If you are considering a First Choice Business Brokers franchise, don’t get blindsided by these 17 important franchise fees (from the initial franchise fee, to the royalty fee, to 15 other fees found in Items 5 and 6 of First Choice Business Brokers’ 2017 FDD).

1.  Initial Franchise Fee:  $39,000

• You must pay First Choice Business Brokers an Initial Franchise Fee of $39,000 in a lump sum when you sign the Franchise Agreement.

• The Initial Franchise Fee is fully earned by First Choice and nonrefundable when you sign the Franchise Agreement for the franchise being purchased.

• First Choice may offer financing for a portion of your Initial Franchise Fee if you meet its qualifications.

2.  Relocation Fee:  $2,000

• Due Date:  Due when you request First Choice’s permission to change your Approved Location.

• You will need to pay this fee if you intend to change your Approved Location and relocate your Franchised Business outside of your Area of Operations.

3.  Renewal Fee:  $2,000

• Due Date:  Upon renewal.

• Payable only if you choose to renew your franchise for another term.

4.  Royalty Fee:  $100 per Associate plus 10% of Gross Sales up to $850,000 during the term of the Franchise Agreement, 8% of Gross Sales of the next $850,000 in Gross Sales, and 7% of Gross Sales thereafter

• Due Date:  The 5th calendar day of every month.

• First Choice begins collecting Royalty Fees during your first month of operations.

5.  Marketing Contribution:  2% of Gross Sales for the preceding month

• Due Date:  The 5th calendar day of every month.

6.  Online Software System and Website:  $300 per month

• Due Date:  Monthly.

• You are required to lease from First Choice the right to use its custom software system and to purchase certain website services from it.

7.  Late Payment Fee:  9% of the overdue payment

• Due Date:  The day you are late on any payment that you owe to First Choice.

• If any payments are overdue, you must pay First Choice a late fee in addition to the overdue amount. Interest amount charged may be changed to the maximum rate permitted by law.

8.  Associate Training Fee:  $500 per agent that you employ or contract

• Due Date:  Upon scheduling training.

• Each Associate you employ or contract must attend First Choice’s On Line Training (First Choice University), within 15 days of the date that you hire them.

9.  Attendance at Training, Seminar, Conference, or Event:  not more than $1,200 per attendee

• Due Date:  60 days prior to event.

• You and any Key Personnel will be required to attend.

• First Choice will not require you or your Key Person to attend more than 2 conferences per year.

10.  Alternative Supplier Evaluation Fee:  First Choice’s actual costs

• Due Date:  At the time of the evaluation.

• You must pay First Choice its actual costs to review and evaluate an alternative supplier.

11.  Late Fees to Third Parties:  1.5% interest

• Due Date:  With next payment to First Choice.

• If First Choice advances a payment on behalf of your franchise due to late payment to a third party, you are responsible to pay First Choice the amount paid with 1.5% interest along with your next payment to First Choice.

12.  Audit:  First Choice’s costs of audit, plus 18% interest (or the highest rate allowed by law) on underpayment

• Due Date:  30 days after billing.

• If First Choice conducts an audit that shows that you have underpaid it in an amount more than 2%.

13.  Transfer Fee:  $2,000

• Due Date:  Due when you transfer ownership of the Franchise Agreement.

14.  Costs of Default:  will vary

• Due Date:  Upon settlement or conclusion of a claim.

• In the event of termination for any default by you, such sums shall include all damages, costs, and expenses, including attorney’s fees and disbursements incurred by First Choice as a result of the default, including Royalty Fees.

15.  Costs of Enforcement:  will vary

• Due Date:  Upon settlement or conclusion of a claim.

• You agree to pay all costs and expenses incurred by First Choice in connection with enforcement of the covenants in Section 17 of the Franchise Agreement.

16.  Indemnification:  will vary under the circumstances

• Due Date:  Upon request or demand.

• You must reimburse First Choice for the cost it incurs if it is sued or held liable for claims that arise in your operation of the Franchised Business.

17.  Costs of Enforcement or Defense:  will vary under circumstances

• Due Date:  Upon settlement or conclusion of a claim or action.

• You will reimburse First Choice for costs incurred in enforcing your obligations if it prevails.