Primrose School Franchising SPE

Item 22

Franchisee must use the Software for accounting and record keeping tasks that Franchisor specifies.

Item 22

Franchisee will supply to Franchisor on a quarterly basis, in the form and using the software approved or designated by Franchisor, an activity report, a profit and loss statement, and a balance sheet for the last preceding calendar quarter and for the period from January 1st through the end of such calendar quarter.

Item 8

Approved suppliers for certain items may include us, our affiliates, or a third party.

Item 11

We and our affiliates may consult the Primrose® Advisory Council (the “Advisory Council”) and/or the Advisory Council’s Marketing Committee which consist of members selected by franchisees and us, when developing advertising campaigns.

Item 22

Franchisor reserves the right to modify the Software from time to time, including by adding, removing, or modifying the designated components or software programs.

Item 8

In the last fiscal year ending on December 31, 2025, we received $1,919,038 in revenue related to required purchases and leases of products and services by franchisees, which was 1.7% of the combined revenue of $110,413,922 for us and PSF2, as reported in our and PSF2’s unaudited financial statements.

Item 8

We have not received any rebates.

Item 8

We estimate that 85% of your purchases and leases in establishing the Franchise and approximately 85% of your total purchases and leases in operating the Franchise will be subject to the restrictions described above.

Item 22

if Franchisee proposes to use any Goods or type or brand of Goods that are not then approved by Franchisor as meeting its minimum specifications and quality standards, or to purchase any Goods from a supplier that is not then designated by Franchisor as an approved supplier, Franchisee shall first notify Franchisor

Item 22

Franchisor and its affiliates have the sole right to and interest in all Identifiers.

Item 22

To the extent applicable, Franchisee must abide by: (i) the Payment Card Industry Data Security Standards enacted by the applicable card associations (as they may be modified from time to time or as successor standards are adopted);

Item 22

Franchisor, in its sole discretion, may, from time to time, send a representative to the School to observe Franchisee’s operation and methods and to conduct periodic assessments using the Quality Assurance Review to determine if the School’s operations comply with Franchisor’s operating procedures and rules.

Item 22

Upon Franchisor’s review of the SLA prepared by Franchisee, Franchisor may accept or reject the proposed site in writing in its sole discretion.

Item 11

You must spend the Minimum Grand Opening Amount that we specify after the Site has been selected (ranging from $75,000 to $100,000 for New Schools and $50,000 to $100,000 for Conversion Schools) for grand opening advertising

Item 22

Franchisee must spend in each month on local community awareness, advertising, public relations, community involvement activities, sponsorships, business partnerships, and promotions an amount equal to at least 1% of Franchisee’s Gross Revenues for the preceding month, but in no event less than $1,000 per month.

Item 11

You will be required to participate in and contribute to any Cooperative designated in your coverage area and to abide by the bylaws, rules, and regulations duly required by the Cooperative, which we have the right to mandate or approve.

Item 8

Your inventory of toys, academic curriculum and teaching materials, and related equipment and supplies must meet our specifications and be purchased from a vendor approved by us, unless you can obtain the exact same item/brand from another vendor.

Item 8

You are required to purchase from our approved vendors marketing collateral materials, apparel bearing the Marks, premium incentive items, toys, academic curriculum materials, equipment, training materials, booklets, and certain software that we require you to purchase or license and use in the School (the “Software”).

Item 22

Franchisee must display the Marks in a manner that Franchisor specifies on signage at the School and on all written materials, forms, advertising, promotional materials, supplies, employee uniforms, business cards, receipts, letterhead, contracts, stationery, and other materials Franchisor designates.

Item 22

Franchisor may require Franchisee to pay a registration fee for each attendee to attend Additional Programs, which currently ranges from $419 to $1,299 per trainee per program but may be increased in any calendar year by up to 25% of the then-current fee.