Detailed Information on The Junkluggers’ Initial Franchise Fee, Royalty Fee + 27 Other Fees (Items 5 and 6, 2022 FDD)

1.  Initial Franchise Fee:  $50,000

• There is an initial franchise fee of $50,000 for the right to open a Franchised Business (the “Initial Franchise Fee”). The Initial Franchise Fee is due and payable in a lump sum when you sign the Franchise Agreement.

• The Initial Franchise Fee is based on a geographic territory consisting of a total population of approximately 400,000 persons (the “Territory”). In some cases, a franchisee may be approved for an additional fractional share of a Territory, in which case, the Initial Franchise Fee will be increased by an amount that is equal to $0.12 per additional person in the Territory.

• If you are a veteran who qualifies for the VetFran Program, Junkluggers will proudly offer you a $5,000 discount on the Initial Franchise Fee you are required to pay in connection with your first Franchise Agreement you enter into with it to operate a single Franchised Business (meaning your reduced Initial Franchise Fee will be $45,000).

2.  Initial Training Fee:  $5,000

• You must pay Junkluggers a non-refundable initial training fee of $5,000 when you sign the Franchise Agreement.

3.  Development Fee:  $88,000 for the right to open 2 Franchised Businesses, $120,000 for the right to open 3 Franchised Businesses, and an additional $30,000 each for the right to open more than 3 Franchised Businesses.

• If Junkluggers grants you the right to own and operate multiple Territories (the “Franchised Businesses”) under a Multi-Unit Operating Agreement, a one-time Development Fee is due upon executing your Multi-Unit Operating Agreement.

• The minimum number of Franchised Businesses you may be permitted to open under a Multi-Unit Operating Agreement is 2. Each Franchised Business under a Multi-Unit Operating Agreement will consist of a Territory that consists of a total population of approximately 400,000 persons.

• The Development Fee will depend on the number of Franchised Businesses Junkluggers grants you the right to open under your Multi-Unit Operating Agreement but will amount to $88,000 for the right to open 2 Franchised Businesses, $120,000 for the right to open 3 Franchised Businesses, and an additional $30,000 each for the right to open more than 3 Franchised Businesses.

• You will be required to enter into Junkluggers’ then-current form of Franchise Agreement for each Franchised Business you wish to open under your Multi-Unit Operating Agreement, but you will not be required to pay any additional Initial Franchise Fee at the time you execute each of these Franchise Agreements.

• If you enter into a Multi-Unit Operating Agreement, you must execute Junkluggers’ current form of Franchise Agreement for the first Franchised Business Junkluggers grants you the right to open within your Development Area concurrently with the Multi-Unit Operating Agreement.

• The Development Fee will be deemed fully earned upon execution of your Multi-Unit Operating Agreement.

4.  Royalty Fee:  7% of Gross Sales; or the Minimum Annual Royalty, whichever is more

• Due Date:  Weekly via ACH electronic funds transfer account on Thursday of each week for the previous week ending Sunday.

• This is due on all Gross Sales for services you provide.

• If, at the end of the year of any operations, the total of all Royalty Fees paid during the previous year of operations is less than the “Minimum Annual Royalty” amount for that year, you must pay the difference between the Minimum Annual Royalty and the total of all Royalty Fees paid for that year.

5.  Minimum Annual Royalty:  difference between then-current minimum annual royalty requirement and Royalty Fees paid during preceding calendar year

• Due Date:  Within 15 days of each anniversary of the date the business commences operations.

• This is only payable if the total Royalty Fee paid in any year of operations is less than the total Minimum Annual Royalty for that year.

6.  Minimum Local Advertising Requirement:  the greater of: (i) $2,000 per month per Territory; or (ii) 10% of monthly Gross Sales

• Due Date:  As incurred each month, commencing on opening.

• These are only the minimum amounts Junkluggers requires you to spend on local advertising and marketing. Junkluggers encourages you to spend additional funds based on the demographics and other characteristics of your Territory.

• Junkluggers has the right to require you to pay the Minimum Local Advertising Requirement directly to it on notice to you for local advertising expenditure in your market area.

7.  Regional Advertising Cooperative Contribution:  as agreed upon by advertising cooperative and Junkluggers

• Due Date:  As arranged by advertising cooperative and Junkluggers.

• Junkluggers may establish and maintain advertising cooperatives for the benefit of franchised businesses in a particular region. At this time, Junkluggers has not established any advertising cooperatives.

8.  Technology Fee:  then-current fee. Currently, $295/month.

• Due Date:  Payable monthly.

• Junkluggers provides its franchisees with proprietary software (currently, Vonigo Software) and other technology platforms. This fee covers the costs of ongoing software support and maintenance.

• If Junkluggers develops additional or replacement technology-based programs or makes improvements to existing technology, then it may increase the Technology Fee.

9.  Brand Fund Fee:  currently, 2% of Gross Sales

• Due Date:  Payable weekly at the same time and in the same manner as the Royalty Fee.

• Junkluggers may adjust this fee, but at no point will it increase above 2% of Gross Sales.

10.  Appointment Center Fee:  5% of Gross Sales

• Due Date:  Payable at the same time and in the same manner as the Royalty Fee.

11.  National Account Fee:  Junkluggers’ specified “National Account Fee”

• Due Date:  Payable as stated in the Manual or other written communications.

• Junkluggers reserves the right to establish National Accounts with third-party subcontractors who have customers in your Territory, regardless of whether you serviced the customer in the past.

• Junkluggers reserves the right to require you to pay to it or to its designee additional fees, including recurring fees associated with any such National Account, on the dates Junkluggers designates, which may be specified in the National Account Service Level Agreement or other written communications.

12.  Annual Meeting and Conference:  the then-current fee. As of the issuance date of the current Disclosure Document, the fee is $600 per person, excluding the cost of travel, food, and lodging.

• Due Date:  As incurred.

• Junkluggers may hold an annual meeting or conference to provide value and support for its franchisees. This fee excludes the cost of travel, food, and lodging expenses that you and eligible personnel incur.

13.  Product or Supplier Evaluation Fee:  $500, plus Junkluggers’ expenses

• Due Date:  If incurred.

• This fee is required if you request that Junkluggers evaluate a proposed new product or supplier for the System. However, this fee (but not Junkluggers’ expenses) will be refunded if Junkluggers accepts the product or supplier.

14.  Additional Training Fee:  Junkluggers’ current fee is $500 per trainer per day

• Due Date:  Prior to additional training.

• There is no charge for mandatory additional training unless it is required as a result of your incorporation of Additional Moving Services after you sign your Franchise Agreement, breach of the Franchise Agreement or System standards, upon renewal of the Franchise Agreement, or upon a change in your Operating Principal.

• You may request additional training at Junkluggers’ then-current training fee plus expenses including travel, lodging, meals, and applicable wages.

15.  On-Site Assistance or Training:  Junkluggers’ current fee is $500 per trainer per day

• Due Date:  Prior to Junkluggers’ arrival on-site.

• This fee is not paid in connection with up to 2 days of on-site assistance Junkluggers will provide at your request around the time you open your Franchised Business. The expenses you must reimburse Junkluggers include travel, lodging, and meals.

• You may request on-site training or assistance or Junkluggers may require it as a result of your breach of the Franchise Agreement or System standards, upon renewal of the Franchise Agreement, or upon a change in your Operating Principal at Junkluggers’ per diem cost per trainer plus expenses.

16.  Transfer Fee:  $20,000

• Due Date:  Upon approved transfer or sale to another person or entity.

• This is payable when you sell or transfer your franchise with Junkluggers’ approval. There is no charge if you transfer to a corporation formed for the convenience of ownership, for approved intra-family transfers, or for a transfer arising upon death or mental incompetency.

17.  Renewal Fee:  the greater of (a) $12,500, or (b) 25% of Junkluggers’ then-current initial franchise fee

• Due Date:  Upon your renewal of Franchise Agreement.

• You must meet certain criteria before Junkluggers will allow you to renew your Franchise Agreement, including payment of a renewal fee.

18.  Indemnification:  will vary according to circumstance

• Due Date:  Upon demand.

• You must reimburse Junkluggers for attorneys’ fees and costs that Junkluggers incurs in connection with any third-party claims brought against Junkluggers that arise out of, or are related to, the operation of your Franchised Business.

19.  Costs and Attorneys’ Fees:  will vary under the circumstances

• Due Date:  On demand.

• If you default under an agreement, you must reimburse Junkluggers for the expenses it incurs (such as attorneys’ fees) in enforcing or terminating the agreement.

20.  Late Reporting Fee:  $150 fee for each late report, and $250 for any consecutive violation(s)

• Due Date:  On demand.

• This fee is applied if you do not deliver a report to Junkluggers within 3 business days of its due date, or if you do not enter and finalize your Gross Sales information into the designated software.

21.  Interest on Overdue Amounts:  1.5% per month or the highest legal rate Junkluggers can charge, whichever is less

• Due Date:  As incurred.

• Interest is payable on all overdue payments, and accrues from the original due date until payment is received in full.

22.  Non-Compliance Fee:  between $100 and $250 per non-compliance event, including violations of Franchise Agreement or System standards

• Due Date:  On demand after 2nd written warning of a non-compliance event.

• Before assessing a non-compliance fee, Junkluggers will issue 2 written warnings, except in the case of late reports.

23.  Relocation Fee:  actual cost incurred by Junkluggers

• Due Date:  As incurred.

• If you receive Junkluggers’ prior written consent to relocate the Franchised Business, you must reimburse Junkluggers for the reasonable costs and expenses that it incurs in evaluating and approving the relocation.

24.  Management Fee:  20% of Gross Sales, plus expenses

• Due Date:  Payable weekly out of the Franchised Business proceeds.

• Junkluggers may need to step in and operate your Franchised Business in certain circumstances, including your death, disability, or prolonged absence. The reimbursable expenses include travel, lodging, and meals.

25.  Trade Dress Updates:  will vary under the circumstances

• Due Date:  As incurred.

• Junkluggers may require you to update your Franchised Business to meet its then-current image requirements for a new Franchised Business entering the System. This may include purchasing or leasing new trucks, signage, uniforms, and other items.

• Junkluggers will allow you 12 months to implement any trade dress upgrades costing over $2,500, except when required by law or regulation.

26.  Audit Fee:  actual cost incurred by Junkluggers

• Due Date:  Immediately after 2% or more understatement of sales receipts is determined by Junkluggers’ inspection.

• If underreporting of sales is determined, you must pay the Royalty due plus interest, along with all the costs related to performing the audit. There is no charge for the audit if sales are reported accurately.

27.  Insurance:  reimbursement of Junkluggers’ costs, plus 10% of premium administration fee

• Due Date:  On demand.

• If you do not obtain the insurance required for your Franchised Business, Junkluggers may obtain this insurance for you.

28.  Mystery Shopper Program:  $250 per shop

• Due Date:  On demand.

• If your Listen360 net promoter score is more than 10% below the average of Junkluggers’ company-owned and franchised units, Junkluggers may require additional mystery shopping services at your expense.

29.  Missed Annual Meeting or Conference Fee:  $500 per occurrence per Owner

• Due Date:  On demand.

• If an annual meeting or conference absence is not excused, Junkluggers may issue this fee, in addition to the then-current registration fee.