Detailed Information on Spring-Green Lawn Care’s Initial Franchise Fee, Royalty Fee + 28 Other Fees (Items 5 and 6, 2021 FDD)

1.  Initial Franchise Fee:  $25,000 to $40,000

• To acquire a franchise for a Franchised Business, you must pay an initial franchise fee of $40,000 for a geographic territory containing up to 60,000 single family dwelling units (“SFDUs”).

• However, if you elect, and are eligible, to participate in the Green Associate Program, you will pay a reduced initial franchise fee of $25,000 for a geographic territory containing up to 60,000 SFDUs.

• If you wish to obtain a geographic territory of more than 60,000 SFDUs, and Spring-Green approves, you must pay Spring-Green an additional fee of $0.50 for each SFDU over 60,000 SFDUs.

• $25,000 of the initial franchise fee due under the Franchise Agreement is due and payable when you sign the Franchise Agreement (or $15,000 if you elect, and are eligible, to participate in the Green Associate Program) and the remainder is due before you attend the initial training program.

• If you elect, and are eligible, to participate in Spring-Green Financing for the initial franchise fee, you will only have to make a down payment of $25,000 (or $15,000 if you elect, and are eligible, to participate in the Green Associate Program) of the initial franchise fee upon your signing the Franchise Agreement. Franchisees who meet Spring-Green’s qualifications may be able to finance the remaining balance of the initial franchise fee over 5 years.

• The initial franchise fee is fully earned and non-refundable upon payment, except as described below.

• In addition, if you elect, and are eligible, to participate in the Green Associate Program, Spring-Green applies up to $10,000 of the initial franchise fee to start-up expenses that it designates or approves, which may include the initial marketing campaign fee.

• Also, as a member of the International Franchise Association, Spring-Green proudly participates in the IFA’s VetFran Program. If you are a veteran of the U.S. Armed Forces and meet the requirements of the VetFran Program, Spring-Green applies up to $5,000 of the initial franchise fee to start-up expenses that Spring-Green designates or approves, which may include the initial marketing campaign fee.

2.  Marketing Fees:  $25,000

• If you are purchasing a new Spring-Green Lawn Care franchise, you must pay to Spring-Green the sum of $25,000 for an initial marketing campaign. Spring-Green will use all of the fee for marketing and advertising in the Territory and will provide you with assistance with the generation of an initial marketing campaign, which may include the following: a prospect database, direct response advertising, name recognition advertising, and print, electronic, and other media advertising.

3.  Initial Property Data:  up to $13,500

• You must pay Spring-Green, or its affiliate, a fee for the collection of property data relevant for marketing within your Territory. Spring-Green’s affiliate, SGE, will collect and provide the property data to you.

• The fee will depend on the size of your Territory and the number of SFDUs within your Territory, but Spring-Green requires that at least 50% of the SFDUs in your Territory be measured before the start of your first lawn care season.

• You will pay Spring-Green, or its affiliate, the then-current fee (currently $0.45 per SFDU) for each SFDU that SGE measures in your Territory.

• Based on a minimum measurement threshold of 50% of the SFDUs measured in your Territory and a maximum Territory size of 60,000 SFDUs, Spring-Green estimates the total property data fee to be up to $13,500 for a new Territory.

4.  Initial Supply Package:  generally not more than $2,233

• Spring-Green is an approved supplier of your initial supply package (consisting of opening inventory and supplies), which you must acquire before your Franchised Business opens. The amount for the initial supply package varies but is generally not more than $2,233.

5.  Equipment:  $4,849

• Franchisees will also typically lease certain required equipment from Spring-Green. If you lease the required equipment from Spring-Green, you will pay it a down payment equal to 20% of the cost of the leased equipment. Spring-Green estimates that the down payment for all of the equipment that you can lease from it will be $4,849.

6.  Computer and Printer:  $1,450, plus tax and shipping

• In addition, before you begin operating your Franchised Business, you must acquire a computer and printer that meet Spring-Green’s specifications. Though you are not required to purchase your computer and printer from Spring-Green, you may elect to do so.

• If purchased from Spring-Green, it estimates the cost for these items will be $1,450 plus tax and shipping (if applicable).

7.  Royalty:  sliding scale of 10% to 8% of Gross Sales of the Franchised Business, except for reduced royalty rates under Green Associate Program

• Due Date:  Payable weekly 28 days from the end of the reporting week.

• Fee percentage decreases as your Gross Sales of the Franchised Business increase.

8.  Advertising Fund Contributions:  2% of Gross Sales of the Franchised Business

• Due Date:  Payable weekly 28 days from the end of the reporting week.

9.  Regional Advertising Fee:  if established, up to 2% of Gross Sales of Franchised Business

• Due Date:  Payable weekly 28 days from the end of the reporting week.

• Spring-Green does not currently collect a Regional Advertising Fee.

10.  Local Marketing Shortfall:  will vary

• Due Date:  Annually (if incurred).

• If your Local Marketing expenditures are less than the minimum amount required, you must pay Spring-Green the amount of the shortfall and it will contribute such amount to the Fund.

11.  Audit:  cost of inspection or audit

• Due Date:  As incurred.

• If you do not submit required reports or if you understate your Gross Sales of the Franchised Business by 5% or more.

12.  Assignment Fee:  2% of Gross Sales of the Franchised Business within the 12 months immediately preceding the effective date, but no less than $5,000 and no more than $15,000

• Due Date:  Before consummation of consent to assignment.

• Payable when the Franchise Agreement is assigned.

13.  National Advisory Council Assessment Fee:  currently, $20 per month for the months of April through November

• Due Date:  When billed.

14.  Indemnification:  will vary under circumstances

• Due Date:  As incurred.

15.  Interest:  the greater of 1% per month or 3% over Bank of America Prime Rate, but not above the highest legal rate permitted by applicable law

• Due Date:  When billed.

• Payable on all overdue amounts under the Franchise Agreement and the Spring-Green Lease.

16.  Lease of Equipment:  $396 to $520 per month

• Due Date:  Monthly.

• You are not required to lease equipment from Spring-Green. The total amount due under the lease depends on the equipment you choose to lease from Spring-Green.

• Amount is based on operation in only a single Territory.

17.  Management Fee:  $300 per day, plus costs and expenses

• Due Date:  As agreed.

• Upon death or incapacity of franchisee, if requested or if no competent manager is available.

18.  Supplier Testing Fee:  an amount not to exceed the cost of inspection and testing

• Due Date:  As incurred.

• If you request approval of a new product or supplier.

19.  Education Fee:  currently, $195 per year

• Due Date:  When billed.

20.  Ongoing/Refresher Training:  not currently charged. If implemented, it will be Spring-Green’s then-current fee (currently, $250 per day).

• Due Date:  When billed.

• If Spring-Green requires that you or your employees attend ongoing and refresher training programs. Spring-Green may increase the fee during the term of the Franchise Agreement.

21.  Property Data Fee:  Spring-Green’s (or its affiliate’s) then-current fee (currently, $0.45 per SFDU)

• Due Date:  When billed.

• Spring-Green may require you to pay it a fee for services it (or its affiliate or other designee) provides in collecting additional and updated property data.

22.  Technology Fee:  currently, $95 per month

• Due Date:  When billed.

23.  Accounting Service Fee:  if required, Spring-Green estimates this cost to be $150 per hour

• Due Date:  When billed.

24.  Insufficient Funds:  $100

• Due Date:  As incurred.

25.  Failure to Report Gross Sales Fee:  currently, $25

• Due Date:  As incurred.

26.  National or Regional Meeting Fee:  currently, $625 plus expenses for the National Meeting. This fee is subject to change.

• Due Date:  As incurred.

27.  Customer Survey Fee:  will vary under the circumstances; approximately $1.50 per customer

• Due Date:  As incurred.

28.  Services to Customers:  will vary under the circumstances

• Due Date:  As incurred.

29.  Taxes:  will vary

• Due Date:  As incurred.

• You are responsible for paying taxes arising out of the operation of your business. You must reimburse Spring-Green for any taxes that it must pay to any state taxing authority on account of either your operation or payments that you make to it.

30.  Various Marketing Materials:  actual costs incurred

• Due Date:  As incurred.