What is the C12 Group's policy on marketing and promotions?

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• 1. Maintaining, at our sole discretion and budget, a program of C12 brand advertising and publicity in national and regional/local online and print publications as well as websites to help drive leads through our website and home office to Area Chairs across the network (FA Section III). There is no advertising or marketing fund applicable to you with respect to this national advertising. There are no advertising or marketing cooperatives among franchisees. There is no advertising council that advises C12 with respect to its advertising. C12 utilizes primarily its in-house staff in developing advertisements but may from time to time retain advertising or marketing firms and/or graphic design artists to contribute to any particular campaign. There is no requirement that you expend any particular amount on advertising and/or marketing beyond the initial $10,000 in Prepaid Marketing paid along with the franchise fee. We also provide you with sample formats and artwork to assist with your local efforts,. If you do conduct advertising, we require you to follow the C12 Brand Standards Guide (FA Section III). There are no other advertising cooperatives or councils in place.
• 1. Performing marketing and promotions in your Territory by spending the Prepaid Marketing Fund on initiatives that directly promote the formation of new C12 Business Forums in your Territory. Prepaid Marketing expenditures that qualify for payment include C12 Direct Mail

Campaigns related to C12 introductory events or meetings, procurement of qualifying lists of leads, local advertising, banners and other displays for exhibiting, event sponsorships, and emarketing. The use of the Prepaid Marketing Fund and percentage used for different approved expenditures vary for each individual practice and Chair. You are to follow the C12 Brand Standards Guide. Items which do not qualify include software related to contact or customer relationship management, regular subscriptions (e.g., Constant Contact), foodand beverage, catering, organizational membership dues, space rental for events or meetings, audio-visual equipment, and general supplies. Upon your submission of written requests with applicable documentation, C12 will reimburse you for your out-of-pocket expenditures on qualifying Prepaid Marketing Expenditures up to the limit of the balance available in the Prepaid Marketing Fund. C12 will make payments directly to vendors in the cases where C12 administers the marketing initiative on your behalf. You are not precluded from spending on non-qualifying marketing items or spending amounts greater than the $10,000 Prepaid Marketing Fund, but such costs will be borne solely by you. C12 will provide you with a periodic Prepaid Marketing Fund financial statement upon your request. C12 audits the Prepaid Marketing Fund account monthly. C12 uses the Prepaid Marketing Fund to solicit for new franchisees. For the purpose of promoting the formation of new C12 forums, C12 requires you spend the full prepaid marketing fund within 18 months of the execution of this agreement, and any unspent amounts will be forfeited as of that date.

• 1. Maintaining a C12 Marketing Co-op whereby C12 will pay a share of the cost of C12 marketing expenses both including the expenses related to the Prepaid Marketing Fund and all other eligible C12 marketing expenses at a rate equal to your applicable Monthly royalty fee %. This is a cooperative between you and C12 and not an advertising or marketing cooperative between you and other C12 franchisees.
• 1. The C12 marketing expenses related to marketing activities and items are those specifically approved and administered by C12, which include C12 Direct Mail Campaigns and C12 endorsed lead lists (e.g., InfoUSA). Upon your submission of a C12 Marketing Co-op Request Form with applicable documentation, C12 will review, approve, and make payment accordingly.
• 1. Hosting semi-annual training workshops, which are required for the entire C12 Area Chairs community, typically for two to three days in the fall, and two to three days in the spring of each year (FA Section III). During the years when a C12 CURRENT conference is held, it is intended for the workshop to be planned for the days before. Franchisees pay a $110/month training fee for participation in both semi-annual mandatory national chair training gatherings and semi-annual regional chair events; franchisees bear their own costs for travel and lodging (FA Section III).

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 21–29)