What ongoing services does Black Bear Diner provide to franchisees?

rtesy cards;

• (h) music and music selections played in the Franchised Restaurant; and
• (i) programs, policies or specifications regarding the use of Artificial Intelligence in connection with the development and operation of Franchised Restaurants.

10.2 Modification

Franchisee acknowledges that from time to time, Franchisor may introduce as part of the System, new menu items and other products, methods or technology which require certain system modifications including, without limitation, the adoption and use of new computer hardware and software, fixtures, furnishings, equipment or signs. Franchisee agrees to make all required upgrades and modifications at its expense as may reasonably be required by Franchisor. No additional investment will be required during the first year of the Initial term; if such additional investment is required to be made in the last year of the Initial term, Franchisee may avoid making the investment by providing notice of intent not to renew its franchise.

10.3 Variance

Franchisee acknowledges that because complete and detailed uniformity under many varying conditions may not be possible or practical, Franchisor specifically reserves the right and privilege, at its sole discretion and as it may deem in the best interests of all concerned in any specific instance, to vary standards for any franchisee based upon the peculiarities of any particular site or other circumstances, density of population, business potential, existing business practices or any other condition which Franchisor deems to be of importance to the operation of any particular Black Bear Diner restaurant. Franchisee agrees that it shall have no claim against Franchisor on account of any variation from System standards granted to any franchisee and shall not be entitled to require Franchisor to disclose or grant to Franchisee a like or similar variation hereunder.

11. MARKETING AND PROMOTIONAL ACTIVITIES

Recognizing the value of advertising and the importance of the standardization of advertising and promotion to the furtherance of the goodwill and the public image of the Black Bear Diner franchise system and Marks, Franchisee agrees as follows:

11.1 Local Advertising

Each month, Franchisee agrees to spend not less than one percent (1%) of its previous month's Gross Sales on Local Advertising including local marketing, advertising, promotions and public relations activities. Such expenditures shall be made directly by Franchisee. Within thirty (30) days of the end of each month, Franchisee shall furnish to Franchisor an accounting in a form as designated by Franchisor of the expenditures for the preceding month.

Franchisee shall submit to Franchisor, for its prior approval, all advertising and promotional materials to be used by Franchisee including, but not limited to signs, television advertisements, radio spots, coupons, leaflets, flyers, local newspaper, magazine, menu inserts, table cards, direct mail or other print advertising, social media, contests, sports sponsorships and . Franchisor shall use reasonable efforts to provide notice of approval or disapproval within twenty

(20) days from the date all requested material is received by Franchisor. In the event written approval is not received by Franchisee within twenty (20) days of receipt, Franchisor shall be deemed to have not given the required approval. Franchisor reserves the right to disapprove any advertising and promotional materials even if prior approval has been granted.

11.2 Systemwide Marketing Fund

Franchisor has established and administers the Black Bear Diner Systemwide Marketing Fund (the "Marketing Fund"). Currently, Franchisee is required to make a weekly contribution of one percent (1%) of its Gross Sales to the Marketing Fund ("Marketing Fund Contribution"). Franchisor reserves the right increase the amount of the Marketing Fund Contribution but will not increase the amount of the Marketing Fund Contribution to more than 3% of Gross Sales per week and will provide Franchisee with at least thirty (30) days written notice prior to increasing the amount of the Marketing Fund Contribution. Franchisee's Marketing Fund Contribution shall be made at the same time and in the same manner as its Royalty Fee payment. The Marketing Fund shall be maintained and administered by Franchisor or its designee as follows:

Franchisor shall generally oversee all advertising programs with sole discretion over the creative concepts, materials and media used in such programs and the placement and allocation thereof.

Source: Item 23 — RECEIPT (FDD pages 56–243)