internal instrument

Rêve Studios

Franchise
System Standards

Franchisor Internal Edition

Version 1.0Effective 21 July 2026

CONFIDENTIAL — Internal Trade Secret of Rêve Studios LLC. Not for distribution to Franchisees, candidates, suppliers, or the public.

FRONT MATTER

Front Matter

Why these standards exist, how they work, and the map of the instrument.

Rêve Studios · Franchise System Standards · Internal Edition

FRONT MATTERINTERNAL · v1.0

Brand Promise — Why These Standards Exist

These standards exist to protect one asset. Not the room, not the machines, not the hour a Member pays for. Those can be bought or copied. The asset is that a Rêve room fills itself.

The proof is a single studio. In Wayzata, 100 Founding Members were pre-sold to $20,000 in monthly revenue before the doors opened, on $0 of marketing spend. Nearly half of every class runs a waitlist. 91% of Members return month after month. That is the Demand Engine: demand that precedes marketing. Of thirteen features Rêve believed were unique, only two survived contact with the market: the Demand Engine, and the Founders' record of building it. The Demand Engine is the one the franchise is built to sell.

It is also the one the franchise can spend. The Demand Engine runs on scarcity. A spot at Rêve is hard to get, and that difficulty is the whole draw. Scarcity is the single thing a growth-minded operator is tempted to cash in. So the governing risk of this entire enterprise is stated once, here, so it never has to be argued again:

Franchising the Demand Engine risks spending the very scarcity that powers it.

The wrong Franchisee, or the wrong market, spends it. The right ones compound it. One bought room, in public, falsifies the brand for every Franchisee at once. The market does not get a second chance to believe that Rêve's rooms fill themselves.

Every standard in this instrument is a rule for staying on the compounding side of that line. The word that governs both sides of Rêve's table (the Member's and the Franchisor's) is earned. A room is earned into. A market is opened earned, not bought. An operator is chosen, not sold to. These standards are how Rêve earns the word at scale, and how it holds itself to account against ever quietly spending what makes it rare.

Statement of Confidentiality — Internal Trade Secret

This document is the internal property and a protected trade secret of Rêve Studios LLC. It is not the Operations Manual. The Operations Manual is licensed to each Franchisee to run a studio; this instrument is held by a smaller, named circle inside Rêve and is never distributed to a Franchisee, a candidate, a supplier, or a competitor.

The standards here disclose how Rêve selects operators, staffs its support, designs its ledger, structures its disclosures, and audits its own markets — the reasoning behind the franchise, not the instructions for running a studio. In the wrong hands that reasoning is the blueprint a competitor would use to counterfeit the one thing Rêve cannot afford to have counterfeited. It is therefore held to a tighter standard of confidentiality than any franchisee-facing document.

Access is limited to members of Rêve's team with a genuine need to know, each of whom has signed Rêve's confidentiality agreement. The instrument is kept in a secured, access-controlled location. It is not copied, forwarded, or excerpted outside that circle without the written authorization of the Founders. A person who leaves the circle returns or loses access to every copy.

Counsel review. The standards in this instrument that touch disclosure, fees, required vendors, the Marks, and franchise-agreement terms are drafts subordinate to review by qualified franchise counsel, and must be reconciled against the current FDD and Franchise Agreement before Rêve acts on them. Where any standard here conflicts with the FDD or the Franchise Agreement, the FDD and Franchise Agreement control. Fee figures and contractual terms shown as [PER FDD ITEM X] or [PER FRANCHISE AGREEMENT] are placeholders pending confirmation from those documents; no number is final until counsel and the filed FDD confirm it.

Summary of Changes

Every revision to this instrument is recorded here before it takes effect. The controlling copy is the one held at Rêve; superseded versions are withdrawn (see Block 600, Document Control).

Version	Date	Change	Owner
1.0	21 July 2026	Initial release. Establishes Blocks 100–700, the atomic-standard architecture, and the owner/audit discipline.	Founders

Future revisions append a row: the version, its effective date, a one-line description of what changed, and the owner accountable for the change.

How These Standards Work

Atomic numbering. The instrument is organized into 100-blocks (100 through 700). Each block holds numbered topics (for example, 101, 102), and each topic holds one or more atomic standards (101.00, 101.01, and so on). Every atomic standard is individually citable, so it can be referenced, audited, and revised on its own without reopening the whole block. Cross-references between standards use the atomic number — "see 202.00" — or the block number where the reference spans blocks — "cross-ref Block 500."

Every standard has an owner and an audit method. Each atomic standard names a role on Rêve's team accountable for it, and the method and cadence by which compliance is checked. This is deliberate: a named person can be scored against any standard in this book. A standard with no owner is not a standard; it is a wish.

The shape of a standard. Each atomic standard is written as: the number and a bold title; the standard statement, in declarative, minimum-standard language ("Rêve will…", "No agreement is offered until…"); a Rationale of one or two sentences, which is the only place the strategic voice is permitted; the Owner; and the Audit.

Revision with notice. Rêve may add to, modify, or retire any standard as the System grows. A revision takes effect on its stated effective date, is recorded in the Summary of Changes, and supersedes the prior version. The controlling copy is the one maintained by Rêve.

Relationship to the Operations Manual. These standards govern Rêve's own conduct as Franchisor — what Rêve controls, whom it selects, how it supports, how it earns, how it discloses, and how it audits. The Operations Manual governs the Franchisee's conduct — how to run a studio day to day. The two are companions written from one spine. Where both speak to the same subject, they must never conflict; a conflict is a document-control failure to be corrected under Block 600. And over both documents, the FDD and the Franchise Agreement control.

Defined Terms

Used consistently and capitalized throughout the instrument.

Term	Meaning
The System	The Rêve business model, methods, standards, and Demand Engine, taken together.
The Franchisor / Rêve	Rêve Studios LLC, the owner of the System and the Marks.
The Franchisee	An operator licensed to run a Rêve studio under the Franchise Agreement.
Founding Member	A Member who joined during a studio's founding-cohort launch and carries tenure priority, a locked rate, and "told-first" standing.
The Rêve Method	The proprietary instructor standard that is taught, certified, and delivered per Block 400.
The Demand Engine	The system by which a Rêve room fills itself before it opens and sustains a waitlist after — the only uncopyable asset.
The Launch Team	The Rêve team deployed into each new market to run the launch alongside the Franchisee until the quality bar clears (Block 300).
The Composed Hour	The signature 50-minute 12/12/8/8 class, fixed to the minute (Block 100).
The Marks	Rêve's trademarks, service marks, logos, trade dress, and color schemes.
The Operations Manual	The franchisee-facing licensed manual that governs how a studio is run.
Locked / Freed	An element is Locked when it is specified systemwide and Freed when the Franchisee sources it locally (Block 100).

Table of Contents — The Standards

100 · The Brand & The Engine — what is Locked, what is Freed

101 The Composed Hour · 102 Required Equipment · 103 The Rêve Method · 104 The Founding-Member Launch System · 105 Waitlist & Founding Promise · 106 Technology Stack · 107 Freed Elements · 108 The Decision Test

200 · Franchisee Selection — we choose operators, we do not sell territories

201 The Governing Rule · 202 The Selection Scorecard · 203 The Disqualifying Question · 204 Candidate Sequencing · 205 Founder-History Disclosure · 206 Market Selection

300 · Launch & Support Operations — staff before recruit

301 Staff-Before-Recruit · 302 The Launch Team · 303 The Support Matrix · 304 Named Contact · 305 Community Coaching

400 · The Rêve Method & Certification — the moat, written down

401 The Written Curriculum · 402 Train at Source · 403 Certify the Welcome · 404 Recertification · 405 No Variation · 406 The Method as Public Proof

500 · Revenue & the Honest Ledger — every line a lawyer respects

501 The Ledger Principle · 502 Franchise Fee · 503 Royalty · 504 Brand Fund · 505 Technology Fee · 506 Vendor Margin · 507 The Anti-Gold-Rush Test

600 · FDD, Legal & Document Control — the product, written down as disclosure

601 FDD of Record · 602 Item 19 Policy · 603 Sales-Material Separation · 604 The Operations Manual as Product · 605 Counsel Gate · 606 Document Control · 607 Regulatory Calendar
Use of the Marks is governed in the Front Matter (Defined Terms and the Statement of Confidentiality); it is not a numbered standard in Block 600.

700 · Field Audits & Engine Integrity — scarcity is never quietly cashed in

701 The Five-Question Filter (Release Gate) · 702 The Engine Integrity Audit (702.01–702.04: waitlist · promise · rigor · $0-CAC) · 703 Audit Cadence & Scoring · 704 The Growth Rule · 705 Mission-Vision Reconciliation · 706 Drift Escalation · 700.90 What These Standards Protect

BLOCK 100

100

The Brand & The Engine

What is Locked, what is Freed.

Rêve Studios · Franchise System Standards · Internal Edition

BLOCK 100 · THE BRAND & THE ENGINEBLOCK 100

Scope of this block

Block 100 draws the line between what is Locked systemwide and what is Freed to the Franchisee. It is the first decision the Franchisor makes and the one most founders get backwards. The doctrine is narrow on purpose: Rêve controls the four things a competitor cannot buy — the composition, the machines that make it, the Rêve Method, and the Demand Engine — and frees everything that only makes the room look premium. Controlling more than that does not protect the brand; it taxes the Franchisee's build-out to enforce a look a rival can order from the same catalog, and it puts the ~$200,000 build-out target — on which the franchise math depends — out of reach.

Every Lock in this block earns its place by one test (see 108.00). Every Freed element exists to hold the build-out number without touching a minute of the hour a Member pays for.

101The Composed Hour

101.00

The Composition Is Locked

The signature class is the Composed Hour: a 50-minute composition fixed to the minute at 12 minutes Woodway tread, 12 minutes Merrithew reformer, 8 minutes tread, 8 minutes reformer, run in that order at those durations in every studio.

Rationale: It is the product — a composition, not a mashup. If the hour drifts, it stops being Rêve's, and the one thing the Franchisee actually sold a Member is gone.
Owner: Founders.
Audit: Class timing is verified against this standard in the field audit (cross-ref Block 700) and sampled by the Launch Team at the pre-open quality-bar sign-off (see 302.01); any deviation is a logged finding.

101.01

Variation Requires Founder Sign-Off

No change to the composition, its block order, durations, or sequencing — systemwide or single-market, permanent or promotional — is authorized unless approved in writing by both Founders. Absent that approval, the change is void and non-compliant.

Rationale: The hour erodes not by sabotage but by well-meaning local "improvement"; the sign-off gate is what keeps one studio's experiment from becoming the network's drift.
Owner: Founders.
Audit: The composition change log is reviewed at each annual standards refresh; any unapproved variation found in the field is a Block 700 finding.

101.02

Approved Alternate Formats Never Displace the Composed Hour

Alternate formats (Strictly Reformer, Mat Method, Strength & Endurance) may run only in their Founder-approved form and never replace or dilute the Composed Hour as the flagship product of every studio.

Rationale: The signature hour is the brand's center of gravity; alternates extend the schedule, they do not redefine it.
Owner: Method Director (cross-ref Block 400).
Audit: The approved-format roster is reviewed annually; any unlisted format on a studio schedule is a finding.

102Required Equipment

102.00

The Woodway and Merrithew Fleet Is Locked

Every studio operates the Woodway treadmill and the Merrithew reformer fleet, without substitution.

Rationale: These are the two machines that make the Composed Hour and the calibration the Rêve Method requires; they are the only fixtures that fail the decision test (108.00) if changed, so they are the only equipment Locked.
Owner: Founders / Head of Franchise Development.
Audit: The equipment list is verified at the pre-open sign-off and in the field audit (cross-ref Block 700); any substituted machine takes the studio out of compliance.

102.01

Locked Equipment Is Bought Through the Approved-Supplier Program

Rêve maintains an approved-supplier program for all Locked equipment. Franchisees purchase Locked equipment through that program on the terms disclosed in the FDD.

Rationale: A single approved channel is what holds machine consistency across the network and unlocks the volume pricing that keeps the build-out target reachable.
Owner: Head of Franchise Development.
Audit: The approved-supplier list is current at each FDD annual refresh; Franchisee equipment purchases are reconciled against the program at the pre-open review.

102.02

The Volume Margin Is Disclosed, Never Hidden

Where Rêve earns a margin on the volume purchase of Locked equipment, that margin is disclosed in the FDD and priced as a franchise revenue line, never buried as an inflated markup (cross-ref Block 500).

Rationale: Rêve earns on the machines it locks — but only in a form an owner's lawyer will respect; a disclosed margin is a line a builder accepts, a hidden markup is one counsel flags.
Owner: Head of Finance (cross-ref Block 500).
Audit: The disclosed margin is reconciled against the FDD equipment/vendor item at each annual refresh; any undisclosed margin is a control failure.

103The Rêve Method

103.00

The Method Is Locked and Delivered Only per Block 400

The Rêve Method is the proprietary instructor standard. It is taught, certified, and delivered only as specified in Block 400. No local variant of the Method, and no uncertified instruction, is authorized in any studio.

Rationale: The Method is the only asset Rêve owns that can be taught, certified, and passed on — the software equivalent of a proprietary machine. A local variant is a counterfeit of the one thing that is supposed to travel unchanged.
Owner: Method Director (cross-ref Block 400).
Audit: Method fidelity and instructor certification are audited under Block 400 and sampled in the field audit (cross-ref Block 700).

104The Founding-Member Launch System

104.00

Every Market Opens on the Founding-Member Launch System

Every studio opens on the founding-member launch system — digital pre-seed of the city, conversion to a founding-member waitlist, then a pre-sold opening — as the required launch mechanic, not one option among several. This system is the Demand Engine, and the Demand Engine is the product the franchise buys.

Rationale: It is the $0-cost engine that banked 100 Founding Members and $20,000 in monthly revenue before the Wayzata doors opened; a franchise that leaves it optional has sold the logo and kept the moat off the table.
Owner: Director of Launch Operations.
Audit: Each market's launch plan is reviewed against this standard at the pre-open gate (see 302.01); a plan that substitutes paid acquisition for the launch system is rejected at the gate.

104.01

No Studio Opens Cold

No Rêve door opens to a cold market. If the founding cohort is not banked to the standard, the opening date moves; the opening is never rescued with paid demand or a discounted launch.

Rationale: One bought room, in public, falsifies the brand for every Franchisee at once — the calendar bends to the model, never the model to a launch date.
Owner: Director of Launch Operations.
Audit: Opening readiness is gated on the founding-cohort benchmark at pre-open sign-off (see 302.01); the $0-CAC discipline is checked in the field audit (cross-ref Block 700).

105Waitlist & Founding Promise

105.00

The Waitlist Is Tenure-Weighted

Scarcity is operated systemwide as a tenure-weighted waitlist — booking priority compounds with loyalty — and never as a flat, paid-fed lottery. The mechanic is Locked and centrally configured (cross-ref 106.00).

Rationale: A flat lottery recreates the exact booking scramble Members came to Rêve to escape; tenure-weighting is what makes scarcity an operating system rather than an apology.
Owner: Head of Technology.
Audit: Waitlist logic is enforced centrally in the platform; local practice is sampled in the field audit (cross-ref Block 700), where a paid-fed or flattened waitlist is a critical finding.

105.01

The Founding-Member Promise Is Locked Systemwide

The Founding-Member promise — tenure priority, a locked rate, and compounding booking priority — is honored in every market exactly as in Wayzata, and travels with the Member.

Rationale: The promise is what turns Founding Members into the engine rather than a discount cohort; drop it in one market and half the thesis is proven wrong in public.
Owner: Brand Director.
Audit: Founding-Member covenant terms are verified in each market at Stage 4 of the market open (see 305.00) and in the field audit.

105.02

Founding Members Are Told First

In any new market and any systemwide change to access or pricing, the existing Founding-Member community is told before the public.

Rationale: Recognition read as honor, not as being pushed aside, is the Guardian covenant that keeps the most valuable Members advocating rather than churning.
Owner: Brand Director.
Audit: The launch and change-communication sequence is reviewed at each opening and each pricing change; a public-first announcement is a finding.

105.03

Discounted Access Is Never the Front Door

Introductory or discounted pricing is a quiet, post-waitlist mechanic only. It is never a headline, a launch banner, or a demand-generation tool. Access to Rêve is earned into, not advertised down.

Rationale: A discount as the front door converts "earned your way in" into "buy your way in" and spends the scarcity the brand is built on.
Owner: Brand Director.
Audit: Market launch and marketing creative are reviewed against this standard at the pre-open gate and in the field audit; a headlined discount is a finding.

106Technology Stack

106.00

The Stack Is Locked and Centrally Run

The booking system, the tenure-weighted waitlist engine, and the digital audience engine are Rêve-provided and centrally operated. Franchisees do not substitute, self-host, or reconfigure them.

Rationale: This is the moat as software — the waitlist mechanics and the audience engine are the difference between a room that fills itself and one that buys its members; run centrally, a Franchisee never has to run a paid ad to fill a room.
Owner: Head of Technology.
Audit: Platform access is provisioned centrally; any off-platform booking, waitlist, or acquisition tool discovered in the field is a critical finding (cross-ref Block 700).

106.01

The Technology Fee Reflects Value Delivered

The technology fee is priced as value delivered — the waitlist and audience mechanics no competitor runs — and is disclosed in the FDD, never presented as a markup on a commodity booking tool (cross-ref Block 500).

Rationale: The software is the difference, so the fee is a value line a builder accepts; priced as a markup, it is a line counsel flags.
Owner: Head of Finance (cross-ref Block 500).
Audit: The fee basis is reconciled against the FDD technology item at each annual refresh.

107Freed Elements

107.00

Freed Elements Are Sourced Locally by the Franchisee

Mirror shape, arched millwork, floors, lighting, furniture, finishes, and any retail, smoothie, or ancillary revenue are Freed: the Franchisee sources them locally, to Rêve's brand guidelines but not to a mandated vendor.

Rationale: Local sourcing roughly halves the cost of these elements without touching the experience — and a third of the premium market already orders the same arch, so forcing it would spend the budget to buy a look a rival can copy for the price of a mood board.
Owner: Head of Franchise Development.
Audit: Build-out is reviewed against the Locked/Freed schedule at the pre-open review — confirming Freed elements meet brand guidelines, not that they came from a set vendor.

107.01

The Freed Schedule Protects the Build-Out Ceiling

The Freed schedule exists to hold the ~$200,000 build-out target. Locked elements are specified tightly and Freed elements left open specifically so the target holds; the fully-specified luxury room is a math error the franchise cannot carry.

Rationale: The spec and the Franchisee's pro-forma pull against each other; freeing the look is how Rêve protects the number and the room at the same time instead of trading one for the other.
Owner: Head of Franchise Development.
Audit: Build-out cost is tracked against the target at the pre-open review; overruns are traced to whether a Freed element was needlessly treated as Locked.

108The Decision Test

108.00

The Standing Test for Every Lock-or-Free Question

Any proposal to Lock or Free an element — now or in future — is decided by one test:

Does it make the Composed Hour and the Rêve Method, or does it only make the room look premium?

If it makes the hour or the Method, it is a candidate to Lock. If it only makes the room look premium, it is Freed.

Rationale: Brands that do not choose what to control on purpose get chosen for; this test is "control the four uncopyable things and free the rest" written as a rule anyone on the team can apply the same way.
Owner: Founders.
Audit: Every change to the Locked or Freed schedule cites this test in its change record; the schedule and its rationales are reviewed at each annual standards refresh.

108.01

Nothing Joins the Locked Schedule Without the Test

No element is added to the Locked schedule without a written application of 108.00 approved by the Founders.

Rationale: The Locked list creeps one reasonable-sounding addition at a time; each addition re-taxes the build-out, so each must earn its place against the test in writing.
Owner: Founders.
Audit: Locked-schedule additions are logged with their test rationale; an addition without a recorded test is reversed at review.

Cross-references

Cross-references: Block 400 (the Rêve Method, certification, Method fidelity) · Block 500 (disclosed vendor margin, technology fee, the honest ledger) · Block 700 (field audit of composition, waitlist integrity, and $0-CAC discipline) · 302.01 (the pre-open quality bar) · 305.00 (the founding-member covenant installed at market open).

BLOCK 200

200

Franchisee Selection

We choose operators; we do not sell territories.

Rêve Studios · Franchise System Standards · Internal Edition

BLOCK 200 · FRANCHISEE SELECTIONBLOCK 200

Scope of this block

Block 200 governs whom Rêve signs. In a normal franchise, selection screens for capital and competence and the rulebook protects the brand. At Rêve, selection is the moat, because every Franchisee either protects the Demand Engine or spends it — and the engine runs on scarcity, the one thing a growth-minded operator is structurally tempted to cash in. The selection question is therefore not "can this person afford a unit and follow a manual?" It is: will this operator run the room the way it earns its Members, or buy their way to a full room the first time it opens slow?

The instruments this block relies on — the six-criterion weighted scorecard, the two franchisee archetypes (the Believer and the Operator), the single disqualifying question, and the four-axis market framework — were built in the completed strategy and live in Rêve's franchise-development artifacts. This block does not re-derive them; it makes their use mandatory, ownered, and auditable.

201The Governing Rule

201.00

We Choose Operators; We Do Not Sell Territories

Rêve selects operators for fit. It does not market territories for sale, and it does not treat franchise development as a volume sales function.

Rationale: Volume selection cannot tell an owner who will protect the engine from one who will spend it; the only franchise whose math survives the governing risk is a small, brand-first group of chosen operators.
Owner: Head of Franchise Development.
Audit: Development materials, funnels, and pipeline practices are reviewed quarterly against the prohibited behaviors in 201.01.

201.01

Prohibited Selling Behaviors

The following are prohibited in all franchise development: paid-intro or paid-lead funnels that process candidates as volume; territory-scarcity pitches such as "territories are going fast"; and any target, quota, or compensation tied to the number of signings.

Rationale: Each is a gold-rush move from the category that just paid a $17M settlement for misrepresenting franchise costs and time-to-open; each pressures selection toward the owner most likely to spend the scarcity.
Owner: Head of Franchise Development.
Audit: Development compensation plans and campaign creative are audited quarterly; any signing-count incentive or scarcity pitch is a finding corrected before the next candidate cycle.

202The Selection Scorecard

202.00

No Agreement Is Offered Until the Candidate Is Scored

No franchise agreement is offered until the candidate has been scored on the six-criterion selection scorecard, on which brand conviction and engine discipline are triple-weighted and operating capacity is second-weighted. The completed scorecard is a required, dated artifact in the candidate file before any agreement issues.

Rationale: Conviction and engine discipline are what the market cannot copy and what a bad Franchisee spends; a Believer with a documented Method and a Launch Team can be made operationally competent, but a disciplined operator cannot be made to believe — so conviction is the thing selected for.
Owner: Head of Franchise Development.
Audit: Every candidate file is checked for a completed, dated scorecard preceding the agreement offer; files sampled at the annual selection review, and any agreement offered without a prior scorecard is a control failure.

202.01

The Weighting Is Not Adjustable Per Deal

The scorecard weighting is fixed. It is not re-weighted, waived, or "adjusted for the profile" to admit a well-capitalized candidate who scores low on brand conviction or engine discipline.

Rationale: The weighting is the whole strategy; the moment capital can buy a re-weighting, the chosen group stops being a group and the gold rush has started inside Rêve's own pipeline.
Owner: Founders.
Audit: Scoring records are reviewed for weighting integrity at the annual selection review; any per-deal re-weighting is reversed and logged.

203The Disqualifying Question

203.00

The Disqualifying Question Is Asked of Every Candidate

Every candidate is asked the standard scenario — the studio opens in six weeks and the founding-member waitlist is only half full; what do you do? Any answer that rescues the opening with paid demand is a hard disqualifier.

Rationale: Whoever reaches for a paid funnel to rescue a slow opening will spend the scarcity the first time revenue is under pressure, and one bought room falsifies the brand in public; the answer Rêve selects for is to push the opening and keep pre-seeding until the room is earned.
Owner: Head of Franchise Development.
Audit: The candidate's answer is recorded verbatim in the file; a disqualifying answer that nonetheless advances is surfaced as a control failure at the selection review.

203.01

A Hard Disqualifier Is Not Overridden by Capital or Unit Count

A disqualifying answer ends candidacy regardless of the candidate's net worth, financing capacity, or multi-unit interest.

Rationale: The covenant only protects the engine if it cannot be bought past; the strongest checkbook is exactly the one most able to spend the scarcity.
Owner: Founders.
Audit: Any exception requires a written Founder rationale on file; exceptions are logged and reviewed, and a pattern of exceptions is treated as selection drift.

204Candidate Sequencing

204.00

Brand-Led Owners Are Signed First

Brand-led owners — the Believer archetype, who lead with the brand and want to buy the engine — are signed before numbers-first multi-unit investors.

Rationale: Signing brand-led owners first proves the earning travels to a market where a Founder is not the local face, before Rêve bets the moat on the owner most tempted to turn on paid ads the first time a room opens slow.
Owner: Head of Franchise Development.
Audit: Signing sequence is reviewed against archetype classification at each new-market commitment; an out-of-sequence signing requires Founder rationale on file.

204.01

The Multi-Unit Investor Profile Is Deferred

The numbers-first multi-unit investor — the Operator archetype — is not signed until the Demand Engine is proven to travel beyond a Founder-faced market, and then only with the engine covenant written into the agreement.

Rationale: His capital and operational competence are real and a 32-studio system will eventually need them; but signed first, on his terms, before the engine is proven transferable, Rêve hands its only moat to the person most likely to strip it.
Owner: Founders / Head of Franchise Development.
Audit: Transferability proof is a documented precondition in the file before an Operator-profile agreement issues; agreement terms are verified against the required engine-covenant clauses (cross-ref Block 600).

204.02

The 2 → 12 → 32 Pace Is a Ceiling, Not a Target

The three-year pacing of 2 → 12 → 32 studios is a maximum that holds only while selection holds. It is never a quota that pressures selection, and when pace and selection integrity conflict, pace is slowed — selection is never loosened.

Rationale: The curve only survives if selection stays honest; pacing is the speed at which that honesty is sustainable, not a growth number to hit.
Owner: Founders.
Audit: Signings per period are compared against selection-integrity signals at each quarterly review; any pressure to loosen selection to hit the pace is a flagged finding and the pace yields first.

205Founder-History Disclosure

205.00

The Prior Studio Closure Is Disclosed Proactively

The Founders' prior studio brand (Alchemy 365) and its closure are disclosed proactively to every serious candidate, before the candidate discovers it in diligence.

Rationale: A diligence-hardened operator reads the closure story before the sales numbers and will find it; an owner who owns a past closure earns more trust than one who hides it, so Rêve puts the scar on the table first as a two-way test of the candidate as much as of Rêve.
Owner: Head of Franchise Development.
Audit: Proactive disclosure is a dated checklist item in the candidate process, completed before the diligence stage; the file is verified at the selection review.

206Market Selection

206.00

Markets Are Scored on the Four-Axis Framework

Candidate markets are prioritized on the four-axis framework in the Market Expansion Playbook: latent (un-bought) demand, demographic fit, premium-hybrid saturation (inverted — lower is better), and operator availability.

Rationale: For a scarcity-powered brand, low saturation is an asset, not a warning; the framework enters markets with real latent demand the gold rush has not yet converted, rather than contesting a land-grab on the velocity brands' own terms.
Owner: Head of Franchise Development.
Audit: Each market-entry decision cites its four-axis scoring in the file; scoring is reviewed at portfolio planning. (The tier sort lives in the franchise-development artifacts and is not restated here.)

206.01

No Market Is Entered Without a Named, Cleared Candidate

A market is entered only when it pairs a documented demand signal Rêve did not pay for with a named Franchisee candidate who has cleared 202.00 and 203.00.

Rationale: Demand without an operator is a screenshot; an operator without demand is a cold open — the playbook requires both, and the engine needs a local face, not a pin on a map.
Owner: Head of Franchise Development.
Audit: Every market-entry file must link a cleared candidate record; a market commitment lacking one is blocked at the commitment gate.

Cross-references

Cross-references: Block 100 (104–105, the launch system and founding promise the Franchisee is selected to protect) · Block 300 (301–302, the support and Launch Team a selected Franchisee receives) · Block 600 (the engine-covenant clauses written into the Franchise Agreement) · Block 700 (field audit of whether a signed operator holds the engine). The six-criterion scorecard, the two archetypes, the disqualifying question, and the four-axis tier sort live in Rêve's franchise-development artifacts and are cited, not duplicated.

BLOCK 300

300

Launch & Support Operations

Staff before recruit.

Rêve Studios · Franchise System Standards · Internal Edition

BLOCK 300 · LAUNCH & SUPPORT OPERATIONSBLOCK 300

Scope of this block

A franchise is not a one-time sale that ends when the Franchisee signs; it is a channel Rêve has to staff. And the staffing answers the hardest question the whole model asks — Rêve's team is exceptional at building community; will an operator in another state be that good? The support in this block is how Rêve makes the answer yes. It is not overhead. It is the product's guarantee, sold as a service and delivered by people Rêve moves into the market until the room meets the bar.

Block 300 governs that delivery: that every support function is staffed before it is sold, that a Launch Team goes to each new market and stays until the studio is earned, that the five support functions each have a named owner, that every Franchisee has one named contact, and that the community system is coached in the field rather than left to a Franchisee's charisma. Method certification, referenced throughout, is defined in Block 400; the field audit that these functions feed is Block 700.

301Staff-Before-Recruit

301.00

Every Support Function Is Staffed and Documented Before It Is Sold

No franchise commitment that relies on a support function is sold until that function is staffed and documented and ready to deliver.

Rationale: Sign owners and then figure out the support, and Rêve has sold a promise the system cannot yet keep; the first owner who finds the gap is also the first reference call the next owner makes.
Owner: Head of Franchise Development / Director of Launch Operations.
Audit: A support-readiness attestation — each function in the Block 300 matrix staffed, ownered, and documented — precedes each new franchise commitment and is verified at the commitment gate.

302The Launch Team

302.00

A Launch Team Is Deployed to Each New Market

Rêve deploys a Launch Team into each new market to run the digital audience engine, the founding-member waitlist build, and the opening alongside the Franchisee.

Rationale: This is how Rêve replicates itself — the way an owner in another state is made as good as a Founder; almost no brand in the category does it, which is exactly why it is part of who Rêve is and part of what the franchise sells.
Owner: Director of Launch Operations.
Audit: Launch Team deployment is recorded per opening, with its scope verified against the support matrix (303.00); a market opened without a deployed Launch Team is a control failure.

302.01

The Launch Team Remains In-Market Until the Quality Bar Clears

The Launch Team remains in-market until the studio clears the System's quality bar, defined by the Wayzata benchmarks: 100 Founding Members banked, the tenure-weighted waitlist live, and certified Instructors in every teaching slot. The team withdraws on the bar, not on a date.

Rationale: Watching does not travel; the team stays until the standard is met because the bar — not the calendar — is the product's guarantee, and a market handed off early is a market that reverts to whatever the Franchisee already knew how to do.
Owner: Director of Launch Operations.
Audit: Quality-bar sign-off is a gated three-benchmark checklist (founding cohort banked · waitlist live · every slot certified — certification per Block 400) completed and archived before the Launch Team withdraws; an early withdrawal is a finding.

303The Support Matrix

303.00

The Five Support Functions Are Maintained to This Matrix

Rêve maintains five support functions, each with a defined scope, a defined trigger, and a named owner:

Function	What Rêve staffs and provides	When needed	Named owner
Launch support	A Launch Team that runs the digital audience engine, the founding-member waitlist build, and the opening in-market, and remains until the quality bar clears (`302`)	Per opening, Months 0–12	Director of Launch Operations
Method certification	A written Method curriculum and a certification every Instructor passes before teaching, with a recertification schedule (cross-ref Block 400)	Year-2 build, then always	Method Director
Community coaching	The recognition/ritual/noticed-absence/honored-time/logged-word-of-mouth system, coached in the field (`305`)	Pre-open through Year 1, then quarterly	Director of Launch Operations
Technology & marketing	The booking and waitlist software, the digital audience engine, and the brand-fund content engine, run centrally so no Franchisee runs a paid ad to fill a room (cross-ref `106`, Block 500)	Always	Head of Technology / Brand Director
Ongoing check-ins	A named contact per Franchisee: weekly through launch, then a quarterly engine review that audits the engine, not just the money (`304`)	Always	Head of Field Operations

Rationale: The matrix is what turns "we support our owners" from a slogan into five ownered, triggered, auditable commitments — the difference between a support system and a promise.
Owner: Director of Launch Operations (matrix integrity); each function as named above.
Audit: The matrix is reviewed at each quarterly review for scope, trigger, and a current named owner; any function without a current owner is a flagged finding (see 303.01).

303.01

Each Function Has a Current Named Owner

No support function operates without a named, accountable owner on Rêve's team. A vacancy in a function's ownership suspends new commitments that depend on that function until the vacancy is filled (cross-ref 301.00).

Rationale: Named ownership is what makes support auditable rather than aspirational; an unowned function is the gap the next reference call is about.
Owner: Director of Launch Operations.
Audit: The owner column of the matrix is confirmed current at each quarterly review; a vacancy triggers the 301.00 suspension until resolved.

304Named Contact

304.00

Every Franchisee Has One Named Contact

Every Franchisee is assigned one named contact at Rêve — the person the Franchisee knows, in the Operations Manual, as their Field Consultant.

Rationale: The support system is meant to read as an entry point to a partner, not a wall of rules; one human, known by name, is what makes it that.
Owner: Head of Field Operations.
Audit: The contact assignment is recorded at signing and verified in the Franchisee file; a Franchisee without a current named contact is a finding.

304.01

Cadence: Weekly Through Launch, Quarterly After

The named contact meets the Franchisee on a defined cadence: weekly through launch, then quarterly thereafter.

Rationale: Launch is the anxious, time-boxed moment that needs a weekly rhythm; steady state needs a dependable one — a quarter, not silence, so drift is caught before it compounds.
Owner: Head of Field Operations.
Audit: The contact log is reviewed at each quarterly review; a missed launch-phase week or a skipped quarter is a finding.

304.02

The Quarterly Review Audits the Engine, Not Just the Money

The quarterly review audits engine integrity — waitlist tenure, the founding-member covenant, Method fidelity, and the $0-CAC discipline — and not only financial performance.

Rationale: The money is downstream of the engine; a review that inspects only revenue misses the exact drift — a flattened waitlist, a bought room, a diluted covenant — that spends the scarcity while the P&L still looks fine.
Owner: Head of Field Operations.
Audit: Each quarterly review produces an engine-integrity record scored against the Block 700 audit criteria; records are retained and trended market-over-market.

305Community Coaching

305.00

The Community System Is Coached In-Field, Pre-Open Through Year 1

The community system — member recognition, the opening and loyalty rituals, the noticed absence, honored tenure, and logged word-of-mouth — is coached in the field from pre-open through the studio's first year, then reinforced quarterly.

Rationale: The Franchisee's real job is to manufacture Guardians in a new city — the founding Members whose advocacy is the marketing budget; the recognition system is how a new room earns its first hundred Members and its first advocates, and it has to be coached where the room is, not taught from a binder.
Owner: Director of Launch Operations.
Audit: Community-coaching milestones are tracked through Year 1; the practices — including "known by name in a nineteen-person room" and the noticed-absence outreach — are sampled in the field audit (cross-ref Block 700).

305.01

Recognition Is Run as a System, Not a Personality

Recognition, ritual, the noticed absence, honored time, and logged word-of-mouth are installed as the Franchisee's documented, repeatable routines — not left to the Franchisee's charisma or a single warm employee.

Rationale: What travels is the system; a founder's warmth does not port to Missouri, but a written practice does — and a practice that lives only in one friendly person's head dies the week that person takes vacation.
Owner: Director of Launch Operations.
Audit: The community practices exist as the Franchisee's documented routines by opening day, verified at the pre-open gate and sampled again in the field audit.

Cross-references

Cross-references: Block 100 (104–106, the launch system, waitlist, and centrally-run technology these functions deliver) · Block 200 (202–204, the selected Franchisee this support is built for) · Block 400 (the Method curriculum and Instructor certification referenced in 302.01 and the support matrix) · Block 700 (the field audit and engine-integrity criteria that 304.02 and 305 feed).

BLOCK 400

400

The Rêve Method & Certification

The moat, written down.

Rêve Studios · Franchise System Standards · Internal Edition

BLOCK 400 · THE RÊVE METHOD & CERTIFICATIONBLOCK 400

Block purpose

These standards govern the Rêve Method as the only proprietary, trainable, transferable asset the System owns. The Method is a Locked element (see 103.00); this block makes it exist as documentation and survive the absence of a Founder in the room. Every standard is atomic and individually citable.

401.00

The Written Curriculum

The Rêve Method will exist as controlled documentation — a complete written curriculum and a written certification standard — before Rêve accepts a Franchisee in any market not operated by a Founder. That documentation comprises, at minimum: the Composed Hour (12/12/8/8, fixed to the minute) and the cueing and calibration standard for each block; the certified welcome behaviors (see 403.00); and the certification path and passing bar for each Instructor tier. No non-founder market opens on an oral or observed standard.

Baseline (v1.0). As of the effective date, the Method exists as (a) the Composed Hour, documented and Locked, and (b) a cohort of Founder-trained Instructors at the Wayzata studio — Nicole Bruhn, Bailey Braccini, Samahra Hallada, Nora Ghoneim, and Kenzie Lee (Advanced Instructor). The full written curriculum and the tiered certification are the Year-2 build and are not yet complete. Until 401.00 is met in full, the System is not cleared to sell into a non-founder market (see 601.00, 605.00). The build closes the gap against the category benchmark — a built ~450-hour instructor-training program operated at national studio scale.

Rationale: The format is copyable — a third of the premium market already runs tread-and-reformer; the Method, written down and certified, is the only version of the standard that travels to a city where no Founder is present.
Owner: The Method Director, under the Founders.
Audit: Document Control confirms the curriculum and certification documents exist, are version-stamped, and are current before any market-open authorization (see 605.00, 606.00); reviewed at each annual FDD refresh.

402.00

Train at Source

Every Instructor certifies in the Rêve Method at the Wayzata source studio, under the System's standard, and passes certification before leading a single paying class. Weekend or remote-only certification does not satisfy this standard. Certification is by named individual — not by studio — and is recorded per Instructor.

Rationale: Training at the source is the quality filter that makes a new-market room as good as Wayzata; because almost no competitor does it, it is also brand-able proof, not merely an internal control (see 302.00, 406.00).
Owner: The Method Director; the Launch Team schedules certification around each market open (see 302.00).
Audit: Before opening day, the Franchise Business Coach verifies that every Instructor on the schedule holds a current source certification; spot-checked at each quarterly Engine Integrity Audit (see 702.00, 703.00).

403.00

Certify the Welcome

The welcome is a certified component of the Rêve Method, held and spot-checked with the same rigor as the physical blocks. No Instructor or front-of-house Team Member is certified on the blocks alone; the welcome behaviors are a pass/fail component of the same certification. Certification and field audit cover these atomic behaviors:

#	Certified welcome behavior	Minimum standard
403.01	The greeting	Every Member is greeted on arrival; the front-of-house standard is met before the Member reaches the desk.
403.02	Name-use	The desk knows and uses the Member's name; springs and settings are set for the Member before the Member reaches the equipment.
403.03	Noticed absence	A member ledger is kept, and a Member is contacted after two consecutive missed classes.

Rationale: Large chains prove a workout can be held identical across hundreds of rooms; none has kept the welcome identical. Certifying and auditing the welcome is the one standard no competitor holds — and the reason the Demand Engine survives a Founder's absence.
Owner: The Method Director owns the standard; the Franchise Business Coach owns the field spot-check.
Audit: Walk-the-room spot-check at each quarterly Engine Integrity Audit — desk saying names, settings pre-set, noticed-absence contacts logged in the member ledger (see 702.02). A failed check opens an improvement plan (see 703.00).

404.00

Recertification

Rêve Method certification is time-bound, not permanent. Every Instructor recertifies on the standard cadence [PER OPERATIONS MANUAL], and recertifies off-cadence whenever a trigger occurs. Triggers include, at minimum: a material revision to the Composed Hour or its cues (see 405.00); a failed welcome or block spot-check at a field audit; a lapse in active teaching beyond the standard interval; and promotion to a higher Instructor tier.

Rationale: A standard certified once and never rechecked drifts; recertification is how the room stays the room after the opening-week attention ends.
Owner: The Method Director.
Audit: Document Control maintains the certification register with per-Instructor certification and expiry dates; the Franchise Business Coach flags expired or triggered Instructors at the quarterly audit (see 702.00).

405.00

No Variation

The Composed Hour (12/12/8/8) and its certified cues do not vary by market, Instructor, or Franchisee. The composition is Locked and fixed to the minute (see 101.00). A Franchisee or Instructor who seeks to alter the composition, the cues, or the certified welcome submits a written variation request; no variation takes effect until approved in writing by the Founders. Unapproved variation is a default under the Franchise Agreement.

Rationale: The hour is the product, not a template — a composition, not a mashup; one market's improvisation, multiplied across the System, is how the hour stops being ours.
Owner: The Founders decide all variation requests; the Method Director logs and routes them.
Audit: Block spot-check at each quarterly Engine Integrity Audit confirms the hour is taught to standard (see 702.03); the variation log is reviewed at each annual Method review. Consequence routes to the Franchise Agreement (see 703.00).

406.00

The Method as Public Proof

One page of the Rêve Method curriculum may be released publicly as earned attention during a launch-PR window. Any such release is governed: it is limited to a single page; it requires written approval from the Founders before release; and it discloses no certification mechanics, no full curriculum, and no element that would let a competitor reproduce the Method. Confidential Information not designated for release remains protected under 606.00 and the Franchise Agreement.

Counsel reconciliation required. Bracketed parameters ([PER OPERATIONS MANUAL]) are placeholders pending the controlling document. Standards that touch Confidential Information, the Marks, or public release (401.00, 406.00) are drafts subordinate to franchise-counsel review and must be reconciled against the current FDD and Franchise Agreement before Rêve acts on them. Where any standard here conflicts with the FDD or the Franchise Agreement, the FDD and Franchise Agreement control.

Rationale: The Method is the moat and today it is invisible; releasing one governed page on purpose converts coach-training from a cost into proof that the Method is real, written-down work — the anti-copy asset shown deliberately, never leaked.
Owner: The Founders approve; the Method Director prepares the page.
Audit: Franchise Counsel confirms the released page carries no trade-secret disclosure beyond the approved scope before any release; each release is logged in Document Control (see 606.00).

BLOCK 500

500

Revenue & the Honest Ledger

Every line a lawyer respects.

Rêve Studios · Franchise System Standards · Internal Edition

BLOCK 500 · REVENUE & THE HONEST LEDGERBLOCK 500

Block purpose

These standards govern how the System earns. Every dollar the System earns is a dollar a Franchisee pays; the ledger is therefore designed to be defended, not to sell. Every revenue line must be one a Franchisee's own attorney will respect, and must reconcile to the FDD (see Block 600) before it is charged.

Fee schedule — consolidated reference (reconciles to the FDD). All Rêve amounts are placeholders pending the filed FDD; benchmarks are the category's own published figures, cited for reference only and never as Rêve's numbers.

Line	Standard	Rêve amount / rate	Category benchmark	Basis
Franchise fee	502.00	[PER FDD ITEM 5]	$65,000	one-time
Royalty	503.00	[PER FDD ITEM 6]	8% of gross sales	ongoing
Brand Fund	504.00	[PER FDD ITEM 6]	2%	ongoing
Technology fee	505.00	[PER FDD ITEM 6]	varies by system	ongoing
Vendor margin	506.00	disclosed shared margin [PER FDD ITEM 8]	n/a	per required purchase

501.00

The Ledger Principle

Every revenue line the System charges a Franchisee — franchise fee, royalty, Brand Fund, technology fee, vendor margin — will be one that withstands review by the Franchisee's own attorney and accountant. Each line is disclosed in the FDD (see 601.00), stated as value delivered or as a disclosed shared margin, and reconciled to the Franchise Agreement before it is charged. No revenue line is constructed to maximize take at the expense of defensibility.

Rationale: Every dollar the System earns is a dollar a Franchisee pays, and the operators the System wants read the ledger with a lawyer; the ledger is built to be defended, not to sell.
Owner: Franchisor Finance (the CFO or designated finance lead), with Franchise Counsel.
Audit: Franchise Counsel reconciles every fee line against the FDD and Franchise Agreement at each annual FDD refresh (see 601.00, 605.00); any new or changed line is counsel-reviewed before it takes effect.

502.00

Franchise Fee

The one-time franchise fee is set to select for genuine belief in the brand, not to reach the category ceiling. The amount is [PER FDD ITEM 5]. For reference only, a leading category system charges a $65,000 franchise fee; the System's fee may be cited against that benchmark but is finalized only in the FDD.

Rationale: The fee is a selection instrument, not a revenue target — priced to filter for the operator who leads with the brand (see 202.00), not to hit the number the gold rush hits.
Owner: The Founders set the fee; Franchisor Finance and Franchise Counsel record it in the FDD.
Audit: Franchise Counsel confirms the charged fee matches Item 5 of the current FDD at each annual refresh.

503.00

Royalty

The ongoing royalty is set at or below the category's prevailing rate. The rate and basis are [PER FDD ITEM 6]. For reference only, the prevailing category royalty is 8% of gross sales; the System's royalty will not exceed that benchmark.

Rationale: The System lets the Founding Promise and the earned room discipline the Franchisee, not the take-rate; a compounding royalty on a studio that still fills itself in year eight is worth more than a higher rate on a studio that does not survive (see 507.00).
Owner: The Founders set the rate; Franchisor Finance and Franchise Counsel record it in the FDD.
Audit: Franchise Counsel confirms the charged royalty matches Item 6 of the current FDD at each annual refresh; Franchisor Finance reconciles collections quarterly.

504.00

Brand Fund

The Brand Fund funds the shared content engine and the central audience engine only. A pooled Brand Fund dollar will never buy any single market's opening-day demand — no paid-acquisition campaign, discount launch, or bought waitlist is funded from the Brand Fund or any System fund. The rate and basis are [PER FDD ITEM 6] (category benchmark: 2%). This is a hard prohibition, not a guideline.

Rationale: One bought room disproves the thesis — that rooms fill themselves — for every Franchisee at once, not only the market that spent the dollar; the Demand Engine is the one asset no budget can buy, so no fund may be pointed at buying it.
Owner: Franchisor Finance owns Brand Fund disbursement; the Founders approve the annual Brand Fund plan.
Audit: Franchisor Finance produces an annual Brand Fund statement of use; any disbursement toward paid demand is a reportable breach and triggers Drift Escalation (see 706.00). Reviewed at each quarterly Engine Integrity Audit (see 702.04).

505.00

Technology Fee

The technology fee is priced as value delivered — the waitlist mechanics and the central audience engine that run the Demand Engine — never as a markup on commodity booking software. The amount and basis are [PER FDD ITEM 6].

Rationale: The System's technology is not a plain booking tool; it runs the tenure-weighted waitlist and the audience engine no competitor operates, which is the difference the fee is priced against. Priced as value, a lawyer nods; priced as a markup, a lawyer flags it.
Owner: Franchisor Finance, with the technology owner.
Audit: Franchise Counsel confirms the fee is disclosed and characterized as value delivered in the FDD; reviewed at each annual refresh.

506.00

Vendor Margin

The System may earn a shared volume margin on the Locked equipment fleet — the Woodway treadmill and Merrithew reformer fleet required under 102.00 — provided the margin is disclosed. Any vendor margin the System earns on a required purchase is disclosed in the FDD. The System does not require a purchase for the purpose of earning an undisclosed margin.

Rationale: A disclosed, shared margin on the two machines the System already Locks is legitimate revenue; an undisclosed margin on a required vendor is the exact misrepresentation that draws regulatory action (see 507.00).
Owner: Franchisor Finance negotiates and discloses; Franchise Counsel confirms disclosure.
Audit: Franchise Counsel confirms every required-vendor margin appears in the FDD's required-purchase disclosure (Item 8 [PER COUNSEL]) at each annual refresh; cross-checked against the Locked-equipment list at 102.00.

507.00

The Anti-Gold-Rush Test

Every unit-economics and fee decision is tested against the compounding-royalty model — fewer, better studios surviving to year eight — and never against fees booked per quarter. A decision that raises near-term fee revenue at the cost of studio survival or ledger defensibility fails this test and does not proceed without the Founders' written override.

Counsel reconciliation required. All bracketed figures ([PER FDD ITEM X], [PER COUNSEL]) are placeholders pending confirmation from the current FDD and Franchise Agreement; no fee is final until counsel and the filed FDD confirm it. Category benchmarks are the named competitors' own published figures, cited for reference only. No fee, disclosure, or vendor term in this block takes effect until reconciled and cleared by retained franchise counsel under 605.00. Where any standard here conflicts with the FDD or the Franchise Agreement, the FDD and Franchise Agreement control.

Rationale: The gold rush earns by planting flags and booking the fee; the System earns by selling fewer, better studios whose royalty compounds for a decade. In early 2026 a leading category parent paid a $17M government settlement for misrepresenting franchise costs, risks, and time-to-open — the price of optimizing for the opposite model.
Owner: The Founders, with Franchisor Finance.
Audit: Any fee change, unit-growth-pace change, or pro-forma revision is tested against 507.00 and recorded before it takes effect; reviewed at each annual FDD refresh and against the Growth Rule (see 704.00).

BLOCK 600

600

FDD, Legal & Document Control

The product, written as disclosure.

Rêve Studios · Franchise System Standards · Internal Edition

BLOCK 600 · FDD, LEGAL & DOCUMENT CONTROLBLOCK 600

Block purpose

These standards govern the legal instruments and document control of the System: the FDD as the uniform disclosure of record, the Item 19 posture, the separation of disclosure from sales material, the Operations Manual as both required deliverable and product, the counsel gate, version control, and the regulatory calendar. Over every other document in the System, the FDD and the Franchise Agreement control.

601.00

FDD of Record

Rêve maintains a current Franchise Disclosure Document of record, drafted and annually updated by retained franchise counsel, comprising the required disclosure items (approximately ~23 items). The FDD is uniform: it is disclosed identically to every prospective Franchisee and is never negotiated per buyer. The Franchise Agreement is the negotiable, per-location instrument; any permitted variance lives there, never in the FDD. Budget guidance for drafting and annual update is approximately $50,000 [PER COUNSEL].

Rationale: The FDD's sameness is the protection — one disclosed document every buyer receives; the Franchise Agreement is where a stronger operator earns limited per-location terms.
Owner: Franchise Counsel drafts and maintains; the Founders approve.
Audit: Franchise Counsel certifies the FDD is current and filed before any franchise is offered; renewed on the annual regulatory calendar (see 607.00).

602.00

Item 19 Policy

Rêve elects to publish an Item 19 Financial Performance Representation built exclusively on audited Wayzata receipts. Every figure in Item 19 is substantiated by records and refreshed annually. No figure enters any sales conversation that is not supportable in Item 19 (see 603.00). The Item 19 baseline, each figure carrying its definition:

Figure	Item 19 basis
$675K AUV, trending to $1M	Wayzata annual unit volume, single-site actual
91% monthly retention	Monthly retention; published only with its cohort definition
$0 paid CAC	Cost of customer acquisition, Wayzata actual
100 Founding Members / $20K MRR pre-open	Pre-sold before opening day

Rationale: For most young systems an Item 19 is exposure; for the System the numbers are the entire argument, and a blank Item 19 would forfeit it. Substantiation is what separates the System's numbers from the misrepresented numbers that cost a competitor $17M (see 507.00).
Owner: The Founders own the numbers; Franchise Counsel reviews substantiation; Franchisor Finance maintains the source records.
Audit: Franchise Counsel confirms every Item 19 figure is substantiated and every claim in circulation is supportable in Item 19, at each annual refresh; the 91% retention figure is not published until its cohort definition is confirmed against the flagged retention-cohort audit.

603.00

Sales-Material Separation

The FDD and the sales story are separate instruments and are never blended. The FDD protects the brand; the sales material sells it. No earnings claim, financial representation, or performance number appears in any sales material, pitch, or collateral unless it is disclosed in Item 19 (see 602.00). Sales material carries the why-us — the Demand Engine, the playbook, the receipts — and routes every number to Item 19.

Rationale: Keeping the two apart is what lets the sales story stay a story and keeps every number legally clean; an earnings claim outside Item 19 is the classic disclosure violation.
Owner: The Founders and Franchisor marketing own sales material; Franchise Counsel gates any financial representation (see 605.00).
Audit: Franchise Counsel reviews sales material for out-of-Item-19 earnings claims before release; the Earned Decision Filter is applied to sales material at 701.00.

604.00

The Operations Manual as Product

Rêve maintains a Franchisee-facing Operations Manual that is at once the deliverable the FDD requires and the product the Franchisee is buying — the Founding-Member launch plan, the Rêve Method curriculum reference, the Founding Promise, the waitlist mechanics, and the community system, written so a Franchisee can run them without a Founder present. The Operations Manual is a living document maintained under version control (see 606.00). Every standard in it reconciles with the FDD and the Franchise Agreement before release, and never conflicts with this instrument.

Rationale: For most systems the manual is compliance; for the System it is the product being sold — the playbook is the product — so it is maintained to that standard, not filed and forgotten.
Owner: Document Control maintains it; the Founders and the Method Director own its content; Franchise Counsel confirms FDD and Agreement reconciliation.
Audit: Document Control confirms every release is version-stamped, reconciled, and counsel-cleared (see 605.00, 606.00); the manual is reviewed on the annual cycle and whenever a governing standard changes.

605.00

Counsel Gate

No franchise offer, FDD amendment, Item 19 figure, or Operations Manual release ships without review by retained franchise counsel. This is a release gate: absent a documented counsel review, the item does not go out. The gate applies regardless of internal urgency or deadline.

Rationale: The FDD is a filed legal document, and the Operations Manual is incorporated into the Franchise Agreement by reference; a single unreviewed change is real regulatory exposure, so counsel review is a gate, not a courtesy.
Owner: Franchise Counsel holds the gate; Document Control records each clearance.
Audit: Document Control maintains a counsel-clearance record for every gated item; absence of a clearance record blocks release and is itself a reportable control failure.

606.00

Document Control

Every controlled document — this instrument, the FDD, the Franchise Agreement templates, the Operations Manual, and the Rêve Method curriculum and certification records — carries a version number and an effective date, and each superseded version is retired under a stated supersession rule. Every manual distributed to a Franchisee is logged with a receipt and acknowledgment record. Controlled documents remain the property of Rêve Studios LLC, are Confidential Information, and are recalled on expiration or termination of the Franchise Agreement.

Rationale: Version and receipt discipline is what makes "which standard is in force" an answerable compliance fact, and it preserves the trade-secret status of the Method and the manual.
Owner: Document Control.
Audit: Document Control reconciles the controlled-document register — versions, effective dates, and receipt records — quarterly; the Franchise Business Coach spot-checks that each market holds the current version at the quarterly Engine Integrity Audit (see 702.00).

607.00

Regulatory Calendar

Rêve maintains a regulatory calendar governing, at minimum: annual FDD renewal; state registration and renewal filings in each registration state; and any state-specific pre-sale disclosure deadlines. The registration-state list is [PER COUNSEL]. No offer or sale is made in a state before the System is cleared to sell there.

Counsel reconciliation required. This entire block is legal-adjacent and is a draft subordinate to qualified franchise counsel. Bracketed parameters ([PER COUNSEL]) and the item numbers, page count, and cost figures are indicative pending the filed FDD and the Franchise Agreement. Nothing in this block is acted on until reconciled and cleared under 605.00. Where any standard here conflicts with the FDD or the Franchise Agreement, the FDD and Franchise Agreement control.

Rationale: Franchise registration and renewal are date-driven compliance facts; a lapsed registration, or a sale into an uncleared state, is a violation independent of the deal's merits.
Owner: Franchise Counsel owns the calendar; the Founders are notified of each deadline.
Audit: Franchise Counsel reviews the regulatory calendar at least quarterly and certifies clearance before any market open; Document Control records each filing and its effective and expiry dates.

BLOCK 700

700

Field Audits & Engine Integrity

Scarcity is never quietly cashed in.

Rêve Studios · Franchise System Standards · Internal Edition

BLOCK 700 · FIELD AUDITS & ENGINE INTEGRITYBLOCK 700

Block purpose

These standards govern how the System protects the Demand Engine at scale — the release gate every system-level decision passes, the in-market Engine Integrity Audit and its four checks, the audit cadence and scoring, the Growth Rule, the mission-vision reconciliation, and drift escalation. Protection is a standing job, not a founder's gut feel. The block closes with the register of what the whole instrument protects (700.90).

701.00

The Five-Question Filter (Release Gate)

Every system-level release — FDD clause, Brand Fund campaign, market-opening plan, sales material, Operations Manual change — passes the five-question filter before it ships. More than one "no" requires a fix before release. The filter is applied and its result recorded for each release.

#	Filter question
701.01	Does it ask to be earned, or beg to be bought?
701.02	Does it promise a body that lasts, or results that wreck?
701.03	Would a Founding Member read it as honor, or as being pushed aside?
701.04	Could any studio with a marketing budget say this?
701.05	Does it hold the velvet rope honestly — numbers over adjectives?

Rationale: The filter is the standing test that keeps a scaling System from quietly spending its scarcity one reasonable-looking decision at a time; run on system-level releases, it governs the Franchisor exactly as it governs a studio's homepage.
Owner: The Founders own the filter; the releasing owner applies it and records the result.
Audit: The filter result is recorded for every system-level release; Franchise Counsel and the Franchise Business Coach confirm it was run. More than one "no" blocks release.

702.00

The Engine Integrity Audit

Every market is audited on four scored checks — the integrity of the Demand Engine, not primarily the money. The four checks are atomic and individually scored:

#	Check	Minimum standard
702.01	Waitlist integrity	Scarcity is run tenure-ordered, never a paid-fed or flat-lottery booking (see 105.00).
702.02	The Founding Promise kept	Founding-Member recognition and growing priority run as a system, exactly as in Wayzata (see 105.00, 403.00).
702.03	Rigor coached in plain sight	The Composed Hour is taught as calibrated training — calibration, not punishment or pampering (see 405.00).
702.04	$0-CAC discipline	No unauthorized paid demand; no paid-ad line runs without written sign-off (see 504.00).

Rationale: These four are the behaviors that, if they slip, spend the scarcity; auditing them — not just the P&L — is how the System protects the one asset no budget can rebuild.
Owner: The Franchise Business Coach conducts the audit; the Founders own the thresholds.
Audit: Scored in every market on the cadence at 703.00; each failed check opens an improvement plan (see 703.00); a 702.04 failure also triggers Drift Escalation (see 706.00).

703.00

Audit Cadence & Scoring

The Engine Integrity Audit (702.00) is conducted quarterly in every market. Each of the four checks is scored against its threshold [PER OPERATIONS MANUAL]. Any failed check opens a written improvement plan with a named owner and a re-audit date. Repeated failure of the same check escalates [PER FRANCHISE AGREEMENT].

Rationale: A quarterly, scored cadence turns engine protection from a founder's gut feel into a standing control; the improvement plan makes a first failure a fix, and the escalation path makes a repeated failure a consequence.
Owner: The Franchise Business Coach runs the cadence; the Founders own escalation decisions, with Franchise Counsel.
Audit: Document Control logs each market's quarterly scores, improvement plans, and re-audit outcomes; open plans are reviewed at the following quarterly audit. Consequences route to the Franchise Agreement.

704.00

The Growth Rule

Every expansion decision is tested against the Growth Rule:

Growth adds rooms. It never widens the door.

Each new room earns its own hundred Founding Members and opens into its own tenure-weighted waitlist (see 105.00). No expansion proceeds by widening the door of an existing room — raising capacity, flattening booking, or diluting the earned standard — in place of opening a new earned room.

Rationale: The cult brand is a growing family of small, exclusive rooms, not a mass audience; scale comes from multiplying earned rooms, and the moment growth widens a door it empties the brand of the thing it sells.
Owner: The Founders.
Audit: Every market-open and capacity decision is tested against 704.00 and recorded before authorization (see 206.00); reviewed against the Anti-Gold-Rush Test (see 507.00) and the mission-vision reconciliation (see 705.00).

705.00

Mission-Vision Reconciliation

The exclusive-clientele mission and the 32-studio vision are reconciled only through the Growth Rule (704.00). The System scales by multiplying small earned rooms — each staying exclusive and earned — and never by widening any single door to serve a mass market. Where the two statements appear to conflict in a decision, 704.00 governs.

Rationale: Both statements are true and neither can govern alone; left open, the tension drifts toward the mass-market open door that empties the brand. The Growth Rule is the single mechanism that lets both hold at once — many rooms, each still exclusive.
Owner: The Founders.
Audit: Any decision that invokes the mission or the vision is checked for 704.00 compliance at the quarterly Engine Integrity Audit and at each annual strategy review.

706.00

Drift Escalation

Any observed spend-the-scarcity move — paid acquisition, discount launch, flattened or lottery booking, or a bought waitlist — triggers immediate escalation to a named owner and the opening of a documented remediation plan. Escalation is not deferred to the next scheduled audit; it is raised on observation. Remediation is tracked to closure and its outcome recorded.

Rationale: A single bought room proves the thesis wrong in public for every Franchisee at once; the response cannot wait for the quarter, so drift is escalated on sight, not on schedule.
Owner: The Franchise Business Coach raises it; the Founders own remediation, with Franchise Counsel; consequences route to the Franchise Agreement.
Audit: Every drift observation and its remediation are logged in Document Control and reviewed at the next quarterly audit; an unremediated drift blocks any further market authorization for that Franchisee.

700.90 · What These Standards Protect

A register summary, not a narrative. This is the closing page of the instrument.

Governing statement. The System exists so the brand can be sold thirty-two times without being spent once.

Block	What it protects	Against
100 The Brand & The Engine	The four uncopyable things: the composition, the machines, the Method, the Demand Engine	A fully specified room that taxes the build-out to buy a look a competitor can order
200 Franchisee Selection	Operators chosen for belief and engine discipline	Selling territories to anyone who can fund one
300 Launch & Support Operations	A new market as good as Wayzata	A promise the System cannot yet keep
400 The Rêve Method & Certification	The standard that survives a Founder's absence	A method that lives in two founders' heads
500 Revenue & the Honest Ledger	A ledger a Franchisee's lawyer respects	Numbers that outrun the receipts — the $17M lesson
600 FDD, Legal & Document Control	The disclosure and the product, kept clean and current	An earnings claim outside Item 19; a drifted manual
700 Field Audits & Engine Integrity	The Demand Engine, at scale, as a standing job	Scarcity quietly cashed in, one reasonable decision at a time

The one line under every block. The word to own — on the Franchisor's side of the table exactly as on the Member's — is earned. A system is the only thing that can earn it thirty-two times.

Counsel reconciliation required

Bracketed parameters ([PER OPERATIONS MANUAL], [PER FRANCHISE AGREEMENT]) are placeholders pending the controlling documents; escalation and consequence provisions route to, and are limited by, the Franchise Agreement. Enforcement language in this block does not exceed what the Franchise Agreement authorizes and is reconciled under 605.00 before Rêve acts on it. Where any standard here conflicts with the FDD or the Franchise Agreement, the FDD and Franchise Agreement control.