Source: Franopolis

Do The Beach

Sources

Research Data: Franopolis

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

2026 FDD Research
RoyaltyRoyalty 7% of Gross Revenue Monthly See Note 2.Sources
FDD Edition2026Sources

What It Costs

Sources
Where Your Startup Money Goes
CostDisclosed AmountSource
Inventory/start-up low$20,000 to $40,0002026 FDD · PDF Page 19

Inventory and start-up to begin operating (5) $20,000 to $40,000 As arranged As incurred Approved Suppliers

Additional funds, 3 months$100,0002026 FDD · PDF Page 20

Additional Funds (12) - 3 months $100,000 As arranged As incurred Payroll, utilities, day to day and business operations costs, until the Franchised Business reaches break even.

Computer/audio/video/security systems low$61,000 to $192,0002026 FDD · PDF Page 19

Computer Equipment and Audio, Video and Security Systems (7) $61,000 to $192,000 As arranged As incurred Approved Suppliers

Training expenses low$5,000 to $10,0002026 FDD · PDF Page 19

Training Expenses (2) $5,000 to $10,000 As arranged As incurred Hotels/ airlines/ restaurants/ rental car

Initial franchise fee$40,0002026 FDD · PDF Page 19

Initial Franchise Fee (1) $40,000 Lump Sum Upon signing Franchise Agreement Us

Security deposits, licenses, prepaid expenses low$40,000 to $102,0002026 FDD · PDF Page 19

Security Deposits, utility deposits, business licenses and pre-paid expenses (6) $40,000 to $102,000 As arranged As incurred Government agencies, landlord

Equipment, fixtures, fixed assets, construction, remodeling, leasehold improvements and decorating costs low$558,900 to $1,986,7002026 FDD · PDF Page 19

Equipment, fixtures, other fixed assets, construction, remodeling, leasehold improvements, and decorating costs, whether purchased or leased (4) $558,900 to $1,986,700 As arranged As incurred Our affiliates, contractors, other approved vendors

Professional/financing fees low$90,000 to $180,0002026 FDD · PDF Page 20

Professional Fees and Financing Fees (11) $90,000 to $180,000 As arranged As incurred Attorneys, CPAs, lenders, and consultants

Insurance low$20,000 to $60,0002026 FDD · PDF Page 19

Insurance (10) $20,000 to $60,000 As arranged As arranged Insurance company

Pre-opening/grand-opening marketing low$30,000 to $50,0002026 FDD · PDF Page 19

Pre-Opening and Grand Opening Marketing Advertising (9) $30,000 to $50,000 As arranged As incurred Approved Suppliers

Total initial investment low$1,004,900 to $2,820,7002026 FDD · PDF Page 20

Total $1,004,900 to $2,820,700

Signage low$40,000 to $60,0002026 FDD · PDF Page 19

Signage (8) $40,000 to $60,000 As arranged As incurred Approved Suppliers

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

Sources

Key Franchise Fees

Initial Franchise Fee
View Disclosed Terms

All franchisees pay a $40,000 initial franchise fee to us when they sign the franchise agreement.

2026 FDD · PDF Page 11 · Item 5

Review Fee Sources
Royalty
Royalty 7% of Gross Revenue Monthly See Note 2.
View Disclosed Terms

Royalty 7% of Gross Revenue Monthly See Note 2.

2026 FDD · PDF Page 13 · Item 6

Review Fee Sources
Fees And Payment Terms
FeeDisclosed TermsSource
Brand Development Fund currently chargedBrand Development Fund Up to 2% of Gross Revenue. Currently 0% of Gross Revenue. Monthly We currently don’t collect a Brand Development Fund Fee but have the right to do so. It can be up to 2% of Gross Revenue.2026 FDD · PDF Page 13
Technology Fund maximumTechnology Fund Up to $200/month, currently $100/month Monthly This fee supports system- wide technology development and maintenance efforts, such as the website, intranet and network connectivity, the gift card platform, loyalty program platform, and other technology used by the entire Do the Beach franchise system.2026 FDD · PDF Page 13
Initial franchise feeAll franchisees pay a $40,000 initial franchise fee to us when they sign the franchise agreement.2026 FDD · PDF Page 11
Private offering transfer fee minimumIf the transfer involves a private offering, our transfer fee is the higher of $10,000 and the costs we incur in connection with the evaluation, including legal and accounting fees we incur.2026 FDD · PDF Page 16
Transfer fee with control change minimumIf control of the Franchisee changes, the transfer fee is the higher of $5,000 and the costs we incur in connection with the evaluation and approval of the transfer, including legal fees we incur.2026 FDD · PDF Page 16
Area Development Agreement example first-location feeFor example, if the Area Development Agreement is for the development of 3 Franchised Businesses in regular markets, you will pay $80,000 at the time you sign the Area Development Agreement: the full $40,000 fee for the first location, and 50% ($20,000) for each of the 2 additional locations.2026 FDD · PDF Page 12
Advertising cooperative maximumAdvertising Cooperative Fee Currently none, up to 2% of Gross Revenues Upon demand See Note 3.2026 FDD · PDF Page 14
Extended trainingExtended Training Fee $5,000/month, plus reimbursement of travel cost we incur. Upon invoice If you choose to take advantage of the Extended Training package, consisting of management supervisory services.2026 FDD · PDF Page 13
Brand Development Fund maximumBrand Development Fund Up to 2% of Gross Revenue. Currently 0% of Gross Revenue. Monthly We currently don’t collect a Brand Development Fund Fee but have the right to do so. It can be up to 2% of Gross Revenue.2026 FDD · PDF Page 13
Inflatable attractions package highThe cost of the inflatable attractions, shipping and installation included is approximately between $150,000 and $800,000, depending on the size of your Location and the specific configuration of attractions that you select for your Franchised Business.2026 FDD · PDF Page 12
Insufficient funds feeInsufficient Funds Fee $100 per occurrence Upon invoice Payable for returned checks or insufficient funds within your EFT account.2026 FDD · PDF Page 14
Area Development Agreement transfer fee minimumUnder the Area Development Agreement, the transfer fee is the higher of $5,000 and the costs we incur in connection with the evaluation and approval of the transfer, including legal fees we incur.2026 FDD · PDF Page 16
Inflatable attractions package lowThe cost of the inflatable attractions, shipping and installation included is approximately between $150,000 and $800,000, depending on the size of your Location and the specific configuration of attractions that you select for your Franchised Business.2026 FDD · PDF Page 12
Re-inspection cost highWe estimate that the cost of a re-inspection will be between $2,000 and $4,000.2026 FDD · PDF Page 12
Replacement inflatable attractionsReplacement of Inflatable Attractions $30/sqft Upon invoice The attractions equipment you purchase to begin the operations of your Franchised Business will have to be replaced during the term of your Franchise Agreement.2026 FDD · PDF Page 15
Replacement site feeReplacement Site Fee $5,000 Upon invoice Payable if you don’t acquire the initially approved location and you submit a replacement site for our consideration.2026 FDD · PDF Page 14
Public offering transfer fee minimumIf the transfer involves a public offering, our transfer fee is the higher of $25,000 and the costs we incur in connection with the evaluation, including legal and accounting fees we incur.2026 FDD · PDF Page 16
Area Development Agreement example each additional-location feeFor example, if the Area Development Agreement is for the development of 3 Franchised Businesses in regular markets, you will pay $80,000 at the time you sign the Area Development Agreement: the full $40,000 fee for the first location, and 50% ($20,000) for each of the 2 additional locations.2026 FDD · PDF Page 12
Additional trainingAdditional Training $350 per day and trainer, plus travel and lodging. Upon invoice Payable if you request additional training, or if we determine you require additional training.2026 FDD · PDF Page 13
RoyaltyRoyalty 7% of Gross Revenue Monthly See Note 2.2026 FDD · PDF Page 13
Re-inspection cost lowWe estimate that the cost of a re-inspection will be between $2,000 and $4,000.2026 FDD · PDF Page 12
Technology Fund currently chargedTechnology Fund Up to $200/month, currently $100/month Monthly This fee supports system- wide technology development and maintenance efforts, such as the website, intranet and network connectivity, the gift card platform, loyalty program platform, and other technology used by the entire Do the Beach franchise system.2026 FDD · PDF Page 13
Area Development Agreement 3-business example upfront amountFor example, if the Area Development Agreement is for the development of 3 Franchised Businesses in regular markets, you will pay $80,000 at the time you sign the Area Development Agreement: the full $40,000 fee for the first location, and 50% ($20,000) for each of the 2 additional locations.2026 FDD · PDF Page 12
Construction extension feeIt is in our discretion to decide if to grant the extensions, but if we do, you will have to pay us $5,000 for each extension we grant.2026 FDD · PDF Page 12
Transfer fee without control changeIf control of the Franchisee doesn’t change in the transfer, the transfer fee is $1,500.2026 FDD · PDF Page 16

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

Sources
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