What kind of advertising and promotional materials does Red Wagon Club provide to franchisees?

er Membership Agreements (Franchise Agreement, 6.C);

• 1. Approve all advertising and promotional materials used by you to promote your RWC Business and RWC Businesses generally, and provide you with access to advertising, marketing, promotional, and educational materials to be used in such promotion (Franchise Agreement, 11.D);
• 1. Maintain the System Website (as defined below) and list and advertise your RWC Business on all major Internet search engines and consumer review websites (Franchise Agreement, 11.E);
• 1. Host periodic conventions, meetings, and/or ongoing training events that may be held remotely or at a location designated by us (Franchise Agreement, 5.A);
• 1. Administer the Initial Training Program for any Designated Managers hired by you following operation of your RWC Business (Franchise Agreement, 5.A); and
• 1. Provide you with our then-current standard form of Membership Agreement and, through our affiliate, OpCo, enter into Membership Agreements with your RWC Business's Members. (Franchise Agreement, Section 9.I).

Marketing

Affiliate Law Firm Client Relations Program

You must, at your expense, from the effective date of your Franchise Agreement through the date your RWC Business opens, you must spend a minimum of $5,000 on marketing and client relations to the clients of the Affiliate Law Firm Business. You must receive our prior consent for the programs and events and the marketing materials you use in connection with the affiliate law firm client relations program. The amount you spend on the affiliate law firm client relations program will not count towards your other required marketing expenditures.

Brand Fund

We do not currently maintain, nor are we obligated to maintain, a systemwide advertising fund. However, we may elect to establish a Brand Fund to promote the awareness of the Red Wagon Club brand (the "Brand") and RWC Businesses generally. If we establish the Brand Fund, your contribution will be in amounts we periodically specify and will be payable in the same manner as the Program Fee; however, if we establish the Brand Fund, we have the right, at any time and on notice to you, to change the amount you must contribute to the Brand Fund, but we cannot increase the amount you must contribute to the Brand

Fund by more than 10% in any calendar year after we establish the Brand Fund. We anticipate that, if we establish the Brand Fund, your initial Brand Fund contribution would be $500 per month.

If we establish the Brand Fund, we or our affiliates or other designees will direct all programs that are funded by contributions to the Brand Fund, with sole control over the creative concepts, materials, and endorsements used and their geographic, market, and media placement and allocation. We may use contributions to the Brand Fund to pay for preparing and producing materials and electronic or digital media in any form or format that we periodically designate, including but not limited to: administrating online advertising strategies, including developing and maintaining a System Website and mobile apps; administering regional and multi-regional marketing and advertising programs; implementing gift and loyalty programs; and supporting public relations, market research, product development, and other advertising, promotional, social media, creation and publishing of books and other marketing materials; and marketing activities. In our discretion, we may sell you, at reasonable prices, copies of certain materials funded by contributions to the Brand Fund.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–31)