Detailed Information on Beef Jerky Experience’s Initial Franchise Fee, Royalty Fee + 28 Other Fees (Items 5 and 6, 2022 FDD)

1.  Initial Franchise Fee:  $49,900

• You must pay Beef Jerky Experience an initial franchise fee of $49,900, payable in a lump sum when you sign the Franchise Agreement, for the right to establish a single Store.

• If you are a qualified United States veteran, Beef Jerky Experience will reduce the initial franchise fee (for your first Store only) by 20%.

• The initial franchise fee is therefore not imposed uniformly on all franchisees. The initial franchise fee is not refundable under any circumstances.

2.  Pre-Opening Purchases/Charges:  $10,000 to $15,000

• You must purchase from Beef Jerky Experience’s affiliate, PLE, a portion of your initial inventory of specialty food products, including jerky products, sausages, smoked meats, and other specialty food items.

• Beef Jerky Experience estimates that the cost of these items will be between $10,000 to $15,000. There are no refunds.

3.  Technology System Set-Up Fee:  $950

• You must also pay Beef Jerky Experience a Technology System Set-Up Fee of $950 at the time of signing the Franchise Agreement. It is not refundable under any circumstances.

4.  Kickstart Assets:  $5,000

• At the time of signing the Franchise Agreement, you must also pay to Beef Jerky Experience the sum of $5,000 for your business kickstart assets.

• Beef Jerky Experience will hold these funds for you and remit payment to marketing vendors when they are due. If you do not open the franchise, Beef Jerky Experience will refund any unused portion of this fee to you.

5.  Development Fee:  100% of the initial franchise fee for the first Store to be developed ($49,900), plus a deposit equal to 50% of the reduced initial franchise fee ($16,750) for the second Store to be developed

• If you sign a Multi-Unit Operator Agreement with Beef Jerky Experience, the initial franchise fees you pay under the individual Franchise Agreements will be $49,900 for the first Store and $33,500 for each additional Store you develop.

• When you sign the Multi-Unit Operator Agreement, you must pay Beef Jerky Experience a development fee equal to 100% of the initial franchise fee for the first Store to be developed ($49,900) and sign a Franchise Agreement for this first Store, plus a deposit equal to 50% of the reduced initial franchise fee ($16,750) for the second Store to be developed under the Multi-Unit Operator Agreement.

• For your first Store, Beef Jerky Experience will apply a portion of the development fee to pay the initial franchise fee in full. For each Store developed after the first one, Beef Jerky Experience will apply a pro rata portion of the development fee towards the initial franchise fee due under the then-current Franchise Agreement and the balance of the initial franchise fee due, or $16,750, is payable when you sign the Franchise Agreement for the Store.

• Beef Jerky Experience reserves the right to adjust this formula depending upon the size of the area and the financial ability of the Multi-Unit Operator. The development fee must be paid in a lump sum and is non-refundable.

6.  Royalty:  6% of Gross Sales

• Due Date:  Payable on Tuesday of each week for the week ending Sunday (or the next business day if any Tuesday is not a business day).

• Royalty Fees are calculated based on Gross Sales for the previous week ending Sunday.

• Amounts due will be withdrawn by Electronic Funds Transfer (EFT) from your designated bank account.

7.  Brand and Technology Fee:  2% of Gross Sales

• Due Date:  Payable at the same time and in the same manner as the Royalty Fee.

• Beef Jerky Experience may increase the Brand and Technology Fee, up to a maximum of 4% of Gross Sales, with 30 days prior notice to you.

8.  Annual Conference:  up to $499

• Due Date:  On or before conference.

• If Beef Jerky Experience determines to hold an annual conference for its franchisees.

9.  Corporate Training Location Training Program (New or Additional Trainees):  Beef Jerky Experience’s then-current fee per person, plus expenses. Current training fee = $500 per day.

• Due Date:  Before training.

• Beef Jerky Experience will train you and/or your Designated Manager at no additional charge.

• If you request that Beef Jerky Experience provide its initial training program to any additional employees, or to new or replacement employees during the term of your Franchise Agreement, you must pay its training fee as well as the trainees’ expenses, including travel, lodging, meals, and wages.

10.  Additional Training at Your Location – On-Site Training or Assistance:  Beef Jerky Experience’s then-current per diem fee per trainer, plus expenses. Current per diem fee = $500 to $1,500.

• Due Date:  When incurred.

• If you request that Beef Jerky Experience provide additional training at your Store, or if it determines that you need additional training, you must pay Beef Jerky Experience’s daily fee for each trainer it sends to your Store, and you must reimburse each trainer’s expenses, including travel, lodging, and meals.

11.  Transfer Fee:  Franchise Agreement: $10,000; Multi-Unit Operator Agreement: 2 = $15,000; 3 or more = $20,000

• Due Date:  Closing date of transfer.

• No fee charged for: (i) a one-time transfer from individual(s) to a corporate entity formed for convenience of ownership of the franchise, (ii) transfer to a family member Beef Jerky Experience approves, (iii) transfer to family member due to death or disability.

12.  Renewal:  $2,500

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

13.  Relocation Assistance:  reimbursement of Beef Jerky Experience’s costs (estimated to be $750 to $1,500)

• Due Date:  On demand, if incurred.

• If you request Beef Jerky Experience’s assistance to relocate your Store.

14.  Indemnification:  will vary under circumstances

• Due Date:  On demand.

• You must reimburse Beef Jerky Experience for the costs it incurs if it is sued or held liable for claims that arise from your operation of the business or for costs associated with defending claims that you used the Marks in an unauthorized manner.

15.  Costs and Attorneys’ Fees:  will vary under the circumstances

• Due Date:  On demand.

• If you default under your Agreement, you must reimburse Beef Jerky Experience for the expenses it incurs (such as attorneys’ fees) in enforcing or terminating your agreement.

16.  Customer Service:  reimbursement of Beef Jerky Experience’s costs in assisting your customers

• Due Date:  On demand.

• If Beef Jerky Experience determines it is necessary for it to provide service directly to your customers.

• Costs you must reimburse include a per diem fee of $600/day, plus travel and living expenses for Beef Jerky Experience’s representative.

17.  Interest on Overdue Amounts:  the lower of 1.5% per month or the highest rate Beef Jerky Experience can charge by law

• Due Date:  If incurred.

• Interest is payable on any amounts owed to Beef Jerky Experience or its affiliates that are not paid when due.

• Interest accrues from the original due date until payment is made in full.

18.  Non-Sufficient Funds (NSF) Charge:  $35 per NSF occurrence

• Due Date:  If incurred.

• Beef Jerky Experience will ACH access a $35 fee for each NSF from your bank.

19.  Audit:  cost of audit (estimated to be between $1,500 and $5,000)

• Due Date:  On demand.

• Beef Jerky Experience has the right to audit your books at any time.

• If an audit shows that you have understated Gross Sales or any amount owed to Beef Jerky Experience by 3% or more, or that you have not conducted the minimum local marketing requirement, you must reimburse the costs of the audit, including fees and expenses. You must also pay any understated amount plus interest.

20.  POS System and Loyalty Maintenance and Support:  $99 to $300

• Due Date:  Monthly.

• Payable to supplier.

21.  Technology and Systems Set-Up Fee:  $950

• Due Date:  Upon signing Franchise Agreement.

• Payable to Beef Jerky Experience.

22.  Technology Subscription and Support Fee (including store and owner email, email marketing subscriptions, and local website profiles):  $100 to $250

• Due Date:  Monthly. Prorated upon activation and then billed on the 1st of every month.

• Payable in the same manner as the Royalty Fee. Payable to Beef Jerky Experience.

23.  Store Refresh: Repair, Maintenance, and Remodeling/Redecorating:  will vary under the circumstances

• Due Date:  As incurred.

• Payable to approved suppliers.

• You must regularly clean and maintain your Store and its equipment.

• Beef Jerky Experience may require you to remodel or redecorate your Store to meet its then-current image for all Beef Jerky Stores.

• Beef Jerky Experience will not require you to remodel or redecorate your Store more frequently than every five years.

24.  Product Purchases:  will vary, depending on how quickly inventory is sold

• Due Date:  As incurred.

• You must purchase your continuing supply of certain specialty food products from Beef Jerky Experience’s approved or other authorized vendors.

• Shipping charges to you will vary depending upon distance from vendors to your franchise site.

25.  Prohibited Product or Service Fee:  $250 per day of use of unauthorized products or services

• Due Date:  If incurred.

• In addition to other remedies available to Beef Jerky Experience.

26.  Insurance Premiums:  reimbursement of Beef Jerky Experience’s costs, plus a 10% administrative fee

• Due Date:  On demand.

• If you do not maintain the required insurance coverage, Beef Jerky Experience has the right (but not the obligation) to obtain insurance on your behalf.

27.  Local Product or Local Supplier Evaluation Fee:  no charge for first 15 SKU’s per year per location; $25 for each of SKU’s 16-25 per year per location; $50 for each of SKU’s 26-35 per year per location. Fees associated with SKU’s 16-35 must be paid via ACH prior to being added into systems. SKU = Each Individual SKU. For example, multiple sizes of one flavor will count for multiple SKU’s.

• Due Date:  On demand, if incurred.

• If you wish to purchase any product or purchase from any local supplier that Beef Jerky Experience has not approved, you must submit the request to Beef Jerky Experience for approval on its new item request form.

• If Beef Jerky Experience approves the product or supplier for all Stores in the System, it reserves the right to waive the fee for the location.

28.  Management Fee:  Beef Jerky Experience’s then-current per diem fee per representative, plus expenses. Current per diem fee = $600.

• Due Date:  If incurred.

• Beef Jerky Experience may step in and manage your Store in certain circumstances, such as your death, disability, or prolonged absence.

• Beef Jerky Experience will charge a management fee, in addition to the other fees it charges, if it manages your Store. You must reimburse its expenses.

29.  Damages for Loss of Bargain on Termination:  the present value of the royalty fees that you would have paid to Beef Jerky Experience for the lesser of: (i) the balance of the term of the Franchise Agreement if the Franchise Agreement had not been terminated; or (ii) 104 weeks.

• Due Date:  On termination.

• You must pay Beef Jerky Experience liquidated damages if the Franchise Agreement is terminated before the end of the term, except for termination by you for cause.

30.  Non-compliance Fee:  $500 for first offense; $1,000 for each offense thereafter

• Due Date:  When assessed.

• Beef Jerky Experience may withdraw on EFT basis.

• The fee applies if you are not in compliance with the Franchise Agreement and may be implemented without issuance of a written notice of default.