During the first 6 months of operation, does 1-800-GOT-JUNK? expend funds advanced by the franchisee on account for the Initial Marketing Expense?

During the operation of the Franchised Business, we will:

4. expend funds advanced by you on account for the Initial Marketing Expense during your first 6 months of operation (see Franchise Agreement, Section 10.3);

You must pay an Initial Marketing Expense of $25,000 upon signing the Franchise Agreement (see Franchise Agreement Section 10.3). The Initial Marketing Expense will be spent by us, in our sole discretion, in your area (as we reasonably define it), in order to market and promote the Franchised Business prior to and during the first 6 months of the Franchised Business’ start up. We will provide you with backup of these expenditures upon request after your first 6 months of operations.

In addition to your contribution to the Sales, Marketing and Technology Fund, you must spend a minimum of 8% of Gross Revenue quarterly on local (in the vicinity of the Franchised Location) advertising and promotions. In your first year of operation you must spend quarterly, on local advertising and promotions, the greater of a minimum of 8% of Gross Revenue or $3,600.

Source: Item 10 — Financing (FDD pages 24–33)