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

1.  Initial Franchise Fee:  $20,000

• The standard initial franchise fee is $20,000. However, Little Caesars reduces the initial franchise fee for its existing franchisees in certain circumstances, as set out below:

• New franchisee purchasing a franchise for your first Restaurant:  $20,000

• Existing franchisee purchasing an additional franchise under the same franchise number (this means that the additional franchise must have exactly the same ownership and be in the same geographic area as the existing franchise):  $15,000

• Existing franchisee signing a new Franchise Agreement when the full term (initial 10-year term plus 10-year renewal term) of the original agreement comes to an end (“Full-Term Franchisee”):  $15,000

• Full-Term Franchisee signing a new Franchise Agreement with a higher royalty rate than in the original agreement, and ownership of the franchise has not changed from the outset of the original agreement:  $10,000

2.  Initial Franchise Fee Deposit:  $5,000

• If the franchise will be for a new Restaurant, you must pay Little Caesars a non-refundable $5,000 initial franchise fee deposit within 30 days after it approves the franchise, and in any case before it will review a proposed site for the new Restaurant. The remainder of the initial franchise fee is due when you sign the Franchise Agreement or when Little Caesars approves a site for your proposed Restaurant, whichever is earlier.

• The initial franchise fee is non-refundable.

3.  Royalty:  the greater of 6% of Gross Sales for each one-week period or $100 for each one-week period

• Due Date:  At the end of each one-week period via electronic funds transfer or such other time and manner as Little Caesars may specify.

4.  Advertising Fee:  up to 7% of Gross Sales, as determined by Little Caesars

• Due Date:  Same as Royalty.

• Little Caesars allocates your total advertising obligation among contributions to a system-wide fund called Caesar Fund, contributions to an advertising cooperative (if applicable), and expenditures on local advertising.

5.  Blue Line Purchases:  varies

• Due Date:  Per Blue Line’s standard terms.

6.  Caesar Vision System Annual Support Fee:  currently $2,470 per year per Restaurant

• Due Date:  Assessed annually in January, but collected every accounting period in installments.

• Payable to Blue Line. The support fee typically increases each year.

7.  Digital Transactions Fee:  up to $0.35 per transaction – currently $0.29

• Due Date:  Same as Royalty.

• Payable to Blue Line.

8.  Security and Technology Fee:  up to $0.05 per credit or debit transaction – currently $0.02

• Due Date:  As incurred.

• Collected by Worldpay on Little Caesars’ behalf.

9.  Delivery Fees – Orders via Little Caesars App or Website:  delivery fee: $2.99; service fee: 10% of food and beverage order (maximum $3.00); small order fee: $2.00; late-to-portal fee: $0.50 per late order; LCE transaction fee: 2.5%

• Due Date:  Same as Royalty.

• The customer pays the delivery fee, service fee, and small order fee to the Restaurant, which passes them on to Blue Line. You pay the late-to-portal fee and the LCE transaction fee directly to Blue Line via weekly ACH. The delivery fees are in addition to the digital transaction fee.

• The LCE transaction fee will be phased out in 2021.

10.  Delivery Fees – Orders via DoorDash App or Website Service Fee:  12% of food and beverage order; LCE transaction fee: 5.0%

• Due Date:  Same as royalty.

• The service fee is payable to DoorDash. DoorDash deducts the service fee from the amount paid by the customer before remitting funds to your store. You pay the LCE transaction fee to Blue Line weekly via ACH.

• The delivery fees are in addition to the digital transaction fee.

• The LCE transaction fee will be phased out in 2021.

11.  Learning Management System Fee:  currently $260 per year per Restaurant

• Due Date:  Two semi-annual installments.

12.  Other Fees:  none currently

• Due Date:  As incurred.

• Little Caesars has a contractual right to institute other fees with respect to new or revised products, services, facilities, technology, marketing methods, training programs, data security, and operations, including fees to support portals, websites, mobile applications, digital transactions, Internet-connected equipment, social media, and other communications channels.

13.  Per Diem for Onsite Caesar Vision Support:  currently $1,500 per day per technician, plus travel expenses

• Due Date:  As incurred.

• Payable to Blue Line if you request onsite support to train your staff or troubleshoot problems with the Caesar Vision system.

14.  M.I.K.E. System Connection Fees:  none currently

• Due Date:  At time of installation and monthly thereafter.

• If you install the M.I.K.E. system, it must be continuously connected to Little Caesars’ system via the Internet. As of the date of the disclosure document, there is no fee for connection, but Blue Line reserves the right to charge a fee.

15.  Audit by Little Caesars:  Little Caesars’ actual costs of audit (travel, lodging, wage expenses, and accounting and legal costs)

• Due Date:  As incurred.

• Payable only if audit reveals an understatement of 2% or more in reported Gross Sales.

16.  Follow-Up Inspections:  Little Caesars’ actual costs, including travel expenses, meals, lodging, and compensation of its representatives

• Due Date:  10 days after billing.

• Payable at Little Caesars’ option if it makes a follow-up inspection in connection with deficiencies noted in a previous inspection.

17.  Additional Trainees:  not more than $500 per attendee for initial training of additional employees

• Due Date:  10 days after billing.

18.  Optional Training:  will vary based on length and type of training

• Due Date:  When you sign up for the training program.

• Payable only if you choose to participate in the training program. You will know the amount of the fee before you decide to participate.

19.  Transfer Fee:  varies from $0 to $5,000 per Restaurant

• Due Date:  Before transfer.

20.  Renewal Fee:  $5,000

• Due Date:  At the time you sign your Franchise Agreement and Renewal Addendum.

21.  Indemnification:  will vary with circumstances

• Due Date:  As incurred.

22.  Special Marketing, Management, and Operational Assistance Performed at Your Request:  reasonable fee plus expenses

• Due Date:  20 days after billing.

• Payable only if you request assistance beyond what Little Caesars customarily furnishes to franchisees. Little Caesars will obtain your agreement on the fee before you commit to the additional assistance.

23.  Private Securities Offering:  $25,000, plus additional sums to cover Little Caesars’ out-of-pocket costs to review the materials if greater than $25,000

• Due Date:  At the time offering materials are submitted to Little Caesars for review; when incurred, if greater than $25,000.

• You must obtain Little Caesars’ approval before making a private offering of securities. All such offerings are subject to Little Caesars’ right of first refusal.

• The Franchise Agreement prohibits public offerings of your securities.

24.  Relocation Fee:  $2,500

• Due Date:  When you submit the relocation request package.

• You may relocate a Restaurant only with Little Caesars’ permission. The new location must be within a one mile radius of the original location and must open within six months of the original location’s closure.

• The relocation fee is refundable only if Little Caesars does not approve your request.

25.  Interest:  18% per year or the maximum rate permitted by law where the Restaurant is located, whichever is less

• Due Date:  As incurred.

• Payable if any payment is late.

• Calculated from the date the payment was originally due to Little Caesars or its affiliate.

26.  Late Fee:  Little Caesars’ then-current late fee (up to $500 as of the date of the disclosure document) for overdue amounts. For overdue financial statements, tax returns, or other required reports, Little Caesars’ then-current late fee for each 30 days (or portion thereof) that the financial statement, tax return, or other report is overdue.

• Due Date:  Due immediately after the date on which the amount, financial statement, tax return, or other required report was originally due to Little Caesars or its affiliate.

• Payable if any payment is late or if your financial statements, tax returns, or other reports are not received when due.

27.  Missed Meeting Fee:  reasonable estimate of the cost Little Caesars incurred in expectation of your attendance. Will vary based on the length and type of meeting.

• Due Date:  20 days after billing.

• Little Caesars can charge you a nonattendance fee if you fail to attend a required meeting, conference, or seminar.

28.  Manual Update or Replacement Fee:  Little Caesars’ then-current fee ($60 as of the date of the disclosure document)

• Due Date:  When Little Caesars provides replacement.

• You must pay Little Caesars the fee for each updated version of the ORG and for replacement of any lost or destroyed copies.

29.  Management Fee:  commercially reasonable fee

• Due Date:  20 days after billing.

• Payable only if a principal owner of the franchise has been arrested for or charged with a serious criminal offense and Little Caesars elects to take over operation of the Restaurant pending final disposition of the charges.

30.  Liquidated Damages for Holding Over After Expiration:  calculated as follows: your average monthly royalty fees, advertising fees, and technology fees payable over the 12-month period immediately preceding the expiration date, multiplied by 36

• Due Date:  Upon billing.

• Payable if you continue to operate at the Approved Location after the initial term expires without electing to renew and satisfying all prerequisites for renewal.

31.  Liquidated Damages Upon Termination for Your Default:  calculated as follows: (a) your average royalty fees, advertising fees, and technology fees payable each month over the 12-month period immediately preceding the date of termination (or, if the Restaurant has been open less than 12 months, the average monthly royalty fees and advertising fees payable for the period the Restaurant was open); (b) multiplied by the lesser of (i) 36 months, or (ii) the number of months then remaining in the then-current term of the Franchise Agreement

• Due Date:  Effective date of termination.

• Payable in lieu of any damages for Little Caesars’ lost future revenue as a result of your default; but this is in addition to any other damages, costs, and expenses to which Little Caesars may be entitled.

32.  Liquidated Damages – Failure to Comply with Post-Termination Obligations:  $250 per day

• Due Date:  As incurred.

• Payable if you fail to comply with your obligations arising upon expiration or termination of the Franchise Agreement.

• Little Caesars can draw $10,000 from your bank account at the time of expiration or termination to cover potential liquidated damages as well as the expenses described in the next item.

• Upon completion of de-identification of the Restaurant and payment of the expenses described below, if any, Little Caesars will refund any unused portion of the $10,000. If the $10,000 is insufficient to satisfy your obligations, Little Caesars will invoice you for the balance.

33.  Costs and Legal Fees:  Little Caesars’ actual costs

• Due Date:  Upon demand.