Detailed Information on Huntington Learning Center’s Initial Franchise Fee, Royalty Fee + 36 Other Fees (Items 5 and 6, 2022 FDD)

1.  Initial Franchise Fee:  $36,000

• The Initial Franchise Fee is $36,000. The Initial Franchise Fee is is payable in full when you sign the Franchise Agreement, fully earned by Huntington upon payment, and not refundable for any reason.

• Huntington participates in the International Franchise Association’s Veterans Transition Franchise Initiative, otherwise known as “VetFran”. If you are, or if one of your owners is, a veteran honorably discharged from the U.S. Armed Forces or on active duty in the U.S. Armed Forces on the Agreement Date and if you are a new franchisee, then Huntington reduces the Initial Franchise Fee for your first new franchise. The fee will be $27,000 (a $9,000 or 25% discount), providing that individual owns at least 10% of the franchisee.

2.  Development Fee:  $20,000 for each franchised Huntington Learning Center you commit to open

• Huntington may offer you the opportunity to develop and operate additional franchised Huntington Learning Centers within a specific geographic territory under a Development Agreement.

• The Initial Franchise Fee for Franchise Agreements signed under a Development Agreement will be reduced to $20,000 (a $16,000 or 44% discount) per franchised Huntington Learning Center the franchisor grants you the right to open. When you sign a Development Agreement, you pay all of the Initial Franchise Fees in full for each franchised Huntington Learning Center you commit to open.

• No Initial Franchise Fee is refundable, except as follows: If you are in full compliance with the Development Agreement, Huntington will credit the Initial Franchise Fee you paid when you signed the Development Agreement to the Initial Franchise Fee payable under each Franchise Agreement.

3.  Training and Technology Initial Fee:  $6,000

4.  Start-up Package:  $19,708

• In addition to the Initial Franchise Fee of $36,000, new franchisees pay Huntington the Training and Technology Initial Fee of $6,000 and buy from Huntington the Start-up Package that costs $19,708, a total of $61,708.

5.  Royalty:  9.5% of Gross Revenue. $2,000 per month minimum.

• Due Date:  15th of each month.

6.  Huntington Ad Fund Contribution:  2% of Gross Revenue. $500 per month minimum.

• Due Date:  15th of each month.

• Payable to the Huntington Ad Fund.

7.  Minimum Advertising:  $57,000 per year

• Due Date:  As required by vendors.

• • Prorated in opening and last years.

• Of this amount, each month you must spend a minimum of $2,000.

8.  Advertising Cooperative (“CoOp”):  CoOp determines the amount, except as provided by its bylaws. Some CoOps impose no fee. Those that impose a fee average about $2,000 per month.

• Due Date:  Determined by CoOp members.

• Payable to your CoOp.

• Huntington credits CoOp fees to your minimum advertising requirement, to the extent they do not exceed it.

9.  Training and Technology Services:  $380 per month through end of 1st full year; $450 per month in 2nd full year; $550 per month in 3rd full year. Then subject to change.

• Due Date:  15th of each month for preceding month.

• New franchisees begin paying as of 3rd full month after the Agreement Date. Transfer and subsequent franchisees begin paying as of 1st full month after the Agreement Date; and pay the fee based on the number of years the franchise has been operating.

10.  Added Software:  to be determined

• Due Date:  To be determined.

• Added Software includes software for customer relationship management, scheduling, and texting.

• Huntington has not introduced any of this software, although it may do so at any time and, if it does, you will pay it and third parties initial and ongoing fees for the use of the software.

11.  Internet Service Provider:  $45-$130 per month

• Due Date:  As vendor requires.

• Costs vary based on the internet service provider and speed you select.

12.  Convention:  $495 for 1st attendee; $325 per subsequent attendee

• Due Date:  Before convention.

• Huntington waives the first attendee’s convention fee for franchisees who participate on councils or the Ad Fund’s Board of Directors, if they register before the early registration date.

13.  Call Center:  $380 per month, plus variable fees

• Due Date:  15th of month for preceding month.

14.  Conference Services:  $300 per month

• Due Date:  15th of month for preceding month.

• Huntington credits the monthly payment of $300 to your use of Coaching and Video Conferencing.

15.  eCurricula – Standardized Test for Learning Center Students:  $1,200 per year

• Due Date:  Each December.

• Annually, you may conduct an unlimited number of tests. You pay Huntington and Huntington pays the vendor.

16.  eCurricula – Huntington Online Prep:  $53.50 for the 2-test option; $74.50 for the 4-test option; $95.50 for the 6-test option

• Due Date:  Upon completing the first session.

• For each ACT or SAT student, you must buy Huntington Online Prep for online practice tests.

• You pay the vendor.

17.  Accounting and Payroll:  $113 to $153 per month

• Due Date:  Monthly.

• Payable to the vendor.

18.  Accreditation:  $700 Annual Fee, plus $50 administrative fee to Huntington. $650 Visit Management Fee every 7 years.

• Due Date:  Upon billing.

• The Annual Fee is to maintain accreditation. The Visit Management Fee is for the accrediting body’s initial and renewal visits; currently, it renews every 7 years.

• You pay these fees to Huntington and Huntington pays the accrediting body.

19.  Test Programs:  $0, $250, or $1,000, depending on the program

• Due Date:  Upon signing amendment.

• After you open your Franchised Business, Huntington may permit you to participate in Test Programs.

20.  Transfer Fee:  $6,000

• Due Date:  When you request Huntington’s consent to transfer.

• In addition to the Transfer Fee, the buyer pays a Training and Technology Initial Fee of either $6,000 or $3,000 based on your Franchise Agreement’s unexpired duration.

• The term of the Transfer Franchise Agreement is 10 or 5 years.

21.  Subsequent Franchise Agreement:  $6,000

• Due Date:  When you sign the Subsequent Franchise Agreement.

• Fee for a territory is greater.

22.  Relocation:  $500

• Due Date:  When you request to relocate.

23.  LCOS Data Restoration:  $750

• Due Date:  Upon billing.

• If you lose your LCOS data, do not have a backup copy, and request Huntington’s assistance, Huntington charges you to try to restore your data.

24.  Evaluation of Suppliers:  will vary

• Due Date:  Upon billing.

• Huntington charges you its related costs for you to secure approval to buy from alternative suppliers.

25.  Insurance:  about $6,500 per year

• Due Date:  Upon billing.

• Payable to your insurance company, which determines the fee.

• If you do not obtain or maintain insurance, Huntington may obtain it for you and you pay Huntington’s cost.

• Excludes Workers’ Compensation.

26.  Taxes and Income Taxes:  will vary

• Due Date:  Upon billing.

• You pay Huntington all taxes it pays on amounts you pay to it, unless the tax is credited against Huntington’s payment. Taxes are not typical and Huntington cannot estimate them.

27.  Audit:  will vary

• Due Date:  Upon billing.

• Huntington may audit the Franchised Business and Premises.

28.  Reimbursement of Huntington’s Third-Party Costs:  will vary

• Due Date:  Upon billing.

• You pay Huntington all its expenses in connection with your Franchised Business, including all amounts Huntington pays attorneys, accountants, architects, brokers, accrediting agencies, investment bankers, investigating agencies, court costs, litigation costs, consultants, and agents.

29.  Absence from Scheduled Meeting:  $500 per person per day of missed initial training. $100 per absence from other scheduled meetings.

• Due Date:  Upon billing.

• If you miss scheduled initial training or a scheduled meeting with Huntington, Huntington can require you make it up and charge you its related administrative expenses, if you do not notify it at least 48 business hours before the meeting start time.

30.  Fail to Lease Within 90 Days:  $25 per day

• Due Date:  Upon billing.

• You must lease or acquire a Premises within 90 days after the Agreement Date.

31.  Fail to Open Within 270 Days:  $25 per day

• Due Date:  Upon billing.

• You must begin operating within 270 days after the Agreement Date.

32.  Fail to Complete Initial Training:  $25 per day per individual

• Due Date:  Upon billing.

• Payable if certain individuals do not complete initial training in required time.

33.  Fail to Submit Reports:  $25 per day per report

• Due Date:  Upon billing.

• If you do not submit required reports in a month, then, in addition to this fee for each day and each report, that month’s payments are deemed overdue and all applicable late fees and interest apply.

34.  Default Fee:  $25 per day per violation

• Due Date:  Upon billing.

• If you commit a non-monetary breach and fail to cure, you pay Huntington this fee until the default is cured to offset Huntington’s costs in addressing the default.

• Fee is in addition to Huntington’s other rights.

35.  Subsequent Default Fee:  $1,000 per subsequent violation

• Due Date:  Upon billing.

• If you receive 3 default notices, you pay Huntington this fee for each subsequent default to offset Huntington’s costs to address your multiple defaults.

• Fee is in addition to all of Huntington’s other rights.

36.  Late Fee; Interest:  $100 late fee; 18% annual interest

• Due Date:  Upon billing.

37.  Attorney’s Fees:  cost of action; attorney’s fees

• Due Date:  Upon billing.

38.  Indemnification:  cost of claim against Huntington; attorney’s fees

• Due Date:  Upon billing.