Detailed Information on Fastest Labs’ Initial Franchise Fee, Royalty Fee + 24 Other Fees (Items 5 and 6, 2022 FDD)

1.  Initial Franchise Fee:  $49,500

• You must pay Fastest Labs an “Initial Franchise Fee” when you sign the Franchise Agreement.

• Fastest Labs offer the opportunity to enter into a franchise agreement for one territory (“Single Fastest Labs Business”) or enter into multiple franchise agreements under an Area Development Agreement. If you will operate a Single Fastest Labs Business, you will be granted a territory that contains up to 8,500 businesses (“Territory”).

• The Initial Franchise Fee is payable when you sign the Franchise Agreement in a lump sum unless you sign a deposit agreement (see Item 10).

• The Initial Franchise Fee is payment for all of Fastest Labs’ pre-opening assistance that it provides to allow you to open your Fastest Labs Business and also offsets some of Fastest Labs’ franchisee recruitment expenses.

• The Initial Franchise Fee is fully earned when paid and, except as provided below, is not refundable under any circumstances.

• The Initial Franchise Fee is uniform except that Fastest Labs currently offers a 10% discount off the first Franchise to any honorably discharged veteran of the U.S Armed Forces that meets Fastest Labs’ qualifications to operate a Fastest Labs Business.

2.  Development Fee:  based on the number of Fastest Labs Businesses you will develop when you sign your Area Development Agreement

• If you choose to enter into an Area Development Agreement to open multiple Fastest Labs Businesses, you will pay Fastest Labs a Development Fee based on the number of Fastest Labs Businesses you will develop (“Development Fee”) when you sign your Area Development Agreement.

• The Development Fee is equal to the sum of all the Initial Franchise Fees for Fastest Labs Business, as described in the table below.

• Single Fastest Labs Business:  $49,500
• Two Fastest Labs Businesses:  $42,000 per business
• Three Fastest Labs Businesses:  $38,000 per business
• Four Fastest Labs Businesses:  $35,000 per business
• Five Fastest Labs Businesses:  $35,000 per business

• You will not owe any additional Initial Franchise Fee when you enter into the Area Development Agreement.

• Under the Area Development Agreement, you must develop a minimum of two Fastest Labs Businesses.

3.  Royalty Fee:  greater of 7% of Gross Revenue or the Minimum Royalty due

• Due Date:  Due on or before the 5th day of each month.

• Paid by electronic funds transfer (“EFT”).

• You will pay an ongoing payment that allows you to use the Marks and the intellectual property of the System and pays for Fastest Labs’ ongoing support and assistance (“Royalty Fee”).

• The “Minimum Royalty” is not due for the first 6 months of your operation. After this grace period, the Minimum Royalty will be equal to $500 per month.

4.  National Brand Fund:  up to 2% of monthly Gross Revenue

• Due Date:  Same as Royalty Fee.

• Once established, this contribution will be used for a system-wide “National Brand Fund” for Fastest Labs’ use in promoting and building the Fastest Labs System.

5.  Local and Regional Advertising Cooperatives:  established by cooperative members, up to 2% of Gross Revenue

• Due Date:  Established by cooperative members.

• Fastest Labs currently does not have a cooperative but reserves the right to require one to be established in the future. If a local or regional advertising cooperative is established, contribution amounts will be established by the cooperative members, subject to Fastest Labs’ approval.

• No local or regional advertising cooperatives have been established as of the Issuance Date of the current Franchise Disclosure Document.

6.  Initial Training Fee:  $1,500 per additional person, plus $1,000 for each additional hotel room

• Due Date:  Prior to commencement of initial training.

• Only paid if more than two people attend initial training. This fee will vary depending on the number of hotel rooms used by the trainees.

7.  Supplemental Training at Your Facility:  $500 per day, per trainer, plus expenses of the training staff

• Due Date:  30 days after billing.

• Additional training may be requested by franchisees or may be required by Fastest Labs in its sole discretion.

8.  Transfer Fee:  $10,000

• Due Date:  $1,000 nonrefundable deposit at time of transfer application submittal and the remaining balance of fee at time of the approved transfer.

• Payable by either the transferee or transferor at the time ownership of the franchise is transferred.

9.  Technology Fee:  then-current monthly fee; Fastest Labs does not currently assess this fee

• Due Date:  Same as Royalty Fee.

• Fastest Labs reserves the right upon 30 days’ notice to charge a technology fee, which would cover certain technologies used in the operation of your Fastest Labs Business.

• Fastest Labs reserves the right to upgrade, modify, and add new technologies and software. You will be responsible for any increase in fees that result from any upgrades, modifications, or additional software or from increases from third-party vendors.

10.  Lab Management Software Fee:  then-current monthly fee; currently, $109 per month for one tablet. You will pay $10 per month for each additional tablet.

• Due Date:  Same as Royalty Fee.

• Fastest Labs assesses a monthly “Lab Software Fee” for access to its proprietary lab management software system. Fastest Labs reserves the right to designate an alternative supplier of lab management software.

• Fastest Labs reserves the right to upgrade, modify, and add new technologies and function to this software. You will be responsible for any increase in fees that result from any upgrades, modifications, or additional software or from increases from third-party vendors.

11.  Audit Fee:  cost of audit, including travel expenses, plus interest on amount of any underpayment

• Due Date:  As requested.

• Payable only if audit shows an understatement of at least 2% of Gross Revenue for any month.

12.  Renewal Fee:  $10,000

• Due Date:  At the time you sign the new Franchise Agreement.

• Payable if you qualify to renew your Franchise Agreement and choose to enter into a successor Franchise Agreement.

13.  Payment Service Fees:  up to 3% of total charge

• Due Date:  As incurred.

• If payment is made to Fastest Labs or its affiliates by credit card for any fee required, Fastest Labs may charge a service charge of up to 3% of the total charge.

14.  Interest Fee:  the greater of prime plus 3%, or 12%, but not more than the maximum allowed by law

• Due Date:  30 days after billing.

• Interest is charged on any unpaid royalty, advertising, transfer, and other fees not received by the due date.

15.  Insurance Fee:  reimbursement of Fastest Labs’ costs, plus a $500 administration charge

• Due Date:  On demand.

• If you fail to obtain insurance, Fastest Labs may obtain insurance for you, and you must reimburse Fastest Labs for the cost of insurance obtained plus a $500 administration fee for obtaining the insurance on your behalf.

16.  Relocation Fee:  Fastest Labs’ costs

• Due Date:  Upon relocation.

• You must reimburse Fastest Labs for its reasonable expenses if it permits you to relocate your Fastest Labs Business. Fastest Labs will provide you with copies of its invoices for its expenses from any third-party providers upon request.

17.  Convention Fee:  the then-current fee (currently estimated to be $199 to $499 per person)

• Due Date:  On demand.

• Payable to Fastest Labs to help defray the cost of your attendance at any annual convention that it may choose to hold. This fee is due whether or not you attend Fastest Labs’ annual convention in any given year.

18.  Internet Marketing: Search Engine Optimization and Keywords:  $1,000 per month for your first six months in operation; and beginning in the seventh month of operation, you must spend a minimum of $300 per month. If you do not meet Fastest Labs’ Performance Standard, it will require you to spend $1,000 per month.

• Due Date:  As requested.

• These payments must be made directly to the service provider. If you fail to make these payments, Fastest Labs may require you to pay the difference to it.

• If you do not meet Fastest Labs’ Performance Standard, you will be required to spend $1,000 per month until you meet or exceed the Performance Standard applicable to your Fastest Labs Business.

19.  Indemnification:  will vary under circumstances

• Due Date:  As incurred.

• You must indemnify and reimburse Fastest Labs for any expenses or losses that it or its representatives incur related in any way to your Fastest Labs Business or Franchise.

20.  Non-Sufficient Funds Fee:  $100 per occurrence

• Due Date:  As incurred.

• Payable if any check or electronic payment is not successful due to insufficient funds, stop payment, or any similar event.

21.  Management Fee:  $500 per day, plus costs and expenses

• Due Date:  As incurred.

• Payable if Fastest Labs or its affiliate manages the Fastest Labs Business because you are in breach of the Franchise Agreement, abandon the Fastest Labs Business, Fastest Labs deems you incapable of operating the Fastest Labs Business, or following your death or disability.

22.  Professional Fees and Expenses:  will vary under circumstances

• Due Date:  As incurred.

• You must reimburse Fastest Labs for any legal or accounting fees that it incurs as a result of any breach or termination of your Franchise Agreement. You must reimburse Fastest Labs if it is required to incur any expenses in enforcing its rights against you under the Franchise Agreement.

• You will also be required to pay any professional fees that Fastest Labs incurs for certain transfers.

23.  Customer Issue Resolution:  varies; reasonable costs Fastest Labs incurs for responding to a customer complaint, which will typically be between $20 and $100

• Due Date:  On demand.

• Payable if a customer of the Fastest Labs Business contacts Fastest Labs with a complaint and Fastest Labs provides a gift card, refund, or other value to the customer as part of its addressing the issue.

24.  Broker Fees:  Fastest Labs’ actual cost of the brokerage commissions, finder’s fees, or similar charges

• Due Date:  As incurred.

• If you transfer your Fastest Labs Business to a third party or purchaser, you must reimburse all of Fastest Labs’ actual costs for commissions, finder’s fees, and similar charges.

25.  Enforcement Costs:  Fastest Labs’ actual expenses in enforcing a Confidentiality Agreement or System Protection Agreement

• Due Date:  As incurred.

• You agree to reimburse Fastest Labs for all expenses it incurs in enforcing a Confidentiality Agreement or System Protection Agreement, including reasonable attorney fees and court costs.

26.  Late Payment (Deposit Agreement):  $2,500

• Due Date:  As incurred.

• You may enter into a deposit agreement as described in Item 10. If you fail to make timely payments under the terms of your Deposit Agreement, a late fee will be assessed.