Is an All County franchisee required to contribute to the Advertising Fund?

degree relatives by blood or marriage will not engage in any of the following:

• 16.1.1. Interest or Involvement. You will not have any direct or indirect interest as a disclosed or beneficial owner in a Competitive Business, wherever located.
• 16.1.2. Performance. You will not perform services as a director, officer, manager, employee, consultant, representative, agent or otherwise for a Competitive Business, wherever located. You are prohibited from selling or transferring any of the accounts or clients of the Business to anyone except to us or to one of our designees or to another ALL COUNTY® business that has been approved in writing by us.
• 16.1.3. Recruiting. You will not recruit or hire any person who is our employee or the employee of any other ALL COUNTY® business without obtaining the prior written permission of that person's employer.

17. MARKETING.

17.1. Advertising Fund. We may establish an advertising fund ("Advertising Fund") for such advertising, marketing and public relations programs and materials as we deem necessary or appropriate in our sole business judgment. The Advertising Fund is intended to maximize recognition of the Marks and patronage of ALL COUNTY® businesses**.** We will endeavor to utilize the Advertising Fund to develop advertising and marketing materials and programs and to place

advertising that will benefit all ALL COUNTY® businesses. You will be required to contribute to the Advertising Fund as set forth in this Agreement.

• 17.1.1. Contribution. Each Accounting Period during the Term of the Agreement, you agree to contribute to the Advertising Fund an amount which shall be calculated as either the greater of one percent (1%) of Gross Revenue the Business derived during the respective Accounting Period or One Hundred Ninety Five Dollars ($195) (the "Ad Fee"). The Ad Fee shall be payable monthly at the same time and in the same manner as the Royalty due hereunder.
• 17.1.2. Control. We will direct and control all programs financed by the Advertising Fund, with sole business judgment over the creative concept materials and endorsements used therein and the geographic market and media placement and allocation thereof. We may do the marketing and advertising or we may elect to outsource the marketing and advertising to an agency.
• 17.1.3. Purpose of Advertising Fund. The Advertising Fund may be used to pay the costs of maintaining, administering, directing, conducting and preparing advertising, marketing, public relations, and/or promotional programs and materials, and any other activities which we believe will enhance the image of the System, including, among other things, the costs of preparing and conducting radio, cable television and print advertising campaigns; developing, maintaining, and updating a Website on the Internet; direct mail advertising; marketing surveys; employing advertising and/or public relations agencies to assist therein; purchasing promotional items;

Source: Item 23 — Receipts (FDD pages 43–157)