If you are considering an Amazing Athletes franchise, don’t get blindsided by these 29 important franchise fees (from the initial franchise fee, to the royalty fee, to 27 other fees found in Items 5 and 6 of Amazing Athletes’ 2021 FDD).

1.  Initial Franchise Fee:  $30,000 for the Basic Package; $40,000 for the AA Complete Program

• Your initial franchise fee will be $30,000 for a Franchised Business offering the Basic Package. Your initial franchise fee will be $40,000 for a Franchised Business offering the Complete AA Program.

• If you are an honorably discharged veteran, Amazing Athletes will reduce the initial franchise fee by $5,000 for the Complete AA Program or $2,500 for the Basic Package.

• The initial franchise fee is paid when you sign the Franchisee Agreement.

• If you an existing franchisee and are awarded another franchise opportunity, Amazing Athletes will reduce the initial franchise fee by $5,000 for each subsequent unit after your first unit.

• You must attend and pass Amazing Athletes’ “Franchisee Training Program.” If you attend but fail to complete training to Amazing Athletes’ commercially reasonable satisfaction, it has the right to terminate the Franchise Agreement; except that restrictive and other covenants that must survive termination in order to remain enforceable, shall survive. If Amazing Athletes terminates the Franchise Agreement, it will refund 50% of the initial franchise fee.

• Amazing Athletes may finance part of the initial franchise fee.

2.  Startup Kit:  $3,500 to $5,500 for the Basic Package; $4,700 to $7,000 for the AA Complete Program

• You are also required to purchase from an Affiliate an initial supply of uniforms and marketing materials along with the “Startup Kit.” The Startup Kit contains all of the sports and fitness equipment (including balls, sticks, bats, goals, cones, and similar equipment) necessary for one coach to teach the Program that you will offer.

• The cost for all required purchases is approximately $3,500 to $5,500 for the Basic Package, depending upon your decision to purchase additional equipment or apparel at the same time. The cost for all required purchases is approximately $4,700 to $7,000 for the AA Complete Program, depending upon your decision to purchase additional equipment or apparel at the same time.

3.  Remote Training Fee:  $3,000 for the Basic Package; $4,000 for the AA Complete Program

• You may wish to obtain initial in-person training at your location (“Remote Training”). Amazing Athletes may, in its sole discretion, agree to this. If Amazing Athletes agrees, then prior to traveling to you, you will pay it its then-current and non-refundable fee (Remote Training Fee) that now is $3,000 for the Basic Package and $4,000 for the AA Complete Program.

• This fee will be used by Amazing Athletes to offset its travel, room, and board costs and which will pay Amazing Athletes for the time it spends training you. You may be required to travel to the nearest franchised location for this training and if you travel, you will also have travel, room, and board costs.

4.  Technology Maintenance Fee:  $150 per month

• You will also pay Amazing Athletes the first 3 months of the technology maintenance fee of $450 (at $150 per month) (the “Technology Maintenance Fee”). The Technology Maintenance Fee is used to maintain your presence on Amazing Athletes’ internet web system, to maintain your access to the “AA Back Office Platform,” and to develop and use other technologies with the System.

• The AA Back Office Platform is the password-protected portal on Amazing Athletes’ web site that you will use for such things as event planning, class management, and the creation and delivery of required reports.

• Amazing Athletes may finance part of the initial franchise fee.

5.  Royalty:  the greater of 8% of Gross Revenues or $600 per month

• Due Date:  Payable by the 2nd day of the month that follows the month for which the Royalty was calculated.

• Payable to Amazing Athletes by personal or bank check. Amazing Athletes may require you to pay it by electronic transfer(s).

6.  Franchisee National Advertising Fee:  $150 per month

• Due Date:  Monthly by the 2nd day of the month.

• Payable with the Royalty.

• Amazing Athletes may increase the Franchisee National Advertising Fee up to $300 per month upon 60 days’ notice.

• Payable to the Franchisee National Advertising Fund.

7.  Local Advertising Expenditures:  up to 3% of Gross Revenues, but currently 1% of Gross Revenues

• Due Date:  Monthly.

• Expenditures are paid to vendors.

8.  Regional Advertising Cooperative Fee:  currently none. Amazing Athletes may require you to contribute up to 3% of your Gross Revenues to the cooperative.

• Due Date:  Payable by the 10th of the month for the current month.

• Payable to Cooperative. Amazing Athletes has not determined any formula for calculating the percentage that would be paid to the Cooperative.

9.  Advanced and Additional Assistance or Training:  the then-current fee that is now $500 per day, plus travel reimbursement

• Due Date:  14 days before visit.

• If you require or request advanced or extraordinary services.

• The then-current fee will be described in the Confidential Operating Manual. Amazing Athletes has the right to increase this fee by any amount without limitation.

• Amazing Athletes will notify you 60 days before a new fee is to be collected.

• Payable to Amazing Athletes.

10.  Transfer Fee:  $10,000

• Due Date:  $1,000 is due from you upon notice to Amazing Athletes. $4,000 is due from you at time of closing. $5,000 is due from transferee at time of closing.

• $1,000 is payable to Amazing Athletes upon notice of the transfer. The balance is payable to Amazing Athletes if you are permitted to transfer your rights to a third party.

11.  Successor Franchise Rights Fee:  $10,000

• Due Date:  At time of signing.

• You may be required to sign a contract with terms that are different from found in your current Franchise Agreement.

• Payable to Amazing Athletes.

12.  Annual Conference Fee:  none now

• Due Date:  Due before the conference.

• There is none now, but Amazing Athletes may in the future charge a fee to attend the conference. Amazing Athletes has no formula for determining what this fee will be. Amazing Athletes may change the fee at any time without limitation. If a fee is charged or changed, Amazing Athletes will provide you written notice of the fee before the conference.

• Payable to Amazing Athletes.

13.  Annual Conference Travel Expenses:  $1,000 to $2,000

• Due Date:  As incurred.

• Attendance at annual conferences is mandatory. Expenses will vary based on travel cost and type of accommodations.

• Payable to vendors.

14.  Mandatory Fee for Not Attending an Annual Conference (Mandatory Non-Attendance Fee):  then-current fee that now is $1,500 per Territory

• Due Date:  Due on the Monday following the last day of the Annual Conference.

• Charged only if you fail to attend an annual conference. Amazing Athletes has the right to increase this fee by any amount without limitation. Amazing Athletes will notify you 60 days before a new fee is to be collected.

• Payable to Amazing Athletes.

15.  Late Fee:  1% of Gross Revenues

• Due Date:  Immediately when assessed.

• Payable only if you fail to make timely payments.

16.  Default Notice Fee:  $50

• Due Date:  Immediately when assessed.

• Payable to Amazing Athletes only if it sends you a default notice.

17.  Legal Fees and Expenses:  all costs and expenses, including but not limited to attorneys’ fees for any failure to pay amounts when due or failure to comply in any way with the Franchise Agreement

• Due Date:  As incurred.

• Legal fees and expenses are paid to Amazing Athletes. These fees and expense are not refundable.

18.  Indemnification:  the amount of any claim, liability, or loss Amazing Athletes incurs from your Franchised Business

• Due Date:  As incurred.

• Costs for indemnification are paid to Amazing Athletes.

• These costs are not refundable.

19.  Replacement/Additional Inventory of Marketing Materials, Uniforms, and Equipment:  will vary

• Due Date:  When purchased.

• Uniforms, sales literature, forms, and other paper products with Amazing Athletes’ Marks will be purchased as needed from Amazing Athletes (or an affiliate if one is established) or approved vendors. Replacement equipment will be purchased every 2 years only from Amazing Athletes (or an affiliate if one is established).

20.  Audit Costs:  in the event of an underreporting of more than 2% of Gross Revenues, you will be required to pay Amazing Athletes the underreported amount plus interest along with the cost of the audit, including travel, lodging, meals, wages, expenses, and accounting and legal fees

• Due Date:  Within 15 days of written notice.

• Payable only if Amazing Athletes audits your books and finds underreporting.

• Payable to vendor.

21.  New Line of Goods or Services and Technology Update and Fees:  will vary

• Due Date:  As incurred.

22.  Interest:  1.5% per month or highest rate allowed by law

• Due Date:  As incurred.

• Interest is paid to Amazing Athletes from the date of nonpayment or underpayment.

• Interest is not refundable.

23.  Technology Maintenance Fee:  $150

• Due Date:  Monthly by the 2nd day of the month.

• Payable with the Royalty, except that the first three months are paid upon signing the Franchise Agreement.

• Payable to Amazing Athletes.

• Amazing Athletes may increase the Technology Maintenance Fee upon 60 days’ notice.

24.  In-Term and Post-Term Deficiency Costs and Expenses:  costs and expenses

• Due Date:  As incurred.

• Reimbursement of Amazing Athletes’ costs and expenses is paid to Amazing Athletes.

25.  Test Marketing Expenses:  costs and expenses of test marketing new services or products

• Due Date:  As incurred.

• You will be required to pay third parties for the costs and expenses associated with test marketing new services or products.

26.  Transferee Lead Generation Fee:  2.5% of the sales price

• Due Date:  As incurred.

• The Transferee Lead Generation Fee is paid to Amazing Athletes.

27.  Liquidated Damages:  the number of months remaining in the term of your Franchise Agreement multiplied by the average Royalties, Franchisee National Advertising Fees, and other fees owed by the franchisee during the last 12 months

• Due Date:  Upon termination of the Franchise Agreement.

• Liquidated damages are paid to Amazing Athletes.

28.  Default Notice Fee:  $50

• Due Date:  Due immediately upon issuance of a default notice.

• The Default Notice Fee is payable to Amazing Athletes in the event that it issues a default notice to you.

29.  Operation Upon Death or Disability Fee:  if Amazing Athletes or a third party assumes the operation of your Franchised Business upon your death of disability, Amazing Athletes may charge a per diem fee (currently $250), plus direct out-of-pocket costs and expenses

• Due Date:  As incurred.

• The per diem fee is paid to Amazing Athletes or the third party that assumes the operation of your Franchised Business.