Common use of Advertising Fees Clause in Contracts

Advertising Fees. During the term of each Franchise Agreement signed by the FRANCHISEE pursuant to this Agreement, the FRANCHISEE will pay to COST CUTTERS weekly Advertising Fees, as defined in the Franchise Agreement, equal to a percentage of the weekly Gross Revenues, as defined in the Franchise Agreement, which are received, billed or generated by or from the FRANCHISEE'S Cost Cutters Businesses in the Franchised Area. For the first (1st) through the seventeenth (17th) weeks of the FRANCHISEE'S operation of each of the Cost Cutters Businesses opened and operated pursuant to this Agreement, the FRANCHISEE will pay to COST CUTTERS a weekly Advertising Fee equal to six percent (6%) of the FRANCHISEE'S Gross Revenues. For the eighteenth (18th) through the thirty-fourth (34th) weeks of the FRANCHISEE'S operation of each of its Cost Cutters Businesses, the FRANCHISEE will pay a weekly Advertising Fee equal to five percent (5%) of the FRANCHISEE'S Gross Revenues. For the thirty-fifth (35th) week of the FRANCHISEE'S operation of each of the Cost Cutters Businesses opened and operated pursuant to this Agreement, and thereafter for the balance of the remaining term of the applicable Franchise Agreement, the FRANCHISEE will pay to COST CUTTERS a weekly Advertising Fee equal to four percent (4%) of the FRANCHISEE'S Gross Revenues. Notwithstanding the foregoing, for as long as, but only so long as, the FRANCHISEE owns and operates eleven (11) or more Cost Cutters Businesses, the FRANCHISEE will be obligated to pay weekly Advertising Fees equal to four percent (4%) of the FRANCHISEE'S weekly Gross Revenues for the eleventh (11th) and each subsequent Cost Cutters Business. This reduction in Advertising Fees will apply only to the eleventh (11th) and any subsequent Cost Cutters Businesses owned and operated by the FRANCHISEE and the rates, steps and minimum set forth in the second, third and forth sentences of this Article 4.5 shall never apply to the first ten (10) Cost Cutters Businesses being owned and operated by the FRANCHISEE. The FRANCHISEE will pay Advertising Fees to COST CUTTERS at the applicable rate stated in the preceding sentences, even if the Franchise Agreements signed by the FRANCHISEE specify Advertising Fees that are greater than or different from the Advertising Fees specified herein. With the possible exception of the percentage of the FRANCHISEE'S Gross Revenues which will be payable to COST CUTTERS, the Advertising Fees for each of the FRANCHISEE'S Cost Cutters Businesses will be payable by the FRANCHISEE according to the terms of the applicable Franchise Agreements signed by the FRANCHISEE pursuant to this Agreement.

Advertising Fees. During the term of each Franchise Agreement signed by the FRANCHISEE pursuant to this Agreement, the The FRANCHISEE will pay to COST CUTTERS weekly Advertising Fees, as defined in the Franchise Agreement, Fees equal to a percentage of the FRANCHISEE'S weekly Gross Revenues, as defined Revenues for deposit in the Franchise Agreement, an advertising fund which are received, billed or generated will be administered and controlled exclusively by or from the FRANCHISEE'S Cost Cutters Businesses in the Franchised AreaCOST CUTTERS. For the first (1st) through the seventeenth (17th) weeks of the FRANCHISEE'S operation of each of the its Cost Cutters Businesses opened and operated Business pursuant to this Agreement, the FRANCHISEE will pay to COST CUTTERS a weekly Advertising Fee equal to six percent (6%) of the FRANCHISEE'S Gross Revenues. For the eighteenth (18th) through the thirty-fourth (34th) weeks of the FRANCHISEE'S operation of each of its Cost Cutters BusinessesBusiness pursuant to this Agreement, the FRANCHISEE will pay to COST CUTTERS a weekly Advertising Fee equal to five percent (5%) of the FRANCHISEE'S Gross Revenues. For the thirty-fifth (35th) and each subsequent week of the FRANCHISEE'S operation of each of the its Cost Cutters Businesses opened and operated Business pursuant to this Agreement, and thereafter Agreement for the balance of the remaining term of the applicable Franchise this Agreement, the FRANCHISEE will pay to COST CUTTERS a weekly Advertising Fee equal to four percent (4%) of the FRANCHISEE'S Gross Revenues. Notwithstanding The FRANCHISEE'S failure to pay the foregoingAdvertising Fees will be a material breach of this Agreement. COST CUTTERS will have the right to use the advertising fund monies, in its sole discretion, to purchase and pay for as long asany services or products relating to advertising for Cost Cutters Franchisees, including the purchase of production materials, ad slicks, brochures, radio and television commercials, services provided by advertising agencies, market research and development costs, advertising and promotion development and production (including all costs relating to media costs for television, radio, newspaper, direct mail and point-of-purchase advertising, and all costs of collateral materials required for such advertising), creative costs, product research costs, all costs and expenses incurred in administering the advertising fund (including, but only so long asnot limited to, salaries, travel expenses, office supplies, and related general and administrative expenses), and all other costs relating to the FRANCHISEE owns advertising and operates eleven (11) or more promotion of Cost Cutters Businesses. The use of the monies in the advertising fund and the administration of the advertising fund will be under the absolute direction and control of COST CUTTERS. COST CUTTERS will have the absolute right to determine, in its sole discretion, the FRANCHISEE advertising agencies that will be obligated to pay weekly Advertising Fees equal to four percent (4%) retained, the type, content and frequency of the FRANCHISEE'S weekly Gross Revenues for advertising, and all other matters pertaining to the eleventh (11th) expenditures made by COST CUTTERS from the advertising fund. COST CUTTERS will have no fiduciary duty to the FRANCHISEE with respect to collection or expenditure of the Advertising Fees, and each subsequent any advertising fund will not be a trust or escrow account. COST CUTTERS will not be required to contribute to the advertising fund; however, all Cost Cutters Business. This reduction in Advertising Fees will apply only to the eleventh (11th) and any subsequent Cost Cutters Businesses businesses that are owned and operated by the FRANCHISEE and the rates, steps and minimum set forth in the second, third and forth sentences of this Article 4.5 shall never apply COST CUTTERS will be required to contribute to the first ten (10) Cost Cutters Businesses being owned and operated by advertising fund in accordance with the FRANCHISEEterms of their respective Franchise Agreements. The FRANCHISEE will pay Advertising Fees to COST CUTTERS at the applicable rate stated in the preceding sentences, even if the Franchise Agreements signed paid by the FRANCHISEE specify Advertising Fees that are greater than or different from the Advertising Fees specified herein. With the possible exception of the percentage of the FRANCHISEE'S Gross Revenues which will not be payable refundable to COST CUTTERS, the Advertising Fees for each of the FRANCHISEE'S Cost Cutters Businesses will be payable by the FRANCHISEE according to the terms of the applicable Franchise Agreements signed by the FRANCHISEE pursuant to this Agreementunder any circumstances.

Advertising Fees. During the term of each Franchise Agreement signed by the FRANCHISEE pursuant to this Agreement, the The FRANCHISEE will pay to COST CUTTERS weekly Advertising Fees, as defined in the Franchise Agreement, Fees equal to a percentage of the FRANCHISEE'S weekly Gross Revenues, as defined Revenues for deposit in the Franchise Agreement, an advertising fund which are received, billed or generated will be administered and controlled exclusively by or from the FRANCHISEE'S Cost Cutters Businesses in the Franchised AreaCOST CUTTERS. For the first (1st) through the seventeenth (17th) weeks of the FRANCHISEE'S operation of each of the its Cost Cutters Businesses opened and operated Business pursuant to this Agreement, the FRANCHISEE will pay to COST CUTTERS a weekly Advertising Fee equal to six percent (6%) of the FRANCHISEE'S Gross Revenues. For the eighteenth (18th) through the thirty-fourth (34th) weeks of the FRANCHISEE'S operation of each of its Cost Cutters BusinessesBusiness pursuant to this Agreement, the FRANCHISEE will pay to COST CUTTERS a weekly Advertising Fee equal to five percent (5%) of the FRANCHISEE'S Gross Revenues. For the thirty-fifth (35th) and each subsequent week of the FRANCHISEE'S operation of each of the its Cost Cutters Businesses opened and operated Business pursuant to this Agreement, and thereafter Agreement for the balance of the remaining term of the applicable Franchise this Agreement, the FRANCHISEE will pay to COST CUTTERS a weekly Advertising Fee equal to four percent (4%) of the FRANCHISEE'S Gross Revenues. Notwithstanding The FRANCHISEE'S failure to pay the foregoingAdvertising Fees will be a material breach of this Agreement. COST CUTTERS will have the right to use the advertising fund monies, in its sole discretion, to purchase and pay for as long asany services or products relating to advertising for Cost Cutters Franchisees, including the purchase of production materials, ad slicks, brochures, radio and television commercials, services provided by advertising agencies, market research and development costs, advertising and promotion development and production (including all costs relating to media costs for television, radio, newspaper, direct mail and point-of-purchase advertising, and all costs of collateral materials required for such advertising), creative costs, product research costs, all costs and expenses incurred in administering the advertising fund (including, but only so long asnot limited to, salaries, travel expenses, office supplies, and related general and administrative expenses), and all other costs relating to the FRANCHISEE owns advertising and operates eleven (11) or more promotion of Cost Cutters Businesses. The use of the monies in the advertising fund and the administration of the advertising fund will be under the absolute direction and control of COST CUTTERS. COST CUTTERS will have the absolute right to determine, in its sole discretion, the FRANCHISEE advertising agencies that will be obligated to pay weekly Advertising Fees equal to four percent (4%) retained, the type, content and frequency of the FRANCHISEE'S weekly Gross Revenues for advertising, and all other matters pertaining to the eleventh (11th) and each subsequent expenditures made by COST CUTTERS from the advertising fund. COST CUTTERS will not be required to contribute to the advertising fund; however, all Cost Cutters Business. This reduction in Advertising Fees will apply only to the eleventh (11th) and any subsequent Cost Cutters Businesses businesses that are owned and operated by the FRANCHISEE and the rates, steps and minimum set forth in the second, third and forth sentences of this Article 4.5 shall never apply COST CUTTERS will be required to contribute to the first ten (10) Cost Cutters Businesses being owned and operated by advertising fund in accordance with the FRANCHISEEterms of their respective Franchise Agreements. The FRANCHISEE will pay Advertising Fees to COST CUTTERS at the applicable rate stated in the preceding sentences, even if the Franchise Agreements signed paid by the FRANCHISEE specify Advertising Fees that are greater than or different from the Advertising Fees specified herein. With the possible exception of the percentage of the FRANCHISEE'S Gross Revenues which will not be payable refundable to COST CUTTERS, the Advertising Fees for each of the FRANCHISEE'S Cost Cutters Businesses will be payable by the FRANCHISEE according to the terms of the applicable Franchise Agreements signed by the FRANCHISEE pursuant to this Agreementunder any circumstances.