Are Crisp & Green franchisees required to participate in any Local Marketing programs?

You agree to spend on local advertising and promoting the Franchised Restaurant ("Local Marketing") such amounts as we establish at any time and from time to time, not to exceed four and one-half percent (4.5%) of Gross Sales each

quarter. For these purposes, Local Marketing expenditures include: (a) amounts contributed to advertising cooperatives; and (b) amounts spent for advertising media, such as television, radio, newspaper, billboards, posters, direct mail, yellow pages, collateral promotional and novelty items, advertising on public vehicles, such as cabs and buses, and, if not provided by us, the cost of producing approved materials necessary to participate in these media. You must comply with and participate in any Local Marketing requirements, programs, promotions, or events that we may prescribe from time to time. Local Marketing expenditures do not include amounts spent for items which we, in our reasonable judgment, deem inappropriate for meeting the minimum advertising requirement, including permanent on-premises signs and menu boards, lighting, menus, vehicle maintenance (even though such vehicles may display the Marks), premiums, discounts, free offers, and employee incentive programs. Upon our request, you must provide us with itemization and proof that you are conducting local advertising and also provide an accounting of your Local Marketing expenditures. You will have thirty (30) days in which to provide this information to us from the date of our request. If we determine that you have spent less than the required amount on Local Marketing in a given year, you must pay to us the difference between the amount you were obligated to spend on Local Marketing and the amount you actually spent on Local Marketing.

Source: Item 23 — RECEIPTS (FDD pages 66–252)