What is the payment schedule for the Aw royalty fee?

enses we incur in furnishing assistance and services to you and of our lost opportunity to negotiate with others for this franchise, you agree that we will have fully earned the Initial Franchise Fee and that it becomes non-refundable upon signing this Agreement.

• 10.2 Royalty Fee. You agree to pay us a weekly royalty fee. You agree to pay five percent (5%) of the Gross Revenue (as defined below) of the Papa Ray's Pizza Restaurant. The royalty fee will be payable on Wednesday of each week for the period covering the previous Monday through Sunday via electronic transfer as described in Paragraph 10.7 below. The royalty fee is not refundable, in whole or in part, under any circumstances.
• 10.3 National Marketing Fund Contribution. Recognizing the value of advertising and marketing to the goodwill and public image of Papa Ray's Pizza Restaurants, we intend to establish, maintain and administer an advertising, marketing and promotional fund (the "Marketing Fund") for such advertising, marketing and promotions as we may deem necessary or appropriate in our sole discretion. You agree to contribute to the Marketing Fund two percent (2%) of the Gross Revenue (as defined below) of the Papa Ray's Pizza Restaurant. We have the right to discontinue or reestablish the Marketing Fund upon sixty (60) days advance notice to you. In the event we discontinue the Marketing Fund, we will distribute all unspent amounts existing in the Marketing Fund on the date of discontinuance to franchisees in proportion to their respective contributions for the most recent six (6) months. This Marketing Fund contribution is due weekly along with the royalty fee on Wednesday of each week for the gross revenue of the preceding Monday through Sunday via electronic transfer. A further description of the Marketing Fund and your obligations with respect to advertising, marketing and promoting the Papa Ray's Pizza Restaurant will be found in Paragraph 12.1 of this Agreement.
• 10.4 Definition of "Gross Revenue". As used in this Agreement, the term "Gross Revenue" means the amount of all receipts from the sale of any and all food, beverages, merchandise or other products or services made and rendered in, on or from the Premises, or through any other means, including sales outside of the Premises, that is in any way related to your Papa Ray's Pizza Restaurant, whether for cash, exchange or credit (and regardless of collection in the case of credit), except that Gross Revenue will not include any receipts from sales, use, or service taxes collected from customers and paid to the appropriate taxing authority, promotional customer discounts and coupons, authorized employee discounts and complimentary products for promotional or charitable purposes.
• 10.5 Electronic Funds Transfer. You must make the weekly payments for the royalty fee, Marketing Fund contributions and any and all other fees that may become due and payable to us hereunder by either electronic transfer or electronic debiting of your business account, or in any other manner that we may hereinafter designate. You must execute such authorization forms as are necessary for electronic transfer or debiting as soon as you have established a bank account for your Papa Ray's Pizza Restaurant and shall execute any other documents as may be required from time to time by us to permit us to electronically transfer funds or debit your account for the purpose

of making the required payments. You may not make any change in your banking relationships, including any change in the account number of your business account, or any change in banks, without our prior written approval and your execution of new authorization forms.

On Tuesday of each week, you must submit to us in the form and manner we specify a statement of Gross Revenue for the previous Monday through Sunday.

Source: Item 22 — CONTRACTS (FDD pages 39–40)