What ongoing support does Anago provide during the operation of the Anago Subfranchise Business?

assistance or service before you begin operation of your Anago Subfranchise Rights Business.

Ongoing Support (Section 2.5 of the Subfranchise Rights Agreement):

During your operation of the Anago Subfranchise Business, we will provide you with the following assistance:

Telephone Hotline - We will, at our discretion and subject to availability of personnel, maintain a telephone "hotline" for informational assistance for you and the Unit Franchisees.

Advertising and Public Relations - We reserve the right to develop and administer national and/or regional advertising funds and campaigns to generally promote the System using Advertising Contributions paid by you including Anago retail promotional/advertisement packages as described in Subsection 3.1(d) of the Unit Franchise Agreement.

Periodic Assistance - We may provide to you continuing advisory assistance in the operation and promotion of the Unit Franchises as we deem advisable, including communication of new developments, improvements in equipment and supplies, and new techniques in advertising, service and management that are relevant to the operation of the Franchised Business.

Referral of Leads - We will refer all leads to you that may come to us for possible Unit Franchises in the Area.

Billing and Collection System (Section 2.4 of the Subfranchise Rights Agreement):

• (i) Invoicing. We will, as your and your Unit Franchisees' agent, invoice all customers serviced by you and your Unit Franchisees utilizing the NBDS System. We will send monthly invoices to every client account serviced by your Unit Franchisees for the first 12 months and, at our discretion, indefinitely, upon an Event of Default.
• (ii) Deposit of Client Receipts. Unless we direct otherwise, you will collect and deposit all your client payments into an escrow account in our name, at an acceptable banking facility designated or approved in writing by us (the "Anago Escrow Account"), until the time for distribution to you and later distribution to your Unit Franchisees. You will also set up a separate operating account in your corporate name d/b/a Anago of XXXX. You will require your clients to make all checks payable to the Anago Escrow Account for any services performed by the Unit Franchisees in your Area.
• (iii) Distribution of Client Receipts. After we receive a client payment, we will distribute the payment as follows: (i) you will receive payments deposited into the Anago Escrow Account less any applicable fees owed us or our affiliates under the Subfranchise Rights Agreement, which will be paid to Subfranchisor's operating account by Franchisor once per week (based on a week from Sunday through Saturday), on Wednesday, for the prior week's cleared deposits less any Royalties, Administrative Support fees, Insurance fees, service fees (including bank charges), lease payments, late payments, late fees, interest payments, and/or any amounts due to us by you; and (ii) we will retain our portion of the funds deposited into the Anago Escrow Account as stated above. You will be responsible for the payment of sales tax, as applicable. Payments will be made from your operating account. You will pay your Unit Franchisees directly by mail on the 20th day of each month following the month in which services were rendered, or as otherwise prescribed in its Unit Franchise Agreement, as we authorize, and will provide your Unit Franchisees with a statement detailing the previous month's accounting activity. You will send to us daily, by facsimile or electronic mail, items for all invoicing activity to each Client serviced and all supplies and equipment sold by your Unit Franchisees for that day (for at least the first 6 months). You will provide to us, by the 25th day of each month, a copy of all statements issued to its Unit Franchisees during the month in the form and manner we designate.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)