Detailed Information on Right at Home’s Initial Franchise Fee, Royalty Fee + 15 Other Fees (Items 5 and 6, 2022 FDD)

1.  Initial Franchise Fee:  $49,500

• The standard initial franchise fee for one Franchised Business is $49,500.

• The Initial Franchise Fee is deemed fully earned and nonrefundable upon payment.

• The Initial Franchise Fee is charged for a franchise to operate from one location in an assigned specific territory that Right at Home describes as the “Designated Area.” The Designated Area will be defined by zip codes and generally includes a population of at least 15,000 people aged 65 and older.

•  The Initial Franchise Fee is uniform to all franchisees. You pay Right at Home no other fees or payments for services before your Franchised Business opens.

• At Right at Home’s discretion, it may offer qualified candidates the right to open and operate multiple Franchised Businesses. Right at Home will discount the Initial Franchise Fee for additional Franchise Agreements by 25% if you sign the Franchise Agreements and pay the Initial Franchise Fees at the same time or do so prior to opening the office of your first Franchise Agreement.

• Right at Home offers a 25% discount off the Initial Franchise Fee for the first Franchised Business to individuals who qualify under the VetFran program. This 25% discount does not apply to any additional Franchise Agreements or if any other discounts apply.

2.  Continuing Royalty:  the greater of 5% of Net Billings (“Royalty Fee”) or the Minimum Royalty per Quarter

• Due Date:  Payable weekly.

3.  Local Advertising:  1% to 2% of Net Billings

• Due Date:  As incurred.

• Includes cost of local and internet advertising.

• Payable to suppliers of advertising and internet service.

4.  Brand Marketing and Promotion Fee:  2% of weekly Net Billings on the first $1,000,000 of Net Billings, plus 1% of weekly Net Billings on the next $2,000,000 of Net Billings for each calendar year

• Due Date:  Payable weekly.

• You are required to contribute to the Brand Marketing and Promotion Fund. If you own multiple Franchised Businesses within a defined geographical area (as determined by Right at Home), your required contribution will not exceed your MSA Cap each calendar year.

• Right at Home may reduce or suspend the Brand Marketing and Promotion Fee with input and advice from the Strategic Leadership Council.

5.  Audit:  cost of audit and inspection, plus interest on underpayment

• Due Date:  On invoice.

• Payable if the audit shows an understatement in Net Billings of at least 2% and/or if inspection discloses you operated the Franchised Business in violation of the Franchise Agreement.

6.  Late Fee:  $50 per week for each item and/or payment not submitted when due. Right at Home has the right to increase this up to $250, plus the highest allowable legal rate for open account business credit, not to exceed 1.5% per month

• Due Date:  Automatically incur after due and payable date.

• Applies to Weekly Reports, accounting and records, and all Royalty Fees and amounts due for purchases from Right at Home or any affiliates.

7.  Insurance Policies:  amount of unpaid premiums plus Right at Home’s administrative fee (if any)

• Due Date:  Prior to opening your Franchised Business or commencement of any construction for leasehold improvements, you must have the issued policies.

• Payable to Right at Home only if you fail to maintain required insurance coverage and Right at Home elects to obtain coverage for you.

8.  Renewal Fee:  10% of the then-current initial franchise fee at the time of the renewal for each renewal of a term approved by Right at Home

• Due Date:  At the time of closing on the renewal.

• This amount is meant to offset the time and expense Right at Home will incur in handling each renewal.

9.  Transfer Fee:  Right at Home may charge up to 50% of the then-current initial franchise fee for a franchise at the time of the transfer or 100% of the then-current initial franchise fee if a franchisee consultant or broker commission is payable

• Due Date:  At the time of transfer.

• This transfer fee does not apply to an assignment of interest to an entity under Section 18.4.1 or an assignment to a Permitted Transferee under Section 18.7 of the Franchise Agreement.

10.  Additional Manager Training:  current rates are $300 per day plus expenses

• Due Date:  Time of additional training.

• Right at Home provides initial training to your Operating Principal and 2 additional persons, at Right at Home’s cost.

• You pay for costs of attending training and for additional training if you request it.

11.  Additional Onsite Assistance:  current rates are $300 per day per person plus expenses

• Due Date:  Time of assistance.

• Right at Home provides approximately 2 days of onsite assistance within 6 months of the beginning of operations of your Franchised Business at Right at Home’s cost. You pay for additional assistance if you request it.

12.  Policies and Procedures Manual:  current rates are $750 upfront fee, plus $100 annual subscription

• Due Date:  Upon purchase.

• A required purchase payable to the vendor.

13.  Integrity Selling Training:  current rates are $708 per person

• Due Date:  Upon invoice by vendor.

• A required purchase payable to the vendor.

14.  Coaching for Integrity Selling Training:  current rates are $186 per person

• Due Date:  Upon invoice by vendor.

• A required purchase payable to the vendor.

15.  Educational Programs, Seminars, Convention:  you are required to pay your expenses as well as your employees’ expenses in attending these educational programs, plus the fee Right at Home may charge to cover its costs of providing such programs

• Due Date:  Time of educational program.

• Attendance will not be required more than 2 times per calendar year and will not last more than 5 days.

• If your Franchised Business offers Specialized Nursing Services, Right at Home may require you or a qualified person designated by you to attend additional training relating to Specialized Nursing Services.

16.  Cost of Enforcement or Defense:  all costs including attorneys’ fees

• Due Date:  Upon settlement or conclusion of claim or action.

• You will reimburse Right at Home for all costs in enforcing its obligations under the Franchise Agreement if it prevails.

17.  Indemnification:  all costs including attorneys’ fees

• Due Date:  Upon settlement or conclusion of claim or action.

• You will defend suits at your own cost and hold Right at Home harmless against suits involving damages resulting from your operation of the Franchised Business.