Detailed Information on Iron Tribe Fitness’ Initial Franchise Fee, Royalty Fee + 23 Other Fees (Items 5 and 6, 2021 FDD)

1.  Initial Fee:  $25,000 to $42,000

• The initial fee for your first Iron Tribe Fitness franchise is $42,000 and is due upon signing the Franchise Agreement in the form of cashier’s check or other form of payment acceptable to Iron Tribe Fitness (the “Initial Fee”). Your Initial Fee for any additional franchises you purchase will be $25,000.

• The Initial Fee is non-refundable upon payment. Iron Tribe Fitness will impose the Initial Fee uniformly for all franchisees currently buying a franchise.

2.  Development Fee:  $42,000 for the first Facility, plus $25,000 multiplied by the total number of Facilities (excluding the first Facility) to be developed pursuant to the Multi-Unit Development Agreement

• The Multi-Unit Development Agreement (MDA) requires you to pay a development fee which is determined by the number of Iron Tribe Fitness franchises to be developed. The development fee is calculated as $42,000 for the first Facility, plus $25,000 multiplied by the total number of Facilities (excluding the first Facility) to be developed pursuant to the MDA (“Development Fee”).

• The Development Fee is due and owing according to the following schedule: Upon signing the MDA, you must pay Iron Tribe Fitness: (i) $42,000 to cover the entire Initial Fee for your first Facility; and (ii) $12,500 for each additional Facility that you are required to open under the MDA, to cover a portion of the reduced Initial Fee applicable to each respective Facility.

• You must pay Iron Tribe Fitness the remaining $12,500 due for each additional Facility at the earlier of: (i) the applicable deadline set forth in Section 3.1 of the MDA; or (ii) the date you sign the Franchise Agreement for that particular Facility.

• The Development Fee is non-refundable upon payment and is uniformly imposed.

3.  Royalty:  6% of Gross Sales for the prior month

• Due Date:  Deducted monthly from your bank account via an Electronic Funds Transfer System (“EFT”).

• “Gross Sales” means all sales generated through the Franchised Business, and includes fees for any goods and services leased or sold by you, and all other income of any kind or nature related to the Franchised Business; except that “Gross Sales” does not include any sales tax collected from your customers and tendered to any taxing authority, and does not include the portion of the normal full price of any goods or services that is not collected by you as a result of an authorized sales discount or employee discount.

4.  Advertising Fee:  1% of Gross Sales for the prior month

• Due Date:  Once established, deducted monthly from your bank account via an Electronic Funds Transfer System (“EFT”).

• Upon 90 days’ written notice to you, Iron Tribe Fitness will have the right to establish, maintain, and administer a regional or national advertising, marketing, and promotions program for advertising, marketing, and promotions selected by Iron Tribe Fitness in its sole discretion.

5.  Initial Marketing Fee:  $4,000 beginning 30 days prior to opening the Facility for business; plus $1,000 on grand opening event

• Payable to 3rd party vendors.

6.  Local Advertising Fee:  5% of Gross Sales or a minimum of $2,500 each month

• Payable to 3rd party vendors.

• You shall provide to Iron Tribe Fitness a report documenting all local advertising expenses in the Monthly Report.

• You may, in your sole discretion, expend additional amounts on local advertising.

7.  Late Fee/Interest/Declined Payment Fee:  late fee of 3%; fees and costs incurred/interest at 12%

• Due Date:  Immediately when assessed.

8.  State and Local Taxes:  variable

• Due Date:  When assessed (if assessed).

• If Iron Tribe Fitness is assessed state or local sales, use, property, or similar taxes based on your Gross Sales or Iron Tribe Fitness’ receipt of fees from you (but excluding its ordinary income taxes or receipts taxes for fees due to it), then you will pay those taxes to Iron Tribe Fitness or the taxing authority.

9.  Successor Agreement:  $5,000

• Due Date:  Upon executing successor agreement.

• You must pay a renewal fee of $5,000 when you exercise your right to renew the Franchise Agreement. There are various other conditions you must meet for Iron Tribe Fitness to approve your renewal request.

10.  Audit:  variable

• Due Date:  Upon completion of audit, if due.

• If Iron Tribe Fitness elects to audit your finances, and audit reveals understatement of Gross Sales of 3% or more, then you will reimburse Iron Tribe Fitness for the costs of the audit.

11.  Transfer:  $7,500

• Due Date:  Prior to effective date of transfer.

• Iron Tribe Fitness has the right to condition the proposed sale or transfer of your Facility or of your interest in the Facility upon your payment of a transfer fee of $7,500. There are various other conditions you must meet for Iron Tribe Fitness to approve your transfer request.

12.  Fees and Costs of Dispute Resolution:  variable

• Due Date:  Pursuant to judgment.

• Prevailing party in litigation is entitled to recover reasonable costs, experts’ and attorneys’ fees.

13.  Indemnity-Related Fees and Costs:  variable

• Due Date:  As incurred.

• You are required to defend and indemnify Iron Tribe Fitness for any third-party claims based on your acts or breaches of the Franchise Agreement.

14.  Technology Fee:  $500 per month

• Due Date:  When invoiced.

• This includes fees related to: (i) hosting your website; (ii) Iron Core; (iii) Infusionsoft; (iv) Google Apps; and (v) Yammer.

• You agree to pay all fees assessed by Iron Tribe Fitness or suppliers in connection with the installation and maintenance of the website and software programs.

15.  Insurance:  cost of insurance. If you fail to maintain your insurance as required, Iron Tribe Fitness has the right to procure insurance on your behalf and charge an 18% administrative fee in addition to the cost of the insurance.

• Due Date:  As required by insurer or broker.

16.  Regional Advertising Ad Co-op:  an amount determined by a majority of Ad Co-op members

• Due Date:  Monthly in the manner required by the Ad Co-op.

• Iron Tribe Fitness has the right, in its discretion, to designate any geographical area for purposes of establishing a regional advertising and promotional cooperative for each type of Facility (“Ad Co-op”), and to determine whether you must participate in an Ad Co-op.

• You will receive credit for Ad Co-op contributions against the Local Advertising Requirement.

17.  Additional Training:  $500 per trainee or the then-current training fee

• Due Date:  At time of additional training.

• Subject to the availability of Iron Tribe Fitness’ training personnel, Iron Tribe Fitness will train your additional and/or replacement managers or employees at its then-current tuition rate, which is currently $500 per day, per person, excluding transportation, lodging, and meals.

18.  Financial Records and Reports:  cost of preparing Gross Sales Reports and other reports required by Iron Tribe Fitness

• Due Date:  As required by bookkeeper and/or certified public accountant.

19.  Supplier Approval/Testing Costs:  costs of testing and evaluating supplier

• Due Date:  When incurred.

• If Iron Tribe Fitness incurs any costs in connection with testing a particular product or evaluating a supplier at your request, you must pay Iron Tribe Fitness a fee to reimburse it for its reasonable testing costs, regardless of whether Iron Tribe Fitness subsequently approves the product or supplier.

20.  Post-Termination and Post-Expiration Expenses:  costs and expenses associated with your ceasing of and de-identification with the business

• Due Date:  When incurred.

• Upon termination of the Franchise Agreement by either Iron Tribe Fitness or you, regardless of the cause, and upon expiration and non-renewal or transfer of the Franchise Agreement, you must pay all costs and expenses associated with your ceasing operation of the Facility and de-identifying yourself with the System.

21.  Annual Convention:  then-current registration fee

• Due Date:  As incurred.

• Iron Tribe Fitness is permitted to establish an annual convention or meeting of franchisees (the “Annual Convention”), which you and your operations manager (“Operations Manager”) will attend if required by Iron Tribe Fitness.

• Iron Tribe Fitness reserves the right to charge a registration fee for attendance at the Annual Convention and you will pay the travel, accommodations, wages, and all other expenses for your representatives attending the Annual Convention.

22.  Toll-Free Telephone Number:  then-current fee for establishment, operation, and maintenance of the toll-free telephone number

• Due Date:  As incurred.

• You must obtain a new telephone number and telephone listing at your expense, to be listed under the “Iron Tribe Fitness” name and not under your corporate, partnership, or individual name, and to be used exclusively in connection with your operation of the Facility.

23.  Camera System:  then-current cost to maintain the camera system

• Due Date:  As incurred.

• You will purchase, install, and maintain the camera system specified by Iron Tribe Fitness. Such system will be turned on and operational at all times during the term of the Franchise Agreement and accessible to Iron Tribe Fitness for monitoring on the Internet or otherwise.

24.  Google App User Fee:  $5 per month if you exceed 7 email users

• Due Date:  As incurred.

• Iron Tribe Fitness will pay for email accounts for the Facility for up to seven users. If you request more than seven users, you must pay Iron Tribe Fitness a fee of $5 per month for such additional emails.

25.  Product Non-Compliance Fee:  $250 per occurrence

• Due Date:  As incurred.

• If Iron Tribe Fitness discovers you are selling unauthorized or unapproved products from your Facility, you must pay Iron Tribe Fitness a non-compliance fee equal to $250 (“Non-Compliance Fee”).

• Additionally, if you fail to remedy this non-compliance within 14 days notification, Iron Tribe Fitness will assess the Non-Compliance Fee again and will continue to assess the fee every 14 days until the non-compliance is cured.