Detailed Information on Rooter Man’s Initial Franchise Fee, Royalty Fee + 7 Other Fees (Items 5 and 6, 2021 FDD)

1.  Initial Franchise Fee:  $3,975 to $39,750

• You will pay an initial franchise fee based upon the population of your territory. The rate of the fee is $31.80 per thousand of population and will generally range from $3,975 to $39,750. 125,000 population constitutes one franchise unit and the initial franchise fee for such a unit is $3,975.

• Upon receipt of your payment of the initial franchise fee, Rooter Man will execute the Franchise Agreement. There are no circumstances under which Rooter Man will refund the initial franchise fee. Rooter Man does not offer any financing to the initial franchise fees. All initial franchise fees are due in full amount upon signing the Franchise Agreement.

• The population in your territory is determined by using the U.S. Census Bureau data or the data generated by Business Control Atlas, a publication updated every 5 years and distributed by the American Map Corp., Maspeth, New York.

• The initial franchise fee for any additional unit that you purchase subsequent to the first unit is at the same rate as the first unit. Rooter Man, in its sole discretion, may finance up to 50% of your additional franchise fee when you exercise your option to purchase additional territories pursuant to a Promissory Note for a period of 1 to 3 years.

2.  Continuing Royalty (Monthly Franchise Fee):  $1.04 per thousand population monthly

• Due Date:  First royalty payment is due no later than the 60th day from your execution of the Franchise Agreement. Then the continuing royalty is due by the 10th of each month.

• Gross Revenues include all revenues received from the operation of your franchise. Gross Revenues do not include sales or service taxes or municipal or private disposal fees.

• Minimum $130 per month.

3.  Marketing Fund Contribution:  $0.12 per thousand population monthly

• Due Date:  First monthly marketing fund contribution is due no later than the 60th day from your execution of the Franchise Agreement. Subsequent monthly marketing fund contribution is due by the 10th of each month.

• Administered by Rooter Man.

• Minimum $15 per month.

• This fee covers the listings with other Rooter Man franchisees at the main franchise website www.rooterman.com.

• The locally optimized websites developed and supported by Rooter Man features each franchisee’s contact information for their particular licensed territories without other franchisees’ information.

4.  Audit Fee (only applicable if delinquent on monthly fee payments):  cost of audit, plus 18% per annum on underpayment of continuing royalty and advertising fees

• Due Date:  Immediately after audit.

• Audit fees are due if underpayment of monies due Rooter Man. Interest is always due on underpayment.

• An audit fee is triggered only upon delinquency of monthly franchise fees 3 months beyond payment due date.

• Interest expense is triggered only upon delinquency of monthly franchise fees beyond the payment due date. Interest begins from the date that the payment was due.

5.  Interest Expense (only applicable if delinquent on monthly fee payments):  18% per annum

• Due Date:  At the time payment is made.

• For all late payments of monies owed to Rooter Man.

6.  Franchisee Termination Fee (Opt-Out) (Only During Initial 5-Year Term):  $25 per thousand population

• Due Date:  No later than 90 days before closing date for the territory’s yellow pages advertising.

• De-identification by you upon termination.

• The opt-out fee applies when a franchisee terminates the Franchise Agreement with Rooter Man’s approval.

7.  Transfer Fee:  greater of 5% of franchise selling price or $2,500

• Due Date:  On or before transfer date.

• Non-refundable.

• No transfer fee required if franchise is transferred to his/her own corporation or immediate family.

8.  Renewal Fee:  $2,500

• Due Date:  6 months prior to expiration.

• Must be paid in conjunction with signing of new 10-year-term Franchise Agreement (then-current version).

• The renewal fee covers execution of a renewed Franchise Agreement for a term of 10 years from the date of renewal.

9.  Breach of Non-Competition Covenant:  5% of the gross revenue of any competing business through the non-competition period

• Due Date:  On the 15th day of each month on the account of the gross revenue of the competing business in the prior month during the 3-year non-competition period.

• This fee applies when you breach your non-competition covenant after the agreement expires or terminates.

• Payment of all fees and dues other than the initial franchise fees shall be made through direct charge either through credit cards or a bank account.