Common use of Local Advertising Clause in Contracts

Local Advertising. In addition to payment of the Advertising Fees required by Article 6.1 above, each quarter the FRANCHISEE must spend at least one percent (1%) of its Gross Revenues for approved local media advertising and promotion. All local media advertising and promotions conducted by the FRANCHISEE must conform to COST CUTTERS' standards for media advertising and promotions. On or before the tenth (10th) day following the end of each quarter, the FRANCHISEE will furnish to COST CUTTERS, in the form prescribed by COST CUTTERS, an accurate accounting of the FRANCHISEE'S previous quarter's expenditures for approved local media advertising and promotion. If the FRANCHISEE has failed to spend at least one percent (1%) of its Gross Revenues for approved local media advertising and promotion as required under this Article, then the FRANCHISEE will be required to deposit with COST CUTTERS the difference between one percent (1%) of its Gross Revenues and what it actually spent for such advertising, and this amount will be spent by COST CUTTERS in the FRANCHISEE'S area for any type of advertising or promotion that COST CUTTERS deems to be in the best interests of the FRANCHISEE'S Business.