How must a Buona franchisee operate and advertise their franchised business using the marks?

• 5.10 Covenants.

Franchisee understands and acknowledges that each and every detail of the System is important to Franchisee, Franchisor, Franchisor's affiliate and other franchisees in order to develop and maintain high and uniform standards of quality and services, and hence to protect the reputation and goodwill of Franchised Businesses, Franchisor, Franchisor's affiliate and the System.

Accordingly, Franchisee covenants:

• (a) To operate and advertise the Franchised Business, at Franchisee's own expense, using the Marks as specified by Franchisor without prefix or suffix;

• (b) To adopt and use the Marks licensed under this Agreement solely in the manner prescribed by Franchisor; and

• (c) To observe such reasonable requirements with respect to trademark registration notices as Franchisor may from time to time direct in the Manuals or otherwise in writing.

• 5.5 Signage.

Franchisee shall display a standard sign in the Franchised Business, as may be specified by Franchisor, indicating to the public that the Franchised Business is independently owned and operated as a franchisee or licensee of the System.

Franchisee shall, in all advertising and promotion and promotional materials, display its business name only in obvious conjunction with the phrase "an independent Buona/The Original Rainbow Franchisee" or with other words and in other phrases so as to identify itself as an independent owner of the Franchised Business, or as otherwise may be required in the Manuals.

• 11.2 Local Advertising. Beginning on the date of opening of the Franchised Business, in addition to the requirement for Franchisee to contribute to the Marketing Fund, each Period Franchisee must spend a minimum of one percent (1%) of the Gross Sales of the Franchised Business on local advertising, marketing and promotion to promote both the Buona and The Original Rainbow Cone Brands. Such expenditures will be made directly by Franchisee, subject to Franchisor's approval and direction. At Franchisor's request, Franchisee must furnish to Franchisor in a manner approved by Franchisor an accurate accounting of Franchisee's local advertising and marketing expenditures for each Period.
• 11.3 Grand Opening Advertising and Marketing. Beginning sixty (60) days prior to the opening of the Franchised Business and continuing through the first ninety (90) days of operation of the Franchised Business, Franchisee must spend a minimum of Twenty-Five Thousand Dollars ($25,000.00) conducting an advertising and marketing campaign to promote the grand opening of the Franchised Business and both Brands. Grand opening monies will be spent on social media, print, radio, digital advertising and/or other advertising or promotions that Franchisor and Franchisee agree is best suited for Franchisee's grand opening campaign. The grand opening advertising and marketing shall be conducted in accordance

with the Manuals and/or other written guidelines Franchisor may issue on initial advertising and promotion.

Source: Item 22 — CONTRACTS (FDD page 78)