Corey M. Benish

2. Corey M. Benish Chief Information Officer

3. The Goal and Our Mission Implement a solution that: Is commercially proven Gives franchisees better visibility and ownership Provides implementation, software, and billing support Creates a platform for integration Has all required features as agreed to by Corporate and FAC-TECH Follows a proven implementation process to ensure rollout success • Usable • Reliable • Scalable • Secure

4. Why conduct a pilot? Make an informed decision for a single system Operate the systems side-by-side to evaluate objective and subjective items such as: System usability (front office, back office, and owners perspectives) Training processes Data conversion processes Draft performance Vendor support Harvest all input and learnings from pilot to apply to final development and migration plans

5. Pilot Clubs Participating Notes: PS = Pre-Sale club

6. Expectations of Pilot Participants Support the final decision – all speaking with one voice Provide open-minded, qualitative and quantitative fact-based feedback through forms, surveys, etc. Name a dedicated project manager to represent your team who will participate in daily calls Provide arecommendation for vendor selection and other rollout input in a decision-making process led by the FAC-TECH Be prepared to work hard

7. New Clubs New clubs entering presale after end of month will be contacted for placement on either ABC or Jonas Fact sheet detailing the system, transactions, costs, configuration options and implementation plan will be provided to all new clubs by PFHQ Vendors will provide training, hardware and manage overall implementation for each club with assistance from Franchise Support

8. Rules of Engagement Vendors need to do what they do best – convert, verify data, and train users on the new system Approaches will be different, but we are working to minimize any controllable differences Business decisions/brand decisions are made by PF resources, not vendors (a list of items for configuration at the club manager’s discretion is in progress)

9. Rules of Engagement Owner/Project Managers need to ensure their staff members will: Stick to PF brand excellence standards and principles Test out both systems’ suitability for broad usage Be responsible to identify and escalate issues or decisions to ensure: • System limitations/enhancement requests are captured • Process decisions are made/raised/escalated • Recommendations on how to use new features are detailed • Treat each vendor respectfully, knowing that each vendor deserves a fair chance to win our business

10. POS Pilot Timeline - Tentative

11. Possible Migration Timeline Migration Assumptions: Legal agreements are ready Vendors prove ability to scale January “blackout” for migrations RCS Termination Agreement in place No change in RCS environment stability

12. One Team, Corporate + FAC Tech PF Corporate and the FAC-TECH are working together All have aligned interests to utilize industry best practices: Share all information timely Collect, analyze and share all information on pilot results Work together to find common ground on all matters that effect outcomes Always be respectful of each other views Focus on a factual, all inclusive, orderly decision process Work together to ensure the new system meets all reasonable and disclosed franchisee requirements  Work together to plan and manage a successful system wide rollout 

13. Overall Exit Criteria Vendor Scoring Matrix will provide a weighted assessment of each vendor: • Functionality – Ability to meet the defined requirements • Technical – Ability to meet our minimum requirements for security, scalability, and availability per the system requirements • Training • Support • Economics – Cost of solution • Culture – Vendor affinity with PF values/strategic fit • Readiness to start a controlled, successful migration

14. Security

15. Building Robust Security • 5 – Re-Evaluate Security must be mandatory, based on standards, and verified • 1 - Educate • 4 – Test & Fix Operations Technology • 3 - Implement • 2 - Define

16. 2015 Security Focus Key areas of focus: Raise awareness and educate around security Assess the current state of security across the organization – technically and via social engineering Develop targeted responses based on learnings Increase visibility and confidence across the system on required compliance • RCS/Visionary • Maas Global • ABC Financial • Jonas Fitness • PFHQ (external, internal, social) • Club Baseline Assessment

18. Actions you can take Be aware – educate yourself and your team on security risk Ensure your policies and procedures are well defined and encourage compliance. Make sure you obtain security and legal expertise to review your policies and procedures. Make sure you’re following your policies and procedures, and periodically review them to ensure ongoing compliance

19. Actions you can take Passwords: Strong, Not Shared, and Changed Often Firewalls: Standardized, Implemented, and Monitored Ensure sensitive data, including physical paperwork and computers, is stored in a separately locked location and properly destroyed when no longer needed PCI Compliance: Sign up to make sure you’ve got a complete program

20. Thank you!