Source: Franopolis

American Family Care

Sources2026 FDD Research

FDD Edition2026Sources

What It Costs

Where Your Startup Money Goes

Cost	Disclosed Amount	Source
New Center: travel and living expenses while training lower estimate	$0 to $3,000	2026 FDD · PDF Page 23 Lump sum On execution of Franchise Agreement Us Travel and Living Expenses While Training (2) $0 to $3,000
New Center: Insurance lower estimate	$14,500 to $21,000	2026 FDD · PDF Page 24 As incurred As incurred Third Parties Insurance (11) $14,500 to $21,000
New Center: Office Equipment and Computer System lower estimate	$12,000 to $40,000	2026 FDD · PDF Page 23 As incurred When ordered Third-Party Suppliers Office Equipment & Computer System (9) $12,000 to $40,000
New Center: Lease Review Fee lower estimate	$0 to $1,000	2026 FDD · PDF Page 23 As incurred, via cash or credit When you sign your lease, or start up an account with utility company Landlord, Utilities Lease Review Fee (4) $0 to $1,000
New Center: Business Licenses and Permits lower estimate	$500 to $2,500	2026 FDD · PDF Page 23 As incurred As incurred Us Business License & Permits (10) $500 to $2,500
New Center: Credentialing lower estimate	$4,500 to $7,000	2026 FDD · PDF Page 24 As incurred As incurred Third Parties Credentialing (13) $4,500 to $7,000
Legal/ Professional Fees	$15,000 to $25,000	2026 FDD · PDF Page 24 Legal/ Professional Fees $15,000 to $25,000
New Center: Additional Funds for three months lower estimate, net of estimated operating revenue	$200,000 to $500,000	2026 FDD · PDF Page 24 As incurred As incurred Third-Parties Additional Funds (3 months) (14) $200,000 to $500,000
New Center: Signage lower estimate	$8,000 to $30,000	2026 FDD · PDF Page 23 As incurred As incurred Third Parties Signage $8,000 to $30,000
New Center: medical equipment and supplies from affiliates lower estimate	$80,000 to $145,000	2026 FDD · PDF Page 23 Lum sum As incurred Us Medical Equipment & Supplies (5) $80,000 to $145,000
New Center: Furniture, Fixtures and Appliances lower startup estimate	$10,000 to $17,000	2026 FDD · PDF Page 23 As incurred When ordered Third-Party Suppliers Furniture, Fixtures, and Appliances (8) $10,000 to $17,000
New Center: total initial investment lower estimate, excluding finance charges and debt service	$948,250 to $1,514,000	2026 FDD · PDF Page 24 As incurred As incurred Employees and Third-Party Suppliers Total (15) $948,250 to $1,514,000
New Center: Grand Opening Spend Requirement lower estimate	$35,000 to $50,000	2026 FDD · PDF Page 23 As incurred When ordered Third-Party Suppliers Grand Opening Spend Requirement $35,000 to $50,000
Initial Franchise Fee (1)	$60,000	2026 FDD · PDF Page 23 Initial Franchise Fee (1) $60,000
New Center: Lease, Utility and Security Deposits lower estimate	$6,000 to $10,000	2026 FDD · PDF Page 23 As incurred, via cash or credit During training Third-Party Suppliers Lease, Utility and Security Deposits (3) $6,000 to $10,000
New Center: medical equipment and supplies from third-party suppliers	$30,000	2026 FDD · PDF Page 23 Lum sum As incurred Our Affiliates (AFCLLC and AFCP, as applicable) Medical Equipment & Supplies (5) $30,000
New Center: Construction Management Services Fee if applicable	$50,000	2026 FDD · PDF Page 23 As incurred, via cash or credit As incurred Third-Party Suppliers Construction Management Services Fee (6) $50,000
New Center: Recruitment lower estimate	$3,000 to $50,000	2026 FDD · PDF Page 24 As incurred Before opening Third Parties Recruitment (12) $3,000 to $50,000
New Center: Construction lower estimate	$419,750 to $472,500	2026 FDD · PDF Page 23 ACH or Wire Transfer On execution of Franchise Agreement Us Construction (7) $419,750 to $472,500

Line items are shown as disclosed. Some costs overlap or apply to different formats; do not add them together without reviewing the source.

Sources

Fees And Payment Terms

Fee	Disclosed Terms	Source
Initial franchise fee for each additional franchise after first additional franchise under compliant Area Development Agreement	ITEM 5 INITIAL FEES Initial Franchise Fee - $45,000 to $60,000 You must pay us an initial franchise fee (the “Initial Franchise Fee”) of $60,000. The Initial Franchise Fee is subject to reduction in the following circumstances: Area Development Agreement: If, when you sign the Franchise Agreement (the “Initial Franchise Agreement”), you also sign an Area Development Agreement to acquire additional Franchises (each an “Additional Franchise”), and provided you remain in compliance with your obligations under the Area Development Agreement, the Initial Franchise Fee for the Initial Franchise Agreement will remain at $60,000, but for each such Additional Franchise you acquire pursuant to and during the initial term of the Area Development Agreement, the Initial Franchise Fee will be reduced as follows: 1 st Additional Franchise, $50,000; and each subsequent Additional Franchise, $45,000.	2026 FDD · PDF Page 16
Additional/replacement or supplemental training fee per Center Administrator	ing materials for your Center. Fee for providing (i) initial training to additional, replacement Operating Principal and Center Administrator(s); and (ii) supplemental or on-going training Currently, $1,500 per Center Administrator and $750 per Operating Principal and other attendees. We may increase these amounts upon notice to you, but any increase will not exceed $3,000 per trainee. If we send our trainer to your Center, then in addition to the above fee you will also pay $1,500 per trainer per day, plus the travel and living expenses incurred by the trainers in providing training at your Center. Prior to attending training We do not charge any fee for providing initial training to you, your initial Operating Principal (as defined in Item 15), and your initial Center Administrator (as defined in Item 15), but we may charge a fee for providing initial training to any replacement person	2026 FDD · PDF Page 19
Franchise transfer fee without franchisor/agent facilitation: dollar minimum, greater of this or stated initial-fee percentage	ot they actually attend the event. Successor Franchise Fee $5,000 or 10% of the then- current Initial Franchise Fee, whichever is higher. Upon renewal Transfer Fee (Franchise Agreement) The higher of $10,000 or 10% of the then-current Initial Franchise Fee if the transfer is not facilitated by us or our agents; or the higher of $25,000 or 10% of the then-current Initial Franchise Fee if the transfer At time of transfer The transfer fee will be waived for transfer of the franchise agreement to an entity in which you own 100% of the ownership interest and any transfer arising from your death or disability.	2026 FDD · PDF Page 19
Franchise transfer without franchisor/agent facilitation: percent of then-current initial fee, subject to dollar minimum	ually attend the event. Successor Franchise Fee $5,000 or 10% of the then- current Initial Franchise Fee, whichever is higher. Upon renewal Transfer Fee (Franchise Agreement) The higher of $10,000 or 10% of the then-current Initial Franchise Fee if the transfer is not facilitated by us or our agents; or the higher of $25,000 or 10% of the then-current Initial Franchise Fee if the transfer At time of transfer The transfer fee will be waived for transfer of the franchise agreement to an entity in which you own 100% of the ownership interest and any transfer arising from your death or disability.	2026 FDD · PDF Page 19
Area Development Agreement transfer fee	FC Franchising, LLC 2026 Franchise Disclosure Document 1579.002.004/451593 Type of Fee ( Note 1 ) Amount Due Date Remarks is facilitated by us or our agents. Transfer Fee (Area Development Agreement) $25,000 At time of transfer Interest on Overdue Amounts Lesser of 1.5% per month or the highest commercial contract interest rate permitted by law. Upon demand Accrues on all past-due amounts until paid. Re-inspection Costs Costs of any follow-up reviews, corrective action oversight, or remediation activities We will bear the cost of routine inspections the we conduct; however, if any inspection reveals non-compliance with System Standards or applicable laws, we may require you to pay the cost of any follow-up reviews, corrective action oversight, or remediation activities we undertake in connection with such non-compliance. Audit Costs Costs of the examination Upon demand Payable only if an	2026 FDD · PDF Page 20
Lease Review Fee range: lower bound	be and the amount you are likely to spend to complete the conversion. In each case, the Initial Franchise Fee is non-refundable and payable on execution of the Franchise Agreement. Lease Review Fee - $0 to $1,000 If the landlord of your Center requires changes to our standard Lease Addendum, a copy of which is attached hereto as Exhibit J, you must pay us a lease review fee of $1,000 to offset the expenses we incur to conduct the review. The lease review fee will be payable in a lump sum and is non-refundable. Medical Equipment and Supplies - $80,000 to $145,000 AFCLLC and AFCP sell certain medical equipment and supplies to our franchisees that collectively cost $80,000 to $145,000 depending on then-current available services, purchase quantities, and delivery location. This amount is paid in a lump sum and is non-refundable. Construction Management Services Fee (New Center) - $50,000 Fo	2026 FDD · PDF Page 17
Construction Management Services Fee for new Center, if required for applicable first two agreements	depending on then-current available services, purchase quantities, and delivery location. This amount is paid in a lump sum and is non-refundable. Construction Management Services Fee (New Center) - $50,000 For each of the first two (2) Franchise Agreements you sign, we may, in our discretion, require you to allow us or our designee to provide certain oversight services related to the development of your Center, including, for example, site selection activities, selection and appointment of an architect and general contractor, review of construction bids, supervision of construction, and general oversight of the construction process. If we elect to provide those services you must pay us a fee, under each Franchise Agreement for which we elect to provide the services, in the amount of $50,000 (the “Construction Management Services Fee”); provided, however, if the services are provided in	2026 FDD · PDF Page 17
Additional/replacement or supplemental training fee per Operating Principal or other attendee	or providing (i) initial training to additional, replacement Operating Principal and Center Administrator(s); and (ii) supplemental or on-going training Currently, $1,500 per Center Administrator and $750 per Operating Principal and other attendees. We may increase these amounts upon notice to you, but any increase will not exceed $3,000 per trainee. If we send our trainer to your Center, then in addition to the above fee you will also pay $1,500 per trainer per day, plus the travel and living expenses incurred by the trainers in providing training at your Center. Prior to attending training We do not charge any fee for providing initial training to you, your initial Operating Principal (as defined in Item 15), and your initial Center Administrator (as defined in Item 15), but we may charge a fee for providing initial training to any replacement personnel and for providing any additional	2026 FDD · PDF Page 19
Lost Revenue Damages alternative base: percent of highest monthly Net Payments in preceding full-year period, subject to formula	14 AFC Franchising, LLC 2026 Franchise Disclosure Document 1579.002.004/451593 Type of Fee ( Note 1 ) Amount Due Date Remarks Center, or (ii) 75% of the highest monthly Net Payments during the 12 full calendar months immediately preceding the last date of regular operations at your Center; provided, that if as of the last date of regular operations at your Center, your Center has not been operating for at least 12 months, then Royalty and Marketing Fee will be calculated based on the highest average monthly Net Payments of all American Family Care Centers operating under the Marks during the 12 months immediately preceding the termination date.	2026 FDD · PDF Page 22
Additional opening assistance fee per trainer per day plus travel and living expenses	al training to any replacement personnel and for providing any additional training to you, your Operating Principals, Center Administrators, and other attendees. Fee for additional opening assistance $1,500 per trainer per day, plus the travel and living expenses incurred by the trainers in providing such assistance to you. As incurred This amount is payable if, in our discretion, we provide opening assistance in addition to the opening assistance that we are required to provide under the Franchise Agreement. Conference Registration Fee $1,000 per person for 2 required attendees per Center; subject to increase based on third-party costs incurred by us. ACH approximately 90 days prior to the conference date We require at least two (2) attendees per Center at each such event and may designate that one attendee be your Operating Principal and the other your Center Administrator. All registr	2026 FDD · PDF Page 19
Franchise transfer facilitated by franchisor/agents: percent of then-current initial fee, subject to dollar minimum	n renewal Transfer Fee (Franchise Agreement) The higher of $10,000 or 10% of the then-current Initial Franchise Fee if the transfer is not facilitated by us or our agents; or the higher of $25,000 or 10% of the then-current Initial Franchise Fee if the transfer At time of transfer The transfer fee will be waived for transfer of the franchise agreement to an entity in which you own 100% of the ownership interest and any transfer arising from your death or disability.	2026 FDD · PDF Page 19
Construction Management Services Fee for Conversion Center: lower range bound	0,000 (the “Construction Management Services Fee”); provided, however, if the services are provided in connection with a Conversion Center, the Construction Management Services Fee will be reduced to $5,000 to $10,000 depending on the size and condition of your Conversion Center. The Construction Management Services Fee is for our or our designee’s services and not for any expenses you incur in connection with the development or conversion of your Centers. The Construction Management Services Fee is due and payable, in lump sum, on execution of the applicable Franchise Agreement and is not refundable. Grand Opening Spend Requirement - $35,000 to $50,000 Within 10 days of signing the approved lease for your Center, you must pay to us $35,000 in lump sum as a non-refundable grand opening spend fee (the “Grand Opening Spend Requirement”). If you are purchasing an existing Center, the Grand	2026 FDD · PDF Page 17
Insurance procurement administrative fee as percent of premiums when franchisor obtains coverage	13 AFC Franchising, LLC 2026 Franchise Disclosure Document 1579.002.004/451593 Type of Fee ( Note 1 ) Amount Due Date Remarks fee of 10% of the amount of the premiums. and you must reimburse us for all premiums, costs and expenses we incur in obtaining and maintaining the insurance, plus a reasonable fee for our time incurred in obtaining the insurance. Reimbursement of Cost Associated Data Extraction The actual amount that we pay to the vendor. On Demand Payable if we make a data extraction request to the EMR provider for your Center. Reimbursement of Costs Our actual cost As incurred Unless otherwise mentioned in the Franchise Agreement, you must reimburse us for all costs that we may incur on your behalf. Reimbursement of Costs Associated with Step-In- Rights The actual costs/expenses we incur in connection with taking	2026 FDD · PDF Page 21
Initial franchise fee for subsequent additional franchises under compliant Area Development Agreement	ITEM 5 INITIAL FEES Initial Franchise Fee - $45,000 to $60,000 You must pay us an initial franchise fee (the “Initial Franchise Fee”) of $60,000. The Initial Franchise Fee is subject to reduction in the following circumstances: Area Development Agreement: If, when you sign the Franchise Agreement (the “Initial Franchise Agreement”), you also sign an Area Development Agreement to acquire additional Franchises (each an “Additional Franchise”), and provided you remain in compliance with your obligations under the Area Development Agreement, the Initial Franchise Fee for the Initial Franchise Agreement will remain at $60,000, but for each such Additional Franchise you acquire pursuant to and during the initial term of the Area Development Agreement, the Initial Franchise Fee will be reduced as follows: 1 st Additional Franchise, $50,000; and each subsequent Additional Franchise, $45,000.	2026 FDD · PDF Page 16
Technology Fee: current monthly amount	er related expenses. As incurred Payable if we choose to take over the operations of your Center due to your breach of the Franchise Agreement (or your death or disability). Technology Fee Currently, $767 per month but subject to increase by an amount not exceeding 1% of the Center’s Net Payments. Monthly We charge you a recurring technology fee ASP Hosting Fee Our actual cost As incurred Payable if we retain a third-party provider, or an Applications Service Provider (“ASP”) or a Managed Services Provider (“MSP”) to provide some or all of the computer and network service for the Centers. Lost Revenue Damages Will vary. See Remarks column for the formula for calculating the Lost Revenue Damages. Payable within 15 days of termination of Franchise Agreement Payable if we terminate the Franchise Agreement for your breach or you terminate it without cause. Lost Revenue Damages is an amount e	2026 FDD · PDF Page 21
Audit cost trigger: understated Net Payments by at least stated percent	ecessary due to your failure to timely furnish reports, supporting records, or other information as required under the Franchise Agreement or if our audit reveals that you understated Net Payments by 5% or more for the period examined. Indemnification Varies Upon demand You will defend, indemnify, and hold harmless us and our related parties against any third-party claims arising out of the operation of your Center, the business you conduct pursuant to the Franchise Agreement, Management Services Agreement, or your breach of the Franchise Agreement. Costs and Attorneys’ Fees Actual Cost Upon demand Reimbursement of the costs and expenses that we and our related parties incur due to your failure to pay amounts owed to us, to submit any reports, information, or supporting records, or otherwise to comply with the Franchise Agreement, and reimbursement of costs and expenses that we may be aw	2026 FDD · PDF Page 20
Technology Fee increase: maximum percent of Center's Net Payments	the operations of your Center due to your breach of the Franchise Agreement (or your death or disability). Technology Fee Currently, $767 per month but subject to increase by an amount not exceeding 1% of the Center’s Net Payments. Monthly We charge you a recurring technology fee ASP Hosting Fee Our actual cost As incurred Payable if we retain a third-party provider, or an Applications Service Provider (“ASP”) or a Managed Services Provider (“MSP”) to provide some or all of the computer and network service for the Centers. Lost Revenue Damages Will vary. See Remarks column for the formula for calculating the Lost Revenue Damages. Payable within 15 days of termination of Franchise Agreement Payable if we terminate the Franchise Agreement for your breach or you terminate it without cause. Lost Revenue Damages is an amount equal to the net present value of the Royalty and Marketing Fee tha	2026 FDD · PDF Page 21
Conference registration fee per person, payable for required attendees regardless of attendance	amount is payable if, in our discretion, we provide opening assistance in addition to the opening assistance that we are required to provide under the Franchise Agreement. Conference Registration Fee $1,000 per person for 2 required attendees per Center; subject to increase based on third-party costs incurred by us. ACH approximately 90 days prior to the conference date We require at least two (2) attendees per Center at each such event and may designate that one attendee be your Operating Principal and the other your Center Administrator. All registration fees are non-refundable and payable for at least 2 attendees regardless of whether or not they actually attend the event. Successor Franchise Fee $5,000 or 10% of the then- current Initial Franchise Fee, whichever is higher. Upon renewal Transfer Fee (Franchise Agreement) The higher of $10,000 or 10% of the then-current Initial Franchi	2026 FDD · PDF Page 19
Area Development Fee as headed in the initial-fees section	Area Development Fee - $47,500 If, in addition to signing a Franchise Agreement, you sign an Area Development Agreement to acquire Additional Franchises, you must pay us a development fee in an amount equal to $25,000 for the 1 st Additional Franchise, $22,500 for the 2 nd and 3 rd Additional Franchises, and $18,000 for each other Additional Franchise you agree to acquire. We will credit the development fee, in increments equal to the amount of the fee paid for the applicable Additional Franchise, toward payment of the Initial Franchise Fee owed under the applicable Franchise Agreement you sign in satisfaction of the Area Development Agreement. The development fee is payable in a lump sum when you sign the Area Development Agreement and is not refundable.	2026 FDD · PDF Page 18
Area development fee for second and third additional franchises, per franchise, credited toward initial fee	Area Development Fee - $47,500 If, in addition to signing a Franchise Agreement, you sign an Area Development Agreement to acquire Additional Franchises, you must pay us a development fee in an amount equal to $25,000 for the 1 st Additional Franchise, $22,500 for the 2 nd and 3 rd Additional Franchises, and $18,000 for each other Additional Franchise you agree to acquire. We will credit the development fee, in increments equal to the amount of the fee paid for the applicable Additional Franchise, toward payment of the Initial Franchise Fee owed under the applicable Franchise Agreement you sign in satisfaction of the Area Development Agreement. The development fee is payable in a lump sum when you sign the Area Development Agreement and is not refundable.	2026 FDD · PDF Page 18
Grand Opening Spend Requirement including optional initial social media program: upper amount	mine. We also recommend implementing an optional social media program for the initial marketing of your Center, and if you agree to do so then your total Grand Opening Spend Requirement will be up to $50,000.	2026 FDD · PDF Page 17
Standard initial franchise fee	ITEM 5 INITIAL FEES Initial Franchise Fee - $45,000 to $60,000 You must pay us an initial franchise fee (the “Initial Franchise Fee”) of $60,000. The Initial Franchise Fee is subject to reduction in the following circumstances: Area Development Agreement: If, when you sign the Franchise Agreement (the “Initial Franchise Agreement”), you also sign an Area Development Agreement to acquire additional Franchises (each an “Additional Franchise”), and provided you remain in compliance with your obligations under the Area Development Agreement, the Initial Franchise Fee for the Initial Franchise Agreement will remain at $60,000, but for each such Additional Franchise you acquire pursuant to and during the initial term of the Area Development Agreement, the Initial Franchise Fee will be reduced as follows: 1 st Additional Franchise, $50,000; and each subsequent Additional Franchise, $45,000.	2026 FDD · PDF Page 16
Initial franchise fee for first agreement under Area Development Agreement	ITEM 5 INITIAL FEES Initial Franchise Fee - $45,000 to $60,000 You must pay us an initial franchise fee (the “Initial Franchise Fee”) of $60,000. The Initial Franchise Fee is subject to reduction in the following circumstances: Area Development Agreement: If, when you sign the Franchise Agreement (the “Initial Franchise Agreement”), you also sign an Area Development Agreement to acquire additional Franchises (each an “Additional Franchise”), and provided you remain in compliance with your obligations under the Area Development Agreement, the Initial Franchise Fee for the Initial Franchise Agreement will remain at $60,000, but for each such Additional Franchise you acquire pursuant to and during the initial term of the Area Development Agreement, the Initial Franchise Fee will be reduced as follows: 1 st Additional Franchise, $50,000; and each subsequent Additional Franchise, $45,000.	2026 FDD · PDF Page 16
Initial franchise fee for first additional franchise under compliant Area Development Agreement	ITEM 5 INITIAL FEES Initial Franchise Fee - $45,000 to $60,000 You must pay us an initial franchise fee (the “Initial Franchise Fee”) of $60,000. The Initial Franchise Fee is subject to reduction in the following circumstances: Area Development Agreement: If, when you sign the Franchise Agreement (the “Initial Franchise Agreement”), you also sign an Area Development Agreement to acquire additional Franchises (each an “Additional Franchise”), and provided you remain in compliance with your obligations under the Area Development Agreement, the Initial Franchise Fee for the Initial Franchise Agreement will remain at $60,000, but for each such Additional Franchise you acquire pursuant to and during the initial term of the Area Development Agreement, the Initial Franchise Fee will be reduced as follows: 1 st Additional Franchise, $50,000; and each subsequent Additional Franchise, $45,000.	2026 FDD · PDF Page 16
Local Advertising monthly minimum excluding labor, beginning three months after grand opening	ITEM 6 OTHER FEES Type of Fee ( Note 1 ) Amount Due Date Remarks Royalty 6% of Net Payments for the preceding week If the aggregate royalties for each consecutive four-week period after the month in which your center commences operations is less than $1,250, then you will pay us the difference within five (5) days following the end of the applicable four- week period On the Wednesday immediately following the previous week or such other day of the week that we periodically specify See Note 2 below for the definition of Net Payments. The royalty is payable to us by an automatic, electronic debit of funds. Marketing Fee Currently 2% of Net Payments but may be changed, on notice to you, subject to the Marketing Expenditure Cap. See Note 3. On the Wednesday immediately following the previous week or such other day of the week that we periodically specify Payable with and in the same manner as royalty. We allocate the Marketing Fee to the Marketing Fund (as defined in Item 11). Local Advertising Requirement At least $2,000 per month (not including labor cost), beginning 3 months after your Center’s grand opening Monthly You are required to spend this amount on local advertising of your Center. If, for any month, you fail to spend the required minimum amount in accordance with our System Standards, then we may require you to pay us, for the benefit of the Marketing Fund, the difference between $2,000 and the amount you actually spent.	2026 FDD · PDF Page 18
Lease Review Fee if landlord requires changes to standard Lease Addendum	Lease Review Fee - $0 to $1,000 If the landlord of your Center requires changes to our standard Lease Addendum, a copy of which is attached hereto as Exhibit J, you must pay us a lease review fee of $1,000 to offset the expenses we incur to conduct the review. The lease review fee will be payable in a lump sum and is non-refundable. Medical Equipment and Supplies - $80,000 to $145,000 AFCLLC and AFCP sell certain medical equipment and supplies to our franchisees that collectively cost $80,000 to $145,000 depending on then-current available services, purchase quantities, and delivery location. This amount is paid in a lump sum and is non-refundable. Construction Management Services Fee (New Center) - $50,000 For each of the first two (2) Franchise Agreements you sign, we may, in our discretion, require you to allow us or our designee to provide certain oversight services related to the d	2026 FDD · PDF Page 17
Local Advertising monthly minimum used for Marketing Fund shortfall payment	ITEM 6 OTHER FEES Type of Fee ( Note 1 ) Amount Due Date Remarks Royalty 6% of Net Payments for the preceding week If the aggregate royalties for each consecutive four-week period after the month in which your center commences operations is less than $1,250, then you will pay us the difference within five (5) days following the end of the applicable four- week period On the Wednesday immediately following the previous week or such other day of the week that we periodically specify See Note 2 below for the definition of Net Payments. The royalty is payable to us by an automatic, electronic debit of funds. Marketing Fee Currently 2% of Net Payments but may be changed, on notice to you, subject to the Marketing Expenditure Cap. See Note 3. On the Wednesday immediately following the previous week or such other day of the week that we periodically specify Payable with and in the same manner as royalty. We allocate the Marketing Fee to the Marketing Fund (as defined in Item 11). Local Advertising Requirement At least $2,000 per month (not including labor cost), beginning 3 months after your Center’s grand opening Monthly You are required to spend this amount on local advertising of your Center. If, for any month, you fail to spend the required minimum amount in accordance with our System Standards, then we may require you to pay us, for the benefit of the Marketing Fund, the difference between $2,000 and the amount you actually spent.	2026 FDD · PDF Page 18
Onsite training fee per trainer per day plus travel and living expenses	dees. We may increase these amounts upon notice to you, but any increase will not exceed $3,000 per trainee. If we send our trainer to your Center, then in addition to the above fee you will also pay $1,500 per trainer per day, plus the travel and living expenses incurred by the trainers in providing training at your Center. Prior to attending training We do not charge any fee for providing initial training to you, your initial Operating Principal (as defined in Item 15), and your initial Center Administrator (as defined in Item 15), but we may charge a fee for providing initial training to any replacement personnel and for providing any additional training to you, your Operating Principals, Center Administrators, and other attendees. Fee for additional opening assistance $1,500 per trainer per day, plus the travel and living expenses incurred by the trainers in providing such assistance	2026 FDD · PDF Page 19
Initial franchise fee for one Conversion Center	Conversion Center: If, when you sign the Franchise Agreement, you also sign a Conversion Addendum, the Initial Franchise Fee will remain at $60,000, but if you enter into 2 Franchise Agreements with Conversion Addenda, concurrently, to convert or acquire 2 businesses into Conversion Centers, the initial franchise fee payable under each of those Franchise Agreements will be reduced to $45,000. Currently, we grant a credit of up to $30,000 per Conversion Center that franchisees can set off against future royalty payments for such Centers. We will determine the exact amount of the contribution after our assessment of how extensive the conversion will be and the amount you are likely to spend to complete the conversion. In each case, the Initial Franchise Fee is non-refundable and payable on execution of the Franchise Agreement. Lea	2026 FDD · PDF Page 17
Royalty: percent of preceding week's Net Payments	ITEM 6 OTHER FEES Type of Fee ( Note 1 ) Amount Due Date Remarks Royalty 6% of Net Payments for the preceding week If the aggregate royalties for each consecutive four-week period after the month in which your center commences operations is less than $1,250, then you will pay us the difference within five (5) days following the end of the applicable four- week period On the Wednesday immediately following the previous week or such other day of the week that we periodically specify See Note 2 below for the definition of Net Payments. The royalty is payable to us by an automatic, electronic debit of funds. Marketing Fee Currently 2% of Net Payments but may be changed, on notice to you, subject to the Marketing Expenditure Cap. See Note 3. On the Wednesday immediately following the previous week or such other day of the week that we periodically specify Payable with and in the same manner as royalty. We allocate the Marketing Fee to the Marketing Fund (as defined in Item 11). Local Advertising Requirement At least $2,000 per month (not including labor cost), beginning 3 months after your Center’s grand opening Monthly You are required to spend this amount on local advertising of your Center. If, for any month, you fail to spend the required minimum amount in accordance with our System Standards, then we may require you to pay us, for the benefit of the Marketing Fund, the difference between $2,000 and the amount you actually spent.	2026 FDD · PDF Page 18
Conversion Center credit against future royalties: maximum per Center, determined after assessment	o convert or acquire 2 businesses into Conversion Centers, the initial franchise fee payable under each of those Franchise Agreements will be reduced to $45,000. Currently, we grant a credit of up to $30,000 per Conversion Center that franchisees can set off against future royalty payments for such Centers. We will determine the exact amount of the contribution after our assessment of how extensive the conversion will be and the amount you are likely to spend to complete the conversion. In each case, the Initial Franchise Fee is non-refundable and payable on execution of the Franchise Agreement. Lease Review Fee - $0 to $1,000 If the landlord of your Center requires changes to our standard Lease Addendum, a copy of which is attached hereto as Exhibit J, you must pay us a lease review fee of $1,000 to offset the expenses we incur to conduct the review. The lease review fee will be payable	2026 FDD · PDF Page 17
Royalty minimum for each consecutive four-week period after opening month	ITEM 6 OTHER FEES Type of Fee ( Note 1 ) Amount Due Date Remarks Royalty 6% of Net Payments for the preceding week If the aggregate royalties for each consecutive four-week period after the month in which your center commences operations is less than $1,250, then you will pay us the difference within five (5) days following the end of the applicable four- week period On the Wednesday immediately following the previous week or such other day of the week that we periodically specify See Note 2 below for the definition of Net Payments. The royalty is payable to us by an automatic, electronic debit of funds. Marketing Fee Currently 2% of Net Payments but may be changed, on notice to you, subject to the Marketing Expenditure Cap. See Note 3. On the Wednesday immediately following the previous week or such other day of the week that we periodically specify Payable with and in the same manner as royalty. We allocate the Marketing Fee to the Marketing Fund (as defined in Item 11). Local Advertising Requirement At least $2,000 per month (not including labor cost), beginning 3 months after your Center’s grand opening Monthly You are required to spend this amount on local advertising of your Center. If, for any month, you fail to spend the required minimum amount in accordance with our System Standards, then we may require you to pay us, for the benefit of the Marketing Fund, the difference between $2,000 and the amount you actually spent.	2026 FDD · PDF Page 18
Marketing Fee: current percent of Net Payments, subject to expenditure cap	ITEM 6 OTHER FEES Type of Fee ( Note 1 ) Amount Due Date Remarks Royalty 6% of Net Payments for the preceding week If the aggregate royalties for each consecutive four-week period after the month in which your center commences operations is less than $1,250, then you will pay us the difference within five (5) days following the end of the applicable four- week period On the Wednesday immediately following the previous week or such other day of the week that we periodically specify See Note 2 below for the definition of Net Payments. The royalty is payable to us by an automatic, electronic debit of funds. Marketing Fee Currently 2% of Net Payments but may be changed, on notice to you, subject to the Marketing Expenditure Cap. See Note 3. On the Wednesday immediately following the previous week or such other day of the week that we periodically specify Payable with and in the same manner as royalty. We allocate the Marketing Fee to the Marketing Fund (as defined in Item 11). Local Advertising Requirement At least $2,000 per month (not including labor cost), beginning 3 months after your Center’s grand opening Monthly You are required to spend this amount on local advertising of your Center. If, for any month, you fail to spend the required minimum amount in accordance with our System Standards, then we may require you to pay us, for the benefit of the Marketing Fund, the difference between $2,000 and the amount you actually spent.	2026 FDD · PDF Page 18
Area development fee for first additional franchise, credited toward applicable initial fee	Area Development Fee - $47,500 If, in addition to signing a Franchise Agreement, you sign an Area Development Agreement to acquire Additional Franchises, you must pay us a development fee in an amount equal to $25,000 for the 1 st Additional Franchise, $22,500 for the 2 nd and 3 rd Additional Franchises, and $18,000 for each other Additional Franchise you agree to acquire. We will credit the development fee, in increments equal to the amount of the fee paid for the applicable Additional Franchise, toward payment of the Initial Franchise Fee owed under the applicable Franchise Agreement you sign in satisfaction of the Area Development Agreement. The development fee is payable in a lump sum when you sign the Area Development Agreement and is not refundable.	2026 FDD · PDF Page 18
Additional/replacement or supplemental training fee: maximum per trainee after increases	r on-going training Currently, $1,500 per Center Administrator and $750 per Operating Principal and other attendees. We may increase these amounts upon notice to you, but any increase will not exceed $3,000 per trainee. If we send our trainer to your Center, then in addition to the above fee you will also pay $1,500 per trainer per day, plus the travel and living expenses incurred by the trainers in providing training at your Center. Prior to attending training We do not charge any fee for providing initial training to you, your initial Operating Principal (as defined in Item 15), and your initial Center Administrator (as defined in Item 15), but we may charge a fee for providing initial training to any replacement personnel and for providing any additional training to you, your Operating Principals, Center Administrators, and other attendees. Fee for additional opening assistance $1,500	2026 FDD · PDF Page 19
Franchise transfer-fee waiver: required ownership percentage in controlled transferee entity	r of $25,000 or 10% of the then-current Initial Franchise Fee if the transfer At time of transfer The transfer fee will be waived for transfer of the franchise agreement to an entity in which you own 100% of the ownership interest and any transfer arising from your death or disability.	2026 FDD · PDF Page 19
Franchise transfer facilitated by franchisor/agents: dollar minimum, greater of minimum or stated initial-fee percentage	higher. Upon renewal Transfer Fee (Franchise Agreement) The higher of $10,000 or 10% of the then-current Initial Franchise Fee if the transfer is not facilitated by us or our agents; or the higher of $25,000 or 10% of the then-current Initial Franchise Fee if the transfer At time of transfer The transfer fee will be waived for transfer of the franchise agreement to an entity in which you own 100% of the ownership interest and any transfer arising from your death or disability.	2026 FDD · PDF Page 19
Successor franchise fee: percent of then-current initial fee, greater of percentage or dollar minimum	your Center Administrator. All registration fees are non-refundable and payable for at least 2 attendees regardless of whether or not they actually attend the event. Successor Franchise Fee $5,000 or 10% of the then- current Initial Franchise Fee, whichever is higher. Upon renewal Transfer Fee (Franchise Agreement) The higher of $10,000 or 10% of the then-current Initial Franchise Fee if the transfer is not facilitated by us or our agents; or the higher of $25,000 or 10% of the then-current Initial Franchise Fee if the transfer At time of transfer The transfer fee will be waived for transfer of the franchise agreement to an entity in which you own 100% of the ownership interest and any transfer arising from your death or disability.	2026 FDD · PDF Page 19
Area development fee for each further additional franchise, credited toward initial fee	Area Development Fee - $47,500 If, in addition to signing a Franchise Agreement, you sign an Area Development Agreement to acquire Additional Franchises, you must pay us a development fee in an amount equal to $25,000 for the 1 st Additional Franchise, $22,500 for the 2 nd and 3 rd Additional Franchises, and $18,000 for each other Additional Franchise you agree to acquire. We will credit the development fee, in increments equal to the amount of the fee paid for the applicable Additional Franchise, toward payment of the Initial Franchise Fee owed under the applicable Franchise Agreement you sign in satisfaction of the Area Development Agreement. The development fee is payable in a lump sum when you sign the Area Development Agreement and is not refundable.	2026 FDD · PDF Page 18
Successor franchise fee: dollar minimum, greater of minimum or stated initial-fee percentage	the other your Center Administrator. All registration fees are non-refundable and payable for at least 2 attendees regardless of whether or not they actually attend the event. Successor Franchise Fee $5,000 or 10% of the then- current Initial Franchise Fee, whichever is higher. Upon renewal Transfer Fee (Franchise Agreement) The higher of $10,000 or 10% of the then-current Initial Franchise Fee if the transfer is not facilitated by us or our agents; or the higher of $25,000 or 10% of the then-current Initial Franchise Fee if the transfer At time of transfer The transfer fee will be waived for transfer of the franchise agreement to an entity in which you own 100% of the ownership interest and any transfer arising from your death or disability.	2026 FDD · PDF Page 19
Overdue interest: monthly percentage, lesser of stated rate or highest permitted commercial contract rate	4/451593 Type of Fee ( Note 1 ) Amount Due Date Remarks is facilitated by us or our agents. Transfer Fee (Area Development Agreement) $25,000 At time of transfer Interest on Overdue Amounts Lesser of 1.5% per month or the highest commercial contract interest rate permitted by law. Upon demand Accrues on all past-due amounts until paid. Re-inspection Costs Costs of any follow-up reviews, corrective action oversight, or remediation activities We will bear the cost of routine inspections the we conduct; however, if any inspection reveals non-compliance with System Standards or applicable laws, we may require you to pay the cost of any follow-up reviews, corrective action oversight, or remediation activities we undertake in connection with such non-compliance. Audit Costs Costs of the examination Upon demand Payable only if an audit is necessary due to your failure to timely furnish reports,	2026 FDD · PDF Page 20
Initial franchise fee per Conversion Center when two agreements with Conversion Addenda signed concurrently	ements with Conversion Addenda, concurrently, to convert or acquire 2 businesses into Conversion Centers, the initial franchise fee payable under each of those Franchise Agreements will be reduced to $45,000. Currently, we grant a credit of up to $30,000 per Conversion Center that franchisees can set off against future royalty payments for such Centers. We will determine the exact amount of the contribution after our assessment of how extensive the conversion will be and the amount you are likely to spend to complete the conversion. In each case, the Initial Franchise Fee is non-refundable and payable on execution of the Franchise Agreement. Lease Review Fee - $0 to $1,000 If the landlord of your Center requires changes to our standard Lease Addendum, a copy of which is attached hereto as Exhibit J, you must pay us a lease review fee of $1,000 to offset the expenses we incur to conduct t	2026 FDD · PDF Page 17

Some fees apply only to a specific event or service. These are not all monthly expenses.

Sources

Territory

Sources

The franchise does not come with an exclusive territory. Other franchisees, company-owned businesses and franchisor-controlled sales channels may compete in your area.

2026 FDD · PDF Page 39 · Item 12 · View Source

Read Source Excerpts

You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
2026 FDD · PDF Page 39 · Item 12

Source Notes

A disclosed territory policy does not confirm that your preferred area is available. Ask the franchisor about the specific area you are considering.

Inside The FDD

Sources

Plain-language summaries of the available FDD information. Each summary links to its source, with original excerpts available to review.

Sources

Research Data: Franopolis

The Franopolis report provides the source research. FDD page references identify the supplied excerpts when available.

12Territory

The franchise does not come with an exclusive territory. Other franchisees, company-owned businesses and franchisor-controlled sales channels may compete in your area.

2026 FDD · PDF Page 39 · Item 12 · View Source

Read Source Excerpts

You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
2026 FDD · PDF Page 39 · Item 12

Source Notes

Expert Guidance

Find The Right Business For The Life You Want.

You don’t have to compare every brand on your own. A franchise consultant can help narrow your options and work through what ownership would ask of you.

Bring your questions about this brand, your priorities and the kind of business you want to run.

A More Focused Search

Your Role
Understand the hours, sales and people responsibilities behind the ownership model.
Your Shortlist
Spend less time sorting through brands and more time on options worth exploring.
Your Market
Check territory options with franchisors and identify the next questions to ask.

What It Costs

Territory

Inside The FDD

Find The Right Business For The Life You Want.

Your Role

Your Shortlist

Your Market

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