Does Central Bark Doggy Day Care administer a marketing fund?

oducts and services authorized for sale by a CENTRAL BARK facility; (3) selecting, purchasing, and displaying inventory; (4) advertising and promotional programs; and (5) administrative, bookkeeping, accounting, inventory control, sales and general operating procedures for the Franchised Business. (Franchise Agreement – Section V.D.)

• 1. Guidance is furnished in the form of our Operating Manual, bulletins, or other written materials, telephonic consultations and/or consultations at our offices or at your Location in connection with an inspection of the Franchised Business. (Franchise Agreement – Section V.D.)
• 1. We will administer a marketing fund. (Franchise Agreement Section VI.A.)
• 1. We will maintain a Website to advertise, market and promote CENTRAL BARK facilities. (Franchise Agreement – Section VI.D.)
• 1. We may periodically set a maximum or minimum price that you charge for products and services offered by your CENTRAL BARK facility, though we are not obligated to do so. We also may require you to comply with an advertising policy which will prohibit you from advertising any price for a product or service that is different than our suggested retail price. (Franchise Agreement – Section X.I.)

Marketing Programs.

Marketing Fund

You must contribute a monthly marketing fee equal to the greater of (i) 2% of the Gross Sales of your Franchised Business or (ii) $500 (the "Fund Contribution") to our system-wide marketing fund (the "Fund"). Fund Contributions are due at the same time and in the same manner as the Royalty Fee under the Franchise Agreement.

We use the Fund to develop and implement advertising, marketing, media placement, public relations, website development and maintenance, research, and other promotional activities that we determine are appropriate to promote the CENTRAL BARK brand and franchise system. These activities may include, but are not limited to: production of video, audio, and print advertising; digital marketing (e.g., search engine, social media, email, and display campaigns); development

and maintenance of websites and mobile apps; public relations efforts; and the creation of promotional materials and brand assets.

The Fund may also be used to pay for: (i) reasonable salaries and expenses of our employees who manage or support Fund activities; (ii) interest on borrowed funds; (iii) administrative costs and overhead related to Fund operations; and (iv) software and technology platforms used in marketing. We may produce marketing materials in-house or engage outside agencies. You will receive reasonable quantities of marketing materials at the same cost, terms, and conditions as other franchisees.

We may spend more or less than the total contributions to the Fund in any fiscal year. The Fund may borrow from us or third parties to cover shortfalls or invest surpluses for future use. While it is our intent to spend all contributions in the year received, unspent funds may be carried over to the following year.

During the fiscal year ended December 31, 2024, Fund expenditures were allocated as follows: 0.7% to creative production, 26.2% to website development and maintenance, 48.3% to administrative expenses, 24.8% to media placement and public relations, and 11.5% to other expenses.

The Fund is not a trust and is not our asset. It is accounted for separately from our other funds. We do not owe fiduciary duties to you in administering the Fund and assume no direct or indirect liability for its operation. We will provide an unaudited annual statement of Fund revenues and expenditures upon written request. We do not guarantee that your contributions will result in proportional or direct benefits to your Franchised Business. Our company-owned and affiliateowned locations may contribute to the Fund on a different basis than franchisees, and some franchisees may also contribute on different terms.

We will not use Fund contributions primarily to solicit new franchisees.

Initial Launch Advertising

You must spend a minimum of $26,000 on initial launch advertising during the period beginning 90 days before and ending 180 days after the opening of your Franchised Business. You must use approved vendors and service providers for advertising and promotional activities, which may include digital marketing such as Google Ads, display ads, and retargeting; social media advertising such as Facebook and Instagram; traditional media such as TV, radio, newspapers, magazines, billboards, and direct mail; microsite development and search engine optimization; licensing fees for demographic software; grand opening event coordination; and public relations services.

Local Expenditures

Following the initial launch advertising period, you must spend an amount equal to at least 2% of your annual Gross Sales on local advertising and promotion. These expenditures must be made directly by you and are subject to our approval.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–32)