Is Deck Medic required to conduct advertising or spend any amount on advertising on behalf of the franchisee in their operating territory?

r submission of the written request and sample marketing materials. We are not required to conduct any advertising or spend any amount on your behalf on advertising in your operating territory. (Franchise Agreement, Article 9);

• 1. Franchisee Directed Local Marketing You are not authorized to engage in any marketing unless it is preapproved by us, in our discretion. (Franchise Agreement, Article 9.B.). You are required to engage in local

marketing, and you are required to commit specific minimum amount of funds to your local marketing efforts. In the first year of operation, we will help you develop a plan for advertising, promotions and public relations throughout your Operating Territory and you shall make expenditures in accordance with such plan. Beginning in the second year and continuing every year thereafter, you shall spend 5% of your annual Gross Sales based on the preceding year on the local marketing of your Deck Medic Business to customers located within your Operating Territory and in accordance with our standards and specifications. We will review your local marketing programs and notify you if we approve same. We will make available to you and provide you with access, in the form of a source document, to our approved marketing campaigns, media, and messaging that may be used by you. In those instances where we provide you with access to our marketing campaigns, we provide you with the source designs, copy, and design specifications. However, you will incur the direct costs associated with customizing, duplicating and using such marketing campaigns and in having them printed, distributed and/or placed with media sources. (Franchise Agreement, Article 9);

• 1. Digital Media and Website All digital media and marketing must be approved by us. We will designate for your Operating Territory information about your Deck Medic Business on the www.mydeckmedic.com webpage or such other websites as we may designate for the System. (Franchise Agreement, Article 9.F.);
• 1. National Advertising Fund We may control and administer a national advertising fund (the "National Advertising Fund") (Franchise Agreement, Article 9.A.). As disclosed in Item 6 of this Disclosure Document, you must contribute a monthly sum not to exceed 2% of monthly Gross Sales to the National Advertising Fund. We may use the National Advertising Fund for market studies, research, service development, product development, testing, research studies, technology development, advertising and public relations studies or services, creative production and printing of advertising and marketing materials, advertising copy and commercials, tracking costs, agency fees, administrative costs, which may include reimbursement for direct administrative and personnel costs associated with advertising and public relations, and any other costs associated with the development, marketing and testing of advertising, marketing and public relations materials, and the purchase of media placement, advertising time and public relations materials in national, regional or other advertising and public relations media in a manner determined by us, in our discretion, to be in the best interest of the franchisees and the System. Our company and/or affiliate owned Deck Medic Businesses may but are not required to contribute to the National Advertising Fund. The National Advertising Fund will be required to maintain unaudited financial records detailing its expenditures and will make available to you (no more frequently than one time in any 12-month period) an unaudited accounting of how the monies contributed to the National Advertising Fund were spent each year. We are not required to segregate the National Advertising Fund from our general operating funds and we are not a fiduciary or trustee of the National Advertising Fund. The National Advertising Fund will not be used to directly promote your Deck Medic Business or the marketing area in which your Deck Medic Business will be located. (Franchise Agreement, Article 9.A.). We may utilize the National Advertising Fund to develop and test various media and technologies for potential utilization and/or improvement of the operations of Deck Medic Businesses and the marketing of Deck Medic Businesses. These technology developments and/or improvements may relate, among other things, to our website and to the interaction and potential enhancement of web offerings that may or may not be implemented on behalf of Deck Medic Businesses.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–29)