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  • Will You Add? - The Franchise Agreement and The Promotional Fund with Franchisee Contributions

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    ar Wash Guys System promotional fund (the “Promotional Fund”), if and when established, one hundred dollars ($100) per calendar month. Promotional Fund contributions are due and payable in full at the
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    The world a franchising is quite an industry full of litigation. One of the favorites of franchisee attorneys in class-action lawsuits used to sue the franchisor for misuse of the promotional funds, which the franchisees have contributed to. There are a number of huge cases with large settlements, some of which have nearly bankrupted the franchisee company.

    It is for this reason that I decided to upgrade the clauses in our franchisee agreement and the information on the promotional fund and its contributions in the confidential operations manual. Here below is a copy of the clauses that I inserted into my franchisee company’s franchise agreements;

    2.3 Promotional Fund

    2.3.1 Franchisee Contributions

    Franchisee will pay to Franchisor each month as a contribution to a Car Wash Guys System promotional fund (the “Promotional Fund”), if and when established, one hundred dollars ($100) per calendar month. Promotional Fund contributions are due and payable in full at the

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    which the franchisees have contributed to. There are a number of huge cases with large settlements, some of which have nearly bankrupted the franchisee company.

    It is for this reason that I decided to upgrade the clauses in our franchisee agreement and the information on the promotional fund and its contributions in the confidential operations manual. Here below is a copy of the clauses that I inserted into my franchisee company’s franchise agreements;

    2.3 Promotional Fund

    2.3.1 Franchisee Contributions

    Franchisee will pay to Franchisor each month as a contribution to a Car Wash Guys System promotional fund (the “Promotional Fund”), if and when established, one hundred dollars ($100) per calendar month. Promotional Fund contributions are due and payable in full at the

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    ded to upgrade the clauses in our franchisee agreement and the information on the promotional fund and its contributions in the confidential operations manual. Here below is a copy of the clauses that I inserted into my franchisee company’s franchise agreements;

    2.3 Promotional Fund

    2.3.1 Franchisee Contributions

    Franchisee will pay to Franchisor each month as a contribution to a Car Wash Guys System promotional fund (the “Promotional Fund”), if and when established, one hundred dollars ($100) per calendar month. Promotional Fund contributions are due and payable in full at the

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    I inserted into my franchisee company’s franchise agreements;

    2.3 Promotional Fund

    2.3.1 Franchisee Contributions

    Franchisee will pay to Franchisor each month as a contribution to a Car Wash Guys System promotional fund (the “Promotional Fund”), if and when established, one hundred dollars ($100) per calendar month. Promotional Fund contributions are due and payable in full at the

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    ar Wash Guys System promotional fund (the “Promotional Fund”), if and when established, one hundred dollars ($100) per calendar month. Promotional Fund contributions are due and payable in full at the same time and in the same manner as continuing royalty fees. Payments of Promotional Fund contributions are not refundable.

    2.3.2 Use

    Franchisor will not commingle Promotional Fund contributions with its general funds, but will hold all Promotional Fund contributions from all its Franchisees in one or more designated accounts.

    The Promotional Fund may be used as determined by Franchisor:

    (a) to purchase national, regional, and local advertising in broadcast, print, internet and electronic media;

    (b) to be used exclusively to meet any and all costs of maintaining, administering, researching, directing and preparing advertising and/or promotional activities (including, among other things, the costs of preparing and conducting television, radio, magazine, newspaper

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