Detailed Information on Screenmobile’s Initial Franchise Fee, Royalty Fee + 35 Other Fees (Items 5 and 6, 2022 FDD)

1.  Initial Franchise Fee:  $19,750 to $39,500

• You must pay Screenmobile an initial franchise fee (“Initial Franchise Fee”) of $39,500 for your first franchise.

• If you decide to purchase a second franchise, the Initial Franchise Fee for the second franchise is 50% of the then-current Initial Franchise Fee. You will still be required to pay all remaining fees for the second franchise.

• The Initial Franchise Fee is deemed fully earned by Screenmobile once paid and is non-refundable. The Initial Franchise Fee is uniformly imposed.

• Screenmobile offers a $2,500 discount on the Initial Franchise Fee for the purchase of the first Screenmobile franchise to honorably-discharged veterans of the United States Armed Forces and their spouses.

• In certain situations, Screenmobile may offer financing for up to $23,500 of the Initial Franchise Fee based on the qualifications of the franchisee and their credit rating.

2.  Initial Territory Fee:  $0.15 per Housing Unit

• In addition to the Initial Franchise Fee, you will pay a fee based on the number of houses, apartments, mobile homes, separate living quarters, and other housing units (each, a “Housing Unit” and collectively, “Housing Units”) within your territory.

• You must pay Screenmobile a nonrecurring and non-refundable initial territory fee of $0.15 per Housing Unit based on the latest U.S. Census data in the territory of the Franchise (“Initial Territory Fee”). The cost will be between $7,500 and $41,250, depending on the number of Housing Units defined by zip codes.

• The Initial Territory Fee grants you the right to operate a Screenmobile Business within a particular geographical territory containing approximately 50,000 to 275,000 Housing Units.

• If you purchase additional Screenmobile Franchises, you will pay an Initial Territory Fee of $0.10 per Housing Unit based on the latest U.S. Census data in the territory of each additional Franchise. The cost will be between $5,000 and $27,500, depending on the number of Housing Units defined by zip codes.

• The Initial Territory Fee is uniformly imposed, payable in a lump sum upon the signing of the Franchise Agreement and is not refundable under any circumstances.

3.  Additional Required Purchases:  $38,300 to $68,300

• You must purchase a start-up package from Screenmobile that contains the equipment and items Screenmobile specifies for each Screenmobile Business (“Start-Up Package”). The Start-Up Package fee is $38,300 for a single territory that has up to 150,000 Housing Units and $68,300 if the territory has more than 150,000 Housing Units (“Large Territory”).

• If you have a Large Territory, you will be required to have an additional truck or van and may be required to hire additional personnel. The Start-Up Package for a Large Territory includes an additional Trailer, vehicle wrap, and tool package.

• You may receive a $2,800 discount to the Start-Up Package if you, or if you are an entity, one of your owners, or one of your employees is a certified public accountant and you elect to perform your own bookkeeping services during the first year.

• The fees for the Start-Up Package are uniform, payable in a lump sum at the time of signing the Franchise Agreement, and are not refundable under any circumstances.

4.  Royalty:  greater of $250 per month or 7% of monthly gross sales

• Due Date:  Due by the 5th day of each calendar month for the previous month.

5.  Brand Building Fund Contribution:  currently $100 per month, subject to annual increases of up to $20 per month upon written notice to you

• Due Date:  Due by the 5th day of each calendar month for the current month.

• This contribution will be used for a system-wide “Brand Building Fund” for Screenmobile’s use in promoting and building the Screenmobile brand.

6.  Local Advertising Requirement:  the difference between the amount you spent on local advertising each month and your required local advertising expenditure (minimum of 4% of monthly Gross Sales)

• Due Date:  Payable within five days after receipt of invoice.

• If you fail to meet your required local advertising requirement on local advertising, you must pay Screenmobile the difference between the amount you spent and the required advertising expenditure, which will be contributed to the Brand Building Fund.

• Screenmobile requires that you spend a minimum of 4% of your monthly Gross Sales on local advertising (Screenmobile recommends that you spend between 4% and 10% of Gross Sales).

7.  Regional Advertising Cooperatives:  established by cooperative members

• Due Date:  Established by cooperative members.

• Screenmobile currently does not have a cooperative, but reserves the right to require one to be established in the future.

8.  Technology Fee:  Screenmobile’s then-current charge (not currently charged)

• Due Date:  Due by the 5th day of each calendar month for the current month.

• Screenmobile currently does not have a technology fee. Screenmobile reserves the right to require one to be established with at least 30 days advance written notice.

9.  Unauthorized Advertising Fee:  $500 per occurrence

• Due Date:  Upon demand.

• This fee is payable to Screenmobile if you use unauthorized advertising in violation of the terms of the Franchise Agreement.

10.  Territory Reservation Fee:  $5,000 per territory

• Due Date:  As incurred.

• Due if you request that Screenmobile reserve a particular geographic territory for a period of 90 days for your operation of a Screenmobile Business and Screenmobile agrees to do so. The fee is nonrefundable, but may be applied toward the Initial Territory Fee payable under a Franchise Agreement for the reserved territory within 90 days of payment.

11.  Territory Infringement Fines:  $1,000, plus invoice amount for services rendered for first violation; $5,000, plus invoice amount for services rendered for second and subsequent violations

• Due Date:  Payable within five days after infringement is discovered.

• Payable to Screenmobile if you infringe on another Screenmobile franchisee’s territory by receiving payment for products and/or services provided and/or rendered within the other franchisee’s territory without his or her permission.

• Screenmobile may direct the funds at its option.

12.  Insurance:  you must reimburse Screenmobile’s costs, plus a 20% administrative fee

• Due Date:  On demand.

• If you fail to obtain insurance, Screenmobile may obtain insurance for you and you must reimburse it for the cost of insurance obtained, plus 20% of the premium as an administrative cost of obtaining the insurance.

13.  Initial Training Fee for Additional Persons:  Screenmobile’s then-current training charge (currently $1,000 per person, plus expenses)

• Due Date:  As incurred.

• Screenmobile provides initial training at no charge to you and/or your designated manager (if applicable), and one additional person, provided you attend the same initial training program.

• Additional persons may attend if you pay Screenmobile’s then-current training fee.

14.  Additional Training or Assistance:  Screenmobile’s then-current fee (currently $1,000 per day), plus Screenmobile’s personnel per diem charges and travel and living expenses

• Due Date:  Payable in advance of the training or assistance.

• Screenmobile may charge you for additional training for you or additional persons, for refresher training courses, advanced training courses, and additional or special assistance or training you need or request.

15.  Franchise System Email Fees and Maintenance Charges:  then-current fees and charges (currently one email account is included, and $72-$120 per year for each additional email account)

• Due Date:  As incurred.

• Your first email account for use in your Screenmobile Business is included with your payment of the monthly Brand Building Fund contribution. Screenmobile reserves the right to charge a reasonable fee to cover its costs in providing and maintaining this email account in the future.

• If you desire to have additional email accounts, you are required to pay Screenmobile its then-current annual fee within 30 days of Screenmobile incurring such charges.

16.  Convention Fee:  Screenmobile’s then-current fee (currently $299 to $500), plus your personnel’s travel and living expenses

• Due Date:  Upon demand.

• You are required to attend all meetings designated by Screenmobile as mandatory, including its annual convention, unless otherwise excused by Screenmobile.

• One management-level individual must attend on behalf of each of your Screenmobile Business locations. You may be required to pay Screenmobile fees prior to events to offset the cost of conventions or other programs.

17.  Non-Attendance Fee:  $1,500 for annual conventions and $1,000 for regional meetings

• Due Date:  As incurred.

• You will be required to pay this fee if you fail to attend any annual conventions or regional meetings.

18.  Noncompliance Fee:  $100 per day after 90-day notice period

• Due Date: Upon demand.

• Franchisees shall pay, upon demand, a noncompliance fine for any failure to comply with Screenmobile standards.

19.  Failure to Submit Required Report Fee:  $100 per occurrence and $100 per week

• Due Date:  As incurred.

• Payable if you fail to submit any required report when due. Fines collected are paid to Screenmobile. You will continue to incur this fee until you submit the required report.

20.  Operations Manual Replacement:  $5,000

• Due Date:  As incurred.

• Payable if your copy of the operations manual is lost, stolen, destroyed, or significantly damaged, or you fail to return it to Screenmobile immediately upon the expiration or termination of the Franchise Agreement.

21.  Customer Issue Resolution:  reasonable costs Screenmobile incurs for responding to a customer complaint (including administrative costs), which varies

• Due Date:  On demand.

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

22.  Payment Service Fee:  up to 3.4% of total charge

• Due Date:  As incurred.

• If payment is made to Screenmobile or its affiliates (if any) by credit card for any fee required, Screenmobile may charge a service charge of up to 3.4% of the total charge.

23.  Late Payment:  $50 per occurrence, plus $5 for each day the payment has not been made beyond the due date

• Due Date:  As incurred.

• Payable if any payment due to Screenmobile or its affiliates (if any) is not made by the due date. Interest accrues from the original due date until payment is received in full.

24.  Interest:  lesser of 1.5% per month or highest commercial contract interest rate the law allows

• Due Date:  As incurred.

• Charged on any late payments of fees, amounts due for product purchases, or any other amounts due to Screenmobile or its affiliates (if any), including Royalties. Interest will continue to accrue until the interest and the overdue amount are both paid.

• This fee is in addition to the late payment fee.

25.  Returned Check or Non-Sufficient Funds Fee:  lesser of $100 or maximum amount allowed by law per occurrence

• Due Date:  As incurred.

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

26.  Audit:  cost of audit and inspection, any understated amounts, any related accounting and legal expenses, and related travel and administrative expenses, plus interest (Screenmobile estimates this cost to be between $1,000 and $10,000)

• Due Date:  On demand.

• You will be required to pay these costs if an audit reveals that you understated monthly Gross Sales by more than 2%, or if you fail to submit required reports.

27.  Indemnification:  will vary under circumstances

• Due Date:  As incurred.

• You must indemnify and reimburse Screenmobile for any expenses or losses, including professional fees, that it or its representatives incur related in any way to your Screenmobile Business or franchise.

28.  Management Fee:  $250 per day, plus costs and expenses

• Due Date:  As incurred.

• Payable if Screenmobile or its affiliate (if any) manages the Screenmobile Business because you are in breach of the Franchise Agreement, or upon your, the managing owner’s, or the designated manager’s absence, termination, death, or disability.

29.  Professional Fees and Expenses:  will vary under circumstances

• Due Date:  As incurred.

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

• You will also be responsible for any fees Screenmobile incurs for any transfer that is not completed.

30.  Amendment Fee:  $250

• Due Date:  Upon demand.

• You must pay Screenmobile a processing fee for modifications to your Franchise Agreement that are made at your request.

• When you request an amendment to your Franchise Agreement or related agreements, Screenmobile may require that you sign a general release releasing it from all claims you may have except claims that, under state law, may not be released.

31.  Successor Franchise Fee:  $3,000

• 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 new Franchise Agreement.

32.  Transfer Fee:  $3,000 or 3% of sales price, whichever is higher

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

• Payable in connection with the transfer of your Screenmobile Business, a transfer of ownership of your legal entity, or your Franchise Agreement.

33.  Transfer Training Fee:  $8,000

• Due Date:  Before transfer is completed.

• The training fee will not apply if the transferee has already satisfactorily completed Screenmobile’s initial training program.

34.  Franchise System Website Fees and Maintenance Charges:  then-current fees and charges (currently $0)

• Due Date:  As incurred.

• Screenmobile reserves the right to charge you a fee for providing you with a web page on the Franchise System website that references the Screenmobile Business.

35.  Resale Assistance Fee:  $19,750

• Due Date:  As incurred.

36.  Broker Fees:  Screenmobile’s actual cost of the brokerage commissions, finder’s fees, or similar charges

• Due Date:  As incurred.

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

37.  Repayment of Start-Up Package Discount:  $2,800

• Due Date:  On demand.

• Payable if you meet the conditions and elect to receive a $2,800 reduction in the Start-Up Package but fail to perform the required bookkeeping services of your Screenmobile Business during the first year of operations.