Detailed Information on GarageExperts’ Initial Franchise Fee, Royalty Fee + 33 Other Fees (Items 5 and 6, 2022 FDD)

1.  Initial Franchise Fee:  $15,000 per territory

• The initial franchise fee for a new franchise is $15,000 per territory.

• GarageExperts offers a 10% discount on the initial franchise fee for a Veteran honorably discharged from any branch of the U.S. armed forces within 10 years of applying for a franchise with GarageExperts.

• The initial franchise fee is due to GarageExperts in full when you return to it signed copies of your Franchise Agreement, and before you attend initial training.

• The initial franchise fee is fully earned when paid and is not refundable.

2.  Installation Equipment, Coating Material, Sundry Items, and Trade Show Floor:  varies

• You must pay GarageExperts’ affiliate, Versatile Building Products, LLC (“VBP”), for installation equipment, coating material, sundry items, and trade show floor.

• These fees are refundable, less a 20% restocking fee, if you return these items unused to VBP.

3.  Computer Hardware and Software:  varies

• You must pay GarageExperts’ affiliate, VBP, for computer hardware and software.

• The amounts paid to VBP are refundable, less a 25% restocking fee, if you return these items unused to VBP.

4.  Renewal Fee:  $5,000 for each territory

• Due Date:  Upon signing a successor Franchise Agreement.

• Provided that GarageExperts is then offering franchises in the same state in which the trade area is located, you shall have the right at the expiration of the term to enter into a new, then-current Franchise Agreement.

5.  Fee to Cure Breach of Lease:  actual expenses incurred

• Due Date:  Upon demand.

• Any sum expended by GarageExperts or the power of attorney to cure your breach of your Lease shall be deemed additional sums due GarageExperts.

6.  Required Equipment:  all required equipment, inventory, supplies, materials, and signs shall be obtained by you at your sole cost

• Due Date:  Upon demand.

7.  Continuing Royalty:  you pay a monthly continuing royalty as follows: $500 for first 6 months after the Effective Date of your Franchise Agreement; $800/month for months 7-12; $1,200/month for months 13-18; $1,800/month thereafter

• Due Date:  Payable by the 15th day of each calendar month.

• Royalty is for any whole or partial month.

8.  National Advertising Fee:  $500/month until GarageExperts’ U.S. franchisee territory count is 125 or more, then $1,000/ month

• Due Date:  Monthly.

• You agree to pay this fee to GarageExperts after your territory has been operational for one year.

• Once GarageExperts has achieved a given tier in the advertising fee schedule, it will not revert to a prior tier even if the number of franchises decreases.

9.  Cellular Phone Number Fee:  approximately $50-$100 per month

• Due Date:  Monthly.

• You must obtain and pay a third-party vendor for a cellular telephone per GarageExperts’ guidelines.

10.  Trackable Phone Numbers:  currently, $2 per number plus 6 cents per minute for regular phone numbers, and $4 per number plus 10 cents per minute for toll-free numbers

• Due Date:  End of each calendar year.

• You must pay to GarageExperts its current fees for Trackable Phone Numbers to monitor the source of incoming calls.

11.  Amounts Advanced:  you shall pay to GarageExperts all amounts advanced by it or which it has paid on behalf of you for any reason whatsoever

• Due Date:  On demand.

12.  Trade Area Infringement Fee:  1st Violation: $500 plus invoice amount of goods or services provided and/or rendered within the other franchisee’s trade area. 2nd Violation: $1,000 plus invoice amount of goods or services provided and/or rendered within the other franchisee’s trade area. 3rd and Subsequent Violations: $5,000 plus invoice amount of goods or services provided and/or rendered within the other franchisee’s trade area.

• Due Date:  On demand and within 5 days of receiving a written demand.

• For purposes of the Infringement Fee, trade area infringement occurs if you generate income from a customer by receiving payment for goods and/or services provided and/or rendered within the trade area of another GarageExperts, without first obtaining written permission from GarageExperts and that franchisee.

• GarageExperts may also terminate your franchise if you infringe on the trade area of another GarageExperts franchisee 2 or more times during the term of your Franchise Agreement.

13.  Non-Compliance Fees:  varies

• Due Date:  As incurred.

• If you do not comply with certain sections of your Franchise Agreement, you agree to pay these fees to GarageExperts.

14.  Call Center Fees:  paid out of National Advertising Fund

• Due Date:  Monthly.

• You agree to use GarageExperts’ Call Center to handle your incoming digital and telephone customer leads, pursuant to GarageExperts’ guidelines.

15.  Late Fee:  $50, plus $20 per day payment is late

• Due Date:  Upon demand.

• Due only if you are late in paying any amounts owed to GarageExperts.

16.  Charges for Unpaid Checks, Drafts, or Electronic Payments:  GarageExperts’ costs and expenses arising from the nonpayment, including bank fees in the amount of at least $50

• Due Date:  Upon demand.

• Payable only if any check, draft, electronic, or other payment is unpaid because of insufficient funds or otherwise.

17.  Client Refunds:  actual amount of refund

• Due Date:  Upon demand.

• If you do not resolve a customer service complaint and GarageExperts believes a reasonable basis exists for a refund to the customer of all or a portion of the customer’s fees, then GarageExperts may make the refund and bill you.

18.  Brand Reputation Protection Fee:  $240 per year per territory

• Due Date:  Annually.

• You agree to pay to GarageExperts $240 annually for each territory you own so that GarageExperts may reimburse or resolve customers with complaints on territories that are closed and protect the goodwill of its brand name.

• GarageExperts may adjust this fee from time to time.

19.  Training Courses:  GarageExperts’ then-current charge, currently $0 per person per day

• Due Date:  As requested.

• GarageExperts provides an initial training program and additional training programs upon request (and subject to its scheduling requirements) for up to 2 persons at no charge. GarageExperts may charge a fee for any additional personnel that attend the initial training program.

20.  Annual Convention Attendance Fee:  currently, $500 per person

• Due Date:  Before attending.

• You must pay to GarageExperts $500 per person to attend its Annual Convention.

21.  3D Software Support Fee:  $250 (or then-current price)

• Due Date:  Annually.

• You pay this fee to GarageExperts’ affiliate, VBP, for 3D software support.

22.  National Account Administration Fee:  not to exceed 10% of Gross Sales which you earn resulting from performance of services to National Accounts

• Due Date:  On demand.

• Payable only if you elect to participate in GarageExperts’ National Account program and you service National Accounts in your trade area.

• Currently, no National Accounts exist.

23.  Local Advertising:  during each calendar quarter, you shall expend an amount equal to not less than 5% of your Gross Sales for the preceding calendar quarter for permitted local advertising and promotion related to the Franchised Business

• Due Date:  Each calendar quarter.

• Local advertising does not include the cost of your listings in any telephone or internet directories distributed or available in your trade area.

• Local advertising includes SEO management fees, PPC costs, print marketing, driveway magazines, paid digital ads, radio & TV ads, and trade shows.

24.  Promotional Materials:  then-current price; typically between $.16 and $200 per item

• Due Date:  On demand.

• You must participate in promotional campaigns GarageExperts may establish.

• Some promotional materials may be supplied to you using the National Ad Funds.

25.  Supplier Approvals:  all costs that GarageExperts incurs to review and evaluate the proposed supplier, typically between $1,000 and $5,000

• Due Date:  On demand.

• Payable by your or the proposed supplier only if you ask GarageExperts to approve a supplier.

26.  Late Profit & Loss Fee:  $50 per day after February 28

• Due Date:  On demand.

• You pay this fee to GarageExperts each day you are late turning in a Profit & Loss Statement to GarageExperts for the prior year.

27.  Modification of Marks:  your actual cost incurred to change Marks, commercial symbols, or trade dress

• Due Date:  Within 60 days after notice by company.

• From time to time, GarageExperts may add to, delete, or modify any or all of the Marks and Trade Dress. You shall use, or cease using, the Marks and/or trade dress at your expense.

28.  Bookkeeping Service:  $200/month

• Due Date:  Monthly.

• GarageExperts requires that you use a designated bookkeeping service at a pre-negotiated price.

• You agree that the bookkeeping service may share financial and other information about your business with GarageExperts in the format it prescribes.

29.  Transfer/Assignment:  $10,000 plus GarageExperts’ then-current training fees, plus its out of pocket costs and travel expenses

• Due Date:  Upon submission of your request to transfer or assign.

• Payable when you transfer your franchise or upon any “Assignment” as defined in the Franchise Agreement.

30.  Change in Information of a Business Entity Franchisee:  $2,500

• Due Date:  On demand.

• Information regarding the owners and principal officers of entity franchisees must be updated when changes occur by revising Schedule 2 to the Franchise Agreement.

31.  Default Reimbursement:  actual costs incurred, plus 35%

• Due Date:  Within 5 days after you cure the default.

• You must reimburse GarageExperts’ costs and expenses arising from your default under the Franchise Agreement, including reasonable legal fees and reasonable hourly charges of its administrative employees.

32.  Death or Incapacity:  reasonable expenses incurred

• Due Date:  When invoiced.

• If GarageExperts temporarily manages your franchise upon your death or disability, you agree to reimburse GarageExperts’ reasonable expenses incurred.

33.  Termination:  all amounts owing to GarageExperts and its affiliates

• Due Date:  Upon termination or expiration of Franchise Agreement.

• Upon termination or expiration of Franchise Agreement, GarageExperts may retain all fees paid pursuant to the Agreement and you shall immediately pay any and all amounts owed by you to GarageExperts.

34.  Insurance:  then-current price

• Due Date:  When incurred.

• You shall obtain and maintain insurance which designates GarageExperts and its designated affiliates as additional named insureds, with an insurance company approved by GarageExperts in the minimum coverage types and levels, deductible maximums, and policy limits as specified in the Manuals.

35.  Attorney Fees and Expenses:  varies

• Due Date:  When incurred.

• If GarageExperts is a substantially prevailing party as to any claims, or GarageExperts must incur attorney fees to determine the legality of changes or requests made by you to it, you agree to reimburse GarageExperts its attorney fees and costs.