28 Substantial Fees Every Squeeze Massage Franchisee Needs to Know About

Detailed Information on Squeeze Massage’s Initial Franchise Fee, Royalty Fee + 26 Other Fees (Items 5 and 6, 2021 FDD)

1.  Initial Franchise Fee:  $60,000

• The Initial Franchise Fee is $60,000.

• If you are a veteran of the armed forces of the United States and were honorably discharged from military service, you will receive a 10% discount on each Initial Franchise Fee that you pay to Squeeze Massage.

• The Initial Franchise Fee is paid in a lump sum at execution of the Franchise Agreement unless you and Squeeze Massage agree otherwise. Initial Franchise Fees are not refundable. The Initial Franchise Fee and all other fees are uniform for all similarly situated franchisees.

2.  Technology Fee:  $1,500

• When you sign a Franchise Agreement, you will also pay Squeeze Massage a one-time technology setup fee of $1,500.

3.  Development Fee:  100% of the Initial Franchise Fee that you will pay for each Squeeze Shop

• You may but are not obligated to execute a Development Agreement with Squeeze Massage. You will pay Squeeze Massage a Development Fee in connection with your execution of the Development Agreement.

• The Development Fee is paid to Squeeze Massage in exchange for its agreement to grant you a Development Area in which you will develop and open an agreed upon number of Squeeze Shops according to a Development Schedule.

• The Development Fee you pay Squeeze Massage will depend upon the number of Squeeze Shops that you agree to develop and open in the Development Area. The Development Fee will be 100% of the Initial Franchise Fee that you will pay for each Squeeze Shop although you will be obligated to execute a Franchise Agreement in connection with each Squeeze Shop.

• The Development Fees for 2021 are:

• Right to open 2 Squeeze Shops:  $55,000 each ($110,000 total)
• Right to open 3 Squeeze Shops: $50,000 each ($150,000 total)
• Right to open 4-5 Squeeze Shops: $45,000 each ($180,000 to $225,000 total)
• Right to open 6-9 Squeeze Shops: $40,000 each ($240,000 to $360,000)
• Right to open 10 or more Squeeze Shops: $35,000 each ($350,000+)

4.  Royalties:  6% of Net Sales

• Due Date:  Squeeze Massage will calculate and retain the Royalties prior to its weekly payment to you of the Franchise Commission.

• Based on Net Sales during the previous week and is nonrefundable.

5.  Credit Card Processing Fee:  3% of credit card sales + $.30 per transaction

• Due Date:  Squeeze Massage will calculate and retain the credit card processing fees prior to its weekly payment to you of the Franchise Commission.

• Based on credit card sales.

6.  Brand Fund Contribution:  2% of Net Sales

• Due Date:  Squeeze Massage will calculate and retain the Brand Fund Contribution prior to its weekly payment to you of the Franchise Commission.

• Your contribution to the Brand Fund is in addition to your expenditures for Local Store Marketing and the Grand Opening Plan.

• Squeeze Massage reserves the right to increase the Brand Fund Contribution at any time in its sole discretion upon 60 days prior notice to you.

7.  Local Store Marketing:  3% of Net Sales

• Due Date:  Monthly in accordance with your Marketing Plan.

• This is the minimum amount that you will be required to spend directly every month on local marketing.

• Your Local Store Marketing is in addition to your contribution to the Brand Fund, any Cooperative Marketing organization, and your expenditures for the Grand Opening Plan.

• You must begin conducting Local Store Marketing after the time period specified for the Grand Opening Plan.

8.  Cooperative Marketing Fee:  up to 2% of monthly Net Sales, plus any fees that Squeeze Massage may charge for administering, managing, and governing the Cooperative

• Due Date:  If a Cooperative Marketing Fund is established, Squeeze Massage will calculate and retain the Cooperative Marketing Fee prior to its weekly payment to you of the Franchise Commission.

• Squeeze Massage may, in its sole discretion, establish a regional advertising cooperative in the future in your designated marketing area. You will be obligated to participate in your marketing cooperative if it is established.

• The Cooperative Contribution will be credited against the amount you are required to spend on local marketing. If you fail to remit payment of your Cooperative Contribution, you will be required to reimburse Squeeze Massage for amounts it spends on your behalf to satisfy your Cooperative Contribution, plus Squeeze Massage’s related expenses.

9.  Guest Services Fee:  $1,200 per month

• Due Date:  Squeeze Massage will retain the Guest Service Fee on a monthly basis prior to the last weekly payment to you of the Franchise Commission for a particular calendar month.

• Squeeze Massage has a centralized guest service program to support the online scheduling and payment system with phone, email, and SMS support. You are obligated to participate and contribute to the program.

• Squeeze Massage may increase the Guest Services Fee upon 30 days prior written notice to you.

10.  Training Fee:  $1,500 plus meals, lodging, incidental expenses, and travel expenses

• Due Date:  Squeeze Massage will retain the Training Fee on a monthly basis prior to the last weekly payment to you of the Franchise Commission for a particular calendar month.

• Squeeze Massage reserves the right to charge its Training Fee in connection with (a) retraining or replacement training with regards to the portions of the initial training that are designed for the Operating Principal and/or Manager, (b) any training Squeeze Massage requires you to complete to cure a default under your Franchise Agreement with Squeeze Massage (“Remediation Training”), (c) additional training you request Squeeze Massage provide (other than the kind of day-to-day assistance described below), or (d) training Squeeze Massage provides on-site at your Squeeze Shop.

• Squeeze Massage will not charge any training fee in connection with minor, day-to-day assistance that it provides remotely over the phone or via email, subject to its availability.

• In addition to Squeeze Massage’s then-current Training Fee, you will always be responsible for the costs and expenses that are incurred in connection with you and your personnel attending training.

11.  Technology Fee:  $1,950 per month

• Due Date:  Squeeze Massage will retain the Technology Fee on a monthly basis prior to the last weekly payment to you of the Franchise Commission for a particular calendar month.

• You will pay Squeeze Massage a Technology Fee for required application, software, maintenance and support, e-mail service, intranet, and other technology services that Squeeze Massage determines, in its sole discretion, to provide to you.

12.  Franchise Meeting Fee:  $1,000 per person

• Due Date:  Squeeze Massage will retain the Franchise Meeting Fee prior to its weekly payment to you of the Franchise Commission.

• Squeeze Massage may schedule and hold an annual conference, as Squeeze Massage deems advisable in its sole discretion, and require that you attend such conference.

• If you do not attend the annual conference, Squeeze Massage reserves the right to charge you a nonattendance fee amounting to the then-current registration fee.

• You will be responsible for the costs and expenses you incur in connection with any annual conference/convention (lodging, travel, meals, etc.), and Squeeze Massage reserves the right to charge you its then-current registration fee.

• This fee may be increased upon written notice to you.

13.  Transfer Fee:  an amount equal to 25% of Squeeze Massage’s then-current Initial Franchise Fee provided that the Transfer Fee will not exceed $12,500

• Due Date:  Payable when Squeeze Massage receives notice that you have identified a potential buyer and signed a purchase agreement.

• The Transfer Fee is not refundable.

• If the closing for the transfer does not occur, Squeeze Massage will not refund the Transfer Fee; however, if during the 12-month period following your initial notice of the transfer, you identify another transferee, then Squeeze Massage will apply the Transfer Fee to the Transfer Fee for that buyer.

14.  Renewal Fee:  $10,000

• Due Date:  No more than 12 months and no fewer than 9 months prior to the date the Franchise Agreement will expire.

15.  Site Evaluation Fee:  $0 for your initial site evaluation; $500 for any subsequent site evaluations

• Due Date:  Prior to Squeeze Massage’s undertaking a second or subsequent site evaluation. May be deducted directly from your Franchise Commissions.

• You will not pay Squeeze Massage a fee for your initial site evaluation. You will only pay Squeeze Massage a site evaluation fee if it is required to perform subsequent site evaluations.

16.  Interest:  the lesser of 15% per year or the maximum lawful rate

• Due Date:  Upon demand.

• May be deducted directly from your Franchise Commissions.

• Squeeze Massage will debit interest from your business checking account.

17.  Audit Costs:  Squeeze Massage’s actual audit fees, costs, and expenses

• Due Date:  Upon demand.

• May be deducted directly from your Franchise Commissions.

• Payable only if the audit is necessary due to your failure to furnish reports, supporting records, or other information as required, or to furnish these items on a timely basis, or if Squeeze Massage’s examination reveals a Royalties and/or Brand Fund contribution understatement exceeding 2% of the amount that you actually reported to Squeeze Massage for the period examined.

18.  Costs and Attorneys’ Fees:  Squeeze Massage’s actual costs and reasonable attorneys’ fees incurred

• Due Date:  As incurred.

• May be deducted directly from your Franchise Commissions.

• If Squeeze Massage prevails in litigation regarding enforcement of any terms of any agreement with Squeeze Massage, you must pay Squeeze Massage’s attorneys’ fees and costs.

19.  New Product and Supplier Testing:  Squeeze Massage’s actual expenses, up to $5,000

• Due Date:  As incurred.

• May be deducted directly from your Franchise Commissions.

20.  Insurance Costs:  Squeeze Massage’s actual costs incurred in securing insurance on your behalf

• Due Date:  Upon demand.

• May be deducted directly from your Franchise Commissions.

• If you fail to obtain the insurance Squeeze Massage specifies, Squeeze Massage may obtain such insurance for you and you must reimburse it for all premiums, costs, and expenses it incurs, plus a reasonable fee for its time incurred in obtaining such insurance.

21.  Taxes:  upon demand

• Due Date:  Upon demand.

• May be deducted directly from your Franchise Commissions.

• If Squeeze Massage determines, in its sole discretion, to pay any taxes that are your obligation, or any taxing authority obligates Squeeze Massage to pay taxes on your behalf.

22.  Indemnification:  upon demand

• Due Date:  Upon demand.

• May be deducted directly from your Franchise Commissions.

• Payable if Squeeze Massage incurs any losses due to your breach of the Franchise Agreement or any other action or inaction by you or any other person relating to your Franchise.

23.  Reimbursement of Costs and Expenses:  upon demand

• Due Date:  Upon demand.

• May be deducted directly from your Franchise Commissions.

• If you fail to perform certain obligations and Squeeze Massage then has the right to perform the obligations, you will reimburse Squeeze Massage for all costs and expenses.

24.  Management Fee:  the greater of (i) two times the salary paid to the individual(s) assigned by Squeeze Massage to operate the Shop, or (ii) 10% of the Shop’s monthly Gross Revenues, plus expenses for travel, lodging, meals, and all other expenses

• Due Date:  Bi-weekly if incurred.

• May be deducted directly from your Franchise Commissions.

• Payable during period that Squeeze Massage’s appointed manager manages your Shop upon your death or disability. The Management Fee will be in addition to the Royalties and Brand Fund Contributions due to Squeeze Massage.

25.  Resale Fee:  generally, 10% of sales price; may differ depending upon your agreement with Squeeze Massage or your agreement with broker

• Due Date:  Before Squeeze Massage will approve the transfer of your Squeeze Shop.

• If you transfer your Squeeze Shop with the assistance of a broker, you must pay the fee payable to such broker.

26.  Extension Fee:  $2,500 per month to extend the deadline to open your Squeeze Shop or to satisfy your Development Schedule under your Development Agreement

• Due Date:  Upon Squeeze Massage’s agreement to extend the deadline to open your Squeeze Shop.

• Payable if you wish to extend the deadline in the Franchise Agreement to open or the Development Deadlines in the Development Agreement.

27.  Late Report Fee:  $100 per week per late report

• Due Date:  As incurred.

• May be deducted directly from your Franchise Commission.

28.  Changed Requirements and Fees:  varies

• Due Date:  As incurred.

• May be deducted directly from your Franchise Commissions.

• Squeeze Massage may revise its specifications, standards, and the Manual to implement new or different operating requirements and fees associated with your Squeeze Shop.