In speclfic regards [0 Ike lnvesrlgauon mlo Ihe reporr by Plalunlrz-- of her

genrlals berng inapproprlalely muched by a Massage Envy massage lheraplsr, --
Iesnfied lhal she was following Massage Envy polrcy when she asked Plaulmf ro come back I0 rhe
clmic to be mlen'lewed, desplle lhe lacl rhar she was jusl sexually assaulred al lhal very same
locauon:

Q: you Ihulk lr was approprlale [0 ask Ms. _Io come ro rhe 

where she was a vicum ol whal she elarmed ro have been 

rouehl of her geulrals by Mr. Deuer'?

A: I was following lhe polley of Massage Envy, and lherelore I lhoughr was
appropnme.

ar 252

-- lunher resuhed;

Q: So ar leasr regards Io lhe February --reporr 
Mr. Derrer and lhe Apnl -- mcldem repon Mr.

Deiler' Ihal you Ihose regards was [0 Massage

Envy Franehlslug polleles and procedures lhal you were mmldaled I0

follow.

A: Thars my behel.

ar 435

150703385

 the clinic manager at Spa Dogs, who conducted the investigation into the
report by Plaintin: -- of her genitals being inappropriately touched by a Massage
Envy massage therapist. likewise confirmed that she conducted the entire investigation pursuant
to and in accordance with Massage Envy policies and procedures:

Q: And, again, everything that you did with regard to the interviews,
investigation did you dc in accordance with the policies and procedures
that were presented to you by Massage Envy?
A: As tar as 1 know 1 did.
Q: And in terms of-- making this report over the phone call.
did you dc .. in your mind did you do everything that you were supposed
to dc with regard to the policy and procedures of Massage Envy for a
client that reports an incident over the phone?

I was under the impression that I was doing.

And, again, what was that?

Like the whole process?

A:

A
Q: Well .. and that's meeting correct?
A Yes.


. Ncw. nothing in these policies and procedures required you to or even
suggested to you that you report this to the police; is that correct?

A: As tar as 1 know. And, I mean. 1 reached out to my regicnal team. who is
there for these specitic reasons. And she didn't recommend that I do that.
So 1 went with what you know, she thought 1 should do.
3 deposition transcript of -- November 1, 2016. pp. 230231. attached hereto as
Exhibit 

Ms Hansen, Massage Envy's General Counsel, continued that Massage Envy closely

monitors and reviews the adequacy and the results of these investigations:

Case ID: 150703 385

conduct by massage therapists directly to MEF via a designated online incident reporting form.
(See Operations Manual Code of Conduct Reporting and Handling Policy). MEF policy dictates

that:

(Regional Developers, agents and representatives of MEF) should
briefly review the automated Incident Reporting Tool with the franchisee and
explain the circumstances that would necessitate the completion of an incident
report. When allegations ofinappropriate conduct are made. the franchisee should
notify the RD. and the RD should notify the FSC (Franchise Support Center, aka
MEF) as incidents may adversely affect the Massage Envy Brand. in the event a
reportable event occurs. the franchisee may use the automated Incident Reporting
Tool. which will automatically copy the RD on any incident report submitted and
the RD should be actively engaged in assisting with the communication of the
incident to the FSC and coordinating any followrup with or from the FSC
Accordingly. MEF was well aware of the significant amount of sexual assaults that

occurred at its franchise locations and even provided its franchisees and employees a designated

system to funnel that information directly to MEF so that MEF could monitor and coordinate its
response to the assaults in a manner that would not affect its brand and business 7 thus putting
money ahead of customer safety.

Additionally MEF general counsel Melanie Hansen informs franchisees and employees
that her "team handles reports of inappropriate conduct (Massage Envy University Onlme
Training MEF 497) In its franchise training protocol relating to the handling and reporting of
sexual assaults, MEF Instructs its franchisees and employees that the ideal goal is to "avoid police
and keep membership." (See Franchise Training Manual Risk Management 7 aka Risky
Business. MEF 1671). Moreover, MEF takes this directive to its franchisees a step further in its
Procedure for Handling Therapist and Client Incidents. MEF instructs franchisees and their

employees that MEF will make the decision whether to notify law enforcement upon a report of

sexual assault by one of its employees:

Case ID: 150703385
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