Detailed Information on Lawn Doctor’s Initial Franchise Fee, Royalty Fee + 17 Other Fees (Items 5 and 6, 2021 FDD)

1.  Initial Franchise Fee:  $102,000

• You must pay Lawn Doctor a non-refundable initial franchise fee of $102,000.

• The initial franchise fee you must pay Lawn Doctor is comprised of the following components:

• (1) an initial license fee of $35,000 for the right to use the Marks during the term of the Agreement;

• (2) an initial training, supply, and support fee of $60,600, of which $50,000 is used to cover costs incurred in providing marketing programs, and the remainder to cover costs incurred in providing the initial training program, guidance and assistance, advertising and sales promotion support, set-up of bookkeeping systems, office supplies, hand tools and accessories, and repair parts;

• (3) a non-refundable deposit of $3,350 for the Turf Tamer Stand-On Applicator Lease; and

• (4) a non-refundable deposit of $3,050 for the Turf Tamer Power Seeder Lease.

• In certain states where agronomic conditions are not conducive to a seeding program (as determined by Lawn Doctor), the Turf Tamer Power Seeder is removed from the initial franchise package and the initial franchise fee is reduced to $98,950.

• You have the option to pay Lawn Doctor the entire $102,000 or $98,950 on the date you sign the Agreement, or Lawn Doctor will make a loan to you, if approved, for up to $60,000 of the initial franchise fee, the first monthly payment of which is payable to Lawn Doctor 90 days after you complete initial training. The balance of the initial franchise fee (net of any approved loan amount) is due at Agreement signing.

• You may prepay the Note in whole or in part without penalty.

• The initial franchise fee is uniform for all Strategic-Partners, with $42,000 typically paid on the date you sign the Agreement.

• Lawn Doctor is a participant in the “VetFran,” “MinorityFran,” “Green Fran,” and “First Responder” Initiatives and offers a $10,000 reduction in the initial franchise fee to qualified U.S. military veteran, minority, Green Industry, and First Responder candidates, respectively (but these discounts cannot be combined).

• Lawn Doctor also offers a reduced initial franchise fee to employees of Strategic-Partners who have 5 years of experience in the Lawn Doctor system and qualify to become Strategic-Partners. The initial franchise fee is reduced by $10,000 for qualified employees.

2.  Royalty and Service Fee:  10% of Net Revenues

• Due Date:  Payable weekly on the Net Revenues of the preceding week.

• “Net Revenues” are the actual gross revenues collected from customers, whether for cash or credit, plus all other revenues derived from the Business, excluding taxes collected from customers and refunds and adjustments.

3.  Out-of-Territory Royalty Fee:  15% of Net Revenues earned outside of Strategic-Partner’s Territory

• Due Date:  Same as Royalty and Service Fee.

• The 15% Out-of-Territory Royalty is paid in addition to the 10% of Net Revenues paid for the Royalty and Service Fee.

4.  Local Marketing Fund:  maximum of 5% of Net Revenues

• Due Date:  To be determined.

• Lawn Doctor may require Strategic-Partners to establish local marketing funds. You must contribute the amount determined by a majority vote of Lawn Doctor Businesses in your local fund.

• Your contribution will be credited against the amount you are required to spend in your Territory.

5.  Marketing and Promotion Fund:  maximum of 5% of Net Revenues

• Due Date:  Payable weekly together with the Royalty and Service Fee.

• Lawn Doctor will maintain one or more national and regional marketing funds directed by it.

• Your contribution to this Marketing Fund will be credited against the amount you are required to spend in your Territory.

• Lawn Doctor will specify the amount of your contribution at least 30 days before the start of any Marketing Fund.

6.  Local Advertising:  unspent amount of required local advertising activities

• Due Date:  Within 60 days after end of calendar year.

• You must spend each calendar year during the franchise term (beginning in the first full calendar year after you sign the Agreement) the greater of $30,000 or 10% of your Net Revenues to market your Business in your Territory. If you fail to do so, you must pay Lawn Doctor the unspent amount.

• To the extent Lawn Doctor does not spend any advertising amounts included in the initial franchise fee within the first operational year of your Business, it will spend the balance in the subsequent calendar year and apply that balance toward your annual local marketing and promotion expenditures in that year.

7.  Centrally Managed Media Boost Program:  $5,000

• Due Date:  As incurred.

• Payable only if you begin operations after the optimal season starting point and elect to invest into supplemental corporate-directed media programs to drive media-based leads (the “Centrally Managed Media Boost Program”).

• There is no obligation to participate in this optional program.

8.  Call Center Fees:  $350 per month (monthly charge begins after your 1st year of operation), plus per transaction charge of 5% of the annual program value of all new sales made by the Call Center

• Due Date:  Monthly and per transaction.

• During the 1st year of operation, the fixed monthly fees are included in the initial franchise fee, but you still must pay the per-transaction charges.

• Fees may be fixed and percentage-based and due on a per-transaction basis and weekly, monthly, or otherwise.

• Call Center fees are separate from the Royalty and Service Fee and other fees and charges due to Lawn Doctor or otherwise payable under the Agreement.

• If Lawn Doctor outsources the Call Center to an unaffiliated third party, you will pay fees and per-transaction charges directly to that third party and not to Lawn Doctor. The third party will determine its own fees and charges, which may differ from those described here.

9.  Turf Tamer Stand-On Applicator Lease:  $227.72, plus sales tax

• Due Date:  Monthly.

• Payment is due to Lawn Doctor over an 84-month period. You may elect to pay the rent in a lump sum payment of $16,250, payable to Lawn Doctor when you sign the lease.

10.  Turf Tamer Power Seeder Lease:  $199.41, plus sales tax

• Due Date:  Monthly.

• Payment is due to Lawn Doctor over a 72-month period. You may elect to pay the rent in a lump sum payment of $13,250, payable to Lawn Doctor when you sign the lease.

• If you live in an area of the country where agronomic conditions are not conducive to seeding, you will not acquire a Turf Tamer Power Seeder.

11.  Transfer Fee:  75% of the then-current initial license fee component of the initial franchise fee payable by a Strategic-Partner who is new to the Lawn Doctor system

• Due Date:  Payable by you before transfer completed.

• Due when you transfer the Business or a controlling ownership interest in the Business is transferred.

12.  Interest on Late Payments:  highest legal rate for open account business credit, not to exceed 1.5% per month

• Due Date:  As incurred.

• Lawn Doctor’s current policy is to charge interest at the rate of 1% per month, but this policy is subject to change at any time.

13.  Inspections and Audits:  cost of an audit (amount of which depends on circumstances and extent of your non-compliance)

• Due Date:  Within 15 days after receipt of the inspection or audit report.

• Payable only if audit shows an understatement of at least 3% of Net Revenues, or if you fail to furnish reports and other information.

14.  Indemnification:  will vary under circumstances and depend on nature of third-party claim

• Due Date:  As incurred.

• You must reimburse Lawn Doctor if Lawn Doctor is held liable for claims arising from your operation of the Business.

15.  Costs and Attorneys’ Fees:  will vary under circumstances and depend on nature of your non-compliance

• Due Date:  As incurred.

• You must reimburse Lawn Doctor for fees and costs it incurs from your failure to make payments, submit reports, or comply with the Agreement.

16.  Fine for Failure to Provide Materials for Inspection:  $500 per day

• Due Date:  As incurred.

• You must pay Lawn Doctor $500 for each day you fail to provide any books, records, or other requested materials for inspection, plus Lawn Doctor’s reasonable expenses resulting from the delay.

17.  Fine for Use of Unauthorized Advertising:  $250

• Due Date:  As incurred.

• Fine is assessed on a per item and per occurrence basis.

18.  Customer Complaint Reimbursement:  out-of-pocket cost reimbursement

• Due Date:  As incurred.

• To satisfy complaints by your customers with regard to the quality or other aspects of your services, Lawn Doctor may refund any fees or charges and reimburse your customers for any damage that they claim you or your employees caused to their property.

• Lawn Doctor may charge you for any amounts it pays or refunds to your customers in order to reimburse itself.

19.  Tax Reimbursement:  cost reimbursement

• Due Date:  As incurred.

• You must reimburse Lawn Doctor for any taxes it must pay to any state taxing authority on account of either your operations or your payments to Lawn Doctor.