Who determines the amount Batteries Plus Bulbs franchisees must contribute to a Cooperative?

We may form a local or regional advertising or marketing cooperative in your area. If established, we may require you to participate in and contribute to one or more local or regional advertising or marketing cooperatives (the "Cooperative") established in an area or region where your Store is located. If a Cooperative is established, you must contribute an amount that we determine or that the Cooperative may determine (with our approval), up to a total of the greater of 3% of your Store Net Revenues or your Minimum Store Promotion Requirement each calendar year, although your cooperative advertising obligations each calendar year will be limited such that your combined obligations for cooperative advertising and Digital Marketing and Local Media Program contributions will not exceed the "Minimum Store Promotion Requirement" (as described in Item 6). All members of the Cooperative, including those Stores we own, generally will contribute at the same rate. The Cooperative will use contributions to fund local and regional marketing, advertising and promotional campaigns and activities that we determine or approve for use by the Cooperative. Our in-house marketing staff may establish marketing and advertising campaigns and activities that the Cooperative must use. We reserve the right to require each Cooperative to adopt written governing documents. A copy of the governing documents (if any) of any Cooperative for your market area is available upon request. We will determine the voting procedures for each Cooperative. Members of the Cooperative and their elected officials (if any) are responsible for administering the local Cooperative while we reserve the right to administer regional Cooperatives. We do not require that each Cooperative prepare annual financial statements and make those financial statements available to all franchisees in the Cooperative. We have the power to establish advertising and marketing Cooperatives and the rules under which regional and local advertising and marketing Cooperatives will operate.

To the extent your combined contributions respecting the Digital Marketing and Local Media Program and regional or local cooperative advertising or marketing programs described above during any calendar year are less than the "Minimum Store Promotion Requirement" (as defined in Item 6), you must spend additional amounts during such calendar year on "approved" Store advertising and marketing activities in your local geographic area to satisfy the Minimum Store Promotion Requirement. Store advertising and marketing activities are "approved" if they are included in our recommended media plan for the Store and otherwise satisfy our requirements (described above). Amounts spent on unapproved advertising activities will not qualify in determining whether you have satisfied this minimum expense

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 34–43)