Detailed Information on Tide Dry Cleaners’ Initial Franchise Fee, Royalty Fee + 26 Other Fees (Items 5 and 6, 2021 FDD)

1.  Initial Franchise Fee:  $17,500 to $65,000

• At least 90 days prior to opening your Tide Dry Cleaners outlet, you will pay an Initial Franchise Fee in the amounts set forth below, which will vary depending on the store format of your Outlet:

• Plant Store:  $50,000
• Central Plant Store:  $65,000
• Drop Store:  $30,000
• Neighborhood Drop Store:  $17,500

• The Initial Franchise Fee is fully earned by Tide Dry Cleaners when paid and is not refundable.

2.  Plan Review Fee:  $4,000

• If Tide Dry Cleaners approves and authorizes you to use an architect that is not one of its pre-approved vendors, you must pay it a plan review fee in the amount of $4,000 to review your construction plans and specifications.

3.  Sign Layout Review Fee:  $500

• If Tide Dry Cleaners approves and authorizes you to use a sign vendor that is not one of its pre-approved vendors, you must pay it a sign layout review fee in the amount of $500 to review your sign layout and artwork.

4.  Training:  $2,500 per additional attendee

• Tide Dry Cleaners provides an initial training program for 2 of your designated attendees for your first Tide Dry Cleaners Outlet (which is a Plant Store) that will include you or your Managing Owner. For each additional Tide Dry Cleaners Outlet that you develop, Tide Dry Cleaners will provide an initial training program for 1 designated attendee.

• If you want to send additional individuals to attend the initial training program, then provided that Tide Dry Cleaners has space available, it will accommodate your request although you will be required to pay its current training charge, which is $2,500 for each additional attendee.

5.  Additional Training Fee:  currently, $500 per day for each trainer, plus all of Tide Dry Cleaners’ personnel’s related expenses (including travel)

• If you or your designated attendees do not feel sufficiently trained in the operation of the Outlet after you complete the initial training program, or if Tide Dry Cleaners, in its sole judgment, believes that you are not sufficiently trained in the operation of the Outlet, then it may provide additional training at its then-applicable charges for your additional attendees and its training personnel (collectively, the “Additional Training Fee”).

• The Additional Training Fee is currently $500 per day for each trainer, plus all of Tide Dry Cleaners’ personnel’s related expenses (including travel), but could increase if Tide Dry Cleaners’ costs increase.

• The Additional Training Fee is due after you or your designees complete the additional training program and is non-refundable.

6.  Extension Fee:  currently, $2,500 per one-month extension

• Tide Dry Cleaners may grant you, in its reasonable business judgment, extensions on the contractual deadlines relating to the opening of the Outlet. Currently, the extension fee is $2,500 per one-month extension.

7.  Continuing Service and Royalty (“Royalty”):  6.5% of the Outlet’s weekly Net Sales

• Due Date:  Due on or before Thursday of each week on Net Sales during previous week ended.

8.  Advertising and Development Fund Contribution (“Fund Contribution”):  currently 2% of the Outlet’s weekly Net Sales

• Due Date:  Due on or before Thursday of each week on Net Sales during previous week ended.

9.  Local Advertising Expenditures:  up to 2% of the Outlet’s weekly Net Sales

• Due Date:  Due on or before Thursday of each week on Net Sales during previous week ended.

• You must spend 2% of the Outlet’s weekly Net Sales for local advertising for the Outlet.

• On 30 days’ notice, Tide Dry Cleaners may require you to pay all or a portion of this amount to it and it will use the funds to advertise and promote the Outlet.

10.  Additional Training Fee:  currently, $500 per day per trainer, plus all of Tide Dry Cleaners’ personnel’s related expenses (including travel)

• Due Date:  When training or assistance begins or as incurred.

11.  Audit:  costs of inspection or audit

• Due Date:  15 days after receiving Tide Dry Cleaners’ invoice.

• Due if you do not provide reports, supporting records, or other required information or if you understate required Royalties or Fund Contributions by more than 2%.

12.  Technology Support Fee:  currently, $316 per month ($3,792 annually)

• Due Date:  Monthly.

• These technology support charges reflect Tide Dry Cleaners’ current charges for providing technical support, digital menu board support, store hardware support, reporting (Tableau), website management, and general funds for technology innovations.

• Tide Dry Cleaners may increase the Technology Support Fee as its costs increase.

13.  Computer Systems Maintenance, Support, and Licensing:  Central Plant Store and Plant Store: currently $604 to $790 per month ($7,248 to $9,480 annually); Drop Store: currently $440 to $698 per month ($5,280 to $8,376 annually); Neighborhood Drop Store: currently $396 to $498 per month ($4,752 to $5,976 annually)

• Due Date:  Monthly.

• Technical support contracts and costs due to Tide Dry Cleaners or third-party providers.

14.  Costs and Attorneys’ Fees:  will vary under circumstances

• Due Date:  As incurred.

• Due when you do not comply with the Franchise Agreement.

15.  Franchisee Convention Fee:  currently $300 for the first attendee and $200 per additional attendee (but could increase if Tide Dry Cleaners’ costs increase)

• Due Date:  Before the start of the annual and/or regional conventions.

• You (or your Managing Owner) and one of your manager-level employees must attend annual and/or regional conventions no more than 3 days during any calendar year.

16.  GrE License Fee:  $2,000 per dry cleaning machine

• Due Date:  June 30.

• Payable if you operate a Plant Store. Tide Dry Cleaners will pay this amount to GrE on your behalf for your right to use GrE’s Proprietary Products, Proprietary Processes, and trademarks in your Plant Store.

17.  Indemnification:  will vary under circumstances

• Due Date:  As incurred.

• You must reimburse Tide Dry Cleaners if it is held liable for claims from your Outlet’s operation or if you breach the Franchise Agreement.

18.  Insufficient Funds Processing Fee:  $100

• Due Date:  As incurred.

• Due if you have insufficient funds in your account to cover a payment, or if a check is returned for insufficient funds.

19.  Insurance:  out-of-pocket cost reimbursement, plus a reasonable fee for Tide Dry Cleaners’ time incurred in obtaining such insurance (currently $500, but could increase if Tide Dry Cleaners’ costs increase)

• Due Date:  15 days after billing.

• You must reimburse Tide Dry Cleaners if it obtains insurance for you because you fail to obtain or maintain required coverage.

20.  Interest:  1.5% per month

• Due Date:  15 days after billing.

• Due on all overdue amounts.

• Interest rate will not exceed the highest applicable commercial contract interest rate.

21.  Maintenance and Refurbishing of Outlet:  you must reimburse Tide Dry Cleaners’ expenses (not to exceed $1 million)

• Due Date:  15 days after billing.

• If, after Tide Dry Cleaners notifies you, you do not undertake efforts to correct deficiencies in the Outlet’s appearance, then Tide Dry Cleaners can undertake the repairs and you must reimburse its expenses.

22.  Management Fee:  $500 per person, per day (plus costs and expenses)

• Due Date:  As incurred.

• Due when Tide Dry Cleaners (or a third party) manages the Outlet after your or your Managing Owner’s death or disability or after your default or abandonment.

• Tide Dry Cleaners’ assumption of management responsibilities for the Outlet is limited to 90-day periods renewable for a maximum total of one year from the time it assumes management.

23.  Relocation Fee:  costs of relocation services and an agreed-upon minimum Royalty during the period when the Outlet is closed

• Due Date:  15 days after billing.

• Due if you request and receive Tide Dry Cleaners’ approval to relocate the Outlet to a site acceptable to Tide Dry Cleaners.

24.  Renewal Fee:  then-current renewal fee (currently $7,500)

• Due Date:  Upon signing renewal Franchise Agreement.

• Due if you satisfy all the conditions relating to renewal.

25.  Tide Cleaners’ Points of Differentiation (POD) Follow-up Assessment:  costs of follow-up assessment

• Due Date:  15 days after receiving Tide Dry Cleaners’ invoice.

• Due if the Outlet fails an initial assessment and Tide Dry Cleaners performs a follow-up assessment to confirm that you have corrected the deficiency.

26.  Testing:  cost of testing (amount of which depends on circumstances, including supplier’s location, testing required, and item involved)

• Due Date:  When billed.

• This covers the costs of testing new products or inspecting new suppliers you propose.

27.  Transfer:  then-current transfer fee (currently $7,500)

• Due Date:  Before transfer completed.

• No charge if you transfer the Franchise Agreement to an entity you control upon signing transfer documentation acceptable to Tide Dry Cleaners.

28.  Early Termination Damages:  amount of the average weekly Royalty and Fund Contribution that you owed for the 1-year period prior to termination, multiplied by the lesser of 104 weeks or the number of weeks remaining in the term of the Franchise Agreement

• Due Date:  Within 30 days following the termination.

• Payable if you default on your obligations and Tide Dry Cleaners terminates the Franchise Agreement prior to the expiration of the term of the Franchise Agreement.