Walk-On’s Sports Bistreaux’s Initial Franchise Fee, Royalty Fee + 27 Other Fees

Detailed Information on Walk-On’s Sports Bistreaux’s Initial Franchise Fee, Royalty Fee + 27 Other Fees (Items 5 and 6, 2021 FDD)

1.  Initial Franchise Fee:  $60,000

• The Initial Franchise Fee for one Walk-On’s Restaurant is $60,000.

• You must pay the Initial Franchise Fee in lump sum on the date you sign the Franchise Agreement, unless you sign an Area Development Agreement, as described below. The Initial Franchise Fee is fully earned when paid and it is not refundable under any circumstances.

2.  Area Development Fee:  50% of the applicable Initial Franchise Fee ($30,000 per Walk-On’s Restaurant) multiplied by the total number of Walk-On’s Restaurants to be developed

• If you enter into an Area Development Agreement, you must pay an Area Development Fee equal to 50% of the applicable Initial Franchise Fee ($30,000 per Walk-On’s Restaurant) multiplied by the total number of Walk-On’s Restaurants to be developed.

• You must pay the Area Development Fee in lump sum on the date you sign the Area Development Agreement. The Area Development Fee is fully earned when paid and it is not refundable under any circumstances.

• For each Walk-On’s Restaurant you are required to develop under the Area Development Agreement, you will receive a credit of $30,000 against the Initial Franchise Fee due when you sign the Franchise Agreement for the particular Walk-On’s Restaurant.

3.  Grand Opening Marketing Funds:  $20,000

• You must spend at least $20,000 on promotional, publicity, and marketing efforts in support of your Walk-On’s Restaurant’s opening.

4.  Additional and Subsequent Trainee Fee:  $5,000 per additional trainee

• The cost for up to 6 people to attend the Initial Training Program is included in the Initial Franchise Fee. If you wish to send additional or subsequent people to the Initial Training Program, you must pay Walk-On’s $5,000 per additional trainee prior to the commencement of the Initial Training Program.

• All additional and/or subsequent trainee fees are fully earned when paid and are not refundable under any circumstances.

5.  Continuing Royalty:  5% of Gross Revenues

• Due Date:  Payable weekly for the 7-day period beginning on Thursday and ending on the following Wednesday (the “Weekly Royalty Period”). The Continuing Royalty is due on the Monday following the end of the Weekly Royalty Period via ACH.

• Royalty percentage will not change during term of Franchise Agreement.

6.  System Advertising Contribution:  2% of Gross Revenues

• Due Date:  Same as Continuing Royalty.

• System Advertising Contribution percentage will not change during term of Franchise Agreement.

7.  Required Minimum Expenditure for Local Advertising:  1% of Gross Revenues per month starting in your second month of operation

• Due Date:  Monthly.

• The required monthly expenditure percentage will not change during term of Franchise Agreement.

8.  Regional Advertising Cooperative:  if cooperative formed: minimum – 1% of Gross Revenues; maximum – 3% of Gross Revenues

• Due Date:  Established by Regional Advertising Cooperative.

• Walk-On’s may form a Regional Advertising Cooperative for your area.

• Walk-On’s Restaurants owned by Walk-On’s or its affiliates will have the same voting rights and contribute at the same rate as franchisees to a Regional Advertising Cooperative.

9.  Proprietary Products:  varies

• Due Date:  When you place orders for products.

• If Walk-On’s develops them in the future, you must buy proprietary products from Walk-On’s, its affiliate or designee.

10.  Testing Fee:  varies depending on the reasonable expenses Walk-On’s incurs in testing the product or service you propose

• Due Date:  When Walk-On’s requests.

• Walk-On’s may test the product or service of any supplier you propose. Fee for testing pays for Walk-On’s expenses.

11.  On-Site Training and Assistance:  then-current daily wages and per diem, plus costs of travel and lodging, for each trainer sent. Current daily wage of Walk-On’s trainers varies, but averages $134 per day per trainer; current per diem is $15 per day per trainer.

• Due Date:  When Walk-On’s requests.

• You can request on-site training and/or assistance at any time. The Franchise Agreement does not require Walk-On’s to provide it.

12.  Subsequent Training Program Fee:  Walk-On’s then-current charge (currently up to $65,000)

• Due Date:  If applicable, payable prior to beginning of training for your fourth Walk-On’s Restaurant.

• Walk-On’s does not charge you a fee to conduct the Initial Training Program for the first 3 Walk-On’s Restaurants you open. If you open more than 3 Walk-On’s Restaurants, you are responsible for training your own employees and managers so long as you maintain training managers that Walk-On’s has certified and who have sufficiently passed Walk-On’s training programs.

• If you do not have the required training managers on staff, Walk-On’s will charge you this subsequent training program fee to train your management and employees.

13.  Opening Training Team Expenses:  then-current daily wages and per diem, plus costs of travel and lodging, for each member of the Opening Training Team. Current daily wage of Walk-On’s trainers varies, but averages $150 per day per trainer; current per diem is $15 per day per trainer.

• Due Date:  When Walk-On’s requests.

• Walk-On’s provides the Opening Training Team for up to 19 days at no cost to you. If, however, Walk-On’s determines in its sole discretion that all or a portion of the Opening Training Team must remain beyond the allotted 19 days in order to provide continued assistance, you must pay all wages and expenses for the Opening Training Team to remain.

• Walk-On’s only provides use of the Opening Training Team for your first 3 Walk-On’s Restaurants. If you open more than 3 Walk-On’s Restaurants and need the Opening Training Team because you do not have certified trainers on staff, you must pay Walk-On’s Opening Training Team’s expenses.

14.  On-Going Training:  expenses only

• Due Date:  As incurred.

• Walk-On’s may from time to time develop additional training programs which you (if an individual), your General Manager, and your Walk-On’s Restaurant Manager must attend and successfully complete.

• Walk-On’s may also hold an annual conference, convention, or required training sessions. You, your General Manager, and your Walk-On’s Restaurant Manager must attend.

• You pay no training charge, but you must pay all living and transportation expenses of your trainees who attend.

15.  Insurance:  varies

• Due Date:  As insurance carrier requires.

• Insurance company sets the premiums and you pay the insurance company, except that if you fail to pay premiums for required insurance, Walk-On’s may pay premiums and charge you for them.

• Premiums may vary depending upon factors such as the insurance company selected and your claims experience.

16.  Relocation:  $5,000 or such greater amount necessary to reimburse Walk-On’s for any reasonable costs it incurs in considering your request

• Due Date:  On demand.

17.  Taxes:  varies

• Due Date:  Promptly when due.

• You must pay Walk-On’s all taxes it pays, except for its corporate income taxes, due to goods or services it furnishes to you, the Initial Franchise Fee, or Continuing Royalties.

18.  Advances:  varies

• Due Date:  When Walk-On’s requests.

• You must pay Walk-On’s all amounts it advances to third parties for you.

19.  Late Charge:  maximum law allows, or if no legal maximum, then 4% above prime rate

• Due Date:  When Walk-On’s requests.

• You must pay late charge on any past due amounts to Walk-On’s.

20.  Audit Expenses:  varies

• Due Date:  As incurred.

21.  Successor Agreement Fee:  25% of the then-current Initial Franchise Fee

• Before Walk-On’s signs successor agreement.

22.  Transfer Fee:  1/2 of then-current initial franchise fee (currently $30,000)

• Due Date:  Before Walk-On’s approves the transfer.

23.  Management Fee on Death or Disability:  greater of (a) two times the salary paid to individual(s) Walk-On’s assigns to operate the Walk-On’s Restaurant, or (b) 10% of the Walk-On’s Restaurant’s weekly Gross Revenue

• Due Date:  From your death or disability or the death or disability of your last surviving owner (if you are a business entity), until a new Walk-On’s Restaurant Manager assumes control, Walk-On’s may operate a Walk-On’s Restaurant, but will have no obligation to do so. If it does, then it will deduct its expenses from the Walk-On’s Restaurant’s Gross Revenues and pay itself the management fee.

• Management fee will be in addition to Continuing Royalties due Walk-On’s.

• Walk-On’s will remit any remaining funds to your Estate. Estate must pay Walk-On’s any deficiency in sums due it under Franchise Agreement within 10 days of Walk-On’s notifying Estate of deficiency.

24.  Indemnification of Walk-On’s:  varies. The losses and expenses incurred by Walk-On’s.

• Due Date:  On demand.

• You indemnify Walk-On’s from certain losses and expenses.

25.  Application of Funds

• Walk-On’s can apply your payments to the oldest obligation due.

26.  Attorneys’ and Experts’ Fees, Court Costs:  the amount of these fees and costs are unknown and may vary depending upon factors such as the attorneys and experts selected and the court costs

27.  Collection Costs and Expenses:  varies

• Due Date:  On demand.

• You must reimburse Walk-On’s for collection costs and expenses it incurs including, but not limited to, costs and commissions paid to a collection agency, reasonable attorneys’ fees, costs incurred in creating or replicating reports demonstrating Gross Sales, court costs, expert witness fees, discovery costs, and reasonable attorneys’ fees and costs on appeal, together with interest charges on all of the foregoing.

28.  Replacement Fee:  $7,500

• Due Date:  On demand.

• If any of Walk-On’s or its affiliates’ employees mutually agree to a new position with you or any of your affiliates, you must contact Walk-On’s before hiring such individual. This fee is meant to compensate Walk-On’s for the losses it would incur as a result of replacing that employee.

29.  EcoSure:  $365

• Due Date:  On demand.

• Walk-On’s pays for quality inspection tests performed by EcoSure. If you fail to meet Walk-On’s required passing percentage rate (which is currently 80%) you must reimburse Walk-On’s for the cost of the test.