Detailed Information on V’s Barbershop’s Initial Franchise Fee, Royalty Fee + 32 Other Fees

1.  Initial Franchise Fee:  $22,500 to $30,000

• The Initial Franchise Fee for your first V’s Barbershop is $30,000, payable when you sign the Franchise Agreement.

• If you are currently in (or have been honorably discharged from) the U.S. armed forces, the Initial Franchise Fee for your first V’s Barbershop will be $27,000.

• If you enter into a Development Agreement to open at least three V’s Barbershop units, or are an existing franchisee and you are purchasing at least two additional units, the Initial Franchise Fee for each of those additional units will be $22,500 (not including the first unit).

• There are no additional discounts on Initial Franchise Fees and there are no discounts for renewal fees.

• Initial Franchise Fees are not refundable and will be used for V’s Barbershop’s general purposes.

• Except as stated above, Initial Franchise Fees are presently the same for all new franchises of V’s Barbershops.

• The Training Fee for up to two people during the same timeframe is included with your Initial Franchise Fee.

2.  Training (only applicable in conjunction with transfer, renewal, or relocation):  $2,500 per attendee

• If you are required to, or desire to, attend V’s Barbershop’s Training Program in connection with your second or subsequent Franchise Agreements, in connection with a renewal, relocation, or transfer, or if you desire additional people to attend V’s Barbershop’s Training Program, the fee will be $2,500 per additional Training Program per person.

• The fee is not refundable.

3.  Royalties:  5% of Gross Sales up to $500,000; 3.5% of Gross Sales above $500,000

• Due Date:  Payable weekly.

4.  Advertising Payment:  between 1% and 3% of Gross Sales

• Due Date:  Payable weekly.

• If your Advertising Payment is less than 3%, you must spend the difference between your Advertising Payment and 3% of your Gross Sales on local store marketing in a manner consistent with V’s Barbershop’s requirements.

5.  Computer Software Maintenance Fee:  $275 to $300 per month

• Due Date:  Payable monthly to V’s Barbershop’s third-party provider.

• This fee includes support and updates to your required POS software.

• This fee may vary or exceed this range if Franchisee uses additional services and/or exceeds the communication services provided.

6.  Technology Fee:  $125 per month per V’s Barbershop

• Due Date:  Payable monthly. May be increased by V’s Barbershop upon 30 days’ written notice.

7.  Inventory, Trademarked Items, and Certain Other Items:  will vary

• Due Date:  Payable upon ordering.

8.  Real Estate Broker’s Fee:  will vary (estimated to be up to $10,000), but is usually paid by the landlord

• Due Date:  Paid to real estate broker on V’s Barbershop’s approved list, or otherwise approved by it, upon signing lease.

9.  Training Fee:  $2,500 per V’s Barbershop’s training program per person

• Due Date:  Payable prior to attending training if you request or V’s Barbershop requires: (i) you to complete or recomplete the training program; or (ii) additional individuals to complete or recomplete the Training Program; (iii) you are executing the Franchise Agreement in connection with a renewal, relocation, or transfer; or (iv) V’s Barbershop determines that you require additional training to comply with your obligations under the Franchise Agreement.

10.  Extension Fee:  $5,000 per Franchise Agreement to extend the deadline to open your V’s Barbershop by 1 year

• Due Date:  Payable if you wish to extend the deadline in the Franchise Agreement to open.

11.  Remediation Fee:  $50/hour per person involved and reasonable travel expenses

12.  Transfer Fee:  $5,000 or V’s Barbershop’s expenses in connection with the transfer, whichever is greater

• Due Date:  Payable upon request for transfer.

13.  Renewal Fee:  1/3 of then-current initial franchise fee, but not more than $30,000

• Due Date:  Payable upon request for renewal.

14.  Relocation Fee:  $5,000

• Due Date:  Payable upon your request for relocation of your business premises.

15.  Interest:  18% per annum on royalties, advertising payments, and other amounts unpaid within 10 days; on amounts paid by V’s Barbershop or its Affiliates on your behalf

• Due Date:  Payable as incurred.

16.  Document Late Fee:  $100 per week or part thereof

• Due Date:  Payable as incurred.

17.  Late Fee:  5% of the unpaid amount or $100, whichever is greater, on royalties, advertising payments, and other amounts unpaid within 10 days

• Due Date:  Payable as incurred.

18.  POS Communication Fee:  $100 per week for each week, or portion of a week, that your POS system is not maintained with the current approved software (including updates thereto) and required internet connection so that V’s Barbershop can access your POS performance data and sales data with its standard access software

• Due Date:  Within 10 days of the end of the week that V’s Barbershop cannot access your Computer System.

19.  Lost Operation Manual Fee, Training Materials, Installation Guide, or Other Printed Operational Materials:  $2,500

• Due Date:  Payable as incurred.

20.  Store Resale Assistance Fee:  5% of sales price with a minimum fee of $5,000 and a maximum fee of $10,000

• Due Date:  Payable upon the closing of the sale of your store if you request V’s Barbershop to assist you with the sale of your store.

21.  Expenses of Correction or Disposal:  will vary under the circumstances

• Due Date:  Payable as incurred.

22.  Expenses of Examining and/or Testing:  will vary under the circumstances

• Due Date:  Payable as incurred.

23.  Audit Fee:  costs and expenses of the audit, plus 18% per annum interest on the underpayment if the audit reveals that you have underpaid V’s Barbershop or its affiliates or submitted financial information to V’s Barbershop that is inaccurate in any material respect

• Due Date:  Payable promptly after the audit.

24.  Broker Commission Fee:  will vary

• Due Date:  Payable as incurred.

• Payable if the buyer of your Franchised Business was identified and/or introduced to you by a party to whom a commission is due, whether that party is a third party, independent contractor, employee of franchisor, or an Affiliate of franchisor.

25.  Interim Operating Fee:  as determined by V’s Barbershop, in its discretion

• Due Date:  Payable as incurred.

26.  Information Technology Support Fee:  the costs and fees incurred by V’s Barbershop in providing IT support services to you

• Due Date:  Upon invoice or may be withdrawn by V’s Barbershop via EFT or ACH.

27.  Liquidated Damages Upon Breach of Restrictive Covenant:  $30,000 for each location operated in default of an agreement with Brain Balance, plus 10% of the sales from all services and products sold by or from such location

• Due Date:  Payable as incurred.

28.  Liquidated Damages Upon Breach of Covenant Against Soliciting Vendors, Suppliers, and Customers:  an amount equal to 50% of the amount received by you (or the person with which you are associated) from the vendor, supplier, or customer, or the amount paid to the vendor, supplier, or customer

• Due Date:  Payable as incurred.

29.  Reimbursement of Amount Expended by V’s Barbershop or Its Designee to Cure Your Breaches of Your Lease:  will vary under the circumstances

• Due Date:  Payable as incurred.

• Payable if V’s or its designee assumes any of your obligations under your lease.

30.  Indemnification of V’s for Damages Suffered or Incurred for Your Actions or Omissions or in Connection With Your V’s Barbershop:  will vary under the circumstances

• Due Date:  Payable as incurred.

31.  Currency:  costs of conversion to U.S. dollars

• Due Date:  Payable as incurred.

32.  Taxes:  sales, use, gross receipts, and similar taxes

• Due Date:  Payable within 10 days.

33.  Meeting Attendance Fee:  not to exceed $2,500 per year per person.

• Due Date:  Upon invoice.

• May be withdrawn via EFT or ACH.

34.  Meeting Non-Attendance Fee:  not to exceed $2,500 per year per person.

• Due Date:  Upon invoice.

• May be withdrawn via EFT or ACH.