What is the National Marketing and Promotions Fund for Big Air Trampoline Park?

g and promotion materials for the Big Air Trampoline Business which are used by Franchisor and other franchisees. Franchisee may not develop advertising materials for use in the Big Air Trampoline Business without Franchisor's

• approval. If Franchisor approves the advertising materials prepared by Franchisee in writing, Franchisor may make available to other franchisees such advertising and promotion materials. Franchisee must pay duplication costs of any advertising or promotion material provided by Franchisor.
• 11.4 Franchisor, in its sole discretion, may elect to form a national marketing and promotions fund ("National Marketing and Promotions Fund"). On or before the 10th day of each month, Franchisee shall remit 1% of the Gross Revenues for the preceding month or portion thereof to Franchisor ("National Marketing and Promotions Fee"). Franchisor may, in its sole discretion increase the National Marketing and Promotions Fee up to 3% of the Gross Revenues for the preceding month or portion thereof upon 30 days advance notice. No action taken by Franchisee shall diminish Franchisee's obligations to pay the National Marketing and Promotions Fee to the National Marketing and Promotions Fund. The National Marketing and Promotions Fee is in addition to Franchisee's obligations in Section 11.1.
• 11.5 Advertising materials and services will be provided to Franchisee through the National Marketing and Promotions Fund. Franchisor may occasionally provide for placement of advertising, development of promotional materials, and undertaking public relations activities on behalf of the entire System, including franchisees, or on behalf of a particular region, that may not include Franchisee, through the National Marketing and Promotions Fund. Franchisor reserves the right to use the National Marketing and Promotions Fee from the National Marketing and Promotions Fund to place advertising in national media or regional media (including broadcast, print or other media) in the future. Franchisee acknowledges that the National Marketing and Promotions Fund is intended to maximize the general brand recognition of the System. Franchisor is not obligated to expend National Marketing and Promotions Funds on Franchisee's behalf or benefit or expend National Marketing and Promotions Funds equivalent or proportionate to Franchisee's National Marketing and Promotions Fees on Franchisee's behalf or benefit.
• 11.6 National or regional advertising, public relations, and promotions will be started and continued by Franchisor, when, in Franchisor's sole discretion, Franchisor deems that it has accumulated sufficient moneys for that purpose. The National Marketing and Promotions Fund will be used to promote the System, Services and Products sold by Franchisees and will not be used for the purpose of selling additional franchises; provided, however, that Franchisee acknowledges and agrees that Franchisor may undertake certain activities using funds from the National Marketing and Promotions Fund that have the effect of increasing the visibility of, and interest in, the Big Air Trampoline System by prospective franchisees. Franchisor's accounting and marketing personnel or a representative designated by Franchisor will administer the National Marketing and Promotions Fund. The National Marketing and Promotions Fund will collect National Marketing and Promotions Fees from all franchisees and Franchisor's Affiliate-owned stores. All payments to the National Marketing and Promotions Fund must be spent on advertising, public relations, market research, trade show attendance, promotion, point-of-sale materials, point-of-sale systems, marketing of goods and services provided by Franchisor and outside vendors, including but not limited to marketing agencies, and administration of the National Marketing and Promotions Fund, including but not limited to, salaries, overhead, administrative, accounting, collection and legal costs and expenses. The National Marketing and Promotions Funds will be maintained by Franchisor in a separate account. An annual un-audited financial statement of the National Marketing and Promotions Fund, at the expense of the National Marketing and Promotions Fund, will be available 120 days after Franchisor's fiscal year end to Franchisee for review once a year upon request.
• 11.7 The National Marketing and Promotions Fees collected by the National Marketing and Promotions Fund are non-refundable. The National Marketing and Promotions Fund may be terminated at any time by Franchisor, in its sole discretion.

Source: Item 23 — RECEIPT (FDD pages 53–255)