What is the Bumble Roofing franchisee's obligation regarding the use of advertising and promotional materials?

authorize Franchisee to utilize any Improvement that may be developed by other franchisees and is authorized generally for use by other franchisees.

11. ADVERTISING AND PROMOTION

• 11.1 Franchisee acknowledges that local marketing, promotion and advertising are required to advise the public of the Business. During the first twelve (12) months of operations, Franchisee will spend a minimum of $65,000 on promotional advertising within the Territory ("Individual Advertising Investment"), plus an additional $15,000 for each additional contiguous Territory. Franchisee may not advertise outside its Territory without Franchisor's approval, which may be granted or withheld in Franchisor's discretion. After the first year of operations, Franchisee must spend each year the greater of (a) $65,000 plus an additional $15,000 for each additional contiguous Territory, or (b) 5% of the prior year's Gross Revenues.
• 11.2 During the Initial Term and any Interim Period, Franchisee shall furnish each month and/or year, as Franchisor prescribes, and upon Franchisor's request, to Franchisor an accounting of Franchisee's previous month's or year's Individual Advertising Investment expenditures on a form approved by Franchisor. Franchisor has the right, but not the obligation, once Franchisee commences operations, to collect up to the minimum required Individual Advertising Investment from Franchisee and administer it on marketing and advertising investments in Franchisee's Territory on Franchisee's behalf.
• 11.3 Franchisor will make available to Franchisee all advertising and promotion materials for the Business which are used by Franchisor and other BUMBLE ROOFING® franchisees. Franchisee may not develop advertising materials for use in the Business without Franchisor's prior written approval. If

Franchisor approves the advertising materials prepared by Franchisee, 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 has formed a national branding and marketing fund ("National Branding & Marketing Fund"). Beginning on the Operational Start Date, Franchisee shall pay to Franchisor a monthly national branding and marketing fee equal to 1% of Gross Revenue, which may be increased by Franchisor up to a maximum of 2% of Gross Revenues ("National Branding & Marketing Fee"). The National Branding & Marketing Fee shall be payable to Franchisor on or before the same day as the Royalty Fee. If Franchisee signs a Successor Franchise Agreement, Franchisee will be required to pay the National Branding & Marketing Fee set forth therein. Franchisor has the right, however, to vary the National Branding & Marketing Fee and how it is determined in any Successor Franchise Agreement Franchisee may sign. No action taken by Franchisor shall diminish Franchisee's obligations to pay the National Branding & Marketing Fee to the National Branding & Marketing Fund. The National Branding & Marketing 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 Branding & Marketing Fund. Franchisor may occasionally provide for placement of advertising on behalf of the entire System, including franchisees, or on behalf of a particular region, which may not include Franchisee, through the National Branding & Marketing Fund.

Source: Item 22 — CONTRACTS (FDD page 53)