Detailed Information on College Nannies + Sitters + Tutors’ Initial Franchise Fee, Royalty Fee + 13 Other Fees (Items 5 and 6, 2021 FDD)

1.  Initial Franchise Fee:  $45,000

• The standard initial franchise fee is $45,000. This amount is fully earned by College Nannies + Sitters + Tutors on signing the Franchise Agreement and is not refundable.

• If you meet College Nannies + Sitters + Tutors’ qualifications and opt to purchase a second franchised Territory, then the initial franchise fee for the second franchised Territory is $35,000 (or a total of $80,000 if you purchase the two franchised Territories at the same time).

• If you meet College Nannies + Sitters + Tutors’ qualifications and opt  to purchase a third or any additional Territories, then the initial franchise fee for the third and each subsequent Territory is $25,000 (or a total of $105,000 if you purchase all three franchised Territories at the same time).

• If you are an existing franchisee, you will be entitled to the reduced initial franchise fees if you subsequently purchase a second, third, or more franchised Territories as long as you are in good standing and not in default of your Franchise Agreement(s).

• You must execute a separate Franchise Agreement for each Territory.

• If you meet College Nannies + Sitters + Tutors’ credit standards, it will finance up to 80% of the initial franchise fee(s) payable by you under the Franchise Agreement. You must make an initial down payment of at least 20% of the total initial franchise fee(s) at the time you sign your Franchise Agreement. The remainder must be paid over a period of no more than 24 months.

• The above-described fees are the only payments you must make to College Nannies + Sitters + Tutors for services or goods provided before your franchised Business begins operating.

2.  Royalty Fee:  5% of Gross Revenues. Minimum Royalty Fee of $800/month starting 18 months after you and College Nannies + Sitters + Tutors sign the Franchise Agreement (“Effective Date”)

• Due Date:  Payable on the 5th business day of each month for the previous month.

• Payable to College Nannies + Sitters + Tutors.

3.  Brand Fund Contributions:  2% of Gross Revenues

• Due Date:  Payable on the 5th business day of each month for the previous month.

• Payable to College Nannies + Sitters + Tutors.

4.  Technology Fee:  currently, $225 per month per territory

• Due Date:  Payable on the 5th business day of each month for the previous month.

• May be increased.

5.  Local Marketing Expenditures:  greater of 2% of Gross Revenues or $15,000 per year

• Due Date:  As incurred.

• This is in addition to the Brand Fund Contributions.

6.  Multi-Area Marketing and Cooperative Advertising:  varies

• Due Date:  As incurred.

7.  Renewal Fee:  $2,000

• Due Date:  Upon signing new Franchise Agreement.

8.  Relocation Fee:  $3,000

• Due Date:  Before relocation.

• College Nannies + Sitters + Tutors must approve relocation.

9.  Transfer Fee:  $10,000, plus the cost of training ($2,000)

• Due Date:  At the time of transfer.

• College Nannies + Sitters + Tutors must approve transfers.

• College Nannies + Sitters + Tutors may waive the cost of training if the transferee is an existing franchisee.

10.  Audit Fees:  cost of audit

• Due Date:  Upon demand after audit.

• Only payable if there is an understatement of revenues of 2% or more.

11.  Interest:  1 1/2% per month

• Due Date:  Upon demand.

• Not to exceed maximum amount permitted by law.

12.  Supplemental Training Fee:  $2,000 per training session (1-day)

• Due Date:  At time of training.

13.  Manager Training Fee:  currently, $0 per person

• Due Date:  Upon demand.

14.  Shared Services Fee:  currently, between $2.50 to $15 per applicant

• Due Date:  Payable on the 5th business day of each month for the previous month, or upon demand.

• College Nannies + Sitters + Tutors currently offers optional services that it, its affiliate, or designee can provide or conduct on your behalf, such as recruiting applicants and conducting reference checks (“Shared Services”).

• The specific then-current fee for each available Shared Service is set forth in College Nannies + Sitters + Tutors’ Manual.

• College Nannies + Sitters + Tutors may modify its then-current Shared Services that it may offer franchisees, and the respective fee for such Shared Service, at any time upon notice to you.

15.  Late Fee:  $100

• Due Date:  Upon demand.

• Payable if you are more than 5 days late in the payment of any amount owed to College Nannies + Sitters + Tutors.