Common use of Advertising and Public Relations Clause in Contracts

Advertising and Public Relations. Subfranchisor shall require Franchisees within the Territory to operate under CENTURY 21 Real Estate Franchise Agreements which contain provisions obligating them to contribute two percent (2%) of their gross income or at the election of Subfranchisor, a flat monthly fee to the CENTURY 21 China National Marketing and Advertising Fund (hereinafter referred to as the “CNMAF”). Subfranchisor shall require the Territorial Subfranchisors to contribute monthly ten percent (10%) of the service fees collected from their respective Franchisees to the CNMAF or to a separate territorial CNMAF established for the Geographic Areas for which they have been licensed within the Territory. Subfranchisor shall forward to the CNMAF not later than the twentieth (20th) day of each month all advertising contributions collected from its Franchisees and/or the Territorial Subfranchisors on or before the fifteenth (15th) day of each such month, together with an amount equal to ten percent (10%) of the service fees collected by Subfranchisor during the preceding calendar month from its Franchisees, if any, or the amount of CNMAF contributions received from the Territorial Subfranchisors, as the case may be. Subfranchisor shall require that its Franchisees and the Territorial Subfranchisors pay CNMAF contributions by check or otherwise directly to the CENTURY 21 China CNMAF. The parties acknowledge and agree that Subfranchisor shall not be required or obligated in any way to contribute to the CNMAF on any aspect of its receipts from the Territorial Subfranchisors.