Can Anago Franchisor or its Affiliates derive revenue from purchases made by Subfranchisees from approved vendors?

Franchisor reserves the right to identify, approve or designate, from time to time, (a) manufacturers, vendors, distributors, suppliers, and producers for the Anago System (each a "Vendor"), (b) the terms under which Vendors provide products or services (including insurance, cleaning products and supplies, equipment, and materials) to the Subfranchised Business and Franchised Businesses, and (c) the distribution methods for any goods or services provided to or used by the Subfranchised Business and any Franchised Businesses. For any product or service for which Franchisor has approved or designated a Vendor, Subfranchisor must purchase and require its Unit Franchisees to purchase all such goods and services only from the approved or designated Vendor for that product or service, under terms, in the manner, and from the source designated by Franchisor. In Franchisor's discretion, there may be only one approved or designated Vendor for any particular product or service, and the Vendor may be Franchisor or its Affiliates (in which case, Franchisor and its Affiliates may derive revenue from purchases and use any such revenue in its sole and unfettered discretion). Franchisor may, at its option, arrange with Vendors to collect or have its Affiliates collect costs and expenses associated with products and services they provide to Subfranchisor and, in turn, pay the Vendor, on Subfranchisor's behalf, for such products or services. If it chooses to do so, Subfranchisor agrees that Franchisor or its designated Affiliates may auto debit Subfranchisor's escrow account for such amounts in the same manner and using

the same authorization that Subfranchisor grants Franchisor with respect to payment of Royalty and other fees.

Source: Item 23 — RECEIPTS (FDD pages 62–298)