Detailed Information on Jan-Pro Franchise Development’s Initial Franchise Fee, Royalty Fee + 29 Other Fees (Items 5 and 6, 2021 FDD)

• As a Jan-Pro Franchise Development Regional Developer Franchise, you will sell and support Unit Franchises that will operate janitorial and building maintenance service businesses under the name “Jan-Pro Cleaning & Disinfecting.”

1.  Initial Franchise Fee:  $50,000 to $600,000, depending on the density of the population related to the total area, the number of business counts within the total area, or other demographic considerations

• The initial franchise fee for a Franchise is based primarily on the business count of the Territory granted, and must be paid when you sign the Franchise Agreement.

• All Regional Franchise Developers do not pay the same initial franchise fee. The formula will vary according to the density of the population related to the total area, the number of business counts within the total area, or other demographic considerations. The initial franchise fee ranges from a minimum of $50,000 to $600,000, but may be more or less depending on the population in your Territory.

• The initial franchise fee is not refundable.

• Jan-Pro may elect to finance a portion of the initial franchise fee over the minimum of $50,000. If Jan-Pro provides financing, the amount financed is payable in equal monthly installments over 24 to 48 months, depending on your financial circumstances and your aptitude for the Franchise. You must sign a Promissory Note that will provide for payment of the amount due with interest at 10% per annum.

• Jan-Pro participates in the International Franchise Association’s Veterans Transition Franchise Initiative (“VetFran”) program to provide franchise opportunities to qualifying veterans. Jan-Pro’s VetFran incentive provides a 10% discount off the initial franchise fee due under its Franchise Agreement.

2.  Additional Attendees at Initial Certification:  $1,000 for each additional trainee, after the first two

• Jan-Pro doesn’t charge a fee for its initial certification program for up to two trainees. Jan-Pro may charge you $1,000 for each additional trainee. This fee is uniform for all franchisees and is not refundable.

3.  Contract Services Royalty Fee:  4% of Gross Monthly Revenue

• Due Date:  By the 10th day of each month.

• Payable on Gross Monthly Revenue collected in the previous calendar month.

4.  Sales Royalty Fee:  10% of the total initial franchise fees for Unit Franchises, upgrade fees for additional customer accounts, transfer fees for the transfer of a Unit Franchise, and 10% of all principal and interest collected during the previous calendar month

• Due Date:  Same as Royalty.

5.  Advertising Fee:  currently, $250 or 2% of Gross Monthly Revenue, whichever is greater per month

• Due Date:  Same as Royalty.

• Payable on Gross Monthly Revenue collected in the previous calendar month. This fee is in addition to Jan-Pro’s requirements for your local advertising.

6.  Local and Regional Advertising Cooperatives:  established by cooperative members

• Due Date:  Established by cooperative members.

• Jan-Pro currently does not have a cooperative, but reserves the right to require one to be established in the future.

7.  Initial Certification Fees:  Jan-Pro’s then-current fee (currently, $1,000 per person) for each person over 2 trainees

• Due Date:  On invoice.

• Jan-Pro trains up to 2 trainees at no charge to you. If you want to train additional people, Jan-Pro may charge you this certification fee.

• This fee may be adjusted annually by modification to the Manuals.

8.  Additional Certification Fees:  Jan-Pro’s then-current fee (currently, up to $1,000 per person)

• Due Date:  On invoice.

• Jan-Pro may offer additional courses, seminars, or other certification programs.

9.  Promissory Note Payments:  as determined when you purchase your Franchise

• Due Date:  By the 1st day of each month.

• If Jan-Pro agrees to finance a portion of your initial franchise fee, you must make monthly payments under your Promissory Note.

10.  Insurance Fee:  reimbursement of Jan-Pro’s costs, plus interest at the lesser of 18% per annum or the maximum rate of interest permitted by law

• Due Date:  On invoice.

• If you fail to procure insurance and Jan-Pro does so on your behalf.

11.  Business Protection Program Fees:  cost of the insurance, plus an administrative fee

• Due Date:  As incurred.

• Jan-Pro may allow you to participate in a group insurance plan that may provide general liability insurance, worker’s compensation, and/or bonding. This is currently a voluntary program; however, almost all of Jan-Pro’s Regional Franchise Developers participate.

12.  JanHub Software License Fee:  Jan-Pro’s then-current fee (currently, there is no fee for JanHub)

• Due Date:  Same as Royalty.

• The JanHub system is a proprietary, web-based system that your Unit Franchisees will use to manage their customer information, invoicing, and other business management.

• You will sublicense the JanHub software to your Unit Franchisees and may recover this cost from your sublicenses.

13.  Smarthub Software License Fee:  a reasonable monthly license fee as Jan-Pro determines. Jan-Pro’s current fee is $630 per month.

• Due Date:  Same as Royalty.

• You will only pay the fee based on which software you are required to use.

• Jan-Pro licenses its proprietary software to you. Jan-Pro also may charge a reasonable fee for periodic maintenance, repairs, upgrades, and updates relating to the software.

14.  Software Maintenance Fee:  Jan-Pro currently does not charge this fee

• Due Date:  On invoice.

• Jan-Pro may charge a reasonable fee for periodic maintenance, repairs, upgrades, and updates relating to the Smarthub software under the Software License Agreement or to the Customer Portal and JanHub solutions.

15.  Web Hosting and Email Service Fees:  Jan-Pro’s then-current fee (currently, $80 per month for web hosting and $50 per month for email)

• Due Date:  Same as Royalty.

• Jan-Pro provides the System with the www.jan-pro.com website and each location with a microsite. Jan-Pro also provides jan-pro.com email addresses for you and each of your employees.

16.  National Accounts Support Fees:  25% of all National Account Revenue (excluding Special Services) during the first full month that Services are performed; and 2% of National Account Revenue (excluding Special Services) thereafter; and 2% of National Account Revenue earned from the performance of Special Services thereafter

• Due Date:  Within 30 days after receipt of the National Accounts Revenue.

• JPE retains National Accounts Support Fees and pays you the difference.

17.  Customer Portal Fee:  Jan-Pro’s then-current fee (currently, $80 per month for a Tier 3 market; $90 per month for a Tier 2 market, and $100 per month for a Tier 1 market)

• Due Date:  Same as Royalty.

• Jan-Pro has developed a proprietary customer portal (“Customer Portal”) that customers may use to communicate with your office and Unit Franchisees for special requests and issue reporting. Jan-Pro establishes your tier group based on the numbers of businesses within your Territory.

18.  Computerized or Manual Billing and Accounting Services Fee:  actual costs incurred

• Due Date:  On invoice.

• Jan-Pro reserves the right to assume responsibility for your computerized or manual billing and accounting services if you fail to make prompt or timely payments of any monies due Jan-Pro or its affiliates.

19.  Equipment, Supply, or Supplier Testing or Inspection:  reimbursement of Jan-Pro’s out-of- pocket expenses, plus its then-current per diem charges for its personnel; amount varies, but will generally range from $1,000 to $2,000

• Due Date:  On invoice.

• This fee covers the cost of testing or inspecting new equipment, supplies, or suppliers you propose.

20.  Consultation Fee:  Jan-Pro’s then-current fee (currently $300 per day), plus travel expenses (currently not to exceed $350 per day)

• Due Date:  On invoice.

• Jan-Pro will provide you with consulting services on the operation of your Franchise on your reasonable request and subject to the availability of Jan-Pro’s personnel.

21.  Manual Replacement Fee:  $200

• Due Date:  On invoice.

• Payable if any of the operations manuals (“Manuals”) are lost, destroyed, significantly damaged, or stolen.

22.  Late Fees:  $50 per day for late reports; the lesser of 5% of amount due for late payment of fees or the maximum amount permitted by law, plus default rate interest at 18% per annum or the maximum interest rate permitted by law

• Due Date:  On invoice.

• Payable if any payment due to Jan-Pro or its affiliates is not made by the due date.

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

• Monthly reports must be received by the 10th day of each month.

23.  Audit:  cost of audit and inspection, any understated amounts, and any related accounting and legal expenses

• Due Date:  On invoice.

• Payable if an audit discloses an underpayment of 5% or more or is the result of your failure to timely submit any reports, records, or financial statements.

24.  Interim Management Fee:  Jan-Pro’s then-current fee (currently, $5,000 to $8,000 monthly for accounting and other clerical services)

• Due Date:  As billed.

• If you die or become permanently disabled or are in breach of the Franchise Agreement, Jan-Pro may elect to operate your Franchise for up to 12 months and will charge you a reasonable monthly support fee for its services.

25.  Professional Fees and Expenses:  actual costs incurred

• Due Date:  On invoice.

• You must reimburse Jan-Pro for any legal, accounting, or other professional fees that it incurs as a result of any breach or termination of your Franchise Agreement. You must reimburse Jan-Pro if it is required to incur any expenses in enforcing its rights against you under the Franchise Agreement.

26.  Reimbursement:  Jan-Pro’s actual cost

• Due Date:  On invoice.

• You must reimburse Jan-Pro for any payment that it has made, or has become obligated to pay, including professional fees, related in any way to your franchised business or your Franchise.

27.  Indemnification:  varies according to the amount of Jan-Pro’s losses and expenses

• Due Date:  As incurred.

• You must indemnify Jan-Pro for all losses and expenses, including professional fees, that it or its representatives incur related in any way to your franchised business or your Franchise.

28.  Renewal Fee:  $20,000

• Due Date:  Before renewal.

• Payable if you qualify to renew your Franchise Agreement and choose to enter into a renewal Franchise Agreement. Other conditions apply to the renewal of your Franchise Agreement.

29.  Transfer Fee:  10% of the purchase price subject to graduated rate reductions

• Due Date:  Before completing the transfer.

• Payable if you sell your Franchise.

• For a transfer of partial ownership interest, Jan-Pro reserves the right to require a reasonable transfer fee to cover its administrative costs in processing the transfer, in an amount it specifies, not to exceed 10% of the value being transferred.

• For a transfer to an entity, Jan-Pro reserves the right to require a reasonable transfer fee to cover its administrative costs in processing the transfer.

• For a transfer due to death or permanent disability of an owner, Jan-Pro reserves the right to require a reasonable transfer fee to cover its administrative costs in processing the transfer.

• There are various other conditions you must meet for Jan-Pro to approve your transfer request.

30.  Appraisal Fee:  50% of actual costs incurred

• Due Date:  On invoice.

• On termination or expiration, Jan-Pro has the option to purchase any items you used to operate the franchised business (other than Customer Agreements and Unit Franchise Agreements). If you and Jan-Pro cannot agree on the fair market value of the items, Jan-Pro may designate an independent appraiser to do so.

31.  Surrender Fee:  $500 per day for each day that you don’t comply

• Due Date:  On invoice.

• Payable if you fail to surrender all keys to all clients’ buildings, contracts between you and your customers and/or Unit Franchisees on termination or non-renewal of your Franchise Agreement.