What is the purpose of the Chicken Guy Brand Fund?

of the Franchised Restaurant and continuing for 60 days after the Franchised Restaurant first opens for business ("Grand Opening Period"), spend at least $10,000 to conduct grand opening advertising in authorized advertising media and for authorized expenditures (as defined in Section 9.F.). Within 10 days after the end of the Grand Opening Period, Franchisee shall submit proof of such grand opening advertising expenditures to Chicken Guy.

B. Contributions/Expenditures by Franchisee. During the term of this Agreement, Franchisee shall have a weekly marketing obligation ("WMO") in an amount up to 5% of the Gross Sales of the Franchised Restaurant as set forth in this Section 9 and in the attached Data Sheet. As of the Effective Date, Franchisee's WMO is 4% of the Gross Sales of the Franchised Restaurant; all of which must be spent on local store marketing in accordance with Section 9.F. Following written notice to Franchisee, Chicken Guy may increase and reallocate the WMO among the Brand Fund in accordance with Section 9.C., a Regional Advertising Fund (or a Regional Co-op) in accordance with Sections 9.D. and 9.E., and/or local store marketing.

C. Brand Fund.

• (1) Chicken Guy plans to establish the Chicken Guy! marketing and brand fund for the enhancement and protection of the System and the Proprietary Marks, and for the creation and development of advertising, marketing and public relations, research and related programs, activities and materials that Chicken Guy, in its sole discretion deems appropriate ("Brand Fund"). When established, Franchisee shall contribute the amount set forth in the attached Data Sheet to the Brand Fund (up to a maximum annual contribution of $30,000 during each of Chicken Guy's fiscal years), which amount may be modified by Chicken Guy in accordance with Section 9.B. Chicken Guy will have sole discretion to use the Brand Fund, and the monies in the Brand Fund, for any purpose that Chicken Guy deems will enhance and protect the System and Proprietary Marks and will improve and increase public recognition and perception of the System and Proprietary Marks. Chicken Guy! Restaurants operated by Chicken Guy and its affiliates shall contribute to the Brand Fund on the same basis as comparable franchisees.
• (2) Chicken Guy (or its designee) shall direct all programs that the Brand Fund finances, with sole control over the creative concepts, materials, and endorsements used in those programs and their geographic, market, and media placement and allocation. Franchisee must participate in all advertising, marketing, promotions, research and public relations programs instituted by the Brand Fund. Franchisee agrees that Chicken Guy may utilize the Brand Fund for programs, concepts, and expenditures including, but not limited to: (1) creative development and production of print ads, commercials, radio spots, point of purchase materials, direct mail pieces, door hangers, and other advertising and marketing materials; (2) creative development, preparation, production and placement of video, audio, and written materials and electronic media; (3) media placement and buying, including all associated expenses and fees; (4) administering regional and multi-regional marketing and advertising programs; (5) market research and customer satisfaction surveys, including the use of secret shoppers; (6) the creative development of, and actual production associated with, premium items, giveaways, promotions, contests, public relation events, and charitable or nonprofit events; (7) creative development of signage, posters, and individual restaurant décor items including wall graphics and signage; (8) development and management of a kiosk or truck program; (9) website, extranet and/or intranet development and maintenance; (10) development, implementation, and maintenance of an electronic commerce website and/or related strategies; (11) development and implementation of search engine optimization strategies; (12) development and administration of consumer surveys, interviews and other customer satisfaction and retention policies; (13) retention and payment of advertising and marketing agencies and other outside advisors including retainer and management fees; (14) public relations and community involvement activities and programs; and (15) real estate analytics and modeling. From time to time, Chicken Guy or its designee may furnish

Franchisee with marketing, advertising and promotional materials at the cost of producing them, plus any related shipping, handling and storage charges. Franchisee shall not modify any of these materials without Chicken Guy's prior written consent.

D. Regional Advertising Funds.

• (1) Chicken Guy shall have the right, in its sole discretion, to establish one or more regional advertising funds for Chicken Guy! Restaurants ("Regional Advertising Funds).

Source: Item 22 — CONTRACTS (FDD page 50)