Detailed Information on Always Best Care Senior Services’ Initial Franchise Fee, Royalty Fee + 23 Other Fees (Items 5 and 6, 2022 FDD)

1.  Initial Franchise Fee:  $49,900

• The Initial Franchise Fee is $49,900 and is payable in a lump sum when you sign the Franchise Agreement. The Initial Franchise Fee is fully earned when paid, is uniform for all franchisees, except as described below, and is not refundable under any circumstances.

• The Initial Franchise Fee includes your initial supply of brochures, stationery, business cards, forms, checklists, contracts, and coupons. It also includes 2 polo-style shirts and the preparation of multiple web pages within the national website that will be created for you according to Always Best Care’s specifications.

• Always Best Care also participates in the VetFran Program, through which it will reduce the Initial Franchise Fee for qualified United States veterans by 5%.

• Always Best Care participates in the MinorityFran program, through which it will reduce the Initial Franchise Fee for qualified franchisees by 5%.

• The MinorityFran program discount and the VetFran Program discounts cannot be combined. The maximum discount available for the Initial Franchisee Fee is 5%.

2.  Royalty:  6% of Gross Sales per month or a minimum royalty of at least $500, whichever is higher (with an initial minimum Gross Sales of $8,333.33 per month), for the first 12 months of operation – begins accruing in the first full or partial month of operation. Each year thereafter, the minimum Gross Sales and the minimum royalty will increase as described below. You must begin operating immediately upon completion of corporate training. You are required to achieve a minimum level of Gross Sales and pay the greater of 6% of your Gross Sales or a minimum royalty as follows:

• Months 0 to 12 = $8,333.33 per month with minimum royalty of $500
• Months 13 to 24 = $15,000 per month with minimum royalty of $900
• Months 25 to 36 = $25,000 per month with minimum royalty of $1,500
• Months 37 to 48 = $35,000 per month with minimum royalty of $2,100
• Months 49 to 60 = $45,000 per month with minimum royalty of $2,700
• Months 61 to 120 = $55,000 per month with minimum royalty of $3,300

• Due Date:  The 5th day of each month by electronic funds transfer (or the next business day, if the 5th of any month is not a business day), beginning on the first day of the month immediately following the corporate training, or in the case of a transfer, the first day of the month in which the transfer is completed.

• If you have not begun operating (actively seeking Clients) on or before the 90th day following the date of your Franchise Agreement, Always Best Care may, at its option, either terminate the Franchise Agreement or begin charging you the minimum monthly royalty amount.

3.  Skilled Care Royalty:  6% of Gross Sales for Skilled Nursing Services from any payer source excluding Medicare; 4% of Gross Sales for Skilled Nursing Services reimbursed by Medicare

• Due Date:  The 5th day of each month by electronic funds transfer or the next business day, if the 5th of any month is not a business day.

4.  Franchisee Advertising Fund Contribution:  the greater of: (i) 2% of your Gross Sales (not including Gross Sales on Skilled Nursing Services) or (ii) $300 per month ($100 per month for the 2nd and each additional Franchise Agreement if you are a multiple franchise owner)

• Due Date:  The 5th day of each month by electronic funds transfer or the next business day, if the 5th of any month is not a business day), beginning on the first day of the month immediately following the corporate training, or in the case of a transfer, the first of the month in which the transfer is completed.

5.  Local Advertising Expenditure:  $800

• Due Date:  Monthly, proof of franchisee’s expenditures must be submitted to Always Best Care upon demand.

• If you own more than one franchise, you are only responsible for expending $800 in Local Advertising Expenditures per month. There is no additional Local Advertising Expenditure if you have more than 1 Franchised Business.

6.  Initial Training Program – Additional and New Employees:  $1,000, plus expenses

• Due Date:  15 days before training begins.

• Always Best Care will train the first 2 people at no additional charge. If you request that Always Best Care provide its initial training program to additional people, whether before your Business opens or while it is operating, you must pay its then-current training fee.

• You must also pay for the expenses of all of your trainees, including travel, lodging, meals, and wages.

7.  Additional On-Site Assistance:  Always Best Care’s then-current per diem rate per trainer, plus expenses. The current per diem fee is $500.

• Due Date:  15 days after billing.

• If you request that Always Best Care provide additional training or assistance on-site at your Business, you must pay its then-current fee for each trainer it sends. There is a minimum of 2 days of assistance.

• You must also reimburse Always Best Care’s trainer’s expenses, including travel, lodging, and meals.

8.  Franchise Agreement Transfer Fee:  $10,000

• Due Date:  With request for Always Best Care’s approval of the transfer.

• Always Best Care does not charge a transfer fee for a one-time transfer of your franchise to a Business entity formed for convenience of franchise ownership.

• You must pay a Transfer Fee of $10,000 if you transfer controlling interest in the Business or its assets to another franchisee. In all other cases, you must pay an Assignment Fee of $500.

• You are responsible for any broker fees.

9.  Franchise Assignment Fee:  $500

• Due Date:  With request for Always Best Care’s approval of a transfer.

10.  Franchise Agreement Renewal Fee:  $10,000

• Due Date:  At time of renewal.

• The renewal fee is paid to Always Best Care in lieu of paying an Initial Franchise Fee when you renew your Franchise Agreement.

11.  Technology Cost:  $175

• Due Date:  Monthly, beginning the first day of the month immediately following the corporate training, or in the case of a transfer, the first day of the month in which the transfer is completed.

• Payable to Always Best Care.

• If you are a multiple franchise owner, you are responsible to pay $35 per month for each additional territory as each opens.

12.  Interest on Overdue Amounts:  lower of 18% APR or highest rate permitted by law

• Due Date:  On demand.

• Interest accrues from the original due date until payment is received in full.

13.  Audit:  the amount of any deficiency, plus interest

• Due Date:  On demand.

• If any audit shows an understatement of any amount payable to Always Best Care of 2% or more, or if the audit is conducted because you have not provided required reports to Always Best Care, then the cost of inspection must also be paid by you.

• Always Best Care may also terminate your franchise.

14.  Supplier’s Review Fee:  reasonable cost of inspection and actual cost of test, not to exceed $1,000 per application

• Due Date:  Time of inspection.

• Applies to new suppliers or supplies you wish to purchase that Always Best Care has not approved.

15.  Insurance Procurement:  150% of amount of unpaid premiums

• Due Date:  As invoiced.

• You must use one of Always Best Care’s designated insurance providers, and you must have the policies within 60 days after signing the Franchise Agreement. If you fail to maintain required insurance coverage and Always Best Care elects to obtain coverage for you, you must reimburse it for 150% of the premiums paid on your behalf.

16.  Cost of Enforcement:  all costs, including attorneys’ fees

• Due Date:  As invoiced.

• You will reimburse Always Best Care for all costs in enforcing obligations if it prevails, including, but not limited to, reasonable attorneys’ fees, expert witness fees, costs of investigation, court costs, disbursements of counsel, and travel and living expenses (and interest on such fees, costs, and expenses).

17.  Indemnification:  all costs, including attorneys’ fees

• Due Date:  As invoiced.

• You defend suits at your cost and hold Always Best Care harmless against suits involving damages resulting from your operation of the Franchised Business.

18.  Refresher Training Fee:  $500 per day to a maximum of 5 days per instance

• Due Date:  When billed.

19.  NSF Fee:  $50

• Due Date:  On demand.

• Applies for each check returned for insufficient funds or failed transfer attempt.

20.  Late Fees:  $500 for each payment, report, or corrective action that is late as described in the Manuals

• Due Date:  On demand.

21.  Annual Convention Fee:  $500 to $750

• Due Date:  Upon invoice.

• Mandatory when conference is offered, whether or not you are able to attend.

22.  Holdover Fees:  150% of the fees which would have been due to the franchisor if the Franchise Agreement had neither terminated nor expired

• Due Date:  By the due date specified for payment of each fee in the Franchise Agreement.

• You must pay these fees if yon continue to operate the Business without authorization after the Franchise Agreement terminates or expires.

23.  Business Non-Compliance Fee:  150% of Always Best Care’s cost of providing services to Clients which a Franchise Agreement or Client Services Agreement requires the franchisee to provide

• Due Date:  Upon demand.

• You must pay these fees to Always Best Care if you fail to meet your obligations to Client and it does so, on your behalf in order to protect the brand.

24.  Management System (Delinquency Charge):  $500 per instance the franchisee fails to submit reports in the manner required in the Manual

• Due Date:  Upon demand.

25.  Termination Damages:  if Always Best Care terminates your Franchise Agreement for cause, you must pay Always Best Care liquidated damages equal to the average monthly Royalty Fees and Collected Royalty Fees you paid to it during your last 12 months of operation preceding the Termination Date multiplied by (a) 24 (being the number of months in 2 full years), or (b) the number of months remaining in the Agreement had it not been terminated, whichever is higher.

• Due Date:  15 days after the effective date of Termination Date.

• Franchisee’s obligations shall be waived unless one or both of the following events happens:

• The Franchise Agreement is terminated for any reason and franchisee becomes an owner in or opens a business which sells competing services.

• The Franchise Agreement is terminated for any reason and franchisee or any of its owners sues Always Best Care.