Will Cicis keep franchisee contributions to the marketing fund in a separate account?

We may, in our discretion, keep your contributions to the Fund in a separate account but will, in any event, account for them separately from our general operating funds. We will not use the Fund to pay any of our general operating expenses, except for reasonable administrative costs and overhead (if any) that we incur in administering or directing the Fund. We will operate the Fund solely as a conduit for collecting and spending the contributions to the Fund.

We will prepare an annual statement of the Fund's collections and expenses and will make this statement available to you, on your written request, within 120 days after our fiscal year end. We are not required to have the Fund statements audited.

Contributions to the Fund that are not spent in the year in which they are contributed are carried over to succeeding years. Historically, our affiliate has spent virtually all Fund contributions in the year in which they were contributed. Although the Fund is intended to be perpetual, we may

terminate the Fund. We will not terminate the Fund, however, until all Fund monies have been spent for marketing or promotional purposes or returned to the contributors, without interest, based on their respective contributions.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 31–38)