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

1.  Initial Franchise Fee:  $40,000 to $90,000

• You must pay the initial franchise fees (“IFFs”) noted below for Dunkin’s standard franchise offerings. The amount of the IFF is determined by the Designated Market Areas (“DMAs”) in which your Restaurant will be located, and as those DMAs are sorted below by “Development Area Type.”

• DMAs are defined by Nielsen Television Media Marketing, and the counties included in the DMAs noted below are listed in an Appendix of the Disclosure Document.

Development Area Type 1:  $90,000

• Albany-Schenectady-Troy, NY
• Bangor, ME
• Binghamton, NY
• Boston (Eastern Mass/Southern NH)
• Hartford-New Haven, CT
• New York, NY
• Portland, ME
• Providence, RI
• Springfield, MA
• Syracuse, NY
• Utica, NY

Development Area Type 2:  $80,000

• Chicago, IL
• Elmira, NY
• Ft. Myers, FL
• Miami-Ft. Lauderdale, FL
• Orlando/Daytona/Melbourne, FL
• Philadelphia, PA
• Rochester, NY
• Tampa/St. Pete/Sarasota, FL
• Watertown, NY
• West Palm Beach/Ft. Pierce, FL
• Wilkes-Barre/Scranton, PA
• Youngstown, OH

Development Area Type 3:  $70,000

• Jacksonville, FL
• Baltimore, MD
• Cleveland, OH
• Greenville, NC
• Pittsburgh, PA
• Salisbury, MD

Development Area Type 4:  $60,000

• Burlington, VT-Plattsburg, NY
• Lancaster/Harrisburg/York, PA
• Washington, DC

Development Area Type 5:  $50,000

• Atlanta, GA
• Presque Isle, ME

Development Area Type 6:  $40,000

• All other DMAs and geographic areas in the U.S. that are not noted above.

• Dunkin’ intends to offer qualified military veterans a 20% initial franchise fee discount on up to a total of 5 Dunkin’ and/or Combo (with Baskin-Robbins) Restaurants developed under either past or present incentive offers. These reduced fees only apply if all the terms and conditions of the Military Veterans Development Incentive are met.

2.  Reimbursement of Expenses:  varies

• If you are developing a Restaurant and you or your architect are not prepared for a scheduled meeting when required, you must reimburse Dunkin’ for certain out-of-pocket costs.

3.  Real Estate Lease Related Charges:  varies

• A security deposit or other charges payable under your real estate lease or sublease may be required before the business opens.

• If you sublease from Dunkin’, the security deposit is refundable at the end of the sublease term if, after Dunkin’ receives a final accounting from the landlord under the prime lease, and you have no outstanding financial obligations to Dunkin’ under either your franchise or lease agreements.

4.  Training Related Fees Paid to Dunkin’:  initial online access fee of $340 per location and thereafter an annual subscription fee, which is currently $340 per location

• You will be required to pay an initial online access fee of $340 per location and thereafter an annual continuing training fee (subscription fee), which is currently $340 per location. These fees are quoted as of the date the FDD is prepared, and may change.

5.  Marketing Start-Up Fee:  minimum of $10,000 per opening or remodel event, and $5,000 per relocation

• In connection with the opening, remodeling, or relocation of your Restaurant or Combo Restaurant, you must undertake promotional activities in the manner and to the extent that Dunkin’ prescribes in accordance with its brand standards, which it will provide to you. The brand standards will advise you of the manner and timing of payment for each activity.

• The minimum required Marketing Start-Up Fee is currently $10,000 per opening, remodel, or relocation that Dunkin’ approves.

• The promotional activities are designed to promote the opening, re-opening, or relocation of your Restaurant and the fee is spent by you.

• If you fail to administer these promotional programs yourself, Dunkin’ may require you to pay the fee to it or one of its approved vendors to conduct these activities for you.

6.  Continuing Franchise Fee:  5.9% of Gross Sales

• Due Date:  Due on or before Thursday of each week, for the seven-day sales reporting period ending at the close of business on Saturday, twelve days previous.

• Gross Sales include all revenue related to the Restaurant.

7.  Continuing Advertising Fee:  5.0% of total Gross Sales

• Due Date:  Due on or before Thursday of each week, for the seven-day sales reporting period ending at the close of business on Saturday, twelve days previous.

• Additional fees may be due if agreed to by 2/3 of the Restaurants (regional or national).

8.  Franchise Transfer Fee (for a majority interest in the first 3 years):  $12,500 (or $20,000 if the Restaurant is a Combo Restaurant), plus the amount listed in the table below

• Due Date:  Upon transfer.

• Due if you transfer 50% or more interest during the first 3 years after your purchase and initial operation of the franchise.

Gross Sales for Trailing 12-Month Period — Transfer Fee (Dunkin’ only):

• Less than $400,000 in gross sales for trailing 12-month period – $5,000 transfer fee
• $400,000 or more, but less than $600,000 in gross sales for trailing 12-month period – $6,000 transfer fee
• $600,000 or more, but less than $1,000,000 in gross sales for trailing 12-month period – $8,000 transfer fee
• $1,000,000 or more, but less than $1,400,000 in gross sales for trailing 12-month period – $12,000 transfer fee
• $1,400,000 or more in gross sales for trailing 12-month period – $20,000 transfer fee

9.  Franchise Transfer Fee (for a majority interest, after 3 years have elapsed):  an amount based upon the Gross Sales of the Restaurant for the 12 months preceding the date of the contract of sale

• Due Date:  Upon transfer.

• Due if you transfer 50% or more interest more than 3 years after your purchase and initial operation of the franchise.

Gross Sales for Trailing 12-Month Period — Transfer Fee (Dunkin’ only):

• Less than $400,000 in gross sales for trailing 12-month period – $5,000 transfer fee
• $400,000 or more, but less than $600,000 in gross sales for trailing 12-month period – $6,000 transfer fee
• $600,000 or more, but less than $1,000,000 in gross sales for trailing 12-month period – $8,000 transfer fee
• $1,000,000 or more, but less than $1,400,000 in gross sales for trailing 12-month period – $12,000 transfer fee
• $1,400,000 or more in gross sales for trailing 12-month period – $20,000 transfer fee

10.  Franchise Transfer Fee (no change of control, or transfer to spouse or children):  then-current Fixed Documentation Fee, plus $2,000 for each new transferee

• Due Date:  Upon transfer.

• Due in the event of a transfer that does not result in a change of control (as defined in the Franchise Agreement), or due if you transfer any of your interest to your spouse and/or children.

11.  Audit Costs:  Dunkin’s cost to examine your financial, employment, or business records, including legal and investigative costs

• Due Date:  When and as billed to you.

• Dunkin’ reserves the right to collect its costs to audit your Restaurant if: (a) a 3% or greater discrepancy is discovered; (b) information has been provided to show a possible violation of the agreement; or (c) the audit is done because you did not send Dunkin’ or keep required records.

12.  Immigration Status Review Costs:  Dunkin’s out-of-pocket costs to hire attorneys or others

• Due Date:  When and as billed to you.

• Payable if Dunkin’ needs outside advice on your legal or immigration status.

13.  Interest, Late Fees, and Collection Costs:  then-current late fee or dishonored check fee, and if applicable, interest on unpaid amount at 1.5% per month (but not more than any maximum imposed under applicable law)

• Due Date:  When and as billed to you.

• Dunkin’ can change these fees without notice. They apply if you fail to pay Dunkin’, or if your check is dishonored or your EFT is rejected by your bank.

14.  Indemnification:  varies

• Due Date:  Upon demand.

• You must reimburse Dunkin’ if it is sued and/or held liable for claims related in any way to the operation, procession, or ownership of the Restaurant or the premises.

15.  SDA Transfer Fee (transfer of a majority interest or more):  $10,000

• Due Date:  Upon transfer.

• Due if you transfer 50% or more of your direct or indirect interest in the SDA; partial transfers of development obligations and associated rights are not permitted.

16.  SDA Transfer Fee (for less than a majority interest, or transfer to spouse or children):  then-current Fixed Documentation Fee (presently, $2,000, plus an additional $2,000 for each new transferee)

• Due Date:  Upon transfer.

• Due if you transfer less than a 50% interest in the SDA or SDA entity, or due if you transfer any of your interest to your spouse and/or children.

17.  Lease Fees:  varies

• Due Date:  Payable as described in the lease.

• If you lease the Restaurant from Dunkin’ or its affiliates.

18.  Fixed Documentation Fee – Generally:  presently, $2,000 per Restaurant

• Due Date:  Due when you request additional documents, or when requested by Dunkin’.

• Due if preparation of additional documents is at your request or becomes necessary.

19.  Fixed Documentation Fee – Transfers:  presently, $2,000 per Restaurant

• Due Date:  Due when additional documents required in connection with transfers, or when requested by Dunkin’.

• Due if preparation of additional documents is at your request or becomes necessary.

20.  Costs for Tests Used to Approve Additional Suppliers:  Dunkin’s out-of-pocket and internal costs allocated to this activity, which are typically $1,000 to $10,000 depending on the complexity of the testing

• Due Date:  When and as billed to you.

• You pay the cost for any additional tests/approvals that you have requested.