Detailed Information on 101 Mobility’s Initial Franchise Fee, Royalty Fee + 31 Other Fees (Items 5 and 6, 2021 FDD)

1.  Initial Franchise Fee:  $10,000 plus $0.05 per person in your Area of Primary Responsibility (APR)

• The Initial Franchise Fee for a start-up Franchised Business is calculated as $10,000 plus $0.05 per person in your Area of Primary Responsibility (APR), and typically ranges from $35,000 for a population of 500,000 to $60,000 for a population of 1,000,000.

• 101 Mobility may grant you additional Franchised Businesses for contiguous APRs. The Initial Franchise Fee for contiguous APR territories is calculated as $0.05 per person in each additional APR.

• If you qualify for 101 Mobility’s military veteran’s program, the Initial Franchise Fee for your first APR purchased will be discounted by $5,000.

• In addition, 101 Mobility may offer you financing for a portion of your initial franchise fee, up to a maximum of 50% of the total initial franchise fee which would be due to 101 Mobility.

2.  Initial Software License Fee:  $3,500

• You will pay 101 Mobility a $3,500 Initial Software License Fee for your license to use 101 Mobility’s proprietary business management MOBILINK software.

3.  Initial Marketing Fee:  $5,000

• At the time you sign your Franchise Agreement, you will also pay 101 Mobility a $5,000 Initial Marketing Fee. This fee includes the cost of creating your Internet mini-site, or landing page, on 101 Mobility’s main website, as well as certain other marketing related activities 101 Mobility assists you with, for example, establishing certain select social media accounts, such as Google+ and Yelp accounts, and providing you access to 101 Mobility’s pay-per-click vendor.

4.  Initial Technology Package:  $3,600

• You must purchase from 101 Mobility the Initial Technology Package which includes an iPad Pro, a wireless printer, and a Microsoft Surface Go, each of which meets 101 Mobility’s current specifications. The purchase price of this hardware is $3,600, due and payable to 101 Mobility at the time you sign your Franchise Agreement.

5.  Royalty Fee:  7% of Gross Sales from the Franchised Business for up to $1 million in Gross Sales; 6% of Gross Sales in excess of $1 million and up to $2 million; and 5% of Gross Sales in excess of $2 million

• Due Date:  Weekly; currently, on Tuesdays for Gross Sales received during the preceding week.

6.  Minimum Royalty Fee:  a fixed quarterly amount, imposed on your third full and each subsequent operating quarter as follows: $2,100 for your third full and fourth operating quarters, $3,600 for your fifth through eighth full operating quarters, and $5,400 for each subsequent operating quarter

• Due Date:  Quarterly.

• If the Royalty Fee on Gross Sales from services and equipment provided inside your APR for the previous three months is less than the Minimum Royalty Fee, you will pay the difference to 101 Mobility on the day your next Royalty Fee payment is due.

7.  Marketing Fee:  up to 4% of Gross Sales; currently 1.25% of Gross Sales per week up to $12,000 per year, plus $350 per month, where the total of both each month does not exceed 4% of Gross Sales

• Due Date:  1.25% of Gross Sales weekly, currently on Tuesdays for Gross Sales from preceding week, and on the final Tuesday of each month, the greater of $350 or the balance of 4% of Gross Sales for weeks collected during the same month.

• 101 Mobility reserves the right to change the Marketing Fee periodically, provided that the maximum Marketing Fee cannot exceed 4% of annual Gross Sales.

8.  Local Marketing:  up to 2% of Gross Sales

• Due Date:  Monthly local marketing requirement must be spent before the end of each month.

9.  Marketing Cooperatives:  varies with circumstances

• Due Date:  Monthly.

• If 101 Mobility requires that you participate in a marketing cooperative for your market area, any amounts you contribute to the cooperative will be credited toward your Local Marketing expenditure requirement.

10.  Interest:  18% per year (or maximum legal rate, if less) on any outstanding amount owed

• Due Date:  On demand.

• If you fail to make a payment on time, you must pay 101 Mobility interest on the amount owed from the due date until paid in full.

11.  Late Fee:  $150 for each overdue payment received after the Payment Date, increasing by $25 each day that a payment remains unpaid after the due date

• Due Date:  On demand.

12.  Call Center Program:  currently, includes a one-time setup fee of $300, a first-month teleservices fee of $250, and a fee of $25 per appointment made

• Due Date:  Monthly.

• 101 Mobility currently has a phone answering service program (“Call Center Program”). While 101 Mobility reserves the right to require participation in this program, currently participation is voluntary.

13.  Additional Training:  reasonable training fee: currently, $300 per person per day. Annual conference fee: currently, $995 per franchised business (for a maximum of two attendees, where additional attendees are subject to additional conference fees).

• Due Date:  Before training begins.

• The conference fee will be invoiced for and must be paid at least two weeks prior to the beginning of the annual conference.

• 101 Mobility has the right to charge for additional training provided, including: (i) initial training provided to persons repeating or replacing a person who did not pass initial training; (ii) initial training for subsequent trainees; and (iii) periodic additional training 101 Mobility may provide, including its annual conference.

• You are responsible for the travel, lodging, and dining costs, wages, and other expenses incurred by your trainees. As conference attendance is mandatory, the annual conference fee is required for all franchisees.

14.  Additional Assistance:  the travel, lodging, and dining costs of 101 Mobility representatives plus a Consulting Fee of $300 per trainer per day

• Due Date:  Within 15 days after services are rendered.

• Payable if 101 Mobility provides requested or required consulting services in-person at your Franchised Business location or at a place other than 101 Mobility’s offices. 101 Mobility has the right to increase the amount of the Consulting Fee once within any 12-month period.

15.  Supplier Review:  101 Mobility’s reasonable costs and expenses for inspecting the supplier and/or testing the proposed equipment, including personnel and travel, lodging, and dining costs.

• Due Date:  On demand.

• Payable if you wish to offer or use any supplies or equipment that 101 Mobility has not approved or to purchase from a supplier that 101 Mobility has not approved, whether or not 101 Mobility approves the item or supplier.

16.  Renewal Fee:  $7,500

• Due Date:  When you sign the renewal Franchise Agreement.

17.  Transfer Fee (payable if you are an individual transferring to a business entity for convenience of operation):  $1,000

• Due Date:  Before transfer.

• Historically, this fee has not been uniformly applied.

18.  Transfer Fee (payable if your owners are transferring among themselves or transferring a minority ownership interest to one or more third parties):  $5,000

• Due Date:  Before transfer.

• Historically, this fee has not been uniformly applied.

19.  Transfer Fee (payable if you are assigning your interest in the Franchise Agreement, transferring all or substantially all of the assets of the Franchised Business, or your owners are transferring a controlling interest):  50% of 101 Mobility’s then-current Initial Franchise Fee; 30% of 101 Mobility’s then-current Initial Franchise Fee if you are an approved immediate family member or employee of franchisee

• Due Date:  Before transfer.

• Historically, this fee has not been uniformly applied.

20.  Monthly Software License Fee:  currently $99 per month, which 101 Mobility may increase by up to 10% in any calendar year

• Due Date:  Monthly; on the first Royalty Fee due date of each month.

• Currently, 101 Mobility does not impose Monthly Software License Fees for any additional APRs you operate.

21.  Email Charges:  currently, there is no charge for the first four email address accounts issued to you; any additional address accounts are available for $10 per month each

• Due Date:  Monthly, in advance.

• 101 Mobility is your designated provider for email address accounts.

22.  Presentation Application:  currently, $18 per person per month

• Due Date:  Monthly, in advance.

• The first year of this license fee is included as part of the Initial Technology Package purchase price, however, you are responsible for paying this fee after your first 12 months of use.

23.  Electronic Signature Platform:  currently, $30 per month for up to three users

• Due Date:  Monthly, in advance.

• The first year of this license fee is included as part of the Initial Technology Package purchase price; however, you are responsible for paying this fee after your first 12 months of use.

24.  Referral Fee:  as described in the Manuals

• Due Date:  On demand.

• 101 Mobility has the right to require you to pay referral fees to franchisees who make referrals to you in an amount or according to a formula determined by 101 Mobility in its sole discretion, as described periodically in the Manuals.

25.  Commission:  as described in the Manuals

• Due Date:  On demand.

• If a customer prefers that you perform an installation in an APR other than your own, you must obtain 101 Mobility’s prior written approval and pay the franchisee in whose APR the installation is performed, a commission in an amount or according to a formula determined by 101 Mobility in its sole discretion, as described periodically in the Manuals.

26.  Reimbursement of Monies Paid by 101 Mobility on Your Behalf:  varies with circumstances

• Due Date:  On demand.

• Covers cost of insurance and other payments you fail to make and which 101 Mobility makes on your behalf.

27.  Audit Fee:  amount due, plus interest and costs of audit

• Due Date:  On demand.

• If an audit shows an understatement of fees due for any period of more than 2% of Gross Sales, you must pay 101 Mobility the amount in error plus interest and 101 Mobility’s costs and expenses for the audit.

28.  Inspection:  101 Mobility’s reasonable expenses incurred in inspecting your Franchised Business, including travel, lodging, and meals, and compensation for 101 Mobility’s representatives

• Due Date:  On demand.

• Payable if inspection is necessitated by a repeated or continuing failure to comply with any provision of the Franchise Agreement.

29.  Remedial Expenses:  101 Mobility’s reasonable expenses incurred in correcting your operational deficiencies

• Due Date:  On demand.

• If 101 Mobility gives you notice of deficiencies it identifies during an inspection and you fail to correct the deficiencies in a reasonable time, 101 Mobility may correct the deficiencies at your expense.

30.  Enforcement Expenses:  101 Mobility’s reasonable cost of de-identifying your Franchised Businesses and other costs and expenses incurred as a result of your failure to comply with your post-termination obligations

• Due Date:  On demand.

• Payable if your Franchise Agreement expires or is terminated, you fail to de-identify your Franchised Businesses or comply with your other post-termination obligations, and Mobility 101 takes steps to enforce these obligations.

31.  Costs and Attorneys’ Fees:  varies with circumstances

• Due Date:  On demand.

• You must reimburse Mobility 101 for its expenses in enforcing or terminating any agreements between you and it, including any Franchise Agreement.

32.  Indemnification:  varies with circumstances

• Due Date:  On demand.

• You must reimburse and pay 101 Mobility’s attorneys’ fees with respect to any and all losses and expenses incurred by 101 Mobility arising or resulting from your operation of the Franchised Business.

33.  Liquidated Damages:  (i) your average weekly Royalty Fee (including any applicable Minimum Royalty Fee) plus your average weekly Marketing Fee due for the last 52 weeks (or, if less, the period the Franchised Business has been open) before your termination, (ii) multiplied by the lesser of 156 or the number of weeks remaining in the then-current Term of the Franchise Agreement, and (iii) discounted to present value

• Due Date:  On demand.

• Payable only if you prematurely close the Franchised Business or if 101 Mobility terminates the Franchise Agreement on account of your material breach. This liquidated damages formula also includes Royalty Fees and Marketing Fees for a certain proportion of sales outside of your APR, if any.