lable for your review.

National Advertising Fund.

You are obligated to contribute up to 2% of Gross Revenues to the Punch King Fitness National Advertising Fund. Contributions to the Punch King Fitness National Advertising Fund may be used for in-house, national or regional agencies to maintain, administer, research, direct, and prepare advertising and/or promotional activities, including, without limitation, the costs of preparing and conducting advertising campaigns, which may be local, regional or national, in various media; direct mail and outdoor billboard advertising; marketing surveys and other public relations activities; employing advertising agencies to assist therein; product development; and developing and providing promotional and other marketing materials for franchisees in the System. We may be reimbursed for any labor or services we provide to the fund and for any costs we incur for or on behalf of the National Advertising Fund for any labor or services that we provide to the fund and for any costs that we incur for or on behalf of the National Advertising Fund. We may loan the National Advertising Fund additional funds if needed. For each company-owned location (if any), we will contribute to the National Advertising Fund on the same basis as assessments required of comparable franchises within the System. Franchisees who contribute to the fund may obtain a copy of the fund's unaudited financial statements after April 30th of each year upon your written request. Except as disclosed above, neither we nor any affiliate of ours will receive any payment from the fund. We do not use National Advertising Fund dollars to solicit new franchise sales. (Sections IV of the Franchise Agreement).

The National Advertising Fund is intended to maximize general public recognition and acceptance of the Marks for the benefit of all franchisees within the System or a region, as the case may be. In administering

the National Advertising Fund and making expenditures, we are not obligated or required to spend any amount of money in your Territory or ensure that you or any franchise benefits are equivalent or proportionate to the Punch King Fitness National Advertising Fund contributions.

The National Advertising Fund did not collect any contributions in 2023. If excess amounts remain in the National Advertising Funds at the end of the year, the unused monies shall be retained by the National Advertising Fund. All expenditures in the following year(s) shall be made first out of accumulated earnings from the previous year(s), next out of earnings in the current year, and finally from contributions.

Franchise Advisory Council.

We may establish a Franchise Advisory Council. The purpose of the Franchise Advisory Council is to facilitate communication between our franchisees and us, which will lead to mutual growth, development, and profitability of the entire Punch King Fitness System. At your sole expense, you shall participate in local, regional, and national franchise advisory committees or councils if established or sanctioned by us. The Council serves in an advisory capacity only and does not have the authority to establish or modify our policies. We have the power to determine membership, the election of Council Officers, and change or dissolve the Franchise Advisory Council.

Computer Requirements.

You must buy and use Microsoft Windows OS, Impact Wrap Software, and Hardware. PushPress Gym Mangement Software. We estimate the cost of leasing or purchasing the computer system to be $1,500 to $2,000.

You must maintain, repair, upgrade, and update your computer system. Without a contractual limit on frequency and cost, you are required to lease, buy, use, update, and upgrade the computer hardware and software, mobile, internet, and other applications, or other programs that we designate and stipulate. We are not required and do not require our affiliates or third parties to maintain, repair, upgrade, and update your computer system. We estimate the annual costs of any optional or required maintenance updating, upgrading, or support contracts for the cash register or computer systems to be $4,000 — Article X of the Franchise Agreement.

You will use your computer system to maintain information about your customers, prepare proposals and invoices, transmit payment for products or services, maintain the financial records of the franchised business, access internet sites, and communicate with prospective and current customers, suppliers, us, and others via e-mail. You must provide us with independent access to all of the information generated and stored on your computer system if we request it, including the delivery of a backup of your database. There are no contractual limitations on our right to access the information.

Site Selection and Opening.

Punch King Fitness April 26, 2024 32 The site of a Punch King Fitness Training Facility Franchised Business is a 1,500 to 3000 square feet standalone building or space within a shopping center for Boutique Locations, 4,000 to 7,000 square feet space for a Medium Size Location, 7,000 to 10,000 square feet for a Full Fitness location, and 10,000 to 1500 square feet for a Big Box Locations. The Big Box location is our largest size location with between 10,000 to 1500 square feet. We do not select your site.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 28–35)