How does Bambu use the marketing and technology fees collected from franchisees?

Bambu will maintain a separate account designation in its accounting software for the Marketing and Technology Fees and expenses associated with marketing and technology efforts.

The Marketing and Technology Fund will be administered by Bambu.

Bambu shall direct all advertising and marketing programs financed by the Marketing and Technology Fund, with sole discretion over the creative concepts, materials and endorsements used therein, geographic, market and media placement and allocation, and the administration thereof.

Franchisee agrees that the Marketing and Technology Fund may be used for applications that promote Bambū shoppes, such as loyalty programs and other specialized applications that can add business to the shoppes, such as catering and charitable events, as well as for covering the costs of researching, preparing, maintaining, administering and directing advertising and promotional materials and public relations programs, including production of commercial print, radio, television, magazine, newspaper, Internet advertising, direct response literature, direct mailings, brochures, collateral materials advertising, surveys of advertising effectiveness, advisory council expenses, convention expenses, social media marketing, and other advertising or public relations expenditures, for any international, national, or regional media.

The Marketing and Technology Fund may also be used to pay for the expenses related to researching, developing, implementing, servicing, and operating any technology used in any manner related to the Bambū franchise system or Bambū shoppes, including any technologies utilized in or related to Bambu's website, search engine optimization, reporting of information for Bambū shoppes, the equipment used in Bambū shoppes, and Bambū shoppe computer systems (collectively, the "Technology").

Bambu may reimburse itself from the Marketing and Technology Fund for administrative costs, including the salaries of public relations personnel or persons administering the advertising services, the salaries of persons providing services related to any Technology, preparation of advertising materials, market research, independent audits, collection of the Marketing and Technology Fees, administration of the advisory council, accounting, bookkeeping, reporting and legal expenses, taxes and all other reasonable direct or indirect expenses that Bambu or its authorized representatives incur with the programs funded by the Advertising and Technology Fund.

Bambu may use outside advertising agencies with personal and/or inside personnel or affiliates to provide advertising services for the Marketing and Technology Fund.

• b.

Upon the written request of Franchisee, Bambu will make available to Franchisee, no later than 60 days after the end of each fiscal year, an unaudited financial statement which indicates how the Marketing and Technology Fund has been spent in the prior year.

• c.

The Marketing and Technology Fund shall be accounted for separately from Bambu's other funds and shall not be used to defray any of Bambu's general operating expenses, except for such reasonable administrative costs, salaries and overhead as Bambu may incur in activities related to the administration of the Marketing and Technology Fund and its marketing programs, including, without limitation, conducting market research, preparing material, incurring related accounting and legal expenses, collecting and accounting for Marketing and Technology Fund contributions and all costs and expenses related to the Advisory Council, if any.

Bambu may spend in any fiscal year an amount greater or less than the aggregate contribution of all Bambū shoppes to the Marketing and Technology Fund in that year and the Marketing

Source: Item 23 — Receipts (FDD pages 52–209)