Franchise Agreement does not depend on the continued effectiveness
of this Area Development Agreement. If any conflict arises with this Agreement :and .any Franchise
Agreement, the Franchise , A.greement controls^ has precedenee and superiority (except with respect to the
opening deadline for each Studio that Developer is granted the right to open under this Agreement, which
will always be governed by the Development Schedule).

11. COVENANTS

A. Developer and the Representative;covenant that during the term of this Agreement, except
as otherwise approved irt writing by Franchisor, Developer and the Representative must devote substantial
timei energy and best efforts to themanagement and operation of the development activities required under
this Agreement.

B. Developer acknowledges that, as a participant in Franchisor’s System, Developer will


receive proprietary and confidential information ahd materials, trade secrets, and the unique methods,
procedures and techniques that Franchisor has developed. As such. Developer agrees to the covenants in
this Section to protect Franchisor, the System, Proprietary Marks and Franchisof’s other fianchisees and
developers.

(I) During the term of this Agreement, neither Developer, its Principals, owners,
officers or guarantors, nor any immediate family of Developer„its Principals, owners, officers: or guararitOfs,
may, directly or indirectly, for themselves or through. On behalf Of, or in conjunction with,any other person,
partnership or corporation;

(a) Own,;maintain, engage in„be employed or'iserve as an officer, directOr| of


principal of, lend money or extend credit to Or have any interest iti or invOlvemerit with, any: (i) miming
'Studio or other fitness, exercise; or personal trairiing business; (ii) any fitness, exercise or personal training
inarketing or consulting business; (iii) any business offering products of a similar nature to those Of the
Studio (each, a “Competing Business”); or (iv) offers or grants licenses or franchises^ Or establishes joint

©2019 Stride Franchise, LL©


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ventures, for the ownership or operation of a Gornpeling Business. For purposes of this Agreement, a
Competing Business does hot include: (A) any business operated by Developer under a Franchise
Agreement with Franchisor^ or (B), any business operated by a publicly-traded entity in which Developer
owns less than two percent (2%) legal or beneficial interest

(b) Employ or seek to employ any person who is at that time employed by
Franchisor, Franchisor’s affiliates or any other System franchisee or developer, or otherwise directly or
indirectly induce or seek to induce such person to leave his or her employment thereat; or

(c) Divert; or attenipt to divert, any prospective customer to a Competing


Business in any manner.

(2): For a period of two (2) years after the expiration and nonrenewal, transfer or
termination of'this Agreement, regardless of the cause; neither Developer, its Principals; owners, officers
and guarantors, nor any member of the immediate family Of Developer, its Principals, owners, officers or
guarantors; may, directly or indirectly, for themselves. Or through, on behalf of, or in conjunction vvith any
other person, partnership or corporation, be involved with any business that competes in whole or in part
With Franchisor by offering or granting licenses: or franchises. Or establishing joint ventures, for the
ownership or operation of a, Competing Business, The geographic scope of the covenant contained in this
Section is ^y location where Franchisor can dernoristrate it has offered or sold franchises as of the date
this Agreement is terminated of expires.

(3) For a period of two (2) years after the expiration and nonrenewal, transfer or
termination of this Agreement, regardless of the cause, neither Developer, its Principals, owners, officers
Md guarantors, nor any rriembef of the immediate family of Developer, its Principals, owners, officers or
guarantors; may, directly or indirectly, for themselves or through, on behalf of, of in conjunction with any
other person, partnership or corporation:

(a) Own, maintain,,engage in,,be employed as an officer, director, or principal


of, lend money to, extend credit to or have any interest in or involvement with any othef Competing
Business: (i) within the Development Area; or (ii) within a fbr^ (4Q) rtiile radius of the perimeter of the
Development Area being granted hereunder or any othef designated territory or development area licensed
by Franchisor s a Studio (whether franchised or company-owned) at any time from the date of expiration
pr termination of this. Agreement through the date Franchisee attempts to undertake the cOmpetitiveiactivity
at issue; or

(b) Solicit business from customers of Developer’s former Studios or contact


any of Ffanchisof’s suppliers or vendors for any competitive business purpose, nor solicit aiiy of
Franchisor’s other employees, or the employees of Franchisor’s affiliates or any other System franchisee
or developer to discontinue employinent.

C. It is the parties’ intent that the provisions of thjs Section 11 be judicially enforced to the
fullest extentrpermissible under applicable law. Aecordinglyi the parties agree that any reduction in scope
or modification of any part of the noncompetition provisions contained herein shall not render any other
part unenforceable: In the event of the actual or threatened breach of this Section 11 by Developer, any of
Developer’s Principals, or any member of the immediate family of Developer or DeVeloperis Principals,
Franchisor shall be entitled to an injunction restraining such person from any such actual or threatened
breach. Developer acknowledges; that the covenants contained herein are necessary to protect the goodwill
of other System fraiichisees and developers, and the System. Developer ftarther acknowledges that
covenants contained in this Section 11 are necessary to protect Franchisor’s procedures and know-how
transmitted dufingthe term of this Agreement. DeVeloperagrees thatin thesevent of the:actual or threatened

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breach of,this iSection 11, Franchisor’s harm will be irreparable and that Franchisor has no adequate remedy
at law to preveiit such,harm. Developer and the Principals a^ee to pay ;all costs and expenses; (including;
reasonable attorneys’ fees) incurred by Frartchisor in connection with the; enforcement of this Section 11,
Developer ackndxvledges and agrees on Developer’ s o wn behalf and on behalf bf the persons whoiare liable
under this Section U that each has previously worked or been gainfully employed in other careers and that;
the provisions of this Section 11 in no way prevent any such person from earning a living. Developer
further acknowledges and agrees that.the time limitation ofthis Section 11 shall be.tolled during any default
under this Section 11.

D. Developer must ensure that all management personnel of Developer’s Studios opened
under this, Agreement, as well as any officers or directors of Developer, execute Franchisor’s themcurrent
form Of Confidentiality and Non-Competition Agreement. Developer must furnish Franchisor a copy of
each executed agreement.

E. Developer hereby agrees that the existence of any claim DeyelOper may have against
Franchisor, whether or not arising from this Agreement, shall not, constitute a defense to Franchisor’s
enforcement of the covenants contained in this Seefioh 11. Developer agrees to pay all costs and expenses
(including reasonable attorneys’ fees) that Franchisor incurs in connection with the enforcement of this
Section 11.

F. Notwithstanding the foregoing, Franchisor reserves the right, in its solei discretion, to
reduce the period of time or geographic;scope of the non-competition covenants set forth in this; Section 11
and in Exhibit E, by written notice to Developer.

12. RELATIONSHIP OF THE PARTIES


A; The parties agree that this Agreement does not create a fiduciary relationship between
them, that Developer is an independent contractor and must at all times represent itself as an independent
contractor.. This Agreement does not create either party as an agent, legal representative, subsidiary, joint
venturer; partner, employee or joint employer. Developer shall hold itself out to the public as an
ihdependent'COritractorioperating pursuant to this Agreement. Developer agrees to take;any action necessary
to'that end, including without limitation, exhibitihg a notice on signage and member contracts, as required
by Franchisor as tp; content and maniier of disclosure;

B. Developer understands and agrees that nothing in this Agreement authorizes Developer to
make any contract, agreement, warranty or representation on Franchispr’s behalf, or to incur any debt or
Pther obligation in Franchisor’s name and that Franchisor shall in no event assume liability for, or be
deemed liable under this Agreement as a result Of any such action, or for any act or omissipn of Developer
in the conduct Of its busiriess pursuant to this Agreement-or any claims pr judgment arising therefi-om.

C. Developer and each of the Principals shall, at all times, iiidenmify and hpld harmless
Franchisor and its affiliate, successors and assigns and the officers, directors, sharehplders, agents,
representatives and employees of each of them (“Indemnitees”) from all losses and expenses incurred in
connectiPniWith any fdrmal or informal action,;suit, proceeding, claim, demand, investigation or inquiry or
any settlement thereof, which arises ouf of or is baSed Upori the action or negligence of Developer pr any
Principal in any of the fpllpwing:

(1) The inifringement, alleged infringement, or any other violation or alleged violation
of any Proprietary Mark Or other proprietary right owned by Franchisor;

©2019iStride EraricKise. LLC


2019, Development Agreement

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(2) Claims of sexual harassment or discrimination by Developer’s employees or by a
guest at.the Studio;

(3) The violation of any federal,, state or local la>y, regulation, riile, standard or
directive, or any industry standard, ihcludirig without limitation, health, sanitation and safety laws and
regulations;

(4) Libel, slander or any other form, of defamation of Franchisor Or the System, by
Developer or the Principals;

(5) The violation or breach by Developer or any of the Principals of any warranty,
represehtatibn, agreement or obligation of this Agreement or any Franchise Agreement; and

(6) Acts, errors or omissions of Developer Or my: Of its agents, servants, employees,
contractors, partners, affiliates or representatives..

Notwithstanding anything cOntaihed in this Section 12(C), Developer will not be required to
indemnify, defend or hold Franchisor harmless for any claims or causes of action that arise solely out of
Franchisor’s gross negligence or willful misconduct.

D. Developer and each of the Principals agree to give Franchisor immediatetnOtice Of any such
action, suit, proceeding, claim, demand, inquiry or investigation^

E. FrahchisOr may, at any time and without notice, as it, in its reasonable discretion, consent.
Or agree to settlement, or take such other remedial or corrective: action as it deems expedienf with respect
to the action, suit, proceeding, claim, demand, inqui^ or investigation.

F. All losses and expenses incurred under this Section 12 ishall bC; chargeable to and,shall he
paid hy Developer or any Of the Principals pursuant to this Section 12, regardless of any actions, activity or
defense undertaken by Franchisor or the subsequent:success or failure of such actions,; activity or defense.
However, Franchisor will indemnify Developer from losses Or expenses resulting from the direct result of
Franchisor’s negligence or intentional acts,

G. The phrase “losses and expehses” shall include, without limitation, all monetary losses,
compensatory, exemplary Or punitive damages, fines, actual costs, expenses, lost profits, reasonable
attoftieys’ fees, court costs, settlement amounts, judgments, damages to Franchisor’s reputation and
goodwill, costs of financing or advertising material and media costs and all expenses of recall, refunds,
compensation, public notices and such Other amounts incurred in connection with the matters described.

H.i Developer must give Franchisor notice of any such action immediately upon Developer
having;received notice of any such action. Claim or proceeding.

I. Under no circumstances shall Indemnitees be required of obligated to seek recovery from


third parties or otherwise mitigate their losses iii order to maintain a claim against Developer. Developer
^d the Principals agree that the failure of Franchisor to pursue recovery or mitigate loss from third parties
will in rio way reduce: the amounts recoverable from Developer or the Principals.

j. Developer and the Principals expressly agree thatthe terms of this, Section 12 shalfcontinue
in full force and effect after the termination, expiration or transfer Of this Agreement or any interest herein.

©2019 ;Stride ErancKisCi LLG


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13. PROPRIETARY MARKS

A. Developer acknowledges that Developer has no interest in or to the Proprietary Marks and
Developer’s right to use the Proprietary Marks is derived solely from the individual Franchise Agreements
entered into between Developer and Franchisor for the purpose of operating Studios. Deyeloper agrees that
all usage of the Proprietary Marks by Developer and any goodwill established exclusively benefits
Franchisor. Developer agrees tbat after termination or expiration of this Agreement, Developer will not,
except with respect to Studios operated by Developer imder individual Franchise Agreements, directly or
indirectly, at any time or in any manner identify itself or any business as a DeyelOper'or former Developer
of, or otherwise associated with,, Franchisor Or use in any manner Or for any piirpose any Proprietary Mark
or other indicia of a, Studio Or any colorable imitation.

B. Developer must not use any Proprietary Mark as part: of any corporate or trade names or
with ariy prefix, suffix, or other modifying words, terms, designs^ or symbols, or in any mOdified:fOrm, nor
may Developer use any Proprietaty Mark in connection with ^y business or activity, other than the
business conducted by Deyeloper under Franchise Agreements entered into between Developer and
Franchisorj Or in any other manner not explicitly authorized in writing by Franchisor,

G. Developer must immediately notify Franchisor in writing of any apparent infringement of


or challenge to Developer’s use: of any Proprietary Mark, or clairn by any person of any rights in any
Proprietary Mark or similar trade ;namej trademark, or service mark of which Developer becomes aware.
Developer must not communicate with any person other than Franchisor and its counsel regarding any
infringement, challenge or claim. Franchisor has soleidiscretipn to take action it deems appropriate and the
right to exclusively control any litigation, U.S, Patent and Tradem^k Office proceeding or other
administratives proceeding sniSing out of any infringement, challenge^ or claim or otherwise relating to any
Proprietary M^k.

D. Developer acknowledges that Franchisor is the lawftjl and sole owner of its current
corporate domain: name as of the date of this Agreement (www^runwithstride.comh, as well as any and all
other doinain names or sites it determines to register or use that contain any of the Franchisor’s then-current
Proprietary Marks. Developer agrees not to register or attempt to register any of the Proprietary Marks now
or hereafter owned by Franchisor,, or any abbreviation, acronym or variation of the Proprietary Marks or
any other name that could be deemed confusingly similar to the Proprietary Marks, as part of any URL
comprising an Internet domain name, including, but not limited to, generic; and country code top level
domain.names, available at the present time or in the future;

E. Developer agrees and acknowledges that this Agreement does not grant Developer any
rights whatsoever to use. any Proprietary Mark, and that such rights are only granted through Developer’s
tiinely execution of a Franchise Agreement that will govern the operation of a Studio that Developer is
required to open pursuant to the Development Sehedufe.

14. TERMINATION

A. Franchisor rnay terminate this, Agreement for a material default of this Agreement by
Developer and all rights granted herein shall automatically terminate upon written notice to Developer;
upon the occurrence of any of the following:

(1) If Developer becomes insolvent, makes a general assigmnent for the benefit of
creditors; files a voluntary petition in bankruptcy. Or an involimtaiy petition is filed against: Developer in
bankruptcy; Or Developer is adjudicated bankmpt; or if a bill in equity or other proceeding for the
appoihtmefit Of a receiver of DevelOperor other custodian for Developer or assets is filed and consented to

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by Developer, or if a receiver or other custodian (permanent or temporary) of Developer’s assets or
property , or any part thereof, is appointed by a court of competent jurisdiction; or if a proceeding for a,
composition of creditors under any state or federal law should be initiated against Developer; or if a final
judgrnentrremains unsatisfied or of record for thirty (30) days or longer, (unless supersedeas bond i s filed);
or if Developer is dissolved; or it execution is levied against Developer; or if a suit to foreclose any lien or
mortgagenagainst the premises or Studio is levied; or if the;real or personal property of Studio is sold after
levy thereon by any sheriff, marshal or law officer;

(2) If Developer dr any of its, Principals fail to comply with Section l;l of this
Agfeemenf;

(3) If Developer or a Principal discloses the contents Of the; Manuals Of other


confidential information contrary to this Agreement;

(4) If an immediaite threat or danger to public health or safety results firom the
operation of a Studio operated by Developer under a Franchise Agreement;

(5) If Developer or a Principal has made rnaterial misrepresentatiOhs in cOiifiectiOh


with its application for the Iranchise;

(6) If Developer fails on three (3) or rnore occasions withinany one(l) year period to
corhply with'ohe:( 1) Or rnore provisions,of this Agreement, whether or not such failures to comply are cured
,after notice thereof is deli vered to Developer; or

(7) Failure to comply with the conditions of transfer of any interest in Developer as
required of this Agfeement.

B. Franchisor may terminate this Agreement and all rights granted herein, upon thirty (30)
days'written notice to Developer,, or a less time asispecified below, for a material default of this; Agreement,
which shall constitute good, cause for termination and the failure of .Developer to cure the good cause for
termination within the notice period. Good cause for termination shall be the occurrence of any one; of the
following, events, of default:

(1) If Developer fails to meet the development requirements set forth in the
Development Schedule;

(2) If Developer fails to develop. Open and operate each Studio and execute each
Franchise Agreement in compliance with this, Agreement;

(3|) If Developer fails to designate a.qualified replacement, Representative;

(4) If Developer misappropriates, misuses or makes any rmauthOrized use Of the


Proprietary Marks or materially impairs the goodwill associated wifti the Propfietary Marks Or with the
System and doesmot cure such default folloAVing Written notice from Franchisor;

(5) If Developer, fails, refuses Or is unable to promptly pay when due any monetary
obligation to Ffanchisof or itsi affiliate; required by this Agreement, or by any Franchise Agreement or any
other agreement between the, parties and does not cure the monetary default within fourteen (14) days
following written notice from Franchisor;

©2019 Stride Franchise, LLC


2019 Development Agreement

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(6) If Developer fails to correct a deficiency of a health, sanitation, or safety issue after
notice of such deficiency is issued by a local, state, or federal agency or regulatory authority •; or

(7) If Developer fails to comply with any other material term of material condition
imposed byfhis Agreernentof any Franchise Agreement executed pursuant thereto.

P. Failure of Developer to cure the default within the specified time, or a longer period of
time as applicable law may require, will result in Developer’s rights Under this Agreementfo be terminated
effective on the expiration of the notice period, and Without further notice to Developen

D. Upon termination of this Agfeemenf Developer has no right to establish or operate any
Studio for which an individual Franchise Agreement has not, already been executed by both Franchisor mid
Developer, as, well as delivered to Developer, as of the date of termination, Franchisbr, effective upon
termination of this Agreement shall have the absolute,right and is entitled to establish, and to license others
to establish. Studios in the Development Area, except as may be otherwise provided under any Franchise
Agreemerit which is then in effect between.Franchisor and Developer.

E. No default under this Agreement shall constitute a default under any Franchise Agreement
between the parties,, unless Deyelopef’s acts or omissions also Violate die terms and conditions of the
applicable Franchise A,greement.

F. No right or remedy herein conferred upon or reserved to the Franchisor is exclusive pf any
other right or remedy provided or permitted by law or in, equity.,

15. EFFECT OF TERMINATION AND EXPIRATION

All obligations of Franchisor and Developer under this. Agreement, which expressly or by their
nature Survive the expiration or termination of this Agreement, continue in full force and effect after the
expiration or termination of this Agreement and until they are satisfied in fud or by their nature expire;

16. TRANSFER OFTNTEREST

A. BY franchisor
Franchisor has the absolute right to transfer or assign this,Agreement;and all or any part of its rights,
duties' or dbligations to any person or legal entity without the consent of or notice to Developer, This
Agreement shall inure to the benefit ,of„ and be binding on the successors and assigns of Franchisor,

B. DEVELOPER MAY NOT ASSIGN WITHOUT APPROVAT. OF THE


FRANCHISOR

Developer understands and acknowledges that; the rights and duties created by this Agreement are
persoiial to Developer and its owners and that Franchisor has granted these rights to Developer in reliance
Upon the individual or, collective character, skill, aptitude, attitude, business ability and financial capacity
of Developer and/or its owners. Unless otherwise provided with respect to an assignment to an entity
controlled by Developer as provided in Section 160), none of these; rights nor any ownership interest in
Developer may be Voluntarily, involuntarily, directly or indirectly,;assigned, sold, eohveyed, pledged, sjub^
franchised or otherwise; transferred by Developer or its owners (including by merger or consolidation, by
issuanceof additional securities representing an ownership ihterestin Developer, by conversion of a general
partnership to a limited partnershipj, by transfer or creation of an interest as a general partner of a
partnefshipi by transfer of an interest in Developer or in this AgreemePt in a divorce proeUedihg, or if

©2019:Stride Franchise,.LLC
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Developer or an owner of Developer dies, by will, declaration of or transfer in trust or the laws: of the
intestate succession) without the approval Of Franchisor; Any attempted assignment Or transfer without
such approval will constitute a breach of this Agreement and will, not transfer any rights or interests to?such
assignee; or transferee.

C. GONDITI0NS FOR APPROVAL OF ASSIGNMENT

If Developer is in substantial compliance with this A8reement,..Eranchisor shall not unreasonably


withhold its approval of an assignment or transfer cbritemplated by Section 16(B) so long as the proposed
assignee or transferer has good and moral character, sufficient business experience and aptitude tg develop
and own and operate Studios, and otherwise meets Franchisor’s then-current standards for developers and
System franchisees. Franchisor rnay require that any one or more of the following conditions be met before,
or concurrently with, the effective'date of any such assignment or transfer::

(1) All the accrued, monetary obligations of Developer or any Of its affiliates and all
other outstanding obligations to; Franchisor or its affiliate arising Under this Agreement or aiiy Franchise
Agreement or Other agreenient between them and all trade accounts and any other debts to: Franchisor,, of
whatsoeyer naturei prior to the transfer becoming effectiYe-shall be satisfied;

(2) Developer and its affiliates are,not in material default.of any substantive provision
of this Agreement, any amendment hereof or .successor hereto, or any Franchise Agreement granted
pursuant to its terms, or other ;agreement between Developer or any of its affiliates and Franchisor or its
affiliate;

(3) Developer and its Principals, as applicable, shall have executed a general release,
in a form satisfactory to Franchisor, releasing Franchisor Of any and all claims against Franchisor and its
affiliate and their respectivegast and present partners, the past and present officers, directors,,shareholders,,
partners, agents, representatives, independent.contractors; servants and employees;ofeach of them, in their
corporate and individual capacities, including, without limitationi claims arising .under or related tO this
Agreement and any other agreements between Developer and Franchisor, or under federal, state or local
laws, rules, and regulations or Orders;

(4) The transferee shall demonstrate to Franchisor’s satisfaction that the transferee
meets the criteria considered by Franchisor when reviewing a prospective developer’s application for
development rights, including, but not limited to„ Franchisor’s managerial and business experience
standards, that the; transferee possesses good moral character, business feputaition and credit rating; that the
transferee has the aptitudej financial resources and capital committed for the operation.of the business, and
the geographic proximity of other territories with .respect to which transferee has been granted development
fights Or of other Studios operated by transferee, if any;

(5) At Franchisor’s option, the transferee shall sigh either (a) a written assumption
agreement, in a form prescribed by Franchisor, assuming fidb unconditional, joint and several liability from
the date=pf the transfer of all obligationsi covenants and agreements of Developer in this Agreement (arid,
if transferee is a corporaition, limited liabilityicompanyor a partnership, transferee’s shareholdefs, partnefSi
members or other investors, as applicable,, shall also execute such agfeemerit). Of (b) Franchisor’s thenr
current form of area development agreement that will goverri the remaining Development Schedule granted
under this Agreement;

(6) Developer shall pay a transfer fee equal to 50% Of the Development Fee to
Franchisor at the timefof transfer, unless the transfer is being made: (i) to ari iriimediate family member of
Developer that Franchisor approves pursuant to Section 16(F); or (ii) in the form of an encumbrance of the

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2019. Development; Agreement
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assets of any Fr^chised Business (or a subordinating Franchisor’s security interest in such assets) as a
necessary condition to obtain SB‘A or traditional bank financing;

(7) Developer acknowledges and agrees that each condition, which must be met by the
transferee, is reasonable and necessary ; and

(8) DeYeloper must pay any referral fees or commissions that may be due to any
franchise broker.iiale& agent of other third party upoiLthe occurrence of such assignment.

Franchisor’s consent to a transfer of any interest;in Developer described herein , shall not constitute
a waiver of any claims it may have against fee transferring party, nor shall it be deemed a waiver of
Franchisor’s ri^t to demand exact compliance with ariy of the terms of this Agreement by the transferee.
Upon an approved transfer under this Section, Developer will only be bound by,, and liable in coiinection
with, its post-term obligations under this Agreement.

D. ASSIGNMENT TO A CORPORATION OR LIMITED LIABILITY COMPANY

I (1) Notwithstanding the provisions of this Section 16 of this Agreement, upon thirty
(30) days’ prior written notice to Franchisor, and without payment of a transfer fee. Developer may assign
this Agreement to a corporation or limited liability company that conducts no business other than the
development and/or operation of Studios. Developer shall be the owner of all the voting stock or interest
of the coiporation 0r limited liability company, or if Developer is more than one individual, each individual
shall have the saine proportionate ownership interest in the corporation as he had in Developer, before the
transfer. Developer and each of its Principals, as applicable, may transfer;, sell or assign their respective
interests in Developer, by and amongst themselves with Franchisor’s prior written consent, which consent
shall not be unreasonably withheld; but may be conditioned on compliance with Section 11, except that
such transfer, sale or assignment shall not effect a change in the controlling interest in Developer.

(2) Any person who is or becomes a shareholder or member pf Developer Or has or


acquires, beneficial ownership of any shares of stock equal to or greater thantenperCent (rQ%) ownership
interest in Developer must execute an agreement in substantially the form of the attached Guaranty and
Assumption of Obligations undertaking to be boimd jointly and severally to all provisions of this
Agreement. Developer must furnish Franchisor at any time upon request a certified copy of the articles Of
incorporation or articles of organization and a list, in a form Franchisor requires, Of all Shareholders or
members of record and all persons haying beneficial OwnerShip of Shares ofstock, reflecting their respective
interests in Deyefopen

E. RIGHT OF FIRST REFUSAL


IfDeveloper receives and.desires to accept any bona fideoffer to transfer ah ownership interest in
this Agreement from a third party, then the DeyelOper shall promptly notify Franchisor in writing and send
Franchisor an executed Copy Of the Contract of transfer. Franchisor shall have the right and option,
exercisable within foirty (30) days after actual receipt of such notification or of the executed contract of
transfer which shall describe the terms of the offer, to send written notice to Developer that Franchisor
intends to purchase the Deyelopef’s interest on the same terms and conditions offered by the third party.
Closing on the purchase must Occm within sixty (60) days from the date of notice by Franchisor to the
Deyelopef Of FfariChisor’s election to purchase, ff Franchisor elects not to accept the Offer Wifom the thirty
(30) day period. Developer shall have a period not tOiexceed:sixty (60)idays;t0 complete the transfer subject
to the conditions for approyal set forth in Section 16(C) of “this Agreement. Any material change in foe
terms Of any offer before. Closing shall constitute a new offer subject to the same rights of first refusal by
EfanChisof as in foe case of an initial offer. Failure of Franchisor to exercise the option afforded by this

©2019 Stride, Franchise, LL0


2019 Development Agreement

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Section 16 shall hot constitute a waiver of any other provision of this Agreement. If the offer from a third
party provides for payment of consideration other than cash or involves certain intangible benefits.
Franchisor may elect to purchase the interest proposed to be. sold for the reasonable cash equivalent, or any
publicly-traded securities, including its own, or intangible benefits similar to those: being offered. If the
parties cannot agree Within a reasonable time on the reasonable cash equivalent of the non-cash part of the
offer, then such amount shall be determined by an independent appraiser designated by Franchisor, and his
determination shall be binding.

F. DEATH OR DISABILITY

Upon the death or permanent disability of Developer (or the managing shareholder, managing
memberor partner), the executof, administra:tor, conservator or other persona:! representative of that person,
or the remaining shareholders, partners or members, must appoint a competent manager that is approved
by Franchisor within ninety (90) days from the date of death orpermanent disability (the “90 Day Period”).
Before the end of the 90 Day Period, the appointed manager must attend and successfully complete
Franchisor’s trainiiig program and must either execute Franchisor’s then-current form of area development
agreement for the unexpired term of this Agreement, or furnish a persorial guaranty of any partnership,
corporate or limited liability company Devefoper’s obligations to Franchisor and FrancKiSof’s;affiliates. If
the Studio is not being managed by a Franchisor approved manager during the 90 Day Period,, Franchisor
is authorized, .but is hot; required, to immediately appoint a manager to maintain the operations of
Developer’s Studios for and on behalf of Developer until an approved assignee is able to assume the
management and operation of the Studio. Franchisor’s appointment Of a manager of the Studio does not
relieve Developer of his bbligatibns, and Franchisor is not liable for any debts, losses, costs or expenses
inciUTed in the operations of the Studio or to any creditor of Developer for any products, materials, supplies
or services purchased by the Studio during: any period in which it is managed by Franchisor’s appointed
manager. Franchisor has the right to charge a reasonable fee for management services and to cease to
provide management services at any time., Franchisor’s right Of first refusal set forth in Section 16(E) will
not apply to a.transfer under this Section if the transferee is an immediate family member of Developer that
Franchisor approves.

G. PUBLIC OR PRIVATE OFFERINGS

(1) Developer acknotvledges that the written information used to raise or seeure funds
can reflect upon Franchisor. Developer agrees to subniit any written information intended to be used for
that purpose to Franchisor before its inclusion in any registration: statement, prospectus or similar Offeriilg
circular Or memorandum. This requirement: applies under the following cOnditiOhS: (i) if Developer
attempts to raise or secure funds by the sale of securities in Developer or any affiliate of Developer
(including common or preferred stoclc, bonds, debentures or general or limited,partnership interest) and (ii)
if any of ifsowriers attempt to raise or secure funds by the sale of securities in Developer Or any affiliate of
Developer (including common or preferred stock, bonds, debentures Or general or limited partnership
interests) Developer (or any of its ovvners) agrees; not to use the written materials submitted to Franchisor
or any other Written materials to raise or secure funds unless and until Franchisor approves of the language^
No information respecting Franchisor or its affiliate shall be included in any securities disclosure document;
unless that information has been furnished to Franchisor; in writings pursuant to the written, request of the
Developer; The written request shall state the specific purpose for which the information is to be used.
Should Franchisor, in its sole discretion, object to any reference to Franchisor or itsaffiliate Or any Of their
businesses in the offering literature or prospectus, the literature or prospectus shall not be Used imless and
until the objections of Franchisor are withdravwi. Franchisor assumes no responsibility for the offering
whatsoever. Developer must pay Franchisor a publicofferihg fee of Three Thousand Five; Hundred Dollars
($3,500) for the costs to Franchisor to review the information. The written consent of Franchisor pursuant

©2019;Stride ErancKise, LLC


2019 Development Agreement

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to this Paragraph G does not imply or constitute the approval of Franchisor with respect to the method of
financing, the offering literature submitted to Franchisor Or any other aspectiof the dfefing.

(2) The prospectus of other literature utilized in any offering must contain the
following language in bold-face type on the first textual page:

“NEITHER STRIDE FRANCHISE, LLC NOR ITS AFFILIATE NOR ANV OF ITS
AFFILIATE’S SUBSIDIARIES IS DIRECTLY OR INDIHECTLY THE ISSUER
OF THE securities OFFERED. NEITHER STRIDE FRANCHISE, LLC NOR
ITS AFFILIATE NOR ANY OF ITS AFFILIATE’S SUBSIDIARIES ASSUMES
ANY RESPONSIBILITY WITH RESPECT TO THIS OFFERING AND/OR THE
ADEQUACY OR ACCURACY OF THE INFORMATION SET FORTH,
INCLUDING ANY STATEMENTS MADE WITH RESPECT TO ANY OF THEM.
NEITHER STRIDE FRANCHISE, LLC NOR ITS AFFILIATE NOR ANY OF ITS
AFFILIATE’S SUBSIDIARIES ENDORSES OR MAKES ANY
RECOMMENDATION WITH RESPECT TO THE INVESTMENT
contemplated by this Offering.”
(3j) Developer and each of its owners agrees to indemnify,, defend and hold harmless
Franchisor and its affiliate, and their respective officers, directors, einployees and agents, fi-ptn any and.all
claims, demands, liabilities, md all costs and expenses (including reasonable attorneys’ fees) incurred by
Fr^chisor as the result of the offer or sale of securities, this Agreement applies to any and all claims,
demands, liabilities, and all costs and expenses (including reasonable: attorneys’ fees) asserted by a
purchaser of any security or by a governmental agency. Fr^chisor has the right (but not the obligation) to
defend any claims, demands or liabilities and/or to participate in the defense of any action to which
Franchisor or'its affiliate or any of their respective officers, directors, employees or agents is named as a
party.

H. NOTICE TO FRANCHISOR

Provided Developer is, not then a public company, if any person holding an interest in Developer
(other than Developer or a Principal, which parties shall be subject to the provisions set forth above)
transfersisuchiintefest, then Developer shall promptly notify Franchisor of such proposed transfer in writing
and provide information as Franchisor may reasonably request before the transfer. The transferee may not
be one of Franchisor’s competitors, The'traiisferee must execute a Confidentiality Agreement and Ancillary
Covenants Not to CbrnpCte in the form then required by Franchisor, which form shall be in substantially
the same form attached hereto as Exhibit, E. Franchisor also reserves the right to designate the transferee,
as one ofthe Principals. If Developer is.a publiciconipany, this provision applleslohly to transfers in interest
by Principals or to any person or entity Contfplling more than ten percent (10%) of Developer’s voting
stock.

17. APPROVALS

A. Wherever this Agreement requires the prior approval or Consent of Franchisor; Developer
shall make a timely written request to Franchisor for such .approval or consent.

B. Frffichisor makes no Vvafranties or guarantees upon which Developer may rely and
assumes' no liability Of obligation to Developer or to any third party to which it would not Otherwise be
subject; by providing any waiver, approval, advise, consent,, or services to Developer in connection with
this Agreement, or by any reason of neglect, delay or denial Of any request therefor:

©2019 Stride EfancHise, LLC


2019 Development Agreement

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NONWAfVER

A. No failure of Franchisor to exercise any power reserved to if by this Agreernent, or to insist


upon strict cornpUance by Developer or Principals with any Obligation or condition hereunder, and no
custom or practice of the parties at variance with the terms.hereof shall constitute a waiver or estoppel of
Franchisor’s right to demand exact compliance with any of the terms herein and Developer and the
Principals warrant and undertake' that it shall not rely on such failure, custom of practice, Waiyer by
^Franchisor Of any particular default by Deyeloper Of any Of the Pfincipals -shall not affect Of irripair
Franchisor’s rights with respect toiany ,subsequent default of the same, similar or different-nature,, nor shall
delay, forbearance, or omission of Franchisor to exercise any power or right arising out of any breach or
default by its other developers.or by Developer of any of the terms, provisions, or coyenants hereof, affect
Of impair Ffanchisof’s right to exercise’ the same, hof shall such constitute a waiver by Franchisor of any
right hereunderi of the right to declare any subsequent breach or default and to terminate this Agreement
prior to the expiration of its term. Subsequent acceptance by Franchisor of any payments due to it hereunder
shall not be deemed to be a waiver by Franchisor of any preceding breach by Developer Of any terms,
covenants or conditions of this Agreement.

B. All rights and remedies of the parties hereto shall be eumulative and not alternative, in
addition to and not exclusive of any other rights or remedies which are’provided for herein or which may
be available at law or in equity in case of any breach, failure or default Or threatened breach, failufe or
default of any term, prOvfeiOn or condition Of this Agreemerit, the rights and remedies of the parties hereto
shall be coritinuing and shall not be exhausted by aiiy one or more uses thereof, and may be exercised at
aiiy time or from time to^time. as often as'may be expedient; and any option or election to enforce any such
right or remedy may be exercised or taken at any time and from time to time. The expiration of e^ly
termination Ofthis A^eement shall not disch^ge of release Developer from any liability or obligation then
accrued^ or any liability or obligation continuing beyond, or arising out of, the expiration or early
termination of this Agreement.

19. DEVELOPER’S RECORDS AND REPORTS

A- Developer mUst keep accurate recofds Concerning all transactions and written
commiiriications between Franchisor and Deyeloper relating to the development and operation of Studios
in the Development Area. Franchisor’s duly authorized representative has the right, following reasonable
notice, at all reasonable hpurs of the day to examine all Developer’s records with respect to the; subject
matter of this A,greement, and has foil and free access to feCords for that purpose and for the purpose of
making extracts. All records must be kept available for at least three (3) years after preparation.

B. Developer must furnish to Franchisor monthly written, reports regarding Developer’s


progress ontthe development of Studios under this Agreement.

20. NOTICES AND PAYMENTS

All written notices and fepofts permitted or required to be delivered by the provisions of this
Agreement or of the Manuals shall be deemed so delivered at the time delivered by hand or by e-mail with
receipt confirmed by the receiving party or one (1) business day after sending by overnight courier with,
delivery confirmed and addressed to the party to be notified at its most current addfess of which the
notifying party has been .notified. The following addresses for the parties shall be used unless and until a
different address has been designated by written notice to the other party :

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2019. Develbpment Agreement

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Notices to Franchisor;

Stride Franchise, LLC


Attn: Franchise Administratidn
17877'Von Karman Ave., Suites 100
Irvine, California 926:14

With an additional copy to:

Fisher Zucker, LLC


Attn: Lane Fisher
21 South 2 Street
Philadelphia, PA 19103

Notice to Developeii:

ATTN::

21. GOVERNING LAW

This Agreernent shall be gOvenied by and construed in accordance with the laws of the State of
California, without reference to this state’s conflict of laws principles. Notwithstanding the foregoing, the
parties specifically agree and acknowledge that: (i) all claims, causes of actions or disputes related to
Franchisee’s covenants not to competesetfOrth in Article 13 of this Agreement, including thejnterpretation,
validity and enforcement thereof, shall beigOvemed by the laws of thesstate: where the Studio is located; and
(ii) the: laws of Galifoniia regarding franchises including, without limitation, the California Franchise
Investinent Law (“GFIL”), California franchise relationship act and corresponding regulations thereunder,
shall not apply to this Agreement or the Studio unless the jurisdictional, defmitional and other requirements
set forth in such laws are fully inet and satisfied independently and without reference to this Section.

22. ARBITRATION AND OTHER DISPUTE RESOLUTION PROVISIONS

A. Developer, must first bring any claim or dispute between Developer and Franchisor to
Franchisor’s management and njake every effort to resolve the dispute internally. Developer must exhaust
this internal dispute resolution procedure before Developer may bring Developer’s dispute before a third
party. This agreement to first attempt-resolution of disputes internally shall survive termination pt expiration
of this Agreement.

B. At Franchisor’s option, all claims or disputes between Developer and Franchisor (or its
affiliates) arising out Of, of in any way relating, to, this,Agreement or any other agreement by’and between
Developer and Franchisor (or its affiliates), or any of the parties’ respective rights and obligations: arising
from such agreement, which are not:first resolved through the internal dispute resolution procedure set forth
in Section 22(A) above. Will be subrnitted first to inediation to take place at.Franchisor’s then-current
headquarters under the auspices of the American Arbitration Association (“AAA”), in accordance with
AAA’s Commercial Mediation Rules then in effect. Before commencing any^ legal action against
Franchisor or its affiliates with respect to any such claim or dispute. Developer must submit a notice to
Franchisor, which specifies, in detail, the precise nature and grounds of such claim or dispute, Franchisor

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2019 Development Agreement 21

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
will have a period of thirty (30) days following receipt,ofsuch notice within which to notify Developer as
to whether Franchisor or its affiliates elects, to exercise its option to submit such claim or dispute to
mediation. Developer may not commence any action-against Franchisor or its affiliates with respect to any
such claim or dispute in any court unless Franchisor fails to exercise its optiori to submit such claim or
disputeto mediation, or such mediationiproceedings have been terminated either: (i) as the result of a written
declaration of the mediator(s) that further mediation efforts are not worthwhile; or (ii) as-a result of a written
declaration by Franchisor. Franchisor’s rights to mediation, asjset forth herein, may be specifically enforced
by Franchisors Each party will bear its'own cost of mediation and Franchisor and DeyelOper will share
mediator fees equally: This agreement to mediate will survive any termination or expiration of this
Agreement. The parties will not be required to first attempt to mediate a controversy, dispute. Or claim
through mediation as set forth in this Section 22(B) if such controversy, dispute, or claim cotiCems an
allegation that a party has ViGlated (or threatens to violate, or poses an imminent, risk of violating): (i) atiy
federally protected intellectual property rights .in the Proprietary Marks, the System, or in any confidential
information;, (ii) any of the restrictive covenants contained in this Agreement; and (iii) any of Developer’s
payment obligations under this Agreement.

C. Developer and Franchisor believe that it is important tp resolve any disputes amicably,
quickly, cost effectively and professionally, and to return to business as soon as possible.,Subject to Sections
22(D)KE) of this; Agreement, Developer and Franchisor haVe agreed that the provisions oKhis Article 22
support; these mutual objectives and, therefore, agree that any litigation, claim, dispute, suit, action,
controversy, or proceeding, of any type whatsoever includitig any. claim for equitable relief and/or where
either party is acting as a “private attorney general,” suing pursuant to a statutory claim or Otherwise^
betvveen or invOlving.Developer and Franchisor on whatever theory and/or facts based, and whether or not
arisiiig 'out of this Agreement, (“Claim”) will be processed in the following manner:

a, Developer and Franchisor each expressly waives all rights to any cOurttproceeding, except
as expressly provided iri Sections 22(B) and 22(G), below.

b. All Claims shall be submitted to and resolved by binding arbitratioii in Orange County,
California, before and,in accordance with the arbitration rules Ofthe Ameriean Arbitration
Association, Judgment upon the award rendered by the arbitrator shall be entered in any
Court, hayingjurisdiction thereof

c: Franchisor and Developer agree that any arbitration between Franchisor and Developer
shall be Of Developer’s individual claim and that the claim subject to arbitration shall not
be arbitrated on a classrwide basis.

d. Thissarbitration provision;shallbe deemed to be self-executing, and in the event either party


fails to appear at any properly noticed arbitration proceeding, an award may be entered
against sUch party notwithstanding said failure to appear.

e. In no event shall Franchisor be liable to Developer for punitive damages in any action
arising out of or relating to this Agreement, or any breach, termination or cancellation
hereof

f Any arbitration proceeding conducted under this Section, including all demands, filings
and evidence subrnitted in COimection therewith, must be kept.strictly confidential, unless
Franchisor agrees otherwise in writing.

D. Developer acknowledges and agrees that irreparable harm could be caused to Franchisor
by Developer’s violation of certain pfovisions' Ofthis Agreement and, as such, in addition tosany other relief

©2019 Stride Eranchise, LLG


2019 Development Agreement 22'

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available at law or equity, Franchisor shall be entitled to obtain in any court of competent jurisdiction,
without bond, restraining orders or temporal^ or permanent injunctidns in order to enforce, among other
items,, the proyisions of this Agreement relating to: (i) Developer’s use of the Proprietary Marks and
confidential informatioti; (ii) the in-term covenant not to compete, as well as any other violations of the
restrictive covenants set.forth in this Agreement; (iii) Deyelpper’s’ obligations on termination or expiration
of this Agreement; (iy) disputes and controversies based on or arising under the Lanham Act, as now or
hereafter amended; (v) disputes and controversies involving enforcement of the Franchisor’s rights, with
respect to confidentiality under this Agreement; and (vi) to prohibit any act or omission by Developer or
its employees that constitutes a violation of applicable law, threatens Ffanchisof’s franchise systern or
threatens other franchisees of Franchisor. Developer’s only remedy if such an injunction is entered will be
the dissolution of the injunction, if appropriate, and Developer waives all damage claims if the: injunction
is wrongfully issued.

E. Franchisor’s officers, directors, shareholders, agents and/or employees are express third
party beneficiaries of the provisions of this Agreement,;includihg the dispute resolufion provisions set forth
in Section .22 ,of this Agreement, each having authority to specifically enforce the .fight to mediate claims
asserted against such person(s) by Developer.

F. As a condition precedent to commeiicing an action for dainages or for violation or breach


of this Agreement,, Developer must notify Franchisor wjthin thirty (3ft) days after the occurrence of the
violation or breach, attd failure to timely give such notice shall preclude any claim for damages.

G. Developer shall not withhold all or any part Of any payment to Franchisor or any of its
affiliates on the grounds of Franchisor’s alleged nonperformance Or as an offset against any amount
FrarichiSor or any of Franchisor’s affiliates allegedly may owe Developer under this Agreement or any
related agreements.

H. Developer further agrees that no cause of action arising out of of Under this Agreement
may be maintained by Developer against Franchisor unless brought before the expiration of one (1) year
after the act, transactibn or occurrence upon which such action is based or the expiration of,one year after
the Developer becomes aware of facts or circumstances reasonably indicating that Developer may have a
claim against Franchisor hereunder, whichever occurs sooner, and that any action not brought within this
period shall be barred as a claim, cgimterelaiin, defense; of sefroff Developer hereby waives the fight to
obtaih any remedy based on alleged fraud, misrepresentation, or deceit by Ffanchisor, including,, without
limitation^ rescission of this Agreement; in any mediation, judiciafor other adjudicatoiy proceeding arisiiig
hereunder, except upon a ground expressly provided in this Agreement, Of pursuant to any fight expressly
granted by any applicable statute expressly regulating the sale of franchises, or any regulation or rules
promulgated thereunder,

I. Developer hereby waives to the fullest extent permitted by law, any right to or claim for
any punitive, exemplary, incidental, indirect, special of consequential damages, (including, without
limitatioii, lost profits) against Franchisor arising;out of any cause whatsoever (whether such cause be based
in contract, negligence, strict liability,, other tort or otherwise) and agrees that in the event,of a dispute, that
Developer’s recovery is limited to actual damages. If any other tenn of this Agreement is found or
deteimmed to be unconscionable ormnenfbfceable for any reason, the foregoing provisions shall continue
in full force, and effect, including, without limitation, the waiver of any right to claim any cortsequential
damages. Nothing in this Section or any other provisibn of this Agreement. ShaU be construed to prevent
Franchisor from claiming and obtaining expectatibn bf consequential damages, including lost future'
royalties for the balance of the term bf this Agreement if it is termmated due to Developer’s default, which
the parties agree and acknowledge Franchisor may claim under this Agreement.

©2019 StrideJFrancKise,, LLC


2019 Development Agreement 23i

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J. THE PARTIES HEREBY AGREE TO WAIVE TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM, WHETHER AT LAW OR EQUITY, REGARDLESS OF
WHICH PARTY BRINGS SUIT; THIS WAIVER SHALL APPLY TO ANY MATTER WHATSOEVER
BETWEEN THE PARTIES HERETO WHICH ARISES OUT OF OR IS RELATED IN ANY WAY TO
THIS AGKEEMENT OR THE PERFORMANCE OF EITHER PARTY.

K. THE parties AGREE THAT ALL PROCEEDINGS ARISING OUT OF OR


RELATED'TO THIS AGREEMENT WILL BE CONDUCTED ON AN INDIVIDUAL, NOT A CLASS-
WIDE BASIS, AND THAT ANY PROCEEDING BETWEEN DEVELOPER, DEVELOPER’S
GUARANTORS AND FRANCHISOR OR ITS AFFILLATES/OFFICERS/EMPLOYEES MAY NOT BE
CONSOLIDATED WITH ANY OTHER PROCEEDING BETWEEN FRANCHISOR AND ANY
OTHER THIRD PARTY.

23. ENFORCEMENT

A. SEVERABILITY AND SUBSTITUTION OF VALID PROVISIONS

(I) Except ^ expressly provided to the contrary in this Agreement, each section,
paragraph,, termandprovision of this; Agreement, isiconsidered severable=and if, for any reason, any portion
of this Agreement is held.to belnvalid, contrary to, or in conflict with any applicable present dr fliture law
or regulation iri a final. Unappealable ruling issued by ^y court, agency or tribunal with competent
jurisdiction in a proceeding to which Franchisor is a party, that-ruling shall not impair the operation of, or
have any other effect upon, other portions of this Agreement as may remain otherwise intelligible, which
shall continue to be given full force and effect and bind the<parties to this Agreement, although any- pOrtion
held to be invalid shall be deemed not to be a part of this Agreement from the date the time for appeal
expires, if Developer is a party, otherwise upon Developer’s receipt of a notice of non-enforcement fi-om
Franchisor.

(2) If any applicable and binding law or rule of any jurisdicfipn requires a^eater prior
notice of the termination of this Agreement,than is required in this Agreement, dr the taking of some other
action not required, dr if under any applicable and binding law or rule of any jurisdiction,,any provision of
this Agreement or any specification, standard or operatirig procedure Franchisor prescribes is invalid or
unenforceable, the prior notice and/or other action required by law pr rule shall be substituted for the
comparable provisions, and FranchiSpr has the fight, in its sdle disefetidn, to modify the: invalid or
unenforceable provision, specification, standard or operating procedure; to the extent, required to be valid
and enforceable. Developer ag-ees to be bound by any promise or covenant imposing the maximum duty
perm itted by law which is prescribed within the terms of any provision of this Agreerhent, as though it were
separately articulated m, and made apart of this Agreementj that may result from striking from any ofthe
provisions, or any Specification, standard or operating procedure Franchisor prescribes, any portion or
portions which a courtmay hold.to be unenforceable in a.final decision to Which Franchisor ts a party, or
fi-om reducing'thei scope of any promise or covenant to the extent required to Comply With a cdUrt order:
Modifications to this Agreement shall be effective only in that jurisdiction, unless Franchisor elects to give
them greater applicability, and this Agreement shall be enforced as originally made and entered into in all
Other jurisdictions.

b: EXCEPTIONS

Neither Ffanchisor nor Developer me liable for loss or damage or deemed to be: in breach of this
Agreeriient if its failure to peffofm its obligations results from: (I) transportation shortages, inadequate
supply of labor, material or energy, or the voluntary foregoing of the right to acquire or use any of the
foregoing in order to accommodate or comply with the orders, requests, regulations^ recommendations or

©2019 Stride Franchise. LLC


2019 Development Agreement 24

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instructions of any federal,, state or municipal government or any department or agency; (2) compliance
with any law, ruling, order, regulation, requirerhent Or ihstfuctibn. of any federal, state, or municipal
goveniment dr any department or agency; (3);acts of God; (4) acts or omissions of the other party; (5) fires,
strikes, embargoes, war or riot; or (6) any other similar event or cause. Any delay* resulting from any of
these causes shall extend performance accordingly or excuse performance. In whole or in part, as may be
reasonable.

G. RIGHTS OF PARTIES ARE CUMULATIVE

The rights of Franchisor and Developer imder this Agreement are cumulative and no exercise or
enforcement by Franchisor or Developer of any right of remedy precludes the exercise of enforcement by
Franchisor* or^f)evelbper'of imy other right Or remedy which Franchisor or Developer is entitled by law to
enforce;,

D. COSTS AND ATTORNEYS’ FEES

If Developer is in breach or default of any mortetaty or nbn-mbnetary Obligation under this


Agreement or any related agreement between Developer and Franchisor and/or Franchisor’s affiliates, and
Franchisor engages aii attorney to enforce Franchisor’s rights (whether or not formal judicial proceedings
are initiated). Developer must reimburse Franchisor for all costs/expenses incurred in connection with
enforcing its rights imder this Agreement.inc|udihg all.reasonable attorrieys’ fees, court posts and arbitration
expenses; IfDevelbper institutes any legal action,to interpret br enforce the terms of this Agreement, and
Developer’s clairfi in such action is denied or the action is dismissed. Franchisor is entitled to recover
Franchisor’s reasonable attorneys’ fees, and all other reasonable costs and expenses incurred in defending,
against, same, and to have, such an amount awarded as part pf the judgrnent in the: prbceeding.

In addition to: the above obligatibris set forth in this Sectibn 23(D), Franchisee agrees and
acknbvvledges: that it will be responsible for the legal fees and other costs that Franchisor incurs in
connection with certain modifications that Franchisor agrees to make to the Franchise Agreement, including
without limitation, modifications made to address die following situations: (i) an amendment toi(a) extend
a given peiformance deadline of Franchisee, (b) modify the territory awarded hereunder, or (c) otherwise
modify, amend of supplement this Agreement in any way at the request of Franchisee or as necessary for
Franchisee to avoid this.Agreement being in default or subject to termination; and (ii) any amendment to a
franchise agreement that is executed as part of Develbper’siobligations* hereunder., Franchisor may set forth
flat foe amounts designed to help defray the costs associated with addressing certain of the foregoing
situations in the context of this Agreement or any other agreement with Franchisor, whether in the Manuals
or otherwise in a writing distributed to System franchisees.

E. VARIANCES

Developer acknowledges that Franchisor has and may at different times approve exceptions or
changes from the uniform standards of the System in Franchisor’s absolute sole discretion, which
Franchisor deems desirable or necessaty under particular circumstances; Develbper Understands that he
has no right to object to of automatically obtain sUch variances, and any exception or change must be
approved inadvance from Franchisor in writing. Developer understands existing: Developers.may operate
under different forms of agreements and that the rights and obligations Of existing Developers may differ
materially from this* Agreernent.

©2019 Stride Franchise, LLC


2019 Development Agreernent

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BINDING EFFECT

This Agreement is binding upon the parties of this A^eemertt and their respective executors,
administrators, heirs,, assigns and successors in interest, and shall not be rtiodified, except by written
agreeinenf signed by both Developer and Franchisor.

G. CONSTRUCTION/INTEGRATION CLAUSE

This A^eement, all exhibits to this Agreement and all ancillary agreements executed
edutemporanepusly with, this A^eement constitute the entire agreement between the parties with reference
to the. subject matter of this Agreement and supersede any and all prior negotiations,, undertakings,
representations, and agreements. Nothing in this Agreement or in any related agreement, however, is
intended to disclaim the representations Franchisor made in the FDD that Franchisor furnished to
Developer. Developer acknowledges that Developer is entering into this Agreement, and all ancillary
agreements executed contemporaneously with this Agreement, as a resultof Developer’s own independent
investigation of the; franchised business and not as a result of any representations about Franchisor made
by Franchisor’s shareholders, officers, directors,, employees, agents, representatives; independent
contractors, attorneys; or Developers, which are; contrary to the termsiset forth in this Agreement or of any
franchise disclosure document, offering; circular, prospectus, or other similar document required or
permitted to be given.to Developer pursuant to applicable law.

Developer hereby'acknowledges and further represents-and warrants to Franchisor that:

1. Developer has placed no, reliance oh any oral or written statements, whether
referred to as representations, warranties, inducements, or otherwise, which are not contained in this
Agreement or in the Franchise Disclosure Document;

2. Developer has entered into this Agreement after making an independent


investigation of Franchisor’s operations and the System;

3. Franchisor has,not made any guarantee or provided any assurance that the business
location will be successful or profitable regardless of whether Franchisor may haye approved of the
franchise or site location;

4. Developer has (a) read this Agreement in its entirety and understands its contents;
(b) been given the-opportunity to clarily any provisions that Developer did not understand.and (c) had the
opportunity to consult with professional advisors regarding the operation and effect of the Agreement and
the operation of the System;

5. Developer has, together with its advisors, sufficient knowledge, and experience in
financial and business matters; to make an informed decision with respect to the franchise offered by
Franchisor; and

6. Developer has received a Copy of the Franchise Disclosure Document not later
than the first personal meeting,held to direuss the sale Of a franchise, of fourteen (14) calendar, days before
execution of this Agreement or fourteen (14):calendar.days.before any payment of any consideration.

Except as may have been disclosed at Item 19 of Franchisor’s Franchise Disclosure Document,
Developer represents and warrants to Franchisor that no claims,, representations, or warranties regarding
the earnings, sales, profits,, success or failure of the franchised business have been made to Developer and
no such claims, represehtatibns or warranties have induced Developer to enter into this Agreement.

©2019 Stride, Franchise, liLG


20i9 Development-Agreement

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Except for those chaiiges permitted to be made unilaterally by Franchisor, iio pnendment, ch^ge
or variance from this A^eement is binding on either party unless mutually agreed to by the; parties, and
executed by thejr .authorized officers or agents in witing.

24. CAVEAT

A. The success of the business venture contemplated to be undertaken by this Agreement is


speculative and depends,, to a large extent, upon the abilily of the Developer as an independent business
person, and the active participatibn of Deyeloper ih the daily affairs Of the business as well as other factors.
Franchisor does hot make,any representation or warranty, express or implied, as to the potential success of
the business venture contemplated hereby.

B. Developer acfcnOvvledges that it has entered iiito this Agreement after making an
independent investigation of Franchisor’s operations and not: upon any representation as to gross sales,
volume^ potential earnings or profits which Developer in particular might be expected to realize,, nor has
anyone made any other representation which is not expressly set forth in this Agreement, to induce the
Developer to accept this franchise and execute this Agreement.

C. Developer represents and acknowledges that he has received a copy of this Agreement,
with all blanks filled in, from Franchisor at least seven (7) calendar days before the date of execution of
this Agreement. Developer further represents that, he understands the terms, conditions and obligations of
this .Agreement and agrees to be bound,

25. MISGELLANEOUS

A. Except as otherwise expressly provided, nothing in this Agreement is intended, nor shall
be deemed, to confer any rights or remedies upon any person or legal entity who is not a party to this
Agreement.

B. The headitrg$ of the several sections and paragraphs are for convenience only and do not
define, limit or cOnstruefthe> contents of sections or paragraphs.

C. The “Developer” as used in this Agreement is applicable to one (1) Or more persons, a
corporation or a partnership or limited partnership'or limited liability company as the casemay be, arid the
singular usage includes the plural md the masculine and neuter usages 'include the other and Ae feminine.
If two (2) or more persons are at any time Developer under this Agreement, their obligations and liabilities
to Franchisor shall be joint and several. References to “Developer” and “Assi^ee”'which are applicable
to an individual or individuals shall mean the owner or pvvners Of the equity or Operating control of
Developer or the Assigiiee,, if Developer'or the Assignee is a corporationi partnership, limited partnership
or limited liability company.

This Agreement shall be executed in multiple copies, each of which shall be deemed an original.

THE REST OF THIS PAGE HAS BEEN LEFT INTENTIONALL Y BLANK

signatures ON THE FOLLOWING PAGE

©2019 Stride Franchise, LLC


2019; Development Agreement :27

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
IN WITNESS WHEREOF, the parties hereto have duly executed.this Agreement under seal on the
date first written above.

FRANCHISOR: DEVELOPER;
STRIDE FRANCHISE, LLC

IF AN INDIVIDUAL:

PrintName: By:______________

Title: ____ Print Name:

Date: ____ Date; ^____

Spouse Signature:.

Spouse Name:;___

Date:

IF A PARTNERSHIP, CORPORATION, OR
OTHER ENTITY:

Print Name:

Title: . - -

Date: ____

©2019 StrideiFranchise, LLC


2019 Development Agreement

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
ATTACHMENT TO DEVELOPMENT AGREEMENT

GUARANTY AND ASSUMPTION OF OBLIGATIONS

THIS GUARANTY ASSUMPTION OF OBLIGATIONS is given this___ day of


20;, byI(each a “Guarantor”).

In cdhsideration of, and as an inducement to, the execution of that certain Area Development
Agreement, (the “Area Development Agreement”) by and between Stride Franchise, LLC (the
“Franehisor”), and ^______________ (“Developer”)^ each, of the, undersigned (each, a, “Guarantor”)
hereby personally and unconditionally (a) gu^antees to Franchisor, and its successor and assies, for the
term of the Area Development. Agreement and as provided in the Area Development Agreement, that
Developer shall punctually pay and perform each smd every undertakingj agreement and! covenant,set forth
in the Area Development Agreemeriti and (b) agrees to be personally bound by, and personally liable for
the breach of, each and every obligation of Developer under the Area Development Agreement, both
monetary obligations and non-monetary in nature, including vvithout liriutatiOn, ^ose obligatioris related
to: confidentiality and nori-disclosurei indemnification; the Proprietary Marks; the-in-term and post-term
covenants agaiiist competition^ as well as all other restrictive covenants; and the governing law, venue,,
attorheys’ fees and other dispute resolution provisions set forth in the Area Development Agreement (that
shall also apply to this Guaranty and Assumption of Obligations)^

Each Guarantor hereby waives: (1) acceptance mid notice of acceptance by Franchisor of the
foregoing undertakings; (2) notice of demand for payment of any indebtedness or nonperformance of any
obligations guaranteed; (3) protest and notice of default to any party \vith respect to the! indebtedness or
nonperformance of any obligations guaranteed; (4) any right Gumantor may have to requife; that an action
be brought against Developer or any other perfon as a Condition of liability; and (5) the defense of the
statute of limitations' in any action hereunder or for the collection of any indebtedness or the performance
of any Obligation hereby guaranteed.

Each Guarantor hereby consents and agrees that:: (1) such Guarantor’s undertaking shall be direct,
immediate and independent of the liability Gf„ and shall be joint and several with. Developer and any other
Guarantors; (2) Guarantor shall render any payment or performance required under the Area Development
Agreement upon demand if Developer fails or refuses puncfoally to do so; (3) Guarantor’s liability shall
not be contingent or conditioned upon pursuit by Franehisor of any remedies against Developer Or'any Other
person; (4) Guarantor’s liability shall not be diminished, relieved Or otherwise affected by any exten^bn
of time, credit or other indulgence yvhich Franchisor may grant to Developer or to any other person,
including theiaceeptanCe of any partial payment or performance, or the compromise or release of any^claims,
none of which shall in any way modify or amend this guaranty, which shall be continuing and irrevocable
during the term of the Area Development Agreement; (5)'this undertaking will continue Unchanged by the.
occurrence of any bankruptcy with respect to Developer or any assignee or successor of Developer or by
any abandonment of the Area, Development Agreement by a trustee of Developer; (6) neither the
Guarantor’s obligations, to make payment or render performance in accordance lyith the terms of this
undertakingrnor any remedy for enforcement shall be impaired, modified, changed, released Or limited in
any manner'whatsoever by any impairment,, modification, change, release Or limitation of the liability of
Developer or its estate in bankruptcy or of any remedy for enforcement, resulting from the operation of any
present or future provision of the U.S. Bankruptcy Act or other statute, or fi-om the decision of any Courtor
agency; (7) Franchisor may proceed against Guarantor and Developer jointly and severally, or Franchisor
mayi at its option, pfOceed against Guarantor, without having commenced any action, or having obtained
any judgment against. Developer; and (8) Guarantor shall pay all reasonable attorneys’ fees and all costs
and other expenses incurred in any collection or attempt to collect amounts due pursuanttO this undertaking

©2019 Stride Franchise, LLC


2019 Development Agreement - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
or negotiations relative to the obligations hereby guaranteed or in enforcing this undertaking against
Guarantor.

IN WITNESS WHEREOF, the parties hereto have executed and deliveredthis Guaranty on the date
stated on the first page hereof.

PERSONAL GUARANTORS

[Insert Mame'of Guarantor] [Insert Name of Spousb]

[Insert Name of Guarantor] [Insert Name of Spouse]

[Insert Name of Guarantor] [Insert Name of Spouse]

[Insert Name of Guarantor] [Insert Name of Spouse]

€>2019 StrideTranchise, tLC


2019 DeveldpitientiAgreement - Exhibits'

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
EXHIBIT A TO THE AREA DEVELOPMENT AGREEMENT
DEVELOPMENT AREA
The .development rights and dbligatiohs of Developer, to timely develop
and open Studios shall be within the following described area:

developer FRANCHISOR

STRIDE FRANCHISE, LLC

By:; By:_____________________

Name:_ Nairie:_

Title; Title:

©2019-Stride F>anchise,lLC
2019 Development Agreement - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
EXHIBIT B TO AREA DEVELOPMENT AGREEMENT

DEVELOPMENT SCHEDULE

1. Develobm'ent Schedule

Developei-j __________________ , agrees toi timely open Studios in compliance with the
following, development schedule (the “Development Schedule”). Developer further agrees that failure to
timely open the Studios in compliance with the Development Schedule shall cause the .rights of exclusivity
granted to Developer regarding the geographic area defined in Exhibit A to be forfeited.

The Development Schedule is as follows:

Expiration of Developnient Number ofNew Uiiit.Franchises that Number of Unit Franchises


Period Must be Opened and Commence^ that Must be Open and
Operations Within: Development Operating by the Expiration of
Period the Development Period

2. Forfeiture of Rights of Exclusivity

Developer’s failure to comply with the Development Schedule in any manner shall be grounds for
Franchisor to (a) terminate the: Development Agreement to which this; Development Schedule is attached
as an Exhibit,, or (b) in lieu of such tertnination, terminate any exclusive or other territorial rights that
Developer may have within the Development Area or otherwise under the.Development Agreerfient.

APPROVED;

DEVELOPER FRANCHISOR

STRIDE FRANCHISE, LLC

By:. By:_______________ _

Name;_ Name:_

Title: Title:

©2019 Striae Franchise, LLC


2019 Development AgrTOment- Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
EXHIBIT G TO AREA DEVELOPMENT AGREEMENT

FRANCHISE AGREEMENT

©2019 Stri(le Franchise, LLC


2019;Developfnent Agreement.- Ejchibits,

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
EXHIBIT D tit) AREA DEVELOPMENT AGREEMENT

STATEMENT OF OWNERSHIP INTERESTS AND PRINCIPALS

A. The following is a list of shareholders, partners, members or other investorsdn Developer, including
all investors who oWn or hold a direct or indirect interest in Developer, and a description of the
nature, of their interest:

Name BercentageiOf Ownershio/NatUre! of Interest

A. The following is, ,a list of all of Principals described in and designated pursuant to this Area
Development Agreement, each of whom shall execute the Confidentiality A^eement and Ancillary
Covenants Nbt to Cbmpete’subsfantially in the form set forth in ExhibitE ofthis Area Development
Agreement:

DEVELOPER FRANCHISOR

STRIDE FRANCHISE, LLC

By;. By:_________________ ^___

Narne:_ Name:_

Title: Title:

©2019 Stride Franchise; LLG


2019 Development Agreement - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
EXHIBIT E TO AREA DEVELOPMENT AGREEMENT

confidentiality agreement and


ANCILLA

RY COVENANTS NOT TO COMPETE

This Agreement is-made and entered into this__^day of _, 20_, between STRIDE
FRANCHISE, LLC, Delaware limited liability company
(“Franchisor”), _ ______ ^ (“Developer”), and.
(“Covenahtor”).

RECITALS

AVHEREAS, Franchisor has obtained the right to deyelpp a xmique system (the “System”) for the
developmmt and operation Of Studios under Franchisor’s then-current proprietary marks (“Studios”); and

WHEREAS, the System includes, but is not limited to, certain trade: names, seiyice marks,
trademarks;, logos, emblems and indicia of origin, including, but not limited to, the proprietary marks and
other trade names, service: marks, trademarks, logos, insignia, slogans^ emblerhs, designs and commercial
symbols as Franchisor may develop in the future to identi^ for the public the source of services and
products rnarketed imder the marks and under the System and representing the Systeih’s high standards of
quality, appearance, service and all information relating.to the System and to the development and operation
of the Studio, including, without limitation, the operating; manual j Frartchisbr’s training;program, members
and supplier lists, or other information dr know-how distinctive to; a Studio; all of which Franchisor may
change, iniproye and ftirther develop and which Franchisor uses in connection vvith the operation of the
System .(collectively, the “Confidential Information”); and

WHEREAS, the Proprietary Marks and Confidential Information provide econOniic advantages to
Franchisor and are not generally knoVni to, and are not readily ascertainable by proper means by.
Franchisor’s competitors who could obtain economic value from knovvledge and use of the Confidential
Infotmatidn; and

WHEREAS, Franchisor has taken and intends to take all reasonable steps tO maintain the
confidentiality and secrecy of the Confidential Infonnation; and

WHEREAS, Franchisor has panted Developer the; limited right to develop a Studio using the
System, the Proprietary Marks ;and the Confidential Information, pursuant to an Area Development
Agreement entered into on^20__ (“Area Development; AgreemenfO,
by and between Franchisor and Developer; and

WHEREAS, Franchisor and Developer have agreed in the Area Development Agreement on the
importance tO Franchisor and to Developer and other licensed users of the System of festricting the use,
access and dissemination of the Confidential Information; and

WHEREAS, it is necessary for certain employees, agents, independent: contractors, officers,


directors and equity interest holders of Developer or any entity having an interest in Developer
(“Covenantor”) to have access to arid to use some.of all of the-Gonfidential, Information in the management
and Operation of Developer’ s Studio using the System; and

©2019 Stride Franchise, LLC:


2019 Development Agreement.-. Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
WHE^ASi Developer has agreed to obtain from those covenantors’written agreements protecting
the Confidential Ihformationjand the System against:unfair eompetition; and

WHEREAS, Covenantor wishes to remain, or’wishes'to become associated with or employed by


Developer; and

WHEREAS, Covenantor wishes and needs to receive and use the Confidential Information in the
course ofihis employment or association in order to effectivelyperfom the services for Developer; and

WHEREAS, Covenantor ackiiOwIedges that ieceipf of and the right, to use the Confidential
Information constitutes independent valuable consideration for the representations, promises and covenants
ihade by Covenantor:

NOW, THEREFORE, in consideration of the mutual covenant aald obligations cohtairied in this
Agreement, the p^ies agree as follows:

Confidentiality Agreement

1. Franchisor and/or Developer shall disclose; to Covenantor some pr all of the Confidential
Information relating to the System. All information and materials, including, without.limitation, manuals,
drawings, specifications, techniques and Gpmpilatipns of data whieh Franchisor provides to Developer
and/or Covenantor are deemed Confidential' Information for the purposes of this Agreement.

2. Covenantor shalll receive the Confidential Information in confidence and must, at all times,
maiiitain them in confidence, and use them only in the cpufse of jus employment of associatioh with a
Developer and then only in coimection with'thedevelppment and/or opefatibri by Developer ofa Studio for
soTong as Developer IS licensed by FrahehisPr to use^e System.

3. CpvenantGr shall hot ati^y time make copies ofany documents or compilations containing
sPme or all ofthe Confidential Information without Franchisor’s express writtempermissipn,

4. Covenantor shall not at any time disclpse or permit the disclosure of the Confidential
Information except to other emplpyees of Developer and only to the limited extent necessary to train or
assist other emplpyees Of Developer in the development or operation of a Studio..

5. Covenantor must surrender any material containing some or all of the Confidential
InfdfmatiPh to Developer or Franchisor, upon request, or upon terminatipn of employment by Developed
or upon conclusion of thesuse for which the information or rnateria! rnay haVeibeen furnished,to Covenantor.

6. Covenantor shall riot at any tiriie,. directly or indirectly, do any act that would or would,
likely be injurious pr pfejudicial to the goodwill associated with the Confidential, Iriformatipn and the
Systehi.,

7. Franchisor loans all manuals to Developer for limited purposes orily and they remain the
property of Franchisor and rnay ripthe feprpducedi in wholetir in part, without Franchisor’s vratten consent.

covenants Not to Compete

Ir In order to protect the goodwill and unique qualities, ofthe System arid the cOnfideritiality
and value of the Confideritial Infofrnatibn duririg the tenri ofithis Agreement, and in consideration for the

©2019 Stride Franchise, LLC


2019 .Development Agreement;- Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
disclosure to Covenantor of the Confidential Information, Covenantor further agrees and covenants aS
follows:

a. Not to divert, or attempt to divert, directly or indirectly, any business, business


opportunity, or customer of the Studios to any competitpri

b. Not to employ, or se;ek to employ, any person who is at the time of was within the
preceding one hundred eighty (180) days employed by Franchisor, its; affiliate or any Developer of
Franchisor, or otherwise directly or indirectly induce;such person to leave that person’s employment except
as may occur in connection with Developer’s employment of that person if permitted under the Area
Deyelopmenf Agreement;^ ^d‘

c. Except with respect to Studios operated under a valid and existing Franchise
Agreement between Developer (or Developer’s affiliates) and Franchisor, oym, maintain, operate, engage
in, or have any financial or benefidal interest in (including any interestin cbipofations, pauinershipS, trusts,
limited liability companies, unincorporated associations or joint Ventures), advise, assist or make loans to,
any Competing Business (as defined below) or a business that is of a character and concept similar to a
Studio. For purposes of this. Agreement, a “Competing Business” is defined as any business that (1) derives
at least ten percent (10%) of its revenue from the sale of exercise/fitness serVicesdr instruction that utilize
or include access to rowing machines^ efgbmeters, or other ApprovedsServices and Approved Products that
are offered at aStudiOj or (2) grants franchises or licenses to;othersto operate the type of business described
in subpart (I) of this Section.

2. In further consideration for the: disclosure to Covenantor of the Confidential Information


and to protect the uniqueness of the System^, Covenantor agrees add covenants that for two (2) years
following the earlier of the expifation, termination or transfer of all Developer’s interest in the; Area
Development Agreement or the termination of his association with or employment by Developer,
Covenantor will not without the; prior written consent of Franchisor:

a. Divert or attempt to divert, directly Or indirectly, any business, business


opportunity of customer of the Studios to apy competitor;

b. Employ, or seek to employ, any person who is at the time or was within the
preceding one hundred eighty (180) days employed by Franchisor, its affiliate or any franchisee of
franchisor, ur otherwise, directly or indirectly induce such persons to leaVe that person’s employment; and

C, Except with respect, to Studios; operated under Franchise Agreements between


Developer and its affiliates, and Franchisor or its affiliate or any of its subsidiaries, own, maintain, operate,
engage in, or'have any financial or beneficial Interest in (including anyiinterest in corporations, partnerships^
trusts, limited liability companies, unincorporated associations or joint Ventures), advise, assist or m^e
loans to; any Competing Business or a business that is of a character and concept similar to a Studio (i)
within the Developnient Area.granted to Developer; or (ii) within a forty (40) mile radius of the perimeter
of the Development Area being granted to Developer or any other designated territory of developnient afea
licensed by Franchisor to a Studio as of the date of expiratibn, termination or transfer of all Developer’s
interest in the Area Development A^greCment or the termination of Covenantor’s association with or
employment by Developer.

Miscellaneous

1. Developer shall make aU commercially reasonable efforts to ensure that Covenantor acts
as required by this Agreement.

©2019 Stride Franchise, LLC


■2019 Development Agreemerit - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
2. 'Covenantor agrees that jh the event of a breach of this Agreement, Franchisor would be
irrepafably injured and be without an adequate remedy at law. Therefore, in the event of a breach, or
threatened or attempted breach of any of the provisions,, Franchisor is entitled iQ enforce the provisions of
this Agreement and is entitl;ed,;in addition to any other remedies ayailablefo it at lavv or in equity, including
the right to terminate the Area DeVeropment Agfeemeht, to a temporal^ and?or permanent injunction and a
decree for the;speciFic performance of the terms ofthis Agreement; without the necessity of showing'actual
or threatened harm and without being required to furnishi a bond or'other security.

3. Covenantor agrees to pay all expenses (iricludihg court costs and reasonable attorneys’
fees)'incurred by Frahehisor and Developer in enfbrcingfhis Agreement.

4. Any failure: by Franchisor to object to or take; action with respect, tp any breach, of this
Agreement by Covenantor shall not operate or beiconstrued as a waiyer of or consent to'that breach or any
subsequent breach by Covenantor.

5. THIS agreement shall BE GOVERNED BY AND CONSTRUED AND


ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF [INSERT STATE WHERE
THE STilJDIO IS LOCATED] AND COVENMslTOR HEREBY IRREVOCABLY SUBMITS
HIMSELF TO THE JURISDICTION, OF THE STATE COURJ CLOSEST TO FRANCHISOR'S THEN-
current headquarters or, if appropriate, the United States district court
FOR THE DISTRICT FOR [INSERT STATE WHERE THE STUDIO IS LOCATED].
COVENANTOR HEREBY WAIVES ALL QUESTIONS OF PERSONAL JURISDICTION OR VENUE
FOR THE PURPOSE OF CARRYING OUT THIS PROVISION. COVENANTOR HEREB Y AGREES
THAT SERVICE Op PROCESS MAY BE.MADEUPbN.HlM IN ANY PROCEEDING: RELATING TO
OR ARISING under THIS AGREEMENT OR THE RELATIONSHIP CREATED BY THIS
agreement BY ANY MEANS ALLOWED BY [INSERT STATE; WHERE THE! STUDIO IS
LOCATEDIOR FEDERAL LAW. COVENANTOR FURTHER AGREES THAI VENUE FOR ANY
proceeding relating TO oR arising out of this agreement Shall be onecf the
COURTS bESCRliED ABOVE IN THIS SECTION; PROVIDED, HOWEVER, WITH RESPECT TO
any action WHICH INCLUDES INJUNCTIVE RELIEF OR OTHER EXTRAORDINARY RELIEF,
FRANCHISOR MAY BRING SUCH ACTION IN ANY COURT Dl ANY STATE WHICH HAS
JURISDICTION.

6. The parties acknowledge andagree that each of the covenants CQntaihed in this Agreement
are reasonable limitations as to time, :geographical area, and scope of activity to be restrained, and do hot
impose ai greater restraint than is necessary to protect the, goodwill or other businessdnterests of Franchisor.
The parties agree that each of the; foregoing covenants shall be construed as independent of any other
covenant or provision of this. Agreement; If all or any portion of a covenant in this; Agreeiheht is held
unreasonable or unenforceable by a court or agency having Valid Jurisdiction in any uiiappealed final
decision to which Franchisor is apart, COVeftahtor expressly agrees to fee bound by any lesser covenant
subsumed within the terms of the covenant that imposes the maximum duty permitted by law as if the
resulting covenant were separately stated in and made a parttof this Agreement,

7. This Agreement contains the entire agreenient of the parties regarding the subject matter
of this Agreement. This Agreement may be modified only by a duly authorized writing executed by all
parties,

8. All notices and demands required to be given must be in writing and sent by personal
delivery, expedited delivery service; certified or registered mail; return receipt requested, first-class postage
prepaid,;faesimile or electronic mail, (provided that the sender confirms the facsimile or electronic mail, fey
sending an original confirmation copy by certified Or registered mail or expedited delivery service within

,©2019 Stride Franchise, LLG


,2019'Deyelppment, Agreement:- Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
three; (3) business days after transmissiofl), to the respective parties at the following addresses unless; and
until a.different address: has been designated by witten notice to the, other parties.

If directed to Franchisor, the notice shall be addressed to

Stride Franchise, LftC


Attn: Franchise Administration
17877 Von Karman Ave,, Suite 100
Irvine^ California 92614

If directed to Developer, the notice shall be addressed to:

Attention:

If directed to Covenantor, the notice shall be addressed to:

Attention:

Any notices sent by personal delivery shall be deemed given upon receipt. Any notices given by
facsimile or electronic mail shall bC'deemed given upon transmission, provided confirmation is made as
provided above. Any notice sent by expedited delivery service or registered or certified mail shall be
deemed given three (3) business days after the time of mailing. Aiiy change in the; foregoing addresses
shall be effected by giving fifteen (1'5) days written notice of such change to the other parties. Business
day for the purpose of this AgreementexcludesiSaturday, Sunday and the following natipnaj holidays: Nevv
Year’s Day, Martin Luther King: Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day,
Columbus Day, Veterans Day^ Thanksgiving and Christmas.

9., The rights and remedies of Franchisor under this Agreement are fully assignable and
transferable and inure to the benefit of its respective parent, successor and assigns, The respective
obligations of Developer and Covenantor hereunder may not be assigned by Developer Or Covenantor
without the prior wriften consent of Franchisor.

THE REST OF THIS PA GE LEFT INTENTIONALLY BLANK

SIGNATURES ON THE FOLLOWING PAGE

©26l9‘StrideEranchise,:LLG
201-9 Development Agreement - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
IN WITNESS WHEREOF, the undersigned'have; entered into this.Agreement as Ayltnessed by their
signatures below.

FRANGHISOR: DEVELOPER:
STRIDE FRANGHISE, LLC (If Developer is a corporation)

Name of CorpOfatibn

By: .
Title: Title:

(If Developer is an individual owner,


GOVENANTOR: Developer must sign below;, if a partnership^
a[ll partners ifiuS;t sign
below)

Printed Name:;
Developer

Developer

Developer

Developer

(If Deyelopef is a Limited Liability Company)

Name of Limited Liability Company

Title:

©2019 Stride Franchise, LLG


201'9 Development A^eement - Exhibits

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Exhibit J
To Franchise Disclosure Document

RECEIPTS

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accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
ITEM 23
RECEIPT

This Disclosure Document summarizes provisions of the franchise agreement and other information in plain
language. Read this Disclosure Document and all agreements careiully.

If Stride. Franchisej LLC offers;you a franchise, it must provide this Disclosure Document to you 14 calendar days
before you sign a binding:agreement with, or make a payment to,, the; franchisor or an affiliate in connection with
the; proposed franchise sale.

New Yorkj Oklahoma.and Rhode Island require that we igive you this Disclosure Document at the earlier of the
first personal meeting or 10 business days before the execution of the franchise agreement, or other agreement^ or
the payment of any consideration that relates to the franchise relationship.

Michigan, Oregon and Wisconsin require that we give you this Disclosure Document at least 10 business days
before therexecutionsof any binding franchise agreement, or other agreernent, or the paymenttef any consideration,
whichever comes first.

If Stride Franchise, LLC does not deliver this Disclosure Document on time or if it contains a false or misleadmg
statement, or a material omission, a violation of federal and state law may have Occurfed and should be reported
to The FederarTrade Gomthissioiii Washington D.C. 2058.0 andfhe appropriate State Agency identified on Exhibit
B.

The franchisor is Stride Franchise, LLC located at 178,77 Von Karman Ave;. Suite lOO, Irvine, CA 92614. The
name, principal business address^ and telephone number of each Franchise Seller offering the Franchise are; Lance;
Ffeernan. St. Gregory Development Group. LLC. 7720 Montgomery Rd.. Suite:20Q. Cincinnati. OH45236.1513I
264-6940:_____________________________________ .

Issuance Date: Febfu^ 19^ 20l9. The effective date in each state is listed on the State Cover Page. Stride
Franchise, LLC, authorizes the agents l isted in Exhibit B to; receive service of process for it.

Ihave received a Franchise Disclosure Document dated February 19, 2019. This Disclosure;Document: included
the following Exhibits:

A. FRANCHISE AGREEMENT AND EXHIBITS


B. LIST OF STATE AGENTS FOR SERVICE OF PROCESS AND STATE ADMINISTRATORS
C. FINANCIAL STATEMENTS
D. STATEMENT OF PROSPECTIVE ERANCFUSEE
E. TABLE OF CONTENTS OF THE OPERATIONS MANUAL
F. GENERAL RELEASE OF ALL GLAIMS
G- STATE.SPECIFIC ADDENDA
H. LIST OF FRANCHISEES AND FRANCHISEES THAT LEFT OUR SYSTEM
,1. MULTI-UNIT development AGREEMENT
J. RECEIPTS

(Print,Narne) (Signature)

Date

Keep this copy foryour records.

©2019 Stride Franchise,.LLC


2019 Franchise Disclosure Document - Exhibits
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
ITEM 23
RECEIPT

Thisj Disclosure Document summarizes provisions of the franchise agreement and other information in plain
language: Read this Disclosure Document and all agreements carefully.

If Stride Franchisej LLC Offers you a franchise^it must provide this Disclosure Document to you 14 calendar days
before you,sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with
the proposed franchise sale.

New York, Oklahoma and Rhode Island require that we gi ve you this Disclosure Document at the earlier of the
first.personal meeting or 1G business days before the execution of the franchise agreernent, or pther agreement, or
the payment of any consideration that relates to the franchise relationship.

Michigan, Oregon and Wisconsin require that we give you this Disclosure Document at least 10 business days
before theiCxecution of any binding franchise agreement, or other agreernent. Or the payment of any consideration,
whichever comes first.

If Stride FrMchise, LLG does not deliver this.Disclosure Document on time or if it contains a false or misleading
statement, or a material omission, a violation of federal and state law may have Occurred andshould be reported
to The Federal Trade Commission, Washington D.C. 20580 and the apprOpriateiState Agency identified on Exhibit
B.

The franchisor is Stride Franchise, LLC located at 1787? Von Karman Ave., Suite 100, Irvine, CA 92614: The
name, principal busmess address, and telephone number of each Franchise Seller offering theEranchiseiare: Lance
Freeman. St. Gregory Development Group. LLC. 7720 Montgomery Rd.. Suite 200. Cincinnati. OH 45236.15131
264-6940:____________________________________________ _______________________________

Issuance Date: February 19, 2019. The effective date in each state is listed on the State Cover Page. Stride
Franchise, LLC authorizes the agents listed in Exhibit B to receive service, of^rocess for it,

I have received a Franchise Disclosure Document dated Februaiy 19, 2019. This DisclOsxu-e Document included
the follovving. Exhibits:

A. FRANCHISE AGREEMENT AND EXHIBITS


B. LIST OF STATE. AGENTS FOR SERVICE OF PROCESS AND STATE ADMINISTRATORS
G. FINANCIAL STATEMENTS
D. STATEMENT OF PROSPECTIVE FRANCHISEE
E. TABLE OF CONTENTS OF THE GPERATIONS MANUAL
F. GENERAL RELEASE OF ALL CLAMS
G. STATE-SPECIFIC ADDENDA
H. LIST OF FRANCHISEES AND FRANCHISEES THAT LEFT OUR SYSTEM
I. MULTI-UNIT'DEVELOPMENT AGREEMENT'
J. RECEIPTS

(Print Name) (Signature)

Date

Please sign this copy of the receipt, date your signature,..and return this form to us as described inltem.23.

©2019 Stride.Franchise, LLC


2019'Franchise Disclosure Document;- Exhibits
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.

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