What is the section number for 'Advertising' in the Lees Famous Recipe Franchise Agreement?

According to the 2025 Lees Famous Recipe Franchise Disclosure Document, the Brand Cooperative Advertising Fund is defined in Section 5(A) of the Franchise Agreement. Additionally, Local Advertising Expenditures are defined in Section 4(D). The document further discusses advertising-related topics in Section 5, which covers Brand Cooperative Advertising Fund, Local Market Advertising, Regional Cooperative Advertising, and Advertising Materials.

Section 5(A) defines the Brand Cooperative Advertising Fund, while Section 4(C) defines the Brand Cooperative Advertising Fund Fee. Section 4(D) defines Local Advertising Expenditures, indicating that advertising responsibilities and fees are addressed in these sections. The franchisee is expected to contribute to advertising efforts, both at the brand level and the local market level.

Lees Famous Recipe retains significant control over advertising methods, media, content, and terms. While franchisees are recommended to spend at least 1% of gross sales on local advertising, Lees Famous Recipe has the right to mandate this expenditure. They can also collect the Local Advertising Expenditure from the franchisee and spend it on their behalf. Franchisees may need to provide documentation proving they've met the minimum local advertising expenditure requirements.

Furthermore, franchisees may be required to participate in regional cooperative advertising programs in the future. Contributions to these regional and local advertising cooperatives can be credited toward local marketing expenditures, as determined by Lees Famous Recipe. The franchisor also reserves the right to modify or dissolve these regional cooperative advertising programs.