What items in the Chop5 Salad Kitchen Disclosure Document relate to advertising obligations for franchisees?

We may, but need not, form advertising cooperatives for the benefit of all Restaurants located in a particular region. We will determine the boundaries of the cooperative. In most instances, the boundaries will coincide with zip codes, designated marketing areas or municipal boundaries. We will specify the manner in which the cooperative is organized and governed. We may choose between: (a) administering the cooperative ourselves; or (b) establishing an advertising council, comprised by the cooperative's members, to administer the cooperative. We may require that the cooperative be administered in accordance with written bylaws, organizational documents or other governing documents that we approve.

If your Restaurant is located within a region subject to an advertising cooperative you must: (a) participate in the cooperative according to its rules and procedures and abide by its decisions; and (b) pay a cooperative advertising fee. We may set the minimum cooperative advertising fee or we may allow the cooperative to set the fee based on majority vote of its members. In either case, the cooperative advertising fee will not exceed your Local Advertising Commitment. All cooperative advertising fees you pay are credited against your Local Advertising Commitment. Any company-owned Restaurant located in the cooperative will contribute on the same basis as franchisees.

You may develop your own advertising and marketing materials and programs, provided we approve them in advance. We must also approve the media you intend to use. You may not use any advertising materials, programs or media that we have not approved. We have 14 business days to review and approve or disapprove advertising and marketing materials and programs you submit for approval. Our failure to approve them within the 14 business-day period constitutes our disapproval.

We will maintain a corporate website to promote our brand. We will also create and host a local webpage to promote your Restaurant, which will be linked to our corporate website. Your webpage will list certain information about your Restaurant, such as address, hours of operation and contact information. We can modify or discontinue our website and/or your local webpage at any time.

Except for the webpage we provide, you may not (a) develop, host, or otherwise maintain a website or other digital presence relating to your Restaurant (including any website bearing any of our Marks); (b) utilize the Internet to conduct digital or online advertising; or (c) engage in ecommerce. However, we do permit you to market your Restaurant through approved social media channels, subject to the following requirements:

• you may only conduct social media utilizing the social media platforms that we approve
• you must strictly comply with our social media policy, as revised from time to time
• you must immediately remove any post we disapprove, even if it complies with our social media policy
• we may require that you contract with and utilize a social media company we designate
• you must provide us with full administrative rights to your social media accounts
• we must retain ownership of all social media accounts relating to your Restaurant

We intend to establish and administer the Brand Fund to promote public awareness of our brand and improve our System. We expect to establish the Brand Fund on the opening date of the first franchised Restaurant. We may use the Brand Fund to pay for any of the following in our discretion:

• developing maintaining, administering, directing, preparing, or reviewing advertising and marketing materials, promotions and programs
• conducting and administering promotions, contests or giveaways
• expanding public awareness of the Marks
• public and consumer relations and publicity
• brand development
• sponsorships
• charitable and nonprofit donations and events
• research and development of technology, products and services
• website development and search engine optimization
• development and maintenance of an ecommerce platform
• development and implementation of quality control programs, including the use of mystery shoppers or customer satisfaction surveys
• conducting market research
• changes and improvements to the System
• the fees and expenses of any advertising agency we engage to assist in producing or conducting advertising or marketing efforts
• collecting and accounting for contributions to the Brand Fund
• preparing and distributing financial accountings of the Brand Fund
• any other programs or activities we deem appropriate to promote or improve the System
• direct and indirect labor, administrative, overhead and other expenses incurred by us and/or our affiliates in relation to any of these activities (including salary, benefits and other compensation of any of our, and any of our affiliate's, officers, directors, employees or independent contractors based upon time spent working on any brand fund matters described above)

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–36)