Is Clear Pest Pros required to spend any amount on advertising in a franchisee's territory?

Local Marketing and Advertising*

Except for the marketing provided in the Initial Package, we are not required to conduct advertising for you or the System. We are not required to spend any amount on advertising in your Territory. We may provide you with advertising, promotional or marketing materials for you to use in

local advertising, but we are not obligated to do so. We will provide you, in exchange for your payment of the Technology Fee, the business phone number to be used by the Clear Pest Pros Business. This number will be forwarded to any device(s) that you choose.

You agree to actively advertise and promote the Business within the Territory. We may require you to expend a minimum amount each month on marketing, advertising, and promotional programs at the local level and, in general, recommend that you spend amounts in excess of 3% on local marketing and advertising. You must use our approved advertising and marketing materials, or receive our written approval of any and all other advertising and marketing materials before their first use. In order to obtain approval of advertising and marketing materials, you must submit such proposed advertising material to us for review at least ten business days before the proposed first use. If we take no action within such ten business day period, the materials shall be deemed disapproved, and you may not use such materials. The approval or disapproval is in our sole discretion. We also may, in our sole discretion, require you to immediately discontinue use of any advertising or marketing materials at any time, even if previously approved or provided by us. All advertising and marketing materials must meet our then-current standards and specifications. We may, in our sole discretion, offer and sell advertising, marketing, and promotional materials at any time. Certain items, such as your truck, and yard signs must reference the Clear Pest Pros national toll free number. You may not alter or remove reference to the national toll free number. You have no obligation to purchase any of these materials or forms from us, but you may be required to purchase such materials from approved or designated suppliers, or participate in our local marketing programs, like our call center and/or direct mail solicitations at your expense. (Section 2.G of the Franchise Agreement).

Following the System, primarily through affinity marketing programs, direct mail, networking, and sales calls, you will market your Clear Pest Pros Business's services directly to residences, commercial entities and governments/municipalities located within the Territory. Included in your Initial Package is an opening inventory of promotional materials to initiate your marketing program.

We do not currently require you to participate in an advertising cooperative, however we reserve the right to implement cooperatives in the future and require you to participate. If and when a cooperative is established, governing documents will be provided, explaining who will administer the cooperative, the sum franchisees' must contribute, and other requirements of participation. If developed in your area, you may be required to contribute up to two percent (2%) of Gross Sales to such cooperative. Company-owned locations may participate in such cooperatives, in our sole discretion, but shall not have controlling voting power.

If two or more Clear Pest Pros Businesses and/or Company Stores are serviced by the same telephone directory, we will require you to list all businesses under one Clear Pest Pros heading. Should this instance arise, you promise to pay your pro-rata share of the total expense of the joint listing. Any other forms of advertising that would also advertise to zip-codes both inside and outside of the Territory must be pre-approved by Clear Pest Pros in writing. We will notify you within ten days of our receipt of your written request. If we do not respond within ten days, the material is unapproved. Additionally, if we implement local marketing programs, like a call center and/or direct mail solicitations, you may be required to participate, at your expense.

We encourage you to be a member of at least one local or community-based business organization, such as your local Chamber of Commerce, BNI, Caerusnet, or similar organization.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 40–49)