Common use of ADVERTISING PROGRAM Clause in Contracts

ADVERTISING PROGRAM. 9.4.1 Franchisor shall administratively segregate on its books and records all Advertising Fees received from Operator and all other franchisees of Franchisor. Nothing herein shall be deemed to create a trust fund, and Franchisor may commingle advertising fees with its general operating funds and expend such sums in the manner herein provided. For each Coffeehouse that Franchisor or any of its affiliate operates, Franchisor or such affiliate will similarly allocate to the Advertising Program the amount that would be required to be contributed to the Advertising Program if it were a franchised Coffeehouse. 9.4.2 If less than the total of all contributions and allocations to the Advertising Program are expended during any fiscal year, such excess may be accumulated for use during subsequent years. If Franchisor advances money to the Advertising Program, Franchisor will be entitled to be reimbursed for such advances, including interest at the rate equal to the Franchisor's cost of funds. Each determination by Franchisor of an interest rate hereunder shall be conclusive and binding for all purposes, absent manifest error. 9.4.3 An amount equal to all Advertising Program revenues and allocations will be expended for national, regional, or local advertising, public relations or promotional campaigns or programs designed to promote and enhance the image, identity or patronage of franchised and Franchisor-owned "▇▇▇▇▇▇▇▇ Coffee" Coffeehouses. Such expenditures may include, without limitation (a) to conduct marketing studies, and to produce and purchase advertising art, commercials, musical jingles, print advertisements, point of sale materials, media advertising, outdoor advertising art, and direct mail pamphlets and literature; and

ADVERTISING PROGRAM. 9.4.1 Franchisor Company shall administratively segregate on its books and records all Advertising Fees received from Operator Franchisee and all other franchisees of FranchisorCompany. Nothing herein shall be deemed to create a trust fund, and Franchisor Company may commingle advertising fees Advertising Fees with its general operating funds and expend such sums in the manner herein provided. For each “▇▇▇▇▇▇▇▇ Coffee” Coffeehouse that Franchisor Company or any of its affiliate operates, Franchisor Company or such affiliate will similarly allocate to the Advertising Program Fees in the amount that would be required to be contributed to the Advertising Program paid if it were a franchisee operated a franchised Coffeehouse“▇▇▇▇▇▇▇▇ Coffee” Coffeehouse in the same location. 9.4.2 If Company expends less than the total of all contributions Advertising Fees contributed by franchisees and allocations to the Advertising Program are expended allocated for “▇▇▇▇▇▇▇▇ Coffee” Coffeehouses operated by Company and its affiliates during any fiscal year, such excess may be accumulated for use during subsequent years. If Franchisor Company advances money to the Advertising Programfor advertising, Franchisor Company will be entitled to be reimbursed for such advances, including interest at the rate equal to the FranchisorCompany's cost of funds. Each determination by Franchisor Company of an interest rate hereunder shall be conclusive and binding for all purposes, absent manifest error. 9.4.3 An amount equal to all Company will use Advertising Program revenues and allocations will be expended Fees for national, regional, or local advertising, public relations or promotional campaigns or programs designed to promote and enhance the image, identity or patronage of franchised and FranchisorCompany-owned "“▇▇▇▇▇▇▇▇ Coffee" ” Coffeehouses. Such expenditures may include, without limitation (a) expenditures to conduct marketing studies, and to produce and purchase advertising art, commercials, musical jingles, print advertisements, point of sale materials, media advertising, outdoor advertising art, and direct mail pamphlets and literature; andand (b) a payment to Company or its affiliates, for internal expenses incurred to administer the Advertising Fees. Company shall determine the cost, media, content, format, style, timing, allocation and all other matters relating to such advertising, public relations and promotional campaigns. Nothing herein shall be construed to require Company to allocate or expend Advertising Fees so as to benefit any particular franchisee or group of franchisees on a pro rata or proportional basis or otherwise. Company may make copies of advertising materials available to Franchisee with or without additional reasonable charge, as determined by Company. Any additional advertising shall be at the sole cost and expense of Franchisee. 9.4.4 Upon written request, Company shall furnish to Franchisee within 120 days after the end of each calendar year, a report for the preceding year, prepared and certified correct by an officer of the Company containing the calculations of the Advertising Fees which Company actually expended during such calendar year and the amount remaining which shall be carried over for use during the following year(s).