Detailed Information on Two Men and a Truck’s Initial Franchise Fee, Royalty Fee + 29 Other Fees (Items 5 and 6, 2022 FDD)

1.  Initial Franchise Fee for Standard Franchise:  $50,000 to $85,000

• The initial franchise fee for a Standard Franchise is $50,000 for a Marketing Area where Two Men and a Truck has had no prior presence, and is $85,000 for a Marketing Area where Two Men and a Truck has had a prior presence in any portion of the Marketing Area.

• The initial franchise fee grants you the right to operate within a specified Marketing Area that will generally have a population of approximately 420,000 to 600,000, although some pre-designed Marketing Areas will exceed 600,000 in population.

• In some circumstances, Two Men and a Truck may approve a Marketing Area that is not a pre-designed Marketing Area that contains a population of more than 600,000. In those cases, Two Men and a Truck may charge an additional initial franchise fee based on $10,000 for every additional 50,000 population within that area ($10,000 x the actual additional population ÷ 50,000).

2.  Initial Franchise Fee for Mini-Market Franchise:  $30,000

• The initial franchise fee for a Mini-Market Franchise is $30,000. The initial franchise fee grants you the right to operate within a specified Marketing Area that will generally have a population of approximately 100,000 to 250,000.

• Two Men and a Truck is a member of the International Franchise Association and participates in the International Franchise Association’s VetFran Program, which provides a 10% discount on initial franchise fees to veterans of the U.S. Armed Forces who otherwise meet the requirements of the VetFran program.

3.  Franchise Reservation Fee:  $5,000 to $10,000

• If Two Men and a Truck enters into a Preliminary Approval Agreement with you before you sign a Franchise Agreement, you must pay a franchise reservation fee of $10,000 for a Standard Franchise or $5,000 for a Mini-Market Franchise at the time you sign the Preliminary Approval Agreement.

• If you enter into a Franchise Agreement with Two Men and a Truck, the franchise reservation fee will be applied to the initial franchise fee due under the Franchise Agreement.

• If the Preliminary Approval Agreement expires or terminates for any reason other than the signing of a Franchise Agreement, Two Men and a Truck will retain the franchise reservation fee.

4.  Area Development Fee:  initial fees for each of the Marketing Areas you have a right to develop under the Area Development Agreement

• If you become an Area Developer by signing an Area Development Agreement, you pay Two Men and a Truck the initial fees for each of the Marketing Areas you have a right to develop under the Area Development Agreement at the time you sign the Area Development Agreement.

• You must agree to develop at least two franchises under the Area Development Agreement.

5.  Royalty Fee:  6% of all Gross Sales

• Due Date:  Monthly on the 15th.

6.  Contributions to Advertising Fund:  1% of all Gross Sales

• Due Date:  Monthly on the 15th.

• You must contribute to the Advertising Fund, which is administered and controlled by Two Men and a Truck.

7.  Monthly Technology and Support Fee:  for Standard Franchises: currently, 1% of Gross Sales with a minimum payment of $1,200 per month; for Mini-Market Franchises: currently, 2% of Gross Sales with no minimum

• Due Date:  Monthly on the 15th.

8.  Fees for Sales Support Services:  for Standard Franchises: currently, 1st level – $80 per month; additional levels of services range from $200 to $4,000 per month based on per call fees and a percentage of booked sales orders; for Mini-Market Franchises: currently, $500 per month plus a $35 per transaction fee for each completed move originating from Two Men and a Truck for the first 12 months (and after if you employ a CSR); after 12 months, $2,000 per month with no transaction fee if you do not employ a CSR

• Due Date:  Last business day of month incurred.

• Two Men and a Truck may require you to obtain customer sales support services from it, including call answering, sales support, and other customer service and communication services during and after business hours.

• All Standard Franchises must use the 1st level of services (which includes disaster recovery support, corporate inquiries responses, and national account inquiries with certain accounts). Additional service levels are optional for Standard Franchises but may be required for franchises with performance issues.

• Mini-Market Franchises are required to use all sales support services offered by Two Men and a Truck unless approved otherwise.

• “CSR” means customer service representative.

9.  Records and Bookkeeping Fees:  $200 to $1,000 per month; late fee of $100 for failure to timely submit data

• Due Date:  Last business day of month incurred.

• Payable if you obtain records and bookkeeping services from Two Men and a Truck. These services are optional for Standard Franchises and required for Mini-Market Franchises.

10.  Local Digital Advertising Fees:  100% of digital advertising spend billed to Two Men and a Truck by all managed ad platforms, plus an administrative fee of 15% to 20% of the media spend

• Due Date:  Last business day of month incurred.

• Payable if you choose to obtain optional digital advertising services from Two Men and a Truck.

11.  Risk Management and Safety Services Fees:  $1,800 to $4,800 per year

• Due Date:  Last business day of month incurred.

• Two Men and a Truck may require you to implement a risk management and safety system designated or approved by Two Men and a Truck, from Two Men and a Truck or a Designated Supplier.

12.  Advertising Cooperative:  up to 1% of annual Gross Sales, unless all members agree to a higher rate. Currently, fees range from approximately $100 to $400 per month.

• Due Date:  As assessed.

• Two Men and a Truck may require you to participate in an advertising cooperative, which may require you to contribute a monthly amount.

13.  Miscellaneous Fees and Charges:  varies by goods and services provided (currently, such fees range from $30 to $300)

• Due Date:  Last business day of month incurred.

• Includes payments for behavioral assessments, career ads, and technical support services purchased from Two Men and a Truck.

14.  NSF Fees and Interest:  at least $100 and interest of 2% per month or maximum rate allowed by law

• Due Date:  As incurred.

• An NSF fee must be paid if you have insufficient funds to cover an electronic transfer, and interest must be paid on all overdue amounts.

15.  Audit Expenses:  cost of audit

• Due Date:  On receipt of Two Men and a Truck’s invoice.

• Two Men and a Truck reserves the right to require you to pay it or its representatives or third-party agents for the reasonable expenses of an audit, inspection, and investigation.

16.  Additional Assistance Fees:  $50 to $1,200 per day, plus travel and living expenses of training personnel

• Due Date:  On receipt of Two Men and a Truck’s invoice.

• Two Men and a Truck typically will provide up to 3 days of assistance to you in the commencement and operation of your franchise at no charge (which may be provided virtually).

• Two Men and a Truck may charge a reasonable per diem fee plus travel and living expenses of its staff or third-party vendors if you request additional assistance or if it determines, in its sole discretion, that you need additional assistance due to performance issues.

17.  Indemnification:  will vary under circumstances

• Due Date:  As incurred.

• You must reimburse Two Men and a Truck if it incurs liability from the operation of your franchise.

18.  Attorneys’ Fees and Costs:  will vary under circumstances

• Due Date:  As incurred.

• You must pay Two Men and a Truck’s costs if it must take action to enforce your obligations to it.

19.  Reimbursement for the Cost of Insurance:  will vary under circumstances

• Due Date:  As incurred.

• If you fail to obtain or maintain any of the required insurances, Two Men and a Truck may obtain that insurance on your behalf and you must reimburse Two Men and a Truck for the cost.

20.  Payments Relating to Participation in Captive Insurance Program:  annual fee based on your allocable portion of the letter of credit Two Men and a Truck provides for participants

• Due Date:  Last business day of month incurred.

• Annual service fee payable if you elect to participate in the captive insurance program that Two Men and a Truck offers, and participate in its segregated cell in the program (referred to as a B-Cell franchisee).

21.  Tax Reimbursement Fees:  will vary under circumstances

• Due Date:  As incurred.

• These fees will be paid to Two Men and a Truck to reimburse it for certain sales, use, personal property, and other taxes it or its affiliates incur related to the goods, services, and licenses that it provides to you.

22.  Renewal Fee:  10% of the franchise fee charged to new franchisees at the time of renewal (the fee is 20% if you do not timely renew)

• Due Date:  Paid by ACH on the date of renewal.

• This fee must be paid if you renew your Franchise Agreement.

23.  Fee for Adding a Person as a Franchisee or as a Principal of the Franchisee:  12.5% of the franchise fee charged to new franchisees at time of addition for each person added

• Due Date:  Before person is added and before training has started for that person.

• This fee must be paid for each person you add as a franchisee or principal of your franchise.

24.  Transfer/Marketing Area Division Fee:  25% of the franchise fee charged to new franchisees at the time of transfer

• Due Date:  Before transfer and before training of proposed transferee.

• This fee must be paid if you transfer your franchise or divide your Marketing Area.

25.  Fees for Additional Training and Meetings:  $50 to $1,200 for registration fees for meetings; $50 to $1,200 per person per day plus travel and living expenses of training personnel for additional training

• Due Date:  Before additional training.

• Two Men and a Truck may charge fees, including a reasonable per diem fee or registration fees for attending additional training or meetings. Two Men and a Truck may permit or require you to attend virtual training sessions.

26.  Fees for Administering National Accounts:  currently, fixed fees of $20 to $100 for each service or 3% to 5% of the revenue from the National Account

• Due Date:  On receipt of payment from the National Account.

• Two Men and a Truck may charge fees for administering National Accounts and providing related administrative services.

27.  Fees for Administering National Programs – Value Flex:  currently, 1% of value of materials being moved and an administrative fee of $200 to $600

• Due Date:  On receipt of payment from the customer.

• Two Men and a Truck may charge fees for administering National Programs and providing related administrative services. Currently, the Value Flex long-distance move program is Two Men and a Truck’s only National Program.

28.  Vendor Product Testing Fee:  actual out-of-pocket cost, plus $125 per hour for evaluation

• Due Date:  On receipt of Two Men and a Truck’s invoice.

• Payable if you request Two Men and a Truck’s approval of a proposed supplier or product to cover Two Men and a Truck’s costs of testing or investigating such proposal.

29.  Liquidated Damages:  $100 to $4,000 per violation

• Due Date:  As incurred.

• Payable if you fail to comply with your Franchise Agreement or Two Men and a Truck’s policies to cover a portion of the damages that Two Men and a Truck anticipates incurring relating to such violation.

30.  Indemnification for Amounts Paid to Resolve Franchisee’s Disputes: Two Men and a Truck’s actual costs

• Due Date:  On receipt of Two Men and a Truck’s invoice.

• If a dispute exists between you and a customer or third party that may damage Two Men and a Truck’s brand or the system, Two Men and a Truck may, in its sole discretion, resolve the dispute directly with the third party and invoice you for any damages and attorneys’ fees paid.

31.  Holdback Amount for Customer Claims:  an amount determined by Two Men and a Truck based on your customer damage history for the previous two years and any known current damage issues

• Due Date:  Paid by ACH 5 days before expiration or termination.

• You must pay this amount if your franchise is expiring or terminating. This amount will be held by Two Men and a Truck for 6 months and used to resolve any customer disputes. The balance will be returned to you.