Updated September 25, 2019.

If you are considering a Your Pie franchise, don’t get blindsided by these 22 important franchise fees (from the initial franchise fee, to the royalty fee, to 20 other fees found in Items 5 and 6 of Your Pie’s 2019 FDD).

1.  Initial Franchise Fee:  $35,000

• You must pay Your Pie an initial franchise fee in a lump sum when you sign the Franchise Agreement. Your Pie’s standard initial franchise fee currently is $35,000. The initial franchise fee under the Franchise Agreement is fully earned when paid and is not refundable under any circumstances, except as provided below.

• If Your Pie determines that any of your required trainees cannot complete initial training to its satisfaction, it may require you to (i) designate or hire new trainees, and/or (ii) have the trainees take additional training (which may require the payment of additional costs) conducted by Your Pie or third parties (“Required Action”).

• If you fail to take the Required Action, Your Pie may terminate the Franchise Agreement and keep 50% of the initial franchise fee. Your Pie will return the other 50% to you if you sign its required form of release of claims.

2.  Development Fee:  initial franchise fee for a Your Pie Restaurant franchise multiplied by the number of Your Pie Restaurants you commit to develop

• As part of the commitment to develop multiple Your Pie Restaurants, the Development Rider to the Franchise Agreement will set forth the minimum number of Your Pie Restaurants you will develop and the dates by which you must develop each one.

• When you sign the Development Rider, you will be required to pay, in a lump sum payment, an amount equal to the initial franchise fee for a Your Pie Restaurant franchise multiplied by the number of Your Pie Restaurants you commit to develop and open under the Development Rights Rider, including the first Your Pie Restaurant that is the Restaurant to be developed under your initial Franchise Agreement with Your Pie.

• For franchisees that sign a Development Rider, Your Pie will offer a reduction in the initial franchise fee for each Your Pie Restaurant to be developed under the Development Rider, as follows:

• 3 or 4 Your Pie Restaurants:  $28,333
• 5 or more Your Pie Restaurants:  $25,000

• You will not receive any discount based on any Franchise Agreement that you signed before signing the Development Rider. Fees paid under the Development Rider are fully earned when received by Your Pie and are not refundable under any circumstances.

• If you sign the Development Rider, pay the initial franchise fees due thereunder, and then cannot find sites for the Your Pie Restaurants or choose not to move forward with developing additional Your Pie Restaurants for another reason (in which case the Development Rider is terminated), Your Pie may keep the entire amount of initial franchise fees you paid to it under the Development Rider.

3.  Continuing Service and Royalty (“Royalty”):  5% of Restaurant’s Gross Sales

• Due Date:  Bi-weekly, on or before the 3rd day after the corresponding bi-weekly period (as the bi-weekly periods are determined by Your Pie for each year).

4.  Contributions to Advertising and Development Fund (the “Fund”):  an amount designated by Your Pie which will not exceed 2% of Gross Sales

• Due Date:  Bi-weekly, on or before the 3rd day after the corresponding bi-weekly period (as the bi-weekly periods are determined by Your Pie for each year).

• Current Fund contribution is 1% of Gross Sales.

5.  Local Advertising Spending Requirement:  Local Advertising Spending Requirement will be 4.5% of Restaurant’s Gross Sales less the then-current Fund contribution, but never to be less than 2.5% of Restaurant’s Gross Sales nor more than 3.5% of Restaurant’s Gross Sales

• Due Date:  Bi-weekly, on or before the 3rd day after the corresponding bi-weekly period (as the bi-weekly periods are determined by Your Pie for each year).

• Local Advertising Spending Requirement commences with the first full month after the opening of the Restaurant.

• In addition to your grand opening advertising obligation, you agree to spend a minimum percentage of your Restaurant’s Gross Sales each calendar year to market and promote your Restaurant in accordance with Your Pie’s guidelines.

• You must spend each month an amount equal to the then-current Local Advertising Percentage of the preceding month’s Gross Sales. If you belong to a cooperative program Your Pie established for franchisees within your general market area, you will receive a credit against your Local Advertising Spending Requirement for contributions you made to the cooperative program during the applicable year.

6.  Cooperative Advertising Program:  an amount based on your Restaurant’s Gross Sales specified by 50% or more of the Restaurants operating in the advertising cooperative area; provided, however, the amount of the contribution may not exceed an amount Your Pie designates

• Due Date:  Currently, Your Pie does not collect these fees.

• If an advertising cooperative is established for your area, you must pay this amount to the cooperative program.

• Contributions to the cooperative program will be credited toward the Local Advertising Spending Requirement (but not toward the Fund contribution).

7.  Additional Training or Assistance:  currently, Your Pie charges $100 per day plus expenses for training at Your Pie’s location, and $250 per day plus expenses for training at your Restaurant

• Due Date:  When training or assistance begins.

• Your Pie provides initial training for a total of 3 people at no cost. Your Pie may charge you for initial training of more than 3 people; for training newly-hired personnel; for refresher training courses; for the annual convention; and for additional or special assistance or training you need or request.

8.  Renewal Fee:  $5,000

• Due Date:  Before renewal.

• Payable when, and if, you acquire a successor franchise term. There are other conditions to acquire a successor franchise term.

9.  Transfer:  $10,000

• Due Date:  Before transfer completed.

• No charge if Franchise Agreement transferred to an entity you control.

10.  Product and Service Purchases:  varies

• You will buy products and services from Your Pie, its affiliates, designated and approved vendors whose items meet Your Pie’s standards and specifications, and/or other suppliers to the industry.

• Your Pie may be the sole supplier for some of these products and services.

11.  Supplier/Product Evaluation Testing Fee:  a fee not to exceed the reasonable cost of Your Pie’s inspection of the supplier’s facility and the actual cost of Your Pie’s product testing. The actual cost will depend on what is necessary to evaluate the product. Your Pie estimates that this amount could be $2,500 for a more significant product.

• Due Date:  When billed.

• This covers the costs of testing new products or inspecting new suppliers you propose.

12.  Computer Systems Maintenance and Support:  costs of service

• Due Date:  As incurred.

• Your Pie or a third party may charge you a fee for any proprietary software or technology that Your Pie, its affiliates, or a third party licenses to you and the other maintenance and support services that Your Pie or a third party might provide in the future.

• Currently, Your Pie does not provide these services but may charge you for them if it chooses to provide them in the future.

13.  Audit:  cost of inspection or audit

• Due Date:  10 days after billing.

• Due if you do not give Your Pie reports, supporting records, or other required information or understate required Royalties or Fund contributions by more than 2%.

14.  Interest:  lesser of 1.5% per month or highest commercial contract interest rate law allows

• Due Date:  As incurred.

• Due on all overdue amounts.

15.  Reimbursement for Your Pie’s Expenses Related to Maintenance and Refurbishment of Restaurant:  you must reimburse Your Pie’s expenses

• Due Date:  As incurred.

• If, after Your Pie notifies you, you do not undertake efforts to correct deficiencies in the Restaurant’s appearance, then Your Pie can undertake the repairs and you must reimburse its expenses.

• Your Pie is under no obligation to take action to correct your deficiencies.

16.  Insurance:  you must reimburse Your Pie’s costs

• Due Date:  As incurred.

• If you fail to obtain insurance, Your Pie may obtain insurance for you and you must reimburse it.

17.  Insufficient Funds Processing Fee:  $200

• Due Date:  As incurred.

• Due if you have insufficient funds in your account to cover a payment, or, if you pay by check, a check is returned for insufficient funds.

18.  Profit and Loss Statement Submission Late Fee:  $500

• Due Date:  As incurred.

• If you fail to submit your profit and loss statement to Your Pie by the second Monday following the close of each accounting period, Your Pie has the right to charge you a late fee of $500. The late fee will be assessed during the week following a missed deadline.

• All late fees actually recovered by Your Pie will be contributed to the Fund.

19.  Management Fee:  $500 per person per day (plus costs and expenses)

• Due Date:  As incurred.

• Due when Your Pie (or a third party) manages the Restaurant after your or your Operating Manager’s death or disability or after your default or abandonment.

20.  Liquidated Damages:  the greater of the average annual amount of the Royalty for the 2 years preceding the termination date, or the Royalties paid to Your Pie for the 12-month period preceding the termination date (if the Restaurant has not been opened for at least 12 months, the average monthly Royalty paid to Your Pie for the months the Restaurant has been open multiplied by 12), multiplied by either 3.5 or the number of years left under the term of the Franchise Agreement, whichever is less

• Due Date:  On the effective date of termination of the Franchise Agreement.

• Due only if Your Pie terminates the Franchise Agreement due to your default under the Franchise Agreement. You must pay Your Pie liquidated damages in addition to any other monetary obligations that you have to Your Pie under the Franchise Agreement as of the date of termination.

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

• Due Date:  As incurred.

• Due when you do not comply with the Franchise Agreement.

22.  Indemnification:  will vary under circumstances

• Due Date:  As incurred.

• You must reimburse Your Pie if it is held liable for claims from your Restaurant’s operation.