ution of these materials, in which case there will be no additional charge; (c) provide online access to these materials, in which case you must print the materials at your expense; and/or (d) contract with third-party suppliers to create and sell these materials to you.

10.3. Your Marketing Activities.

• (a) Grand Opening Marketing. We will assist you in developing a grand opening marketing plan, which must be approved by us. You must implement a grand opening marketing campaign to promote the opening of your Salon in compliance with the approved grand opening marketing plan and the requirements in the Manual. You must spend at least $5,000 on approved grand opening marketing expenditures during the grand opening period, which commences 30 days before your anticipated opening date and ends 60 days after your opening date. Based on our assessment of your local market conditions and grand opening marketing plan, we may recommend (but not require) that you spend more than the $5,000 minimum.

• (b) Ongoing Marketing. You must participate at your own expense in all advertising, promotional and marketing programs we require, including any advertising cooperative we establish pursuant to §10.4. After opening, you must spend at least 2% of monthly Gross Sales on local advertising to promote your Salon (your "Local Marketing Commitment"). We may increase the Local Marketing Commitment upon 30 days' notice up to a maximum of 3.5% of Gross Sales. We measure your compliance with this requirement on a rolling six-month basis, meaning as long as your average monthly expenditure on local advertising over the six-month period equals or exceeds the Local Marketing Commitment, you are deemed in compliance even if your expenditure in a given month is less than the Local Marketing Commitment. Your

• grand opening marketing expenditure and brand fund fees are in addition to, and not credited towards, your Local Marketing Commitment.

• (c) Advert

Source: Item 23 — RECEIPT (FDD pages 44–190)