Detailed Information on Baskin-Robbins’ Initial Franchise Fee, Royalty Fee + 17 Other Fees (Items 5 and 6, 2022 FDD)

1.  Initial Franchise Fees (20-year term):  $25,000

• You must pay Baskin-Robbins the initial franchise fees (“IFFs”) of $25,000 for each Baskin-Robbins Restaurant that you open.

• Baskin-Robbins intends to offer qualified military veterans a 20-year IFF at no charge for the first Restaurant and a 20% IFF discount for each additional Restaurant on up to a total of five Baskin-Robbins and/or Combo (with Dunkin’) Restaurants developed under either past or present incentive offers. These reduced fees only apply if all of the terms and conditions of the 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 Baskin-Robbins 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 Baskin-Robbins, the security deposit is refundable at the end of the sublease term if, after Baskin-Robbins receives a final accounting from the landlord under the prime lease, you have no outstanding financial obligations to Baskin-Robbins under either your franchise or lease agreements.

• A $100 administrative fee is applied to all Baskin-Robbins subleases.

4.  Training Related Fees Paid to Baskin-Robbins:  initial online access fee of $300 per location and thereafter an annual continuing training fee (subscription fee) (currently, $300 per location); $1,500 per additional individual(s) attending the Brand Training program

• You will be required to pay an initial online access fee of $300 per location and thereafter an annual continuing training fee (subscription fee), which is currently $300 per location.

• Any additional individual(s) attending the Brand Training program will be required to pay $1,500 per individual for all Restaurants.

5.  Marketing Start-Up Fee:  minimum of $5,000 per new Restaurant opening, $3,000 for re-opening after a remodel, $3,500 per relocation that Baskin-Robbins approves, and $3,000 per transfer that Baskin-Robbins approves

• In connection with the opening, remodeling, relocation, or transfer of your Restaurant, you must undertake promotional activities in the manner and to the extent that Baskin-Robbins prescribes in accordance with its brand standards, which it will provide to you.

• The minimum required Marketing Start-Up Fee is currently $5,000 per new Restaurant opening, $3,000 for re-opening after a remodel, $3,500 per relocation that Baskin-Robbins approves, and $3,000 per transfer that Baskin-Robbins approves.

6.  Continuing Franchise Fee (CFF):  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 (CAF):  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 CAF fees may be due if agreed to by 2/3rds of the Restaurants (regional or national).

8.  Franchise Transfer Fee (for a majority interest):  $7,500 (or $20,000 if the Restaurant is a Combo)

• Due Date:  Upon transfer.

• Due if you transfer 50% or more interest in the franchise.

9.  Franchise Transfer Fee (for less than a majority interest, 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, or due if you transfer any of your interest to your spouse and/or one or more children.

10.  Audit Costs:  Baskin-Robbins’ cost to examine your financial, employment, or business records, including legal fees and investigative costs

• Due Date:  When and as billed to you.

• Baskin-Robbins 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 Baskin-Robbins or keep required records.

11.  Immigration Status Review Costs:  Baskin-Robbins’ out-of-pocket costs to hire attorneys or others for outside advice

• Due Date:  When and as billed to you.

• Payable if Baskin-Robbins needs outside advice on your legal or immigration status.

12.  Interests, 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.

• Baskin-Robbins can change these fees without notice.

• They apply if you fail to pay Baskin-Robbins or if your check is dishonored or your EFT is rejected by your bank.

13.  Indemnification:  varies

• Due Date:  Upon demand.

• You must reimburse Baskin-Robbins 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.

14.  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.

15.  SDA Transfer Fee (for less than a majority interest, or transfer to spouse or children):  then-current Fixed Documentation Fee (currently $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 one or more children.

16.  Lease Fees:  varies

• Due Date:  Payable as described in the lease.

• If you lease the Restaurant from Baskin-Robbins or its affiliates.

17.  Fixed Documentation Fee – Generally:  currently, $2,000 per Restaurant

• Due Date:  Due when you request additional documents, or when requested by Baskin-Robbins.

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

18.  Fixed Documentation Fee – Transfers:  currently, $2,000 per Restaurant

• Due Date:  Due when additional documents required in connection with transfers, or when requested by Baskin-Robbins.

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

19.  Costs for Tests Used to Approve Additional Supplier(s):  Baskin-Robbins’ out-of-pocket and internal costs allocated to this activity, 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.