Detailed Information on Amada Senior Care’s Initial Franchise Fee, Royalty Fee + 19 Other Fees (Items 5 and 6, 2021 FDD)

1.  Initial Franchise Fee:  $55,000

• If you sign a Franchise Agreement and Amada grants you the right to operate an Amada Senior Care Business within an exclusive territory (“Designated Territory”), you must pay Amada an initial franchise fee (“Initial Franchise Fee”) of $55,000.

• The Designated Territory generally includes a population of approximately 40,000 to 50,000 people aged 65 or older.

• You must pay Amada the Initial Franchise Fee upon signing the Franchise Agreement. The Initial Franchise Fee is paid in a lump sum and is fully earned upon receipt by Amada and is nonrefundable under any circumstances.

• The Initial Franchise Fee is imposed uniformly on all franchisees with 2 exceptions: Amada reserves the right to offer additional location discounts and the right to offer a 10% discount to veterans of the United States Armed Forces. The veteran discount is only available for franchisees when they enter into their first Franchise Agreement with Amada.

2.  Royalty Fee for Senior Care, Skilled Care, and Staffing Services Accounts:  the greater of the Minimum Royalty Fee or 5% of monthly Gross Billings for Senior Care, Skilled Care, and Staffing Services Accounts

• Due Date:  Deducted from your bank account via electronic funds transfer on the 7th day of each month or as determined by Amada.

• No Minimum Royalty Fee for the first 2 months.

• Amada has the right to terminate the Franchise Agreement if you fail to pay the Minimum Royalty Fee.

• Amada reserves the right to collect the Royalty Fee more frequently than monthly upon 30 days’ prior written notice to you.

3.  Royalty Fee for National Accounts:  6% of monthly Gross Billings generated from National Accounts

• Due Date:  Deducted from your bank account via electronic funds transfer on the 7th day of each month or as determined by Amada.

4.  Senior Placement Fee:  10% of commission received for senior placement or 15% of commission received for senior placement for National Accounts

• Due Date:  Payable at the same time, in the same manner as, and in addition to, the Royalty Fee.

• There are no minimum sales requirements for Senior Placement Services.

5.  Encroachment Fee:  the greater of $2,500 for each client serviced, or the net profit realized from the clients serviced

• Due Date:  Upon demand.

• Payable if you provide Senior Care services to clients in another franchisee’s Designated Territory without permission.

6.  Investigative Fee:  currently, $150 per hour, plus reasonable attorneys’ fees and costs, if applicable

• Due Date:  Upon demand.

• Payable to Amada for its costs in investigating whether you have been servicing clients in another franchisee’s Designated Territory without permission.

7.  Advertising Fund:  1% of Gross Billings for the previous month; 0.25% of Gross Billings for Skilled Care services for the previous month

• Due Date:  Payable at the same time, in the same manner as, and in addition to, the Royalty Fee.

• Amada reserves the right to increase the Advertising Fund contribution applicable to Gross Billings from Skilled Care services up to 1% upon 30 days’ notice.

8.  Software Bundle Fee:  $295 to $2,700 per month

• Due Date:  Payable at the same time, in the same manner as, and in addition to, the Royalty Fee.

9.  Email Fee:  $10 per month per email account; the cost of your first and second email account is included in the Software Bundle Fee

• Due Date:  Payable at the same time, in the same manner as, and in addition to the Royalty Fee.

• Inbox size for each email account is approximately 25 gigabytes.

• You’ll only provide Amada email addresses to your operations and sales staff and not to your caregivers.

10.  Additional Initial Training:  $100 per day per person, plus all travel, lodging, meal, and payroll expenses

• Due Date:  Upon receipt of invoice.

• Amada provides the initial training program tuition-free for up to 3 people including you.

11.  Continuing Education:  $1,500 for a private 3-day session but no charge if you attend a non-private, previously scheduled training session. In either scenario, you must pay for you and your employees’ travel, meals, lodging, and payroll expenses.

• Due Date:  Upon receipt of invoice and/or third-party vendor terms.

12.  Additional On-Site Training:  $500 per day per trainer, plus room, board, and travel for each trainer

• Due Date:  Upon receipt of invoice.

• Provided on an as-needed basis as determined by Amada.

13.  Annual Conference:  you are solely responsible for all travel, room, board, and payroll expenses. Amada may charge a fee to cover speakers, meals, and activities up to $2,000 per person (charged regardless if you attend or not).

• Due Date:  Upon receipt of invoice.

14.  Transfer Fee:  for a transfer to a new franchisee where Amada provides the Lead, 100% of Amada’s then-current Initial Franchise Fee; for a transfer to a new franchisee where Amada did not provide the Lead, 50% of Amada’s then-current Initial Franchise Fee; for a transfer to an existing franchisee, 25% of Amada’s then-current Initial Franchise Fee. Such fees are in addition to any fees paid directly to a broker who finds the transferee. $2,500 for approvals of transfers of non-controlling ownership interests of the Amada Senior Care Business.

• Due Date:  After Amada’s approval of the transferee and before the transfer occurs.

• This fee does not apply to a transfer to your survivor or the transfer of the Amada Senior Care Business by you as an individual or partnership to a corporation or partnership controlled by you.

15.  Successor Fee:  10% of the then-current Initial Franchise Fee at the time of the renewal

• Due Date:  Upon signing the Successor Franchise Agreement.

• Payable to Amada if you meet the conditions for a Successor Term and sign the Successor Franchise Agreement.

16.  Insurance Service Charge:  the costs Amada incurred to secure such insurance for you, but not to exceed 18% of the policy premium

• Due Date:  Within 5 days of the date Amada delivers an invoice detailing its costs and expenses for obtaining the required insurance on your behalf.

• If you fail to obtain the required insurance and keep the same in full force and effect, Amada may, but is not obligated to, purchase insurance on your behalf from an insurance carrier of Amada’s choice, and you must reimburse Amada for the full cost of such insurance, along with a service charge (not to exceed 18% of the policy premium).

17.  Indemnification:  all costs, including attorneys’ fees

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

• You must defend suits at your own cost and hold Amada harmless against suits involving damages resulting from your operation of your Amada Senior Care Business.

18.  Cost of Enforcement or Defense:  all costs, including reasonable accounting and legal fees

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

• You must reimburse Amada for all costs it incurs in enforcing its obligations under the Franchise Agreement if it prevails.

19.  Audit:  cost of audit plus maximum allowable by law or, if no limit, 2% per month on underpayment of any amount due to Amada or, if the audit shows that you have failed to submit timely reports and/or remittances for any 2 reporting periods within any 12-month period, you will pay the cost of audit plus maximum allowable by law or, if no limit, a penalty of 25% of misreported amounts

• Due Date:  When discrepancy is discovered.

• Payable only if Amada’s audit shows an understatement of at least 2% of Gross Billings or that you have failed to submit timely reports and/or remittances for any 2 reporting periods within any 12-month period.

20.  Late Fees:  maximum allowable by law or, if no limit, then 2% per month

• Due Date:  Accrues immediately after due date if you fail to pay your full obligation.

• Applies to Royalty Fee and Advertising Fund payments and any other amounts due to Amada.

21.  Guarantee:  varies

• Due Date:  Upon breach of the Franchise Agreement.

• You must personally guarantee and comply with all terms of the Franchise Agreement including payment of all obligations of Franchisee under the Franchise Agreement.