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.

Technology Maintenance Fee

Our then-current fee that now is $695 per month.

This covers our cost to maintain your landing page without additional charge to you. We may increase this fee at any time and in any amount after first giving you no less than 60 days prior written notice. Payable to our approved vendor or us.

Royalty

The greater of eight percent (8%) of weekly Net Sales, or the Minimum Royalty. The royalty for construction build-back services is the greater of four percent (4%) of Net Sales for these build-back services, or the Minimum Royalty. The royalty on services that you provide for National Accounts is the greater of ten percent (10%) of Net Sales, or the Minimum Royalty.

Renewal Fee

$10,000

Royalty Payment Late Charge

$100 plus interest a rate of one and one half percent (1.5%) per month.

Review And Audit

Actual Costs.

You must pay to us the costs that we incur in reviewing and auditing your records if the review and/or audit performed by us results in a finding that you failed to comply with the terms of your Franchise Agreement. These fees include the actual costs that we incur including, fees for accountants, attorneys, administrative staff, travel, meals, and lodging expenses.

Transfer Fee

Our then-current transfer fee, which is currently $10,000 (the “Transfer Fee”).

All transfers are subject to our approval and require the transferee’s satisfaction of our training requirements.

Initial Training

We provide our Initial Training Program at no cost to you.

Under our pre-opening initial training program we will train you and one of your designated managers at no additional charge. If you request that we provide initial training for additional managers, either before or after the opening of the Franchised Business, you must pay our then- current Training Fee. Initial training is conducted at facilities that we designate and you must pay for all other expenses of your trainees, including salary, travel, and accommodations.

Supplemental Training

If you require additional or supplemental training, you will be required to pay us our then-current training fee, plus expenses. Our current fee is $500 per person per day per day if conducted at the location of your Franchised Business (the “Training Fee”) plus travel and other expenses.

If you require additional or supplemental training, you will be required to pay our Training Fee.

Local Marketing Requirement

The greater of  two percent (2%) of Net Sales from the prior month, or $2,500 per month.

You are required to start spending this amount upon opening the Franchised Business.

Brand Fund Contribution

The greater of three percent (3%) of weekly Net Sales, or $140 per week.

Technology Fee

The then-current Technology Fee, which is currently $300 per month.

Each additional email account after the first two will be an additional $6.00 per email account per month. We reserve the right to increase this fee up to $500 per month.