Detailed Information on All Dry’s Initial Franchise Fee, Royalty Fee + 23 Other Fees (Items 5 and 6, 2022 FDD)

1.  Initial Franchise Fee:  $49,500

• When you sign your Franchise Agreement, you must pay All Dry $49,500 as the Initial Franchise Fee. This fee is uniformly imposed among All Dry’s franchisees and is non-refundable.

• The Initial Franchise Fee includes a Territory with a population of 250,000 people. You may purchase additional Territories based on the table below.

• 1 Territory (250,000 population):  $49,500
• 2 Territories (500,000 population):  $89,500
• 3 Territories (750,000 population):  $124,500
• 4 Territories (1,000,000 population):  $154,500
• 5 Territories (1,250,000 population):  $184,500
• 6 Territories (1,500,000 population):  $214,500
• 7 Territories (1,750,000 population):  $244,500
• 8 Territories (2,000,000 population):  $274,500
• 9 Territories (2,250,000 population):  $304,500
• 10 Territories (2,500,000 population):  $334,500

• Upon approval by All Dy, you may also purchase additional population for $0.20 per person.

2.  Royalty:  7% of Gross Sales, subject to a minimum weekly Royalty Fee of $125 per Territory beginning in your 13th month of operation

• Due Date:  Weekly, on Tuesday.

3.  Brand Fund Contribution:  1% of Gross Sales

• Due Date:  Weekly, on Tuesday.

4.  Local Advertising:  4% of Gross Sales

• Due Date:  Monthly, as incurred.

• You must spend 4% of your monthly Gross Sales on local marketing and advertising for your All Dry business.

5.  Market Cooperative Contribution:  as determined by co-op; currently, none

• Due Date:  Weekly, on Tuesday.

• Should you elect to opt-in to any regional advertising cooperative, the maximum contribution that a co-op may require is not less than 1% and not more than 5% of Gross Sales.

6.  Replacement/Additional Training Fee:  currently, $350 per day

• Due Date:  Prior to attending training.

• If you send a manager or other employee to All Dry’s training program after you open, All Dry will charge its then-current training fee.

7.  Third-Party Vendors:  pass-through of costs, plus reasonable administrative charge; currently, none as franchisees pay third-party vendors directly

• Due Date:  Varies.

• All Dry has the right to require franchisees to use third-party vendors and suppliers that it designates. Examples can include computer support vendors, mystery shopping, and customer feedback systems.

• Currently, franchisees pay third-party vendors directly for all required purchases.

• The vendors and suppliers may bill franchisees directly, or All Dry has the right to collect payment for these vendors together with a reasonable charge to cover All Dry’s costs for administering the payment program.

8.  Software Subscription:  currently, $50 to $150 per month

• Due Date:  Monthly.

• All Dry requires you to use certain software as described in Item 11. You pay subscription fees directly to the software supplier, and not to All Dry.

9.  Technology Fee:  $250

• Due Date:  As incurred, but typically on a monthly basis.

• All Dry provides certain technology and assistance to franchisees. This payment will typically occur on a monthly basis, or as needed.

10.  CRM Software:  currently, $300 per month

• Due Date:  Monthly.

• All Dry requires you to subscribe to its Customer Relationship Management software, which is currently Service Titan.

11.  Non-Compliance Fee:  $500

• Due Date:  On demand.

• All Dry may charge you $500 if your business is not in compliance with its system specifications or the Franchise Agreement and you fail to correct the non-compliance after 30 days’ notice. Thereafter, All Dry may charge you $250 per week until you correct such non-compliance.

12.  Reimbursement:  amount that All Dry spends on your behalf, plus 10%

• Due Date:  Within 15 days of invoice.

• If All Dry pays any amount that you owe or is required to pay to a third party, you must reimburse All Dry.

13.  Late Fee:  $100, plus interest on the unpaid amount at a rate equal to 18% per year (or, if such payment exceeds the maximum allowed by law, then interest at the highest rate allowed by law)

• Due Date:  On demand.

• All Dry may charge a late fee if you fail to make a required payment when due.

14.  Insufficient Funds Fee:  $30 (or, if such amount exceeds the maximum allowed by law, then the maximum allowed by law)

• Due Date:  On demand.

• All Dry may charge an insufficient funds fee if a payment made by you is returned because of insufficient funds in your account.

15.  Costs of Collection:  All Dry’s actual costs

• Due Date:  As incurred.

• Payable if All Dry incurs costs (including reasonable attorney fees) in attempting to collect amounts you owe to it.

• If the franchisee fails to report weekly Gross Sales, then All Dry may withdraw estimated Royalty Fees and Marketing Fund Contributions equal to 125% of the last Royalty Fees and Marketing Fund Contributions paid to All Dry, and the parties will true-up the actual fees after the franchisee reports Gross Sales.

16.  Special Support Fee:  All Dry’s then-current fee, plus All Dry’s expenses; currently, $600 per day

• Due Date:  On demand.

• If All Dry provides in-person support to you in response to your request, All Dry may charge this fee, plus any out-of-pocket expenses (such as travel, lodging, and meals for employees providing onsite support).

17.  Customer Complaint Resolution:  All Dry’s expenses

• All Dry may take any action it deems appropriate to resolve a customer complaint about your business. If All Dry responds to a customer complaint, it may require you to reimburse it for its expenses.

18.  Records Audit:  All Dry’s actual cost

• Due Date:  On demand.

• Payable only if (1) All Dry audits you because you have failed to submit required reports or other non-compliance, or (2) the audit concludes that you under-reported gross sales by more than 3% for any 4-week period.

19.  Special Inspection Fee:  currently $600, plus All Dry’s out-of-pocket costs

• Due Date:  On demand.

• Payable only if All Dry conducts an inspection of your business because of a governmental report, customer complaint, or other customer feedback, or your default or noncompliance with any system specification.

20.  Non-Compliance Cure Costs and Fee:  All Dry’s out-of-pocket costs and internal cost allocation, plus 10%

• Due Date:  When billed.

• All Dry may cure your non-compliance on your behalf (for example, if you do not have required insurance, All Dry may purchase insurance for you), and you will owe All Dry’s costs, plus a 10% administrative fee.

21.  Transfer Fee:  $10,000, plus any broker fees and other out-of-pocket costs All Dry incurs

• Due Date:  When transfer occurs.

• Payable if you sell your business.

22.  Renewal Fee:  $10,000

• Due Date:  When you renew your Franchise Agreement.

• Payable if you renew your Franchise Agreement for up to two successor terms of 10 years each.

23.  Indemnity:  All Dry’s costs and losses from any legal action related to the operation of your franchise

• Due Date:  On demand.

• You must indemnify and defend (with counsel reasonably acceptable to All Dry) All Dry and its affiliates against all losses in any action by or against it related to, or alleged to arise out of, the operation of your franchise (unless caused by All Dry’s misconduct or negligence).

24.  Prevailing Party’s Legal Costs:  All Dry’s attorney fees, court costs, and other expenses of a legal proceeding, if All Dry is the prevailing party

• Due Date:  On demand.

• In any legal proceeding (including arbitration), the losing party must pay the prevailing party’s attorney fees, court costs, and other expenses.

25.  Broker Fees:  All Dry’s actual cost of the brokerage commissions, finder’s fees, or similar charges

• Due Date:  As incurred.

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