Royalty

The greater of $550 per month (Minimum Royalty) or 7% (Percentage Royalty) of “Gross Sales.”

Payable to us by electronic funds transfer (EFT) that is initiated by you through an automated clearinghouse (ACH) transaction. 

SIE Package Maintenance and Renewal Fee

Our then-current fee that now is $15,000.

You are required to maintain all of the SIE Package equipment, which must be repaired and replaced as needed to maintain operation. We may require you to replace all of durable tools and equipment supplied with the original SIE Package, no more often than one time every five years. The content of the package will be available only from an approved supplier, or affiliate, or us. We have the right to increase this fee by any amount without limitation. We will notify you 60 days before a new fee is to be collected.

Late Fee

Our then-current late fee for failure to timely pay that now is 15% per annum of the total amount owed.

Payable to us only if you fail to timely pay the Royalty, National Branding Fee, or any other fee due to us.

Audit Fees

Our then-current fee that is now $750 plus our costs and expenses, including any accountants’ and attorneys’ fees.

Payable to us only if you understate your Gross Sales.

Taxes

Our costs.

If your state assesses them, and except for our income taxes, you will reimburse us for all taxes we pay for products or services we furnish you, or on our collection of the Initial Franchise Fee, the Royalties advertising contributions, or other fees. We will give you written notice if such a tax is levied and will provide commercially reasonable proof of the calculation of the tax.

Transfer Fee

$15,000 Payable to us if you are permitted to transfer your rights to a third party.

Initial Training

We allow three people to take Initial Training. If you wish for more to take it, you will pay our then-current Additional Training Fee.

Additional Training Fee

The then-current fee that is now $1,500 plus your travel room and board if you travel to us.

Local Advertising Fee

The greater of $1,500 or 5% of Gross Sales.

You pay local suppliers, subject to our approval. The Local Advertising Fee will also be used for internet advertising. We may require your expenditures to be used in Regional Advertising Cooperative.

National Branding Fee

Our then-current fee that now is 2% of the Gross Sales.

Used to fund national branding events and advertising materials. We may increase at any time up to no more than 3% of the Gross Sales. We will give you no less than 60 days prior written notice before any increase. Payable to us.

Royalty

Royalty Fee for Mitigation Services will be calculated as follows:

For your first $0 to $249,999.99 of Mitigation Services Gross Receipts - 10%
For your next $250,000 to $499,999.99 of Mitigation Services Gross Receipts - 9%
For your next $500,000 to $749,999.99 of Mitigation Services Gross Receipts - 8%
For your next $750,000 to $999,999.99 of Mitigation Services Gross Receipts - 7%
For your next $1,000,000 to $1,249,999.99 of Mitigation Services Gross Receipts - 6%
For your next $1,250,000 to $1,499,999.99 of Mitigation Services Gross Receipts - 5%
For your next $1,500,000 to $1,749,999.99 of Mitigation Services Gross Receipts - 4%
For any remaining Mitigation Services Gross Receipts of $1,750,000 and over - 3%

Renewal Fee

$5,000

Late Fee (Royalty Fees)

Greater of $10 or 5% per day after the Royalty Fee due, although any rate will not exceed the lower of 18 percent per annum simple interest or the maximum permitted by applicable law

Audit By Franchisor

Cost Of Audit.

Required if audit reveals understatement of Gross Receipts by 5% or more in any month

Taxes

Federal, state or local taxes.

You are required to pay to us (or any subsidiary, affiliate, or designee) promptly and when due the amount of all sales taxes, use taxes, personal property taxes, filing fees or document stamps and similar taxes imposed upon, required to be collected, or paid by us on the account of services or goods furnished by us to you through sale, lease, loan or otherwise or on account of collection by us of the Initial Franchise Fee, Minimum Royalty Fee or any other payments to us under the Franchise Agreement.

Transfer Fee

$25,000 or the then-current Transfer Fee at the time of the transfer

Optional Training Program Fee

We may charge each individual a fee for attending any optional or additional training seminars.

If the seminar is held away from our Florida training center (“PuroClean Academy”), the fee will be determined by dividing the expenses (including salaries) we incur to travel to and stay at the site of the seminar by the number of seminar attendees. If, however, specific sales and marketing training is included in the seminar training, our training expenses may be paid out of the Marketing Fees or may be paid by you.

Local Advertising Fee

2% of Gross Receipts on local advertising and promotion

Marketing Fee

2% of Gross Receipts