Common use of Local Advertising Clause in Contracts

Local Advertising. At its expense, Franchise Owner agrees to conduct on an annual basis continuing local advertising in form, content and media approved by Franchisor, in an amount equal to three percent (3%) of Gross Revenues. Franchise Owner shall submit evidence of any such expenditures to Franchisor on an annual basis not later than sixty (60) days after the close of each fiscal year for the preceding fiscal year. In the event that Franchise Owner shall fail to expend such sums on local advertising during any fiscal year, the difference between the amount expended and the amount required to be expended shall be paid to Franchisor, in addition to other amounts payable pursuant to this Agreement.