video conference or other online or virtual means. (Franchise Agreement, Section 11.C.)

Our Obligations After Opening

After you open your Franchised Business, we will:

• (1) Collect, administer and spend, for advertising and promotional purposes, monies paid by franchised and company-owned Pump It Up Businesses into the Brand Fund, while the Brand Fund is in existence. (Franchise Agreement, Section 9.B.)
• (2) Provide marketing and promotional (brand) guidelines for local store marketing, and provide samples of advertising, marketing, and promotional formats and materials. (Franchise Agreement, Section 9.C.)
• (3) We may change or modify the System, including modifications to the Manuals, the System and the System Standards. Changes to the System and/or System Standards may be communicated to you in conjunction with amendments to the Manuals or through regular, routine or specific communications delivered by us. Our System Standards may regulate (to the extent allowed by law) maximum, minimum and other pricing requirements for the services and products your Pump It Up Business sells. (Franchise Agreement, Sections 10.A and 12.A.)
• (4) Provide additional training for you (or your Operating Principal) and your managerial personnel, which may be conducted in person or via virtual means. (Franchise Agreement, Section 11.C.)
• (5) Provide ongoing recommendations and consultation to you regarding the operation of the Franchised Business through the Manuals, bulletins or other written materials, electronic media, meetings,

seminars, conferences, and telephone or in person conversations at our office or the Franchised Business or another designated location we specify, including via virtual means. (Franchise Agreement, Section 11.F.)

• (6) Provide you with a list of PIU Vendors. (Franchise Agreement, Section 12.D.)
• (7) Conduct inspections of the Franchised Business as we deem appropriate and necessary. (Franchise Agreement, Section 12.F.)

ADVERTISING

The Brand Fund

Pump It Up Businesses have a distinct culture, and the image of the System and Pump It Up Businesses is an important element of the System. We have established an advertising and marketing fund ("Brand Fund") for the enhancement and protection of the System and the Marks, and for the development of advertising, marketing, and public relations programs and materials as we deem appropriate.

Currently, you must make a monthly contribution to the Brand Fund in an amount equal to 2% of your Gross Revenues from the Franchised Business. We may choose to increase this contribution to an amount not to exceed 3% of the Gross Revenues of the Franchised Business. Pump It Up Businesses operated by us and our affiliates also will contribute to the Brand Fund on the same basis as comparable franchisees. From time to time, we or our vendors may deposit into the Brand Fund any rebates or similar allowances paid to us by our vendors, although we have no obligation to do so.

During 2024, Brand Fund income was spent in the following approximate amounts: 26.9% on Multi-Channel Marketing Execution; 17.1% on POpS & Systems Development; 26.6% on Systems Hosting & Licensing; 19.1% on Marketing Data Analysis, Strategy & Consulting; 5.6% on Product Development; and 4.7% on Brand Fund Administration.

We have sole discretion to use the Brand Fund, and the monies in the Brand Fund, for any purpose that we believe will enhance and protect the System and Marks and will improve and increase public recognition and perception of the System and Marks. We will direct (or hire a third party to direct) all programs that the Brand Fund finances, with sole control over the creative concepts, materials, and endorsements used and their geographic, market, and media placement, allocation and coverage (which may be national, regional or local). Our in-house marketing department may prepare or work with advertising agencies to prepare the advertising materials for the Brand Fund.

You may be required to participate in advertising, marketing, social media, promotions, research and public relations programs and national cause marketing partner program events instituted by us or the Brand Fund. Among the programs, concepts, and expenditures for which we may utilize the Brand Fund monies are: (a) creative development and production of print ads, electronic media, commercials, point of purchase materials, direct mail pieces, door hangers, and other advertising and promotional materials; (b) creative development, preparation, production and placement of video, audio, and written materials and electronic media; (c) media placement and buying, including all associated expenses and fees; (d) administering regional and multi-regional marketing and advertising programs; (e) market research and customer satisfaction surveys, including the use of secret shoppers; (f) the development and production of premium items, giveaways, promotions, contests, public relations events, and charitable or nonprofit events; (g) creative development of new program offerings for Pump It Up Businesses; (h) creative development of signage, posters, and individual Pump It Up Business décor items including wall graphics; (i) recognition and awards events and programs; (j) System recognition events, including periodic national and regional conventions and meetings; (k) website, extranet and/or intranet development and maintenance; (l) development, implementation, and maintenance of an electronic commerce website and reservation system

and/or related strategies; (m) retention and payment of advertising and promotional agencies and other outside advisors including retainer and management fees; (n) social media platform development and management; (o) public relations and community involvement activities and programs; (p) expenses of the Franchise Advisory Council (defined below) program; and (q) any other purposes deemed beneficial to the Pump It Up System by Us. All advertising and promotional materials developed by the Brand Fund will be made available to you. We will not use the Brand Fund for the direct solicitation of franchisees, however, advertising and promotional materials may state that information regarding owning a Franchise is available through our website or toll-free telephone number.

We will account for the Brand Fund separately from our other funds; however, we are not required to segregate any Brand Fund monies from our other monies. We will not use the Brand Fund monies for any of our general operating expenses. We and our affiliates may be reimbursed by the Brand Fund for administrative expenses directly related to the Brand Fund's marketing programs, including without limitation, conducting market research, preparing advertising and marketing materials, and collecting and accounting for contributions to the Brand Fund. We may use the Brand Fund to pay the administrative costs of the Brand Fund including managing the advertising, marketing, and promotional programs and payment of outside vendors utilized by the Brand Fund, and we may use the Brand Fund to pay the reasonable salaries and benefits of personnel (including our personnel and our affiliates' personnel) who manage and administer the Brand Fund.

Source: Item 11 — FRANCHISORS'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 30–41)