Restore Hyper Wellness’ Initial Franchise Fee, Royalty Fee + 21 Other Fees

Detailed Information on Restore Hyper Wellness’ Initial Franchise Fee, Royalty Fee + 21 Other Fees (Items 5 and 6, 2021 FDD)

1.  Development Fee:  $20,000 to $42,000 per Center, depending on the number of Centers to be developed

• If Restore grants you multi-unit development rights for the development of 3 or more Restore Centers under a Multi-Unit Development Agreement, you must pay a standard initial development fee (the “Development Fee”) upon entering into the Multi-Unit Development Agreement that is calculated as a function of the sum of the discounted initial franchise fee for the Restore Centers to be developed as follows:

• Where Restore grants you the right to develop 3-4 Restore Centers, the initial franchise fee will be $42,000 per Center.

• Where Restore grants you the right to develop 5-9 Restore Centers, the initial franchise fee will be $40,000 per Center.

• Where Restore grants you the right to develop 10-19 Restore Centers, the initial franchise fee will be $35,000 per Center.

• Where Restore grants you the right to develop 20 or more Restore Centers, the initial franchise fee will be $20,000 per Center.

• Except where Restore grants you the right to develop 20 or more Restore Centers, the Development Fee will be equal to the full initial franchise fee for the Restore Centers to be developed during the initial 12-month development period set forth therein plus half of the sum of the initial franchise fees for the Restore Centers to be developed in subsequent development periods.

• Where Restore grants you the right to develop 20 or more Restore Centers, the Development Fee is equal to the full initial franchise fee for all Centers to be developed under the Multi-Unit Development Agreement regardless of development timelines.

• The number of Restore Centers to be opened under a particular Multi-Unit Development Agreement is determined by mutual agreement and will vary depending upon a variety of factors, including but not limited to: (1) existing population and anticipated population growth within the Development Area; (2) competition within the Development Area; (3) the availability of acceptable locations; (4) the number of Restore Centers that Restore and its advisors estimate may reasonably be supported within the Development Area.

• When you sign the Franchise Agreement for each Restore Center to be developed under a Multi-Unit Development Agreement, Restore will apply all or a portion of the Development Fee, as applicable, paid under the Multi-Unit Development Agreement against the initial franchise fee payable under each Franchise Agreement as described above and you will pay the balance of the initial franchise fee, if any.

• For each Center to be opened during a development period set forth in the Multi-Unit Development Agreement, the Franchise Agreement is to be signed, and the initial franchise fee to be paid, at the beginning of that period.

2.  Initial Franchise Fee:  $44,500

• If you sign an individual Franchise Agreement, the standard initial franchise fee is $44,500 and is payable on signing the Franchise Agreement. The initial franchise fee may be less for certain legacy franchisees with whom Restore has agreed to a lesser initial franchise fee based on commitments to open additional Centers.

3.  Renewal Fee:  50% of then-current franchise fee

• If you sign a Franchise Agreement to renew your rights under an existing agreement, you must pay a renewal fee equal to 50% of Restore’s then-current franchise fee. If you sign a Franchise Agreement in connection with buying an existing franchised Restore Center, you must pay Restore’s then-current transfer fee, currently $20,000.

4.  Services, Equipment, and Supplies:  $175,119 to $439,329

• Additionally, you must pay Restore or its affiliate (as an approved supplier) between $175,119 and $439,329 for services, equipment (including the cryotherapy chamber, local cryotherapy machine, infrared sauna, mild HBOT chamber, oxygen monitoring system and PBM, compression and related equipment) and supplies (including initial medical supplies) that you are required to purchase and maintain for the operation of your franchised business.

• Payment for the equipment is not refundable under any circumstances.

5.  Site Selection Visit (after first follow-up visit, if applicable):  $2,000 per site visit

• In addition, Restore does not charge for your initial or first follow-up site selection visit, but it reserves the right to charge its then-current fee (as of the issuance date of the disclosure document, $2,000 per site visit) for each additional site visit you request or Restore determines necessary in evaluating your proposed site.

6.  Royalty Fee:  7% of Gross Sales

• Due Date:  5 days after each Reporting Period.

7.  Brand Fund Contribution:  up to 2% of Gross Sales

• Due Date:  Monthly, 5 days after the end of each month.

• You will be required to make monthly contributions to the Brand Fund.

8.  Digital Marketing Management Fee:  the greater of $1,600 per month or 2% of Gross Sales

• Due Date:  Monthly, 5 days after the end of each month.

• Restore or its designated agency will provide you with digital marketing management services for advertising your Restore Center online.

9.  Creative Services Fee:  standard fee, currently $75 per hour

• Due Date:  As incurred.

• At your request, Restore will provide you with marketing design services for an hourly fee.

10.  Software/Technology Fee:  standard fee, currently $500 initial set-up fee, plus $499 per month

• Due Date:  As incurred and monthly, 5 days after the end of each month.

• Restore will provide you with access to its approved POS and customer relations management systems software.

11.  Outside Architect Vendor Review:  $1,500 for 3rd party architect peer review

• Due Date:  As incurred.

• Restore may charge you this fee in connection with its consideration and review of any architect you propose to use that is not currently on its approved list.

12.  Outside General Contractor Approval:  $1,500 for franchisee’s use of outside general contractor

• Due Date:  As incurred.

• Restore may charge you this fee in connection with its consideration and review of any general contractor you propose to use that is not currently on its approved list.

13.  Equipment Servicing and Warranty Costs:  $450/month for 5 years

• Due Date:  Monthly, 5 days after the end of each month.

• Restore may charge you this fee if you elect to purchase its optional equipment servicing and warranty service.

14.  Inspection and Testing for Unapproved Suppliers, Products, or Equipment:  cost of inspection, if applicable, and cost of test

• Due Date:  As incurred.

• Before approving a new supplier, product, or equipment, Restore may require you to pay the cost of testing the supplier’s products and/or equipment and inspecting its facilities.

15.  Audit Costs:  cost of audit charges

• Due Date:  As incurred.

• Payable if you fail to submit required reports or if an audit reveals an understatement of 5% or more of Gross Sales.

16.  Key Performance Indicator (KPI) Corrective Action Fee:  for the second failed KPI: $1,000; for the third and each subsequent failed KPI: $2,500

• Due Date:  As incurred.

• Payable if you fail to achieve the minimum score for any key performance indicator during 2 or more consecutive evaluations, regardless of whether you complete any required corrective actions with respect to such failed key performance indicator, for Restore’s costs in confirming such corrective actions.

17.  Interest:  the lesser of 18% per annum, or the highest rate then-permitted by applicable law

• Due Date:  As incurred.

• Payable if any amount is not received when due.

18.  Insurance:  will vary under circumstances

• Due Date:  As incurred.

• If you fail to obtain the required insurance coverage for your Center, Restore may obtain the coverage at your expense.

19.  Relocation Fee:  standard fee, currently $5,000

• Due Date:  As incurred.

• Payable if you relocate your Center.

20.  Transfer Fee:  standard fee, currently $20,000

• Due Date:  As incurred.

• Payable if you sell, transfer, or assign your franchise.

21.  Renewal Fee:  50% of the then-current Initial Franchise Fee

• Due Date:  As incurred.

• Payable if you renew your Franchise Agreement.

22.  Indemnification:  varies depending upon the circumstances

• Due Date:  As incurred.

• You must reimburse Restore if it incurs any expense, including attorneys’ fees and other costs, or is held liable for claims resulting from your Center’s operations.

23.  Costs and Attorney’s Fees:  varies depending upon the circumstances

• Due Date:  As incurred.

• You must pay Restore’s costs and attorney’s fees if it is successful in bringing an action against you arising out of, or related to the Franchise Agreement, including an action to collect amounts owed to Restore Franchising.