Does Lees Famous Recipe require franchisees to pay for advertising materials?

Administer the Brand Cooperative Advertising Fund to provide such advertising and advertising material on a national, regional or local basis in accordance with its bylaws. We may require you to pay for some of the advertising materials that we make available to you (Franchise Agreement – Section 5(A)).

In addition to your required contributions to the Brand Cooperative Advertising Fund described above, we may require you to spend or pay us the Local Advertising Expenditure, which may be up to 1% of Gross Sales on approved local advertising and promotion of your Restaurant, exclusive of on-site signs, telephone directory listings, and costs of Products sold at a reduced cost or given away. If we require you to pay us the Local Advertising Expenditure, then we will spend it on your behalf in our sole discretion. Each quarter, or at any other time upon our reasonable request, you must provide us with documentation evidencing that you have spent the minimum amount of Local Advertising Expenditure. (Franchise Agreement – Section (5(B))

All advertising, promotional and marketing materials you use must meet our standards and you must obtain our prior written approval before implementing or using the advertising, promotional or marketing materials (including any Internet, online electronic or social network). You may not use any advertising or promotional materials that we have disapproved. If you use any advertising or promotional materials without submitting those materials to us or if you use materials we disapprove, in addition to any separate remedies we may have, any amounts spent on those materials will not be credited toward your local marketing obligations (Franchise Agreement – Section (5(D))

In the future, we may require you to participate in, support and contribute to the cost of regional cooperative advertising programs that we designate.

As described in Item 5 and Item 7, during the first 90 days following the opening of your Restaurant, you must spend a minimum of $10,000 on a Restaurant opening campaign that we have approved in advance. You will use our designated media vendor (if any) and must implement our recommended media plan (if any) in conducting the Restaurant opening campaign. Ninety days prior to the Restaurant's opening for business, you will submit to us a grand opening advertising marketing plan, in accordance with the requirements set forth in the Operations Manual or as otherwise required by us. We reserve the right to collect the $10,000 directly from you and spend it on your behalf in connection with the Restaurant opening campaign, in which case we will spend the Restaurant opening campaign requirement within 90 days following the opening of your Restaurant. On or before the last day of each month during the first three months of Restaurant operations, you must provide us with an accurate accounting of Restaurant opening campaign (advertising and marketing) expenses.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 34–47)