Does Anago require franchisees to use specific inventory, equipment, and advertising methods?

You agree to operate the Anago Unit Franchise in conformity with all mandatory uniform methods, standards and specifications required in the Unit Franchise Operating Manual or otherwise, to ensure that the highest degree of quality and service is uniformly maintained. You agree to:

• (f) Maintain in sufficient supply (as We require in the Manual or otherwise in writing) and use at all times, only inventory, equipment, materials, advertising methods and formats, and supplies that conform with Our standards and specifications, if any, at all times sufficient to meet the anticipated volume of business, and to refrain from deviating from these requirements without Our written consent;

• (b) Authorized Specifications and Suppliers. You must purchase or lease equipment, supplies, advertising materials, and other products and services used for the operation of the Anago Unit Franchise only from authorized manufacturers, contractors and other suppliers who demonstrate, to Our continuing satisfaction: the ability to meet Our standards and specifications for these items; possess adequate quality controls and capacity to supply Your needs promptly and reliably; and have been approved in writing by Us and not later disapproved.

We may approve a single supplier for any brand and may concentrate purchases with 1 or more suppliers to obtain the lowest prices and/or the best advertising support and/or services for any group of Franchised Units or Company Units within the System.

SECTION 7.1 LOCAL ADVERTISING.

You must submit to Us for approval, all materials to be used for Local Advertising of Your Anago Unit Franchise, unless they have been approved before or they consist only of materials We provided. All materials on which the Proprietary Marks are used must include the applicable designation service mark SM, trademark TM, registered trademark ® or copyright ©, or any other designation We specify. If You have not received the written or oral disapproval of materials submitted within 10 days from the date We received the materials, the materials are deemed approved. We may require You to withdraw and/or discontinue the use of any promotional materials or advertising, even if previously approved, if in Our judgment, the materials or advertising may injure or be harmful to the System.

SECTION 7.2 ADVERTISING FUND.

We have established an advertising and marketing fund for Anago Unit Franchises (the "Fund"). We and/or AFI will have the sole discretion over the concepts, materials, media, type, nature, scope, frequency, place, form, copy, layout and content of all national, regional and local advertising paid out of the Fund.

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