How does Batteries Plus Bulbs manage the National Marketing Fund?

We operate a National Marketing Fund (the "NMF Fund") to advertise and promote Stores in the System. You will pay us a monthly national marketing fee of 1% of your Store's Net Revenues (the "NMF Fee"). We will deposit the NMF Fee in the NMF Fund that we manage through a separate account. We may use the NMF Fund to conduct national, regional and local advertising, marketing, promotional and public relations campaigns, including the cost of preparing and conducting print, point of purchase, radio, television, internet, electronic and billboard advertising, supporting Key Accounts Program activities, ecommerce website activities, providing market intelligence through analytics to the System, and employing advertising and marketing agencies. We also will use the NMF Fund to develop advertising and promotional materials for regional and local advertising and marketing cooperatives and for use in each franchisee's local market. In certain developing markets, we may assist franchisees' initial advertising and promotional activities in an effort to increase brand awareness. We have an in-house marketing staff that assists in developing and placing local advertising and other matters. We also contract with various outside advertising and marketing agencies and third party vendors to produce certain advertising and promotional materials and to create and implement public relations campaigns. We will determine the use of monies in the NMF Fund. We are reimbursed for reasonable administrative costs and overhead incurred in administering the NMF Fund.

We are not required to spend any particular amount on marketing, advertising or production in the area in which your Store is located. NMF Fees not spent in any fiscal year will be carried over for future use. We may make loans to the NMF Fund bearing reasonable interest to cover any deficit of the NMF

Fund and cause the NMF Fund to invest in a surplus for future use by the NMF Fund. NMF Fees will not be used for advertising principally directed at the sale of franchises. At your request, we will provide you with an annual unaudited statement of the receipts and disbursements of the NMF Fund.

Each new Batteries Plus® franchisee must pay the NMF Fee. Other franchisees pay the same amount for the NMF Fee. In addition, each Batteries-owned Store will contribute to the NMF Fund on the same basis as franchisees.

When developing marketing strategy and allocating the use of NMF Fees, we consult with our NMF Council (the "Council"). There are 6 franchisees on the Council. Council members are elected by the franchisees and serve for a 3 year term. The Council serves in an advisory capacity to provide advice on advertising, research and promotional activities to us and our outside advertising and marketing agencies. We have the power to form, change or dissolve the Council.

During our 2024 fiscal year, 13% of the NMF Fund was spent for advertising and merchandising production, communication and related expenses, 32% was spent on the development, operation and marketing of the e-commerce platform, 35% was spent for national and key accounts, commercial sales development and related expenses, and 20% was spent on in-house marketing services, administrative expenses and other miscellaneous expenses (including salaries of our in-house marketing staff that conducts media planning/buying, creative design, collateral production, and other related services).

You may not develop advertising or promotional materials for your own use. You must use only advertising and promotional materials we provide. We recommend that Stores spend in excess of the required marketing contributions.

You must contribute to and participate in our Digital Marketing and Local Media Program designed to primarily support ecommerce and national performance marketing efforts (including paid search, product placement, paid social, and affiliate marketing). Each fiscal year, you must contribute the greater of 3% of Store Net Revenues or the Minimum Store Promotion Requirement . We will determine future Digital Marketing and Local Media Program contributions; provided that it may not exceed the greater of 3% of Net Revenues or the Minimum Store Promotion Requirement. We will direct how the Digital Marketing and Local Media Program contributions are spent, and you will pay such amount directly to us monthly. We may use the Digital Marketing and Local Media Program contributions to reimburse us for expenses we incur in connection with digital marketing or future forms of electronic marketing activities respecting the System, including expenses related to marketing and lead generation and future forms of digital based marketing or promotional tools or programs. Any separate account established for the Digital Marketing and Local Media Program is not a trust or escrow account, and we have no fiduciary obligations regarding any such account.

We are not required to spend any particular amount as part of the Digital Marketing and Local Media Program in the area in which your Store is located and we cannot ensure that you will benefit directly or on a pro rate basis from the Digital Marketing and Local Media Program. Digital Marketing and Local Media Program contributions not spent in any fiscal year will be carried over for future use. We may make loans to the Digital Marketing and Local Media Program bearing reasonable interest to cover any deficit of the Digital Marketing and Local Media Program and cause the Digital Marketing and Local Media Program to invest in a surplus for future use by the Digital Marketing and Local Media Program. Digital Marketing and Local Media Program contributions will not be used for advertising principally directed at the sale of franchises. At your request, we will provide you with an annual unaudited summary of the receipts and disbursements of the Digital Marketing and Local Media Program account for the most recent calendar year. Each new Batteries Plus® franchisee must contribute to the Digital Marketing and Local Media

Program. In addition, each Batteries-owned Store will contribute to the Digital Marketing and Local Media Program on the same basis as the majority of franchisees must contribute.

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