Detailed Information on Ace Handyman Services’ Initial Franchise Fee, Royalty Fee + 13 Other Fees (Items 5 and 6, 2023 FDD)

1.  Initial Franchise Fee:  $70,000 for up to 70,000 households; $1.00 for each additional household over 70,000; for a Mini Ace Handyman Services Business, $35,000 for up to 35,000 households; $1.00 for each additional household over 35,000

• The Initial Franchise Fee for a single Ace Handyman Services Business franchise is $70,000 for a Territory size of up to 70,000 households. If your actual Territory size exceeds 70,000 households, the Initial Franchise Fee is increased $1.00 for each additional household located in the Territory, up to a maximum Territory size of 100,000 households.

• On occasion, Ace Handyman Services has, and may continue to, negotiate a reduced Initial Franchise Fee for people acquiring more than five Territories at the same time.

• If, with Ace Handyman Services consent, you acquire a Mini Ace Handyman Services Business, the Initial Franchise Fee is $35,000 for a Territory size of up to 35,000 households. If your actual Territory size exceeds 35,000 households, the Initial Franchise Fee is increased $1.00 for each additional household located in the Territory, up to a maximum Territory size of 45,000 households.

• All Territories include the businesses in the Territory.

• If you acquire multiple Territories, you will sign a separate Franchise Agreement and pay the Initial Franchise Fee for each Territory you acquire.

• Ace Handyman Services is a member of the International Franchise Association’s VetFran initiative. If you have served as a veteran of any branch of the United States Armed Forces and received an honorable discharge, you may receive a discount of $7,000 off of the Initial Franchise Fee for the first Franchise Agreement you sign.

2.  Royalty Fee:  6% of your actual Gross Revenues of the previous month, subject to annual reconciliation based on your Minimum Annual Gross Revenues requirements

• Due Date:  Payable monthly on the 23rd day of the month (or shortly thereafter if paid by EFT) based on the prior month’s Gross Revenues.

• You must meet certain Minimum Annual Gross Revenues requirements.

3.  National Brand Fee:  2% of your actual Gross Revenues, subject to annual reconciliation based on your Minimum Annual Gross Revenues requirements

• Due Date:  Payable monthly with the Royalty Fee based on the prior month’s Gross Revenues.

• You must meet certain Minimum Annual Gross Revenues requirements.

4.  Software and Internet Fees:  currently $499 per month, but may be changed by Ace Handyman Services upon 30 days’ notice

• Due Date:  Payable on the 1st of each month for that month, beginning in the first full calendar month after you commence operations.

• For use of Ace Handyman Services’ scheduling software, e-mail, location website, online marketing services, for Ace Handyman Services’ expenses associated with maintenance of its e-mail and Intranet sites, and for the website development, search engine optimization, and related online marketing services provided by Ace Handyman Services’ designated suppliers.

5.  Minimum Individual Marketing Expenditure:  $30,000 from your third full month through the end of your first year of operations, $40,000 in your second year of operations, and $50,000 for each subsequent year; for a Mini Ace Handyman Services Business, $15,000 from your third full month through the end of your first year of operations, $20,000 in your second year of operations, and $25,000 for each subsequent year.

• Due Date:  As incurred.

• You must spend a minimum amount on local marketing on an annual basis.

6.  Meeting and Convention Fees:  if you do not attend: $1,500 per meeting; if you attend but do not stay at the designated hotel or do not stay for the entire meeting or convention: $750 per meeting

• Due Date:  As incurred.

7.  Transfer Fee:  $10,000. There is no Transfer Fee for a transfer to a business entity wholly-owned by franchisee, and the Transfer Fee is reduced to $3,500 for transfers to a family member.

• Due Date:  Before acceptance of transfer.

• Payable before you transfer your franchise.

• You will also be required to pay additional fees to outside franchise brokers or to Ace Handyman Services if it, or its resources, finds the buyer for you.

8.  Audit Fee:  cost of audit

• Due Date:  Upon completion of audit and determination of amounts due.

• You also pay the cost of the audit if audit shows an understatement of at least 2% of Gross Revenues during the audit period.

• Any amounts unpaid, unreported, or underreported must be paid in full, with a late fee of 18% interest per annum.

9.  Returned Electronic Funds Transfer Fee:  $100

• Due Date:  Upon notice.

• This fee is imposed when an Electronic Funds Transfer transaction is not honored, in addition to any late fees and interest that may apply.

10.  Successor Franchise (Renewal) Fee:  $5,500

• Due Date:  Upon execution of successor Franchise Agreement.

• If you are in good standing, you may acquire a successor franchise after your initial term.

11.  Supplier Approval:  currently none. However, Ace Handyman Services reserves the right to charge a fee in the future.

• Due Date:  As incurred.

• If you request approval of a supplier, Ace Handyman Services may charge this fee. This only applies for those items for which Ace Handyman Services has previously designated an approved supplier.

12.  Additional Training:  Ace Handyman Services’ then-current rate. The rate as of the date of the current Disclosure Document is $55 per hour per person plus out-of-pocket expenses.

• Due Date:  Payable within 30 days of date of invoice.

• Ace Handyman Services provides opening training for free.

13.  Interest and Late Fees on Late Payments and/or Reports:  not to exceed 18% per annum on all amounts owed. Also, $75 per occurrence per late report or fee.

• Due Date:  Due upon payment of late fee or submittal of late report.

• No amounts charged will exceed any legal limits or restrictions.

14.  Costs and Attorneys’ Fees:  will vary under circumstances

• Due Date:  As incurred.

• May be payable if you do not prevail in an action based on the Franchise Agreement.

15.  Indemnification:  will vary under circumstances

• Due Date:  As incurred.

• You will have to reimburse Ace Handyman Services if it is held liable for claims arising from your Ace Handyman Services Business.