Detailed Information on Wild Birds Unlimited’s Initial Franchise Fee, Royalty Fee + 18 Other Fees (Items 5 and 6, 2022 FDD)

1.  Initial Franchise Fee:  $20,000 to $40,000

• If you are opening your first Wild Birds Unlimited franchise, you must pay an Initial Franchise Fee of $40,000.

• If you sign a Reservation Agreement, you pay Wild Birds Unlimited $10,000 when you sign such agreement and the balance of $30,000 when you sign the Franchise Agreement. The $10,000 is not refundable even if you do not sign a Franchise Agreement within the 6-month term of the Reservation Agreement.

• If you do not sign a Reservation Agreement, you pay Wild Birds Unlimited $40,000 when you sign the Franchise Agreement.

• If you are required to sign a renewal of the Reservation Agreement, you are required to pay Wild Birds Unlimited an additional $10,000 at the time that you sign the Renewal Reservation Agreement, which will be credited against the balance of the Initial Franchise Fee then owed to Wild Birds Unlimited.

• If you currently own a Wild Birds Unlimited franchise and you are granted an option to purchase a franchise for an additional Store, the Initial Franchise Fee for the additional franchise will be one-half of the Initial Franchise Fee then being offered by Wild Birds Unlimited to new franchisees (currently $40,000, therefore the Initial Franchise Fee for an additional franchise is currently $20,000).

• If you sign a Reservation Agreement, you pay to Wild Birds Unlimited, upon signing of the Reservation Agreement, a fee of one-half of the fee then being offered by Wild Birds Unlimited to new franchisees signing a Reservation Agreement (currently $10,000, therefore the fee for the Reservation Agreement for an additional franchise is currently $5,000) to receive the 6-month reservation period.

• That $5,000 is applied toward the Initial Franchise Fee for the additional Store. If you do not sign an additional Franchise Agreement within the 6-month term of the Reservation Agreement, it will expire and Wild Birds Unlimited does not refund the fee paid to it (currently $5,000, as noted above).

• Upon signing the Franchise Agreement for an additional Store, you will sign an Initial Franchise Fee Amendment, and you must pay the remaining portion of the $20,000 Initial Franchise Fee (i.e., $15,000).

• If you do not sign a Reservation Agreement, you pay Wild Birds Unlimited the entire $20,000 Initial Franchise Fee upon signing the Franchise Agreement.

• If you are purchasing an existing Wild Birds Unlimited franchise, you do not pay an Initial Franchise Fee, but you will be required to pay an Assignment Fee equal to 50% of the current Initial Franchise Fee (currently $40,000, therefore the Assignment Fee is currently $20,000) upon signing the Franchise Agreement.

• Wild Birds Unlimited participates in the Veterans Transition Franchise Initiative (commonly referred to as “VetFran”) which seeks to provide opportunities for veterans who want to be in business. If you are a veteran of the U.S. Armed Forces, you may be eligible to receive a 15% discount off the Initial Franchise Fee.

2.  Training Fee:  $5,000

• Upon signing the Franchise Agreement, you also must pay to Wild Birds Unlimited $5,000 to participate in its training program. You also must pay for your travel, lodging, and food expenses while attending training.

• If you own an existing franchise and are opening an additional franchise, you must attend Wild Birds Unlimited’s training program if it has been more than 18 months since you attended the training program. You may also be required to attend Wild Birds Unlimited’s training if you are renewing your franchise.

• In such instances (i.e., if you are an existing franchisee opening an additional franchise or are renewing your franchise), you are not required to pay Wild Birds Unlimited the $5,000 training fee; however, you must pay for your travel, lodging, and food expenses.

3.  POS Fees:  $3,200

• You must pay to Wild Birds Unlimited a one-time fee of $3,200 (the “POS Installation Fee”) to have it procure, install, and initially train you in using the required point of sale (“POS”) equipment called ERPLY.

• You may qualify, at Wild Birds Unlimited’s discretion, for an up to $1,400 discount off of the POS Installation Fee, if Wild Birds Unlimited determines that you are capable of setting up the POS equipment to its specifications under its supervision using your staff and resources and/or your particular situation and experience are conducive to a completely remote training in lieu of on-site training.

• The POS Installation Fee is due prior to the ERPLY POS equipment installation being performed.

• In addition, simultaneously with the POS Installation Fee, you must also pay Wild Birds Unlimited a one-time ERPLY implementation fee of $499 (the “ERPLY Implementation Fee”) that Wild Birds Unlimited passes onto the ERPLY POS system supplier.

4.  Marketing Implementation Fee:  $5,000

• If you are opening a new Wild Birds Unlimited Store or purchasing an existing Wild Birds Unlimited Store, upon signing your Franchise Agreement, you must pay to Wild Birds Unlimited $1,000 for its assistance with developing, customizing, and implementing your grand opening or re-opening advertising campaign.

• If you are an existing franchisee opening another store or purchasing another existing Wild Birds Unlimited Store, this fee is waived.

5.  MyWBU Store Implementation Fee:  $850

• You must implement the MyWBU Store at your Store within the first month of operation. In connection with such implementation, upon signing MyWBU Store (ecommerce platform) Authorization and Participation Agreement, you must pay Wild Birds Unlimited an upfront fee of $500.

6.  Royalty:  4% of your Store’s Gross Sales

• Due Date:  Monthly.

• Payable to Wild Birds Unlimited; must be received by close of business on the 10th day of the following month.

7.  Local Advertising Expenditure:  a minimum of 2% of your Store’s Gross Sales

• Due Date:  As incurred.

• Payable to local ad agency, media, and vendors.

• Wild Birds Unlimited recommends that new Store owners spend between 8% and 10% of your Store’s Gross Sales on local advertising in your first year of operations.

8.  Regional/Local Advertising Cooperative or Local Advertising Group:  maximum of 2% of your Store’s Gross Sales

• Due Date:  As required by co-op by-laws.

• Credited toward the required local advertising expenditure described above.

• Wild Birds Unlimited has established no co-ops/advertising groups as of the date of the current Disclosure Document.

9.  Wild Birds Unlimited Advertising Fund:  1% of your Store’s Gross Sales

• Due Date:  Monthly.

• Payable to Wild Birds Unlimited; must be received by close of business on the 10th day of the following month.

10.  Assignment:  50% of the then-current Initial Franchise Fee, plus a $5,000 training fee

• Due Date:  As incurred.

• Your assignee must pay the then-current training fee.

• You do not owe Wild Birds Unlimited any assignment fees if you transfer to a legal entity and you are the sole owner of that legal entity.

11.  Court Costs and Attorneys’ Fees:  will vary under circumstances

• Due Date:  As incurred.

• Payable if you fail to comply with the Franchise Agreement.

12.  Audit:  cost of audit, which will not exceed $5,000, plus interest on amount of overdue monies

• Due Date:  As incurred.

• Payable only if Wild Birds Unlimited’s audit reveals an understatement of Gross Sales for any month greater than 2%. Any amounts unpaid, unreported, or underreported must also be paid in full.

13.  Indemnification:  will vary under circumstances

• Due Date:  As incurred.

• You must reimburse Wild Birds Unlimited if it is held liable for claims arising from your franchise operations.

14.  Relocation of Store:  a per diem fee (currently ranging from $43 to $67) to assist you with site location, plus Wild Birds Unlimited’s out-of-pocket costs of assisting you, which includes its travel costs

• Due Date:  As incurred.

• This fee is payable at Wild Birds Unlimited’s election.

15.  Late Payment Charges:  late fee of $35, plus interest at an annual rate of 2% in excess of Prime Rate, as reported in the Wall Street Journal, or the maximum amount allowed by state law

• Due Date:  As incurred.

• These charges are payable on all fees due to Wild Birds Unlimited which are not paid by the due date.

16.  Monthly Marketing Activity Report Late Fee:  late fee of $25

• Due Date:  As incurred.

• This charge is due within 30 days of a late submission of the Monthly Marketing Activity Report, which is due on the 10th of the month.

17.  POS Technology Fee:  currently $300 per month, which includes a $100 per month license fee for the use of the MyWBU Store. If your state requires that Wild Birds Unlimited collect and remit to a tax authority sales tax on this fee, you will also be required to pay Wild Birds Unlimited an additional amount equal to the sales tax.

• Due Date:  Monthly; at the same time as Royalty payments.

• Wild Birds Unlimited may change the POS Technology Fee and/or the MyWBU license fee upon 30 days’ written notice to you.

18.  Annual Conference Fee:  registration fee to attend the Wild Birds Unlimited Annual Conference (currently, $500)

• Due Date:  Upon registering for the conference.

• If you do not register and attend the Annual Conference, you will be required to pay the non-attendee fee of $500.

• The Annual Conference Registration Fee and attendance is required during your first year of operation and the first year of each and every renewal term.

• You also will be responsible for all costs and expenses associated with travel, lodging, food, and other similar expenses associated with your attendance at the Annual Conference.

19. Daily Savings Club Customer Loyalty Program:  various expenditures for ongoing purchases of Daily Savings Club customer applications, ranging from $0 to $100 per month

• Due Date:  As incurred.

20.  Customer Satisfaction Programs:  currently, $0

• Due Date:  As incurred.

• You must participate in any customer satisfaction surveys or programs, such as Net Promoter Score and/or mystery shopper programs, as Wild Birds Unlimited may from time to time designate.

• As of the date of the current FDD, you must participate in Wild Birds Unlimited’s retail customer satisfaction survey program, the cost of which is covered by the Advertising Fund.

• In the future, Wild Birds Unlimited may require you to pay a fee to it or the designated vendor for your participation.