If you are considering a Hurricane Grill & Wings franchise, don’t get blindsided by these 23 important franchise fees (from the initial franchise fee, to the royalty fee, to 21 other fees found in Items 5 and 6 of Hurricane Grill & Wings’ 2017 FDD).

1.  Franchise Fee:  $35,000

• The Franchise Fee is $35,000 and must be paid to Hurricane Grill & Wings when you sign the Franchise Agreement. The Franchise Fee is a one-time, lump sum payment.

• If you are developing the Restaurant under a Development Agreement, Hurricane Grill & Wings will credit a portion of the Development Fee against the Franchise Fee, as explained below.

• The Franchise Fee is fully earned by Hurricane Grill & Wings when paid and it is not refundable.

2.  Additional Opening/Operations Assistance, or Additional Training:  varies

• Hurricane Grill & Wings provides assistance around the beginning of operations in the form of one senior trainer. If you need additional assistance, if you request additional assistance, or if you need additional or supplemental training, you must pay for air travel, lodging, ground transportation, meals, and per diem compensation for each member of the opening team besides the senior trainer.

• The per diem compensation for each additional trainer is $135. The travel, meals, and lodging costs depend on your location.

3.  Development Fee:  $35,000 for the first Restaurant that you agree to develop, and $17,500 for each additional Restaurant that you agree to develop

• If you enter into a Development Agreement, when you sign that Agreement, you must pay Hurricane Grill & Wings a Development Fee equal to $35,000 for the first Restaurant that you agree to develop, and $17,500 for each additional Restaurant that you agree to develop. The Development Fee is a one-time, lump sum payment.

• For the first Restaurant that you open under the Development Agreement, Hurricane Grill & Wings will credit $35,000 of the Development Fee against the Franchise Fee for that Restaurant. For each additional Restaurant, Hurricane Grill & Wings will credit $17,500 of the Development Fee against the Franchise Fee for the applicable Restaurant.

• The Development Fee is not refundable and is paid in consideration of administrative and other expenses incurred by Hurricane Grill & Wings. The Development Fee is uniformly applied to all developers.

4.  Royalty Fee:  5% of Adjusted Gross Sales

• Due Date:  Payable weekly, on Monday for Adjusted Gross Sales for week ending preceding Sunday.

5.  Brand Building Marketing Fund Contribution:  an amount not to exceed 3% of Adjusted Gross Sales. Currently, the amount is 2.5% of Adjusted Gross Sales.

• Due Date:  Same as Royalty Fee.

• Contributions are currently assessed. The Brand Building Fund Contribution may be increased to 3% of Adjusted Gross Sales.

• Hurricane Grill & Wings may require marketing funds to be used in Cooperative Advertising.

• You must participate in and make additional payments to the Fund for advertising, marketing, and promotional programs that are targeted to multiple Restaurants located in a common market or geographic region if at least 2/3 of the Restaurants that are located in the market or region vote for, or approve, the additional payments. The voting is one vote per Restaurant.

6.  Local Advertising:  at least 1% of Adjusted Gross Sales

• Due Date:  Monthly.

• You pay these amounts directly to third parties subject to Hurricane Grill & Wings’ approval of the advertising materials.

• Hurricane Grill & Wings may require Local Advertising expenditures to be used in Cooperative Advertising.

• Your expenditures for Local Advertising are in addition to required Brand Building Fund Contributions, telephone directory advertising, and required Grand Opening Advertising expenditures.

7.  Cooperative Advertising:  if established, the amount set by the Cooperative Advertising program

• Due Date:  As directed.

• Hurricane Grill & Wings may establish and administer a Cooperative Advertising program within your regional marketing area. Any or all of the Brand Building Fund Contributions plus any or all of required Local Advertising may be re-designated for Cooperative Advertising.

8.  Grand Opening Advertising:  $15,000

• Due Date:  As incurred.

• During the first 3 months of operation, you must spend this amount on local advertisement and promotion of the Restaurant. These expenditures are in addition to any Local Advertising expenditures and Brand Building Fund Contributions.

• Typically, these amounts are paid to third parties.

9.  Lease Review Fee:  $1,000

• Due Date:  At time you submit your lease to Hurricane Grill & Wings for review.

• Hurricane Grill & Wings may review your lease as to issues related to operation of the Restaurant, compliance with System standards, and matters of importance to the Company, and not to evaluate legal, financial, or business terms.

10.  Audit Expenses:  all costs and expenses associated with audit

• Due Date:  Upon demand.

• Audit costs payable only if the audit shows you have an understatement in amounts due of at least 2%.

11.  Late Fees:  1.5% per month or the highest rate allowed by law, whichever is less

• Due Date:  Upon demand.

• Applies to all overdue Royalty Fees, Brand Building Fund Contributions, and other amounts due to Hurricane Grill & Wings.

12.  Check and Electronic Payment Return Fees and Late Submission of Reports:  $100 per transaction

• Due Date:  Upon occurrence.

• Applies if any payment by you is not paid to Hurricane Grill & Wings or if you are late in submitting any required reports.

13.  Approval of Products or Suppliers:  varies, but will include all expenses

• Due Date:  Time of evaluation.

• Applies to Hurricane Grill & Wings’ evaluation of new suppliers you wish to purchase from or products you wish to purchase.

14.  Non-Compliance Fee:  $1,000 for second violation in 12-month period; $2,000 for third violation; and $4,000 for each additional violation

• Due Date:  As incurred.

• If, after Hurricane Grill & Wings notifies you of a failure to comply, you continue to fail to comply with the System standards, it may charge you a fee.

15.  Insurance Policies:  amount of unpaid premiums, plus Hurricane Grill & Wings’ reasonable expenses in obtaining the policies

• Due Date:  Upon demand.

• Payable only if you fail to maintain required insurance coverage and Hurricane Grill & Wings elects to obtain coverage for you.

16.  Transfer Fee – Franchise Agreement:  $15,000

• Due Date:  Time of transfer.

• One-half of the transfer fee is paid when you notify Hurricane Grill & Wings of your intent to transfer, and the balance is paid at closing.

17.  Transfer Fee – Development Agreement:  $15,000

• Due Date:  Time of transfer.

• One-half of the transfer fee is paid when you notify Hurricane Grill & Wings of your intent to transfer, and the balance is paid at closing.

18.  Renewal Fee:  $12,500

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

19.  Relocation Assistance:  costs of providing relocation assistance

• Due Date:  Time of assistance.

• Hurricane Grill & Wings will charge you for relocation assistance if you request it and Hurricane Grill & Wings agrees to provide it.

20.  Additional Person at Initial Training:  $1,200 per person, per training program

• Due Date:  Time of service.

• Hurricane Grill & Wings provides initial training to you and three additional people for a Hurricane Grill & Wings Restaurant, and for a total of three people for a Hurricane Burgers Tacos Wings Restaurant.

• If you desire to have additional individuals trained, you must pay the training fee for each additional person. You must pay Hurricane Grill & Wings’ expenses and your expenses as well as your employees’ expenses in attending.

21.  Substitute or New Manager Training:  rates as published in the Manual; currently, $1,200 for the initial training program, plus Hurricane Grill & Wings’ expenses and your expenses as well as your employees’ expenses in attending

• Due Date:  Time of training.

• If your Designated Manager does not satisfactorily complete Hurricane Grill & Wings’ initial training program (or if you replace your Designated Manager), a substitute (or your replacement manager) must complete Hurricane Grill & Wings’ initial training program.

• Hurricane Grill & Wings may charge you for additional training.

22.  Cost of Enforcement:  all costs including reasonable attorneys’ fees

• Due Date:  Upon demand.

• You must reimburse Hurricane Grill & Wings for all costs in enforcing obligations if it prevails.

23.  Indemnification:  all costs including reasonable attorneys’ fees

• Due Date:  Upon demand.

• You must defend lawsuits at your cost and hold Hurricane Grill & Wings harmless against lawsuits arising from your operation of the Restaurant.