Detailed Information on Profile’s Initial Franchise Fee, Royalty Fee + 26 Other Fees (Items 5 and 6, 2022 FDD)
1. Initial Franchise Fee: $49,500
- You must pay Profile an initial franchise fee when you sign the Franchise Agreement. Profile’s standard initial franchise fee is $49,500.
- Profile currently discounts the initial franchise fee to $44,500 (i.e., a $5,000 discount) to veterans who have received a discharge (other than dishonorable), as well as any active-duty personnel.
2. Development Fee: see below
- If Profile grants you the right to develop three or more units under a multi-unit area development agreement, you will sign its multi-unit area development agreement and pay it a development fee.
- The development fee is calculated as the sum of the initial franchise fees due for each unit, calculated according to the discount formula described above. For example:
- If you commit to develop three to five units within a development area, the development fee ranges from $125,000 (for three units) to $205,000 (for five units) ($45,000 for the first, plus $40,000 for each additional unit);
- If you commit to develop six to nine units within a development area, the development fee is equal to $35,000 per unit and ranges from $210,000 (for six units) to $315,000 (for nine units); or
- If you commit to develop 10 or more units within a development area, the development fee is equal to $30,000 per unit: $300,000 (for 10 units), plus $30,000 for each additional unit.
3. Profile Start-Up Kit: $112,500 to $134,500 for a stand-alone store, and $62,500 to $81,500 for an in-facility store
- On or before opening, you must purchase from Profile or from its affiliate or designee a Profile Start-Up Kit.
- The Profile Start-Up Kit includes furniture (e.g., chairs), fixtures (e.g., shelving and built-in workspace furnishings), and equipment (e.g., computer system and body scanning equipment) to start the franchised business.
- The current cost is estimated to be $112,500 to $134,500 for a stand-alone store, and $62,500 to $81,500 for an in-facility store, depending on the size and configuration of your premises, and this fee is non-refundable and is to be in a lump sum.
4. Initial Product Inventory, Exterior Signage: initial product inventory: $20,000 to $25,000 for a stand-alone store and $12,500 to $20,000 for an in-facility store; exterior signage: $9,000 to $13,000 for a stand-alone store and $0 to $7,500 for an in-facility store
- You must also purchase from Profile or from its affiliate or designee your initial product inventory and exterior signage.
- The cost of the initial product inventory is currently estimated to range from $20,000 to $25,000 for a stand-alone store and $12,500 to $20,000 for an in-facility store, and is non-refundable and is to be paid in a lump sum prior to opening.
- The cost of the exterior signage is currently estimated to be $9,000 to $13,000 for a stand-alone store and $0 to $7,500 for an in-facility store, and is non-refundable.
5. Specific Build-Out Materials: $25,500 to $29,500 for a stand-alone store and $5,000 to $7,200 for an in-facility store
- Prior to opening, you must purchase from Profile or from its affiliate or designee the flooring, lighting, and graphics that it specifies.
- Profile estimates that the purchase of these specific build-out materials will range from $25,500 to $29,500 for a stand-alone store and $5,000 to $7,200 for an in-facility store.
- These materials are currently purchased from Profile’s affiliate, Profile Products.
6. Royalty Fee: 5% of Gross Revenue
- Due Date: Weekly.
7. Marketing Fund Contribution: 2% of weekly Gross Revenue
- Due Date: Weekly.
8. Multi-Area Marketing, Marketing Cooperatives, or Local Marketing: amount Profile designates, not to exceed 2% of Gross Revenue
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- Due Date: At such times and manner as Profile specifies, or as required by any cooperative.
9. Technology Fee: then-current fees; currently estimated to be $150 to $400 per month
- Due Date: At such times and manner as Profile specifies, currently expected to be monthly.
- Profile has the right to impose a fee for the development and use of system technology.
10. ProfileOne (Web-based Profile Center Management System): then-current fees; currently $995 per month per franchised business (includes licensing for up to 5 employees). Additional user licenses can be purchased according to the fee schedule.
- Due Date: At such times and manner as Profile specifies, currently monthly on the fifth day of each month.
- Subject to annual increase.
11. Profile Coaches – Coach Education Fees: then-current fees; currently, $250 per person for new coach certification; $20 per month per coach ongoing
- Due Date: Upon demand.
- If you hire a new coach, $250 will be charged to train the new coach. A fee of $20 is charged per month per coach to maintain the certification.
- In addition, if the training is conducted exclusively for your attendees, other fees may apply.
12. Profile Manager – Manager Education and Training Fees (includes Business Development and Sales Training): then-current fees; currently, $500 per person for new manager training; after 12 months, $250 per year for ongoing manager training
- Due Date: Upon demand.
- Manager training fees are in addition to required coach certifications and fees.
- Manager training fees include Business Development education.
- If the training is conducted exclusively for your attendees, other fees may apply.
13. Business Development Personnel – Education Fees: then-current fees, currently, $125 per person for new business development training
- Due Date: Upon demand.
- Business development training fees are charged for specialty training on business development activities.
- Annual and updated training may be offered at your expense.
14. Sales Training Education – Educational Fees: then-current fees; currently, $125 per person for new sales training
- Due Date: Upon demand.
- Sales training fees are charged for specialty training on business development activities. Annual and updated training may be offered at your expense.
15. Additional or Advanced Training: then-current fees; currently, up to $1,000 per person per training session
- Due Date: Upon demand.
- If the training is conducted exclusively for your attendees, other fees may apply.
16. Audits: cost of audit, plus interest at the maximum rate allowable by law
- Due Date: Immediately upon receipt of invoice.
- Payable only if an audit reveals that you have underreported to Profile.
17. Administrative Fee: $250 per enforcement effort (i.e., written or verbal notification and follow up) for noncompliance with Profile System standards, and $250 per week for each week that the issue remains unresolved
- Due Date: Upon demand.
- Profile may assess an administrative fee to compensate it for its time.
18. Transfer Fee: 50% of the then-existing initial fee or up to $15,000 if transferee is a current franchisee, plus a 10% commission on the gross transfer price (excluding real property) if Profile found the buyer for you
- Due Date: Upon application for consent to transfer.
- Payable when you transfer your franchise.
19. Renewal Fee: $5,000 for first renewal; variable for subsequent renewals
- Due Date: At least six months before the end of the initial or any renewal term.
- The fee for each subsequent renewal will be determined by the renewal agreement.
20. Damages, Liquidated Damages, Costs, and Attorneys’ Fees: will vary under circumstances
- Due Date: As incurred.
- Payable only if Profile incurs damages or expenses, or if it prevails in arbitration or litigation.
- You pay liquidated damages of $500 per day for each day you continue to operate the Franchised Business using Profile’s Marks or systems, after expiration, termination, or transfer.
21. Credit Card Convenience Fee: will vary under circumstances, but typically 2.5%-3% of total amount billed
- Due Date: As incurred.
- For payments of royalties, fees, products, and other amounts billed to you under the Franchise Agreement, Profile may charge a pass-through credit card convenience fee as permitted by applicable law.
22. Late Charges and Interest: $100 per late payment or late report, plus 18% per annum; or the maximum amounts allowed by law
- Due Date: Upon demand.
- Payable if you fail to pay amounts owed to Profile when due, or file late reports.
23. Indemnification: will vary under the circumstances
- Due Date: As incurred.
- You must indemnify Profile if it is held liable for claims by others arising out of or relating to your franchise business or your operations.
24. Supplier Review Fee: Profile’s direct and indirect costs, subject to a minimum non-refundable fee of $2,000
- Due Date: $2,000 due upon submission of your request; remainder due as incurred.
- Profile’s costs include third-party testing cost, and a reasonable reimbursement of its time for it to evaluate your request.
25. Upgrading, Modernization, and Maintenance Costs: your costs and expenses which will vary, but are estimated at from $500 to $5,000 annually
- Due Date: Upon demand.
- Renovation is required every five years, and six months before the time of each renewal, to Profile’s specifications.
- You must maintain and upgrade annually Computer Systems, as Profile may prescribe.
26. Securities Offering Costs: varies
- Due Date: Upon demand.
- If you offer securities, Profile must review the prospectus or other offering documents and you will pay its costs. There is a minimum non-refundable fee of $5,000 that you will pay upon submitting an application for Profile’s review.
27. Management Fees (if Profile must operate your facility as a result of your default): Profile’s expenses, plus $500 per franchised business per day
- Due Date: Upon demand.
- Profile may operate one or more of your franchised businesses if you are in default under your Franchise Agreement.
28. Payments for Mandatory Goods, Services, and Programs: varies and may include reasonable processing fees
- Due Date: Upon purchase or billing.
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