Which items in the All County Disclosure Document relate to advertising obligations?

ll respond to your questions regarding operational issues and provide support on an as-needed basis.

Advertising and Marketing. We may administer an Advertising Fund, using it to prepare and produce advertising, public relations, market research and promotional programs in media we select, potentially including print, radio, television, or internet, including the ALL COUNTY® website. This may be done in house or through outside vendors. The advertising and marketing efforts may be national, regional or local. There is no guarantee that these efforts will be effective in your geographic area or that any given advertising campaign will be run in your area.

1. The Advertising Fund is funded by advertising and marketing fees paid by Franchisees. Currently, the monthly Advertising Fund Fee for all franchisees is the greater of 1% of Gross Revenue or $195 and all franchisees contribute at the same percentage rate. During our most recently concluded fiscal year ending December 31, 2024, of the collected Advertising Fund monies we spent, 26% was spent on website development services, 51.8% was spent on client retention, and 22.2% was spent on marketing and public relations.

We (or our affiliates) may, in our sole business judgment, contribute to the Advertising Fund. There is no obligation for us to contribute to this fund. The fees contributed by Franchisees are not in a "trust," and are not held by us in any fiduciary or similar special relationship. No relationship is created beyond an ordinary commercial relationship for our mutual economic benefit.

In any fiscal year, we may spend an amount greater or less than the contributions to the Advertising Fund for that year. We may carry over deficits or surpluses from year to year. We will separately account for the Advertising Fund and will provide an annual compiled statement of the Advertising Fund upon your written request. We are under no obligation to refund any unspent contributions when the Franchise Agreement is terminated or expires.

The Advertising Fund will not be used to defray any of our general operating expenses, except for such reasonable salaries, administrative costs, travel expenses and overhead as we may incur in activities related to the administration and activities of the Advertising Fund and its programs. The Advertising Fund is not audited, and there are no restrictions under the terms of the Franchise Agreement that it must be audited at any time. (Franchise Agreement Articles 17.1. through 17.4.). The Advertising Fund will not be used to solicit the sale of franchises.

In addition to the your contribution to the Advertising Fund, you must spend not less than $3,000 initially for local advertising and promotion of your Franchise Business and on an ongoing basis each month you must spend not less than $1,500 for local advertising and promotion of your Franchise Business.

We will provide you with start-up marketing materials and templates. There is no guarantee of success from these materials. You may use any advertising or promotional materials you have developed after we have approved the materials. You must submit samples of all proposed advertising, promotional and marketing materials to us for approval before you use them and we will approve or disapprove of them within 15 days after our receipt of the proposed materials.

Presently, there are no advertising cooperatives or franchisee advertising councils involved in the advertising process, although there are no restrictions on our right to require advertising cooperatives or franchisee advertising councils to be formed, changed, dissolved or merged. Presently we do not have any existing policies in place regarding the formation of any franchisee advertising council, but if we establish one, we will communicate all the policies of the council to you through written updates to our Operations Manual or to our Methods of Operation. The written policies of any franchisee advertising council may include information on how members of the council are selected and whether the council serves in an advisory capacity only or has operational or decision-making power.

We may establish or approve local and/or regional advertising cooperatives in your local or regional areas, covering the geographical areas we may designate in our sole business judgment.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 20–26)