Detailed Information on The Camp Transformation Center’s Initial Franchise Fee, Royalty Fee + 16 Other Fees (Items 5 and 6, 2021 FDD)

1.  Initial Franchise Fee:  $30,000 to $40,000

• The initial franchise fee for a new Center is $40,000. The initial franchise fee is uniform for all franchisees receiving this offering, except that the franchisor provides a discounted initial franchise fee of $30,000 to honorably discharged U.S. military veterans for their first location.

• You must pay the initial franchise fee in full when you sign the Franchise Agreement. The initial franchise fee is non-refundable, even if you never obtain approval of a site or open the Center.

2.  Initial Inventory:  $3,000 to $6,000

• Before you open the Center, you must purchase from MyoFX an initial order of proprietary supplements, apparel, accessories, and items bearing the company’s trademarks. The estimated cost ranges from $3,000 to $6,000 and depends on the size of your Center.

• The cost for the initial order is not refundable.

• All fees payable to the franchisor are intended to be “net” amounts and you will pay or reimburse it for any sales, services, use, or similar taxes which may be imposed upon any such fees.

3.  Development Fee:  full initial franchise fee for the first Required Center, plus $20,000 for each additional Required Center

• If the franchisor offers and you sign an Area Development Agreement, you must pay the franchisor the full initial franchise fee for the first Required Center plus $20,000 for each additional Required Center (as specified in the development schedule).

• These payments are non-refundable even if you do not open any Centers.

• As you develop and open each Required Center, you will pay the franchisor the balance of the initial franchise fee due. Assuming the initial franchise fee is still $40,000 when you open each Required Center, the balance due will be $0 for the first Required Center and $20,000 for each additional Required Center at the time you open.

• The initial franchise fee and other fees for any additional Centers after the Required Centers will be those fees required by the franchisor’s then-current form of Franchise Agreement, which may differ from the form of Franchise Agreement contained in the current disclosure document.

• There are no refunds of these payments.

4.  Franchise Royalty Fee:  6% of Gross Sales

• Due Date:  Weekly.

5.  Local Marketing Commitment:  up to 2% of Gross Sales or up to $4,000 per month

• Due Date:  As incurred.

• The franchisor can require you to pay or spend a designated percentage of Gross Sales, up to 2% per month, or a designated amount, up to $6,000 per month, for marketing of your Center in its trade area (“Local Marketing”). This is in addition to the fees for electronic marketing described below.

• If an advertising cooperative is established in your area, you must join it, and contributions to it will be applied toward your Local Marketing obligation.

6.  Electronic Marketing:  will vary; currently includes $686 per month payable to Social Inbound Marketing; $200 per month payable to TBE Social Media Solutions

• Due Date:  Monthly.

• In connection with local advertising and promotion, you must use Social Inbound Marketing, LLC (“SIM”) for certain services related to electronic marketing, promotional campaigns, ad placement, web support, and web hosting, and you must use the GymSales text system. SIM’s current fee for these services is $686 per Center per month.

• Additionally, you must use TBE Social Media Solutions to provide Facebook page management services. TBE’s current fee for these services is $200 per Center per month. TBE is not affiliated with the franchisor.

• These fees are in addition to your Local Marketing obligation.

7.  System Marketing Fund:  none currently; up to 2.5% of Gross Sales, when Fund begins to operate

• Due Date:  Weekly.

• The Marketing Fund is not yet established. These payments will not be required until the franchisor determines that establishing the Marketing Fund is appropriate for the System. The franchisor will also set the initial contribution rate at that time, which may be less than the maximum rate.

• The franchisor will make contributions at the same rate for its Company Center(s).

8.  Supplier Approval Fee:  reasonable amount for the franchisor’s costs and efforts (currently $1,000)

• Due Date:  Upon request for approval.

• The franchisor may impose reasonable inspection and supervision fees to cover its costs in evaluating and maintaining alternative brands or suppliers you propose. The franchisor’s current estimated cost is $1,000 although costs could exceed this amount depending on the product.

9.  License Fees for Customer Relationship Management Systems:  $129 per month for Mindbody and $175 per month for GymSales

• Due Date:  Monthly.

• You are required to use the Mindbody, Inc. customer relationship management (CRM) system for member management and billing and the GymSales system for sales and lead management. The franchisor is not affiliated with the vendors of these systems. You must use these systems to complete all sales transactions and provide sales, accounting, and inventory reports.

• The current monthly license fees are $129 for Mindbody and $175 for GymSales. These amounts may increase and the franchisor may change systems and vendors in the future.

10.  Support Fee for Online Training and Intranet:  $500

• Due Date:  Annually.

• The franchisor may require that you and your personnel complete ongoing Brand Training on a schedule it determines.

• The franchisor currently charges an annual fee of $500 per Center to support updating of its online training and intranet portal. The franchisor may change the fee or switch to a monthly fee for access to the online training.

11.  On-Site Consultation and Additional Training:  the franchisor’s then-current per diem fee (currently $500 per day), plus its expenses

• Due Date:  Upon invoice.

• The franchisor may require you to pay a reasonable fee for in-person training if you are not able to attend training in California. Currently, the franchisor’s on-site training fee is $500 per day.

• For all training, whether mandatory or optional, you must pay for all travel, lodging, and food costs for your personnel (and for the franchisor’s trainer, if on-site at your location).

12.  Late Payment Fees:  $250, plus interest on late amounts at 18% or highest legal rate

• Due Date:  Upon invoice.

• The current maximum legal interest rate in California is 10% per annum.

13.  Attorney Fees:  reasonable amount, as determined by the court

• Due Date:  Upon conclusion of proceeding.

• Payable if the franchisor prevails in a legal proceeding against you.

• Such fees will vary based on circumstances and may include reimbursement for legal or accounting fees that occur as a result of any breach of the Franchise Agreement.

14.  Transfer Fee:  $10,000

• Due Date:  Before actual transfer.

15.  Renewal Fee:  25% of then-current Initial Fee

• Due Date:  Prior to renewal.

16.  Audit:  reasonable accounting and legal fees

• Due Date:  Upon invoice.

• In addition to any additional fees found due as a result of an audit of your financial records, you must pay the franchisor its audit cost if you have understated Gross Sales by more than 2% of the actual Gross Sales found by the audit.

• The cost of an audit varies widely depending on how well the books and records are kept, but the franchisor estimates the cost of an audit to be between $1,000 and $5,000.

17.  Insurance Premiums:  what you have failed to pay the insurer

• Due Date:  Immediately upon invoice.

• Payable to reimburse the franchisor for having to pay your obligation.

18.  Indemnification:  amount of claim and costs incurred

• Due Date:  Upon demand.

• You must indemnify the franchisor for claims relating to your operation of the Center.