Detailed Information on Crumbl Cookies’ Initial Franchise Fee, Royalty Fee + 37 Other Fees (Items 5 and 6, 2023 FDD)

1.  Initial Franchise Fee:  $50,000

• On the signing of the franchise agreement, all franchisees pay an initial franchise fee of $50,000. This initial franchise fee is non-refundable.

2.  Required Purchases from Crumbl or an Affiliate:  $10,650 to $15,000 for an opening tech equipment package; $64,850 to $300,000 for an opening general equipment package

• You must pay Crumbl or its affiliate a fee for an opening tech equipment package estimated to be between $10,650 to $15,000.

• In addition, Crumbl may require you to buy from it or its affiliate an opening general equipment package, including ovens, mixers, and related equipment, estimated to be between $64,850 to $300,000.

• These fees are non-refundable.

3.  Initial Training:  $4,000 to $8,000

• The initial training fee is $8,000. If your principal owner has already opened a Crumbl franchise, then the initial training fee will be reduced to $4,000.

• If you postpone or reschedule any training from the date originally set by you, you must reimburse Crumbl for all of its costs to reschedule such training. These fees are non-refundable.

4.  Development Fee:  $50,000 multiplied by the number of franchise units to be developed

• If you enter into an area development agreement, the initial franchise fee for each unit to be developed is $50,000.

• You must pay an up-front area development fee of an amount equal to $50,000 multiplied by the number of franchise units to be developed, which is credited towards the initial franchise fee of each franchise as developed.

• You must sign the then-current franchise agreement for each unit to be developed.

• The minimum number of franchise units required to be developed under the area development agreement is 3 and any additional units will be determined by Crumbl on a case-by-case basis.

• In certain circumstances, Crumbl offers a partial refund of the area development fee. If Crumbl determines that you are not well suited to be an area developer and terminates the area development agreement early, you will receive a partial refund of the area development fee equal to the then-current initial franchise fee multiplied by the number of franchise units for which franchise agreements have not been executed as of the date of termination.

5.  Royalty:  8% of gross sales

• Due Date:  Payable weekly to be received by Tuesday of the following week (a sales week runs Monday to Saturday).

• Gross sales include all revenue from the franchise business, but does not include sales tax.

• Crumbl reserves the right to require royalties to be paid in accordance with its electronic funds transfer or automatic withdrawal program as developed.

6.  Marketing Fee:  2% of gross sales payable to Crumbl

• Due Date:  Payable weekly to be received by Tuesday of the following week (a sales week runs Monday to Saturday).

7.  Advertising Cooperative:  1% to 2% of gross sales payable to the co-op, if established by Crumbl

• Due Date:  Payable in accordance with the advertising cooperative’s governing documents.

• If Crumbl forms a local advertising cooperative in your area, any marketing expenditures you make through the co-op is credited towards fulfilling your local advertising obligation.

8.  New Primary Owner or New Manager Training:  $4,000 per training session, which may include (1) a 5-to-7-day session at your location, and/or (2) a 5-to-10-day session at Crumbl’s headquarters, or another location selected by Crumbl

• Due Date:  In advance of training.

• You must pay the travel, lodging, food, and other expenses for your trainees (if applicable) while attending this training.

9.  Annual Manager Training Fee:  $250 to $500 per person per training session

• Due Date:  On demand.

• Payable if Crumbl determines to have an annual manager retreat or training session.

10.  Additional In-Person Training or Assistance:  $500 per day, per person

• Due Date:  In advance of training or assistance.

• You must pay the travel, lodging, food, and other expenses of your attendees and Crumbl’s representatives during this additional training or assistance.

11.  Franchise Agreement Transfer Fee:  10% of all consideration paid regarding the transfer if the transfer occurs prior to the date that is 2 years after your franchise business has opened for business to the public. After such date, the franchise agreement transfer fee is $10,000.

• Due Date:  Prior to approved transfer.

• Payable when you sell a majority or all of your interest in your franchise business and prior to Crumbl’s signing any approval or new agreement. However, all guarantors will remain guarantors unless otherwise released by Crumbl.

12.  Internal Transfer Fee:  $500

• Due Date:  On demand.

• If a transfer is only among existing shareholders or members of a corporation or limited liability company franchisee, or among existing partners of a partnership franchisee, or by an individual or partnership franchisee to a corporation or limited liability company controlled and owned 100% by you or any combination of your current owners, and the current transfer along with all of the transfers that have occurred during the current term, and any prior franchise term(s), are comprised of, in the aggregate, 50% or less of the ownership of your franchise business, then you will pay a reduced transfer fee.

• All guarantors will remain guarantors unless otherwise released by Crumbl. Subject to state law.

13.  Transferee Training Fee:  $8,000 per training session

• Due Date:  On demand.

• This training may be held at your location, Crumbl’s headquarters, and/or another location selected by Crumbl.

• You must also pay the travel, lodging, food, and other expenses for your trainees (if applicable) while attending this training.

14.  Relocation Fee:  $2,500

• Due Date:  On demand.

• If you request Crumbl’s approval to relocate your business and Crumbl agrees, you must pay this fee to Crumbl in order to defray its costs associated with updating documentation, reviewing new sites, and editing its website and promotional materials.

15.  Late Fees and Interest:  $25 per day for each late payment or report; plus 18% interest or the maximum rate permitted by state law, whichever is less

• Due Date:  Payable with royalty or on demand.

• Charges begin to accrue after the due date of any required payment or report.

16.  Interest:  18% interest on any late payment, or the maximum allowed by state law, whichever is less

• Due Date:  Payable with royalty or on demand.

• Interest begins to accrue after the due date of any required payment.

17.  NSF Fees:  $50 per bounced check or insufficient or disputed draft, or maximum allowed by state law, whichever is less

• Due Date:  Payable with royalty or on demand.

18.  Successor Franchise Fee:  $2,500

• Due Date:  Prior to your entering into a successor franchise agreement.

• A successor franchise agreement is available to you only if you meet each of the requirements described in the franchise agreement at the time of your timely election to enter into a successor agreement.

19.  Conference or Seminar Fee:  Crumbl’s then-current fee for conferences or seminars, not to exceed $5,000 per attendee. Currently the fee is $0 per day.

• Due Date:  At time of registering for the conference or seminar.

• You will also be required to pay all your travel, lodging, food, and other expenses for each of your attendees.

20.  Supplier Evaluation Fee:  $2,000, plus reasonable expenses, at cost

• Due Date:  The set fee is due before Crumbl evaluates potential suppliers. The amount of reasonable expenses is due on demand.

• Payable if you want to have unapproved suppliers evaluated for Crumbl’s approval.

21.  Fees on Default:  attorney’s fees, costs, interests, and audit costs

• Due Date:  On demand, as incurred.

• Paid in addition to other payments to Crumbl.

22.  Audit Charge:  cost of audit

• Due Date:  On billing.

• Payable if (1) an audit shows an understatement of 2% or more of gross sales for the time period audited, or records are unorganized or unavailable, (2) you fail to report gross sales for any time period, or (3) you fail to retain and have available readable and organized required records.

23.  Interim Management Fee:  Crumbl’s then-current fee; currently the fee is $500 per day, per representative

• Due Date:  Time of service.

• Payable if Crumbl elects to operate your business during your unapproved closing, unapproved absence, incapacity, death, or if you are not in compliance with the franchise agreement or the manuals.

• In addition, you must also pay all travel, lodging, food, and other expenses for Crumbl’s representative(s) and other expenses that may be incurred by Crumbl to perform such services, plus royalties, advertising fees, and other applicable fees.

24.  Interim Training Fee:  Crumbl’s then-current fee; currently the fee is $500 per day, per representative

• Due Date:  Time of service.

• Payable if Crumbl elects to provide additional training at your location, Crumbl’s headquarters, or another location that Crumbl designates, if you are not in compliance with the franchise agreement or the manuals.

• In addition, you must also pay all travel, lodging, food, and other expenses for Crumbl’s representative(s), your attendees, and other expenses that may be incurred by Crumbl to perform such services.

25.  System Non-Compliance:  $250 to $1,000. Crumbl’s current fines are for: store uncleanliness ($250); failing to provide documentation ($250); unauthorized use/disclosure of trademark, brand materials, intellectual property, confidential information ($1,000); unauthorized use of product/supplier ($1,000); unauthorized packaging ($1,000); poor product quality ($250); failure to meet deadlines for new equipment, products, processes, etc. ($250); hygiene/dress code violation ($250); health or safety violation ($250); miscellaneous noncompliance ($250)

• Due Date:  As incurred.

26.  Indemnification:  varies

• Due Date:  As incurred or on demand.

27.  Technology Fee:  currently, $650

• Due Date:  Payable monthly to be received by the first Tuesday of the month.

• This fee will be updated periodically in Crumbl’s manuals.

28.  Transaction Processing Fee:  currently 2.4% to 3% of each transaction

• Due Date:  Payable on each transaction.

• This fee will be updated periodically in Crumbl’s manuals.

• The majority of this fee is paid to Crumbl’s merchant processor.

29.  Dispute Resolution Fees:  varies

• Due Date:  As incurred or on demand.

• You are required to pay half of the mediation and/or arbitration fees.

• Additionally, the prevailing party will be entitled to reimbursement of its legal fees and expenses.

30.  Post-Termination Liquidated Damages:  average royalty from the previous 12 months multiplied by the lesser of 36 months or the remaining term of your franchise agreement, whichever is less

• Due Date:  Upon termination.

• Payable if your franchise agreement is terminated prior to the expiration of the term. This is only to compensate for lost royalties and is not Crumbl’s only remedy.

31.  De-identification Fee:  $500 per day

• Due Date:  Upon demand.

32.  Tax Reimbursement Fee:  sum equal to tax imposed

• Due Date:  Upon demand.

• If there is assessed any nature of sales tax or use tax or other tax on fees or other sums previously or hereafter received by Crumbl under the franchise agreement then in addition to all fees and other payments to be made by you to Crumbl, you must also pay Crumbl or the taxing authority a sum equal to the amount of such tax.

• Any tax paid to Crumbl will be paid when due to the taxing authority.

33.  Insurance Procurement Fee:  the cost of insurance, plus 10% administrative fee

• Due Date:  Upon demand.

• You are required to hold and maintain your own insurance, but in the event you fail to do so, Crumbl has the right to obtain insurance on your behalf and you are required to reimburse Crumbl the premium payments.

34.  PCI and DSS Audit Reimbursement Fee:  all costs related to the audit

• Due Date:  Upon demand.

• You must reimburse Crumbl all costs related to an audit for your noncompliance with PCI and DSS requirements.

35.  Reimbursement Fee:  all reimbursement amounts paid to customers, plus a 10% administrative fee

• Due Date:  Upon demand.

• In the event Crumbl is required to pay any customer reimbursement amounts, you will be responsible to pay Crumbl the reimbursement amount, plus a 10% administrative fee in each instance.

36.  Marketing Materials:  cost, plus Crumbl’s reasonable expenses, not to exceed 10% for shipping and handling

• Due Date:  Upon demand.

• Payable if you want additional copies of marketing materials.

37.  Document Preparation Fee:  Crumbl’s legal fees and administrative costs related to the transfer, no less than $250

• Due Date:  Upon demand.

• Payable if Crumbl is required to prepare documents regarding any changes or other matters pertaining to you or your franchise business.

38.  Marketing Assistance Fee:  $75 per hour or Crumbl’s then-current rate as set forth in the manuals

• Due Date:  Upon demand.

• Payable if you request that Crumbl assist you in the development of marketing materials or promotional programs.

39.  Area Development Agreement Transfer Fee:  $20,000

• Due Date:  Prior to approved transfer.

• Payable if Crumbl allows you to transfer your area development agreement and prior to Crumbl’s signing any approval or new agreement. However, all guarantors will remain guarantors unless otherwise released by Crumbl.