What happens to the money contributed to the advertising fund by an Apricot Lane franchisee?

the contributions required of Franchised Businesses.

• 1. The Fund may, at FRANCHISOR's sole discretion, be used to meet any and all costs of creating, producing, maintaining, administering, directing, approving and conducting

advertising, marketing and promotional activities and materials including, without limitation the cost of preparing and producing mass media, magazine and newspaper, digital advertising and campaigns; the cost of direct mail and outdoor billboard advertising; the cost of public relations activities and advertising agencies; the cost of developing and maintaining an Internet Website; the cost of personnel or other departmental costs for marketing and creative services and/or advertising that FRANCHISOR internally administers or prepares; point of purchase and promotional materials and supplies, digital art, marketing and dissemination support mechanisms and the employment of outside agencies. All sums paid by FRANCHISEE to the Fund shall be maintained in a separate account from the other funds of FRANCHISOR and shall not be used to defray any of FRANCHISOR's general operating expenses. However the Fund may reimburse FRANCHISOR and its affiliates for the reasonable salaries and benefits of personnel who manage and administer the Fund or otherwise provide assistance or services to the Fund, the Fund's administrative costs, travel expenses while they are on Fund business, meeting costs, overhead relating to the Fund business and other expenses that FRANCHISOR may incur in administering or directing the Fund and its programs including conducting market research, preparing marketing and advertising materials, and collecting and accounting for assessments for the Fund. The Fund is not a trust, and FRANCHISOR does not owe FRANCHISEE fiduciary obligations because of FRANCHISOR'S maintaining, directing or administering the Fund or any other reason. The Fund may spend in any fiscal year more or less than the total Fund contributions in that year, borrow from FRANCHISOR or others (paying reasonable interest) to cover deficits, or invest any surplus for future use. FRANCHISOR will use all interest earned on Fund contributions to pay costs before using the Fund's other assets.

• 1. FRANCHISOR maintains the right to terminate the Fund. The Fund shall not be terminated, however, until all money in the Fund has been expended for advertising and promotional purposes.
• 1. An annual accounting of the operation of the Fund shall be made available to FRANCHISEE upon request.

Source: Item 23 — RECEIPTS (FDD pages 51–222)