What is the purpose of the Browns Chicken Advertising Fund?

red annually by Brown and will be reviewed with you upon written request.

The Advertising Fund is intended to maximize recognition of the Marks and patronage of BROWN'S Stores. Although Brown will endeavor to utilize the Advertising Fund to develop advertising and marketing materials and to place advertising in a manner that will benefit all BROWN'S Stores, Brown undertakes no obligation to ensure that expenditures by the Advertising Fund in or affecting any geographic area are proportionate or equivalent to contributions to the Advertising Fund by BROWN'S Stores operating in that geographic area or that any BROWN's Store will benefit directly or in proportion to its contribution to the Advertising Fund from the development of advertising and marketing materials or the placement of advertising. Except as expressly provided in the Franchise Agreement, Brown assumes no direct or indirect liability or obligation to Franchisee with respect to the maintenance, direction, or administration of the Advertising Fund. Brown has no fiduciary obligation to you or any other BROWN'S Store in connection with the establishment of the Advertising Fund or the collection, control or administration of monies paid into the Advertising Fund. (See Paragraph A of Section 11 of the Franchise Agreement, and Items 6, 8, and 9 of this Franchise Disclosure Document.)

In the latest fiscal year (2024), the Advertising Fund was expended as follows:

| Topic | # Pages | |---|---| | Breading Procedures | 31 | | Customer Service Procedures | 41 | | Cooking Procedures | 63 | | Accounting Procedures | 38 | | Personnel Procedures | 44 | | Catering Procedures | 101 | | Trouble Shooting Procedures | 18 | | Chicago Way Sandwich Procedures | 24 | | Total | 360 | We will not use Advertising Fund contributions to create or place any advertisement that is principally a solicitation for new franchises, but we may include in all advertising prepared from Advertising Fund contributions (including Internet advertising) information concerning franchise opportunities, and a portion of Advertising Fund contributions may be used to create and maintain one or more interior pages on our website devoted to advertising franchise opportunities and identifying and screening requirements and applications submitted by franchise candidates.

You must list and advertise the Store in each of the classified telephone directories distributed within your territory, in such business classifications as Brown prescribes from time to time and utilizing Brown's standard form of classified telephone directory advertisement. Prior to your use, samples of all local advertising and promotional materials not prepared or previously approved by Brown must be submitted to Brown for approval. If you do not receive written disapproval within 15 days from the date of Brown's receipt of such materials, Brown will be deemed to have given the required approval. Promotional material includes material provided by you on a website. You may not use any advertising or promotional materials that Brown has disapproved. Except as specifically provided, you may not use your own advertising material. (See Items 6 and 11 for more detailed information about the advertising fund and your contributions.)

1. Brown will furnish you such operating assistance in connection with the operation of the Store as you may reasonably require from time to time.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–30)