Source: Franopolis

Resting Rainbow

Sources

Research Data: Franopolis

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

2025 FDD Research
FDD Edition2025Sources

What It Costs

Sources
Where Your Startup Money Goes
CostDisclosed AmountSource
Technology Fee — productioncenter range low$2,2502025 FDD · PDF Page 18

Technology Fee - 3 months ( 1 2 ) $ 2,250 $ 2,250 As arranged As arranged Us

Professional Fees — productioncenter range low$2,500 to $5,0002025 FDD · PDF Page 18

Professional Fees (1 9 ) $2,500 $5,000 As arranged As arranged Third - Party Professional(s)

Business Licenses — productioncenter range low$6,000 to $12,0002025 FDD · PDF Page 18

Business Licenses and Permits (1 3 ) $6,000 $12,000 As arranged As arranged Third - Party Government Agencies

Franchise Fee — productioncenter range low$54,5002025 FDD · PDF Page 18

Franchise Fee (2) $54,500 $54,500 Lump sum Upon signing FA Us

Additional Funds — productioncenter range low$20,000 to $50,0002025 FDD · PDF Page 18

Additional Funds – 3 Months ( 20 ) $20,000 $50,000 As arranged As arranged Various Parties

Initial Training — productioncenter range low$1,100 to $3,0002025 FDD · PDF Page 18

Initial Training Expenses ( 1 8 ) $1,100 $3,000 As arranged As arranged Third - Party Providers (travel, lodging, etc.);

Shipping and Installation Fee — production center range low$20,000 to $40,0002025 FDD · PDF Page 18

Shipping and Installation Fee ( 9 ) $20,000 $40,000

Office Supplies — productioncenter range low$500 to $1,0002025 FDD · PDF Page 18

Office Supplies ( 10 ) $500 $1,000 As arranged As arranged Suppliers

Cold Storage — productioncenter range low$1,000 to $15,0002025 FDD · PDF Page 18

Cold Storage (5) $1,000 $15,000 As arranged As arranged Suppliers

Membership/Association Dues — production center range low$400 to $6002025 FDD · PDF Page 18

Membership/ Association Dues (1 5 ) $400 $600

Insurance Premiums — productioncenter range low$2,000 to $3,7502025 FDD · PDF Page 18

Insurance Premiums (1 4 ) $2,000 $3,750 As arranged As arranged Third - Party Insurance Provider

Vehicle — productioncenter range low$1,200 to $40,0002025 FDD · PDF Page 18

Vehicle ( 6 ) $1,200 $40,000 As arranged As arranged Third - Party Dealer/Lessor

Computer System — productioncenter range low$1,400 to $3,0002025 FDD · PDF Page 18

Computer System ( 1 1 ) $1,400 $3,000 As arranged As arranged 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
Fees And Payment Terms
FeeDisclosed TermsSource
Royalty Fee — $1500Royalty Fee (2)(3) (4) The greater of: (i) 7% of Gross Revenue , or (ii) $1,500 per month, per Territory Weekly See Note 2 for the definition of "Gross Revenue." See Note s 3 , and 4 for explanation of the Applicable Minimum Royalty Fee.2025 FDD · PDF Page 13
Renewal Fee — $10000Renewal Fee $10,000 When you sign a successor Franchise Agreement When your agreement term ends, you will have the option to continue the franchise relationship with us, subject to certain conditions.2025 FDD · PDF Page 13
Management Fee — 10%Management Fee If we elect, 10% of Gross Revenue earned during the period we managed the Franchised Business , plus our costs and overhead Within 30 days after invoice Payable only if: a. The Operating Principal dies or is incapacitated and we elect to manage the Franchised Business pending transfer of his or her interest; or b. The Operating Principal is arrested for or formally charged with a serious criminal offense and we take over operation of the Franchised Business pending final disposition of the charges2025 FDD · PDF Page 15
Late Fee — $300Late Fee $100 for second occurrence of payment more than 30 days past due; $200 for third occurrence; $300 for each subsequent occurrence With payment of overdue amount We can charge a late fee to compensate us for our administrative costs incurred in enforcing your obligation to pay us and submit required reports to us.2025 FDD · PDF Page 15
Annual Conference — 1%Annual Conference Currently, one complimentary registration and a cost up to $500 per additional attendee If you do not attend, we will charge you $2,000 for your non - attendance As invoiced Applies only if we schedule an annual conference for franchisees. We reserve the right to change our attendance fee. If the individuals required to attend our annual conference fail to attend, you must pay the non - attendance fee. If the individuals required to attend our annual conference fail to attend for 2 consecutive years, we may opt to increase your Royalty Fee by 1% of Gross Revenue.2025 FDD · PDF Page 14
Training Fees – Pre — $500Training Fees – Pre - Opening None, unless you request, and we agree to accept extra trainees at $500 per day per extra trainee, plus our trainers’ costs and expenses, when applicable Before training session begins For all training, including initial training, you are responsible for all travel expenses, living expenses, wages, and other expenses incurred by your trainees.2025 FDD · PDF Page 14
Annual Conference — $2000Annual Conference Currently, one complimentary registration and a cost up to $500 per additional attendee If you do not attend, we will charge you $2,000 for your non - attendance As invoiced Applies only if we schedule an annual conference for franchisees. We reserve the right to change our attendance fee. If the individuals required to attend our annual conference fail to attend, you must pay the non - attendance fee. If the individuals required to attend our annual conference fail to attend for 2 consecutive years, we may opt to increase your Royalty Fee by 1% of Gross Revenue.2025 FDD · PDF Page 14
Additional Opening — $500Additional Opening Support Fee U p to $500 per day, plus the travel, meal, and lodging expenses of our opening support personnel As invoiced If you request opening support beyond what we customarily furnish to franchisees, and if we agree to furnish such additional support, then we will have the right to impose a fee, plus expenses, for providing the agreed additional support.2025 FDD · PDF Page 14
Local Marketing Fee — $1000Local Marketing Fee $3,000 per month for each RR Production Center and $1,000 per month for each additional contiguous territory surrounding your RR Production Center Monthly In addition to the Brand Fund Contribution, you must spend a minimum of $ 3,000 per month on local advertising and promotion implemented in a format and using materials and designs approved by us. We reserve the right to increase the amount per month upon written notice to you. However, we may require you to pay vendors, media outlets, etc. directly.2025 FDD · PDF Page 13
Late Fee — $200Late Fee $100 for second occurrence of payment more than 30 days past due; $200 for third occurrence; $300 for each subsequent occurrence With payment of overdue amount We can charge a late fee to compensate us for our administrative costs incurred in enforcing your obligation to pay us and submit required reports to us.2025 FDD · PDF Page 15
Procurement — 25%Procurement of Insurance Cost of insurance, plus a fee of up to 25% of total insurance premium cost. Upon demand Payable only if you fail to obtain required insurance and we elect to obtain it on your behalf.2025 FDD · PDF Page 15
Key Account — 5%Key Account Programs Currently 5% of Gross Revenue As incurred Payable to us or to our approved vendor. See Note 6 .2025 FDD · PDF Page 14
Change of Ownership — $100Change of Ownership Fee Currently, (a) the greater of $500 or our external legal and administrative costs; plus (b) applicable training fee, currently $100 per day for each individual we require to attend training. With request for approval of change of ownership Payable if you or an Owner proposes to modify ownership of the legal entity in a way that would not result in a change of control of the legal entity. We may modify our change of ownership fee.2025 FDD · PDF Page 14
Interest — 12%Interest 12% per annum or the maximum rate permitted by applicable law, whichever is less With payment of overdue amount Applies only if you do not pay us on time. We calculate interest from the date the payment was due until paid in full.2025 FDD · PDF Page 15
Referraltransferextra fee — $150007. I f the proposed transferee was referred by a third - party (e.g., a broker) with whom we have a referral arrangement, then you must pay us an additional fee equal to the amount owed under that referral arrangement. If we identify the prospective purchaser, then in addition to the $10,000 fee, you must pay us the greater of: (a) $15,000; (b) 3% of the total purchase price; or (c) our actual costs to identify the prospective purchaser. (THE REST OF THE PAGE IS LEFT INTENTIONALLY BLANK, ITEM 7 BE GINS ON NEXT PAGE)2025 FDD · PDF Page 17
Royalty Fee — 7%Royalty Fee (2)(3) (4) The greater of: (i) 7% of Gross Revenue , or (ii) $1,500 per month, per Territory Weekly See Note 2 for the definition of "Gross Revenue." See Note s 3 , and 4 for explanation of the Applicable Minimum Royalty Fee.2025 FDD · PDF Page 13
Minimumroyalty initial6months/month7–12/month13+ — 100%4. The minimum royalty is $1,500 per territory, per month . This amount is set at $0 for the first six months, adjusted to 50% of the minimum royalty ($750) for months seven through twelve, and reverts to the full 100% of the minimum royalty ($1,500) starting in month thirteen and beyond as shown in the table below . Minimum Royalty Payment P er Territory per Month Months 0 - 6 $ 0 Months 7 - 12 $ 750 Month 13 and Beyond $ 1,5002025 FDD · PDF Page 17
Brand Fund Contribution — 3%Brand Fund Contribution Currently, 2% of Gross Revenue Monthly The purpose of the Brand Fund is to support general development and recognition of the brand. We may specify a different Brand Fund Contribution, not to exceed 3 % of Gross Revenue, upon notice to you.2025 FDD · PDF Page 13
Brand Fund Contribution — 2%Brand Fund Contribution Currently, 2% of Gross Revenue Monthly The purpose of the Brand Fund is to support general development and recognition of the brand. We may specify a different Brand Fund Contribution, not to exceed 3 % of Gross Revenue, upon notice to you.2025 FDD · PDF Page 13
Insufficient — $50Insufficient Funds Fee $50 or the amount the bank charges us due to the insufficient funds, whichever is greater. Upon demand Payable if an electronic funds transfer payment request is returned due to insufficient funds.2025 FDD · PDF Page 15
Referraltransferextra fee — 3%7. I f the proposed transferee was referred by a third - party (e.g., a broker) with whom we have a referral arrangement, then you must pay us an additional fee equal to the amount owed under that referral arrangement. If we identify the prospective purchaser, then in addition to the $10,000 fee, you must pay us the greater of: (a) $15,000; (b) 3% of the total purchase price; or (c) our actual costs to identify the prospective purchaser. (THE REST OF THE PAGE IS LEFT INTENTIONALLY BLANK, ITEM 7 BE GINS ON NEXT PAGE)2025 FDD · PDF Page 17
Training Fees – Remedial — $500Training Fees – Remedial and Optional Training $500 per day and you must reimburse us for our out of pocket costs Before training session begins We can charge a training fee: (a) if we require remedial training as a result of your failure to comply with our Brand Standards; (b) for re - training persons who are repeating a Training Program, or their substitutes; and (c) for Training Programs that we make optional for franchisees. If we conduct on - site training, you must also pay the travel, meals, and lodging expenses for our trainer(s).2025 FDD · PDF Page 14
Annual Conference — $500Annual Conference Currently, one complimentary registration and a cost up to $500 per additional attendee If you do not attend, we will charge you $2,000 for your non - attendance As invoiced Applies only if we schedule an annual conference for franchisees. We reserve the right to change our attendance fee. If the individuals required to attend our annual conference fail to attend, you must pay the non - attendance fee. If the individuals required to attend our annual conference fail to attend for 2 consecutive years, we may opt to increase your Royalty Fee by 1% of Gross Revenue.2025 FDD · PDF Page 14
Referraltransferextra fee — $100007. I f the proposed transferee was referred by a third - party (e.g., a broker) with whom we have a referral arrangement, then you must pay us an additional fee equal to the amount owed under that referral arrangement. If we identify the prospective purchaser, then in addition to the $10,000 fee, you must pay us the greater of: (a) $15,000; (b) 3% of the total purchase price; or (c) our actual costs to identify the prospective purchaser. (THE REST OF THE PAGE IS LEFT INTENTIONALLY BLANK, ITEM 7 BE GINS ON NEXT PAGE)2025 FDD · PDF Page 17
Audit Costs — 2%Audit Costs Our costs and expenses of conducting an audit, including travel and lodging. Upon demand Payable only if: a. You did not submit Gross Revenue statements; b. You did not keep full books and records; or c. The total Gross Revenue you reported for any three consecutive months is more than 2% below the audited Gross Revenue.2025 FDD · PDF Page 15
Minimumroyalty initial6months/month7–12/month13+ — 50%4. The minimum royalty is $1,500 per territory, per month . This amount is set at $0 for the first six months, adjusted to 50% of the minimum royalty ($750) for months seven through twelve, and reverts to the full 100% of the minimum royalty ($1,500) starting in month thirteen and beyond as shown in the table below . Minimum Royalty Payment P er Territory per Month Months 0 - 6 $ 0 Months 7 - 12 $ 750 Month 13 and Beyond $ 1,5002025 FDD · PDF Page 17
Transfer Fee — $10000Transfer Fee $10,000 With request for approval of transfer Payable if you or an Owner proposes to sell the business assets of the Franchised Business or an ownership interest in the legal entity.2025 FDD · PDF Page 14
Change of Ownership — $500Change of Ownership Fee Currently, (a) the greater of $500 or our external legal and administrative costs; plus (b) applicable training fee, currently $100 per day for each individual we require to attend training. With request for approval of change of ownership Payable if you or an Owner proposes to modify ownership of the legal entity in a way that would not result in a change of control of the legal entity. We may modify our change of ownership fee.2025 FDD · PDF Page 14

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

Sources
Expert Guidance

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