Detailed Information on FASTSIGNS’ Initial Franchise Fee, Royalty Fee + 20 Other Fees (Items 5 and 6, 2021 FDD)

1.  Initial Franchise Fee:  $24,875 to $49,750

• You will pay FASTSIGNS an initial franchise fee of $49,750 for the right to establish a single FASTSIGNS Center under a Franchise Agreement.

• The initial franchise fee, if you establish an additional FASTSIGNS Center, is $24,875.

• The initial franchise fee, if you are a Conversion Franchise, is $49,750.

• The initial franchise fee, if you establish a Co-Brand Center, is $49,750.

• FASTSIGNS is a member of the International Franchise Association (“IFA”) and participates in the IFA’s VetFran Program. FASTSIGNS offers a reduced initial franchise fee of $24,875 to veterans of the U.S. Armed Forces who meet the requirements of the VetFran Program, a 50% discount.

• FASTSIGNS offers a reduced initial franchise fee of $24,875 to first responders, a 50% discount. A first responder is a person with specialized training who is among the first to arrive and provide assistance at the scene of an emergency, such as an accident, natural disaster, or other catastrophic event. First responders include paramedics, emergency medical technicians, police officers, sheriffs, and firefighters (“First Responder”).

2.  Development Fee:  $18,500 per FASTSIGNS Center to be developed under the Development Agreement (excluding the first FASTSIGNS Center, for which the standard initial franchise fee must be paid)

• If you enter into a Development Agreement for the right to develop more than 1 FASTSIGNS Center, you will pay a development fee of $18,500 per FASTSIGNS Center to be developed under the Development Agreement (excluding the first FASTSIGNS Center, for which the standard initial franchise fee must be paid) when you sign the Development Agreement.

• The development fee is credited against the initial franchise fee due for each additional FASTSIGNS Center. You must pay an initial franchise fee of $24,875 (less the credit of $18,500) for each additional FASTSIGNS Center to be developed under the Development Agreement.

3.  Deposit for Supplies and Miscellaneous Items:  up to $22,500

• Before you open your FASTSIGNS Center, FASTSIGNS may request that you pay a deposit to it toward supplies and miscellaneous items estimated to be up to $22,500.

4.  Initial Training Fee:  $0

• FASTSIGNS does not charge a training fee to provide initial training prior to opening your Center (for up to 3 persons) for your graphic designer, visual communications specialist (or other designated personnel), or the Managing Principal that holds or may control not less than a 25% interest in the Franchisee.

• At your request, FASTSIGNS will provide initial training to your additional personnel.

5.  Site Evaluation Fee:  varies

• At its discretion, FASTSIGNS will select a local broker to assist you in locating a suitable site for your Center. The support it provides includes identifying local real estate brokers, conducting a market wide survey, and providing guidance in negotiating the terms for your lease.

• In the event that a representative will make a trip to the proposed site, FASTSIGNS will pay all costs its representative incurs for one on-site evaluation; you may pay all costs (including costs of travel, lodging, meals, and wages) incurred for any additional on-site evaluations FASTSIGNS determines necessary or you request.

• Site visits will be as needed and determined by FASTSIGNS.

• Site selection costs are non-refundable, and uniformly imposed on all franchisees requiring such assistance (however, the costs may vary from franchisee to franchisee based on the travel involved).

6.  Service Fee:  3% of Gross Sales the first year. 6% of Gross Sales beginning the second year through the end of the term of the Franchise Agreement. If you are a new Center, Conversion Center, or Co-Brand Center, you will pay the greater of $1,250 or 6% of Gross Sales beginning the 13th month through the end of the term of the Franchise Agreement or the Co-Brand Franchise Agreement.

• Due Date:  Monthly on the 15th.

• You may receive an annual rebate on the Service Fee dependent upon achieving certain sales levels.

• The reduction in the Service Fee for the first year is not applicable for the resale of an existing FASTSIGNS Center.

7.  Ad Fee:  1% of Gross Sales the first year. 2% of Gross Sales beginning the second year through the end of the term of the Franchise Agreement.

• Due Date:  Monthly on the 15th.

• All franchisees are members of the FASTSIGNS National Advertising Council, Inc. which administers the Ad Fund.

• You may receive an annual rebate on the Ad Fee dependent upon achieving certain sales levels.

• The reduction in the Ad Fee for the first year is not applicable for the resale of an existing FASTSIGNS Center.

8.  Initial Advertising and Promotional Materials:  $12,500 (new FASTSIGNS Center) and $8,500 (Conversion Franchise and Co-Brand Center)

• Due Date:  Prior to training.

• These monies fund initial marketing and advertising including web marketing (Pay-Per-Click ads), direct marketing (mailings to your area and materials to use and mail locally), telemarketing campaigns, social media campaigns, virtual sales assistant customer prospecting email campaigns, and other programs during the first several months your Center is open.

9.  Initial Advertising and Promotional Materials for a Sale of an Existing FASTSIGNS Center to a Third Party Buyer:  $8,500

• Due Date:  Upon signing of the Franchise Agreement.

• These monies fund initial marketing and advertising including web marketing (Pay-Per-Click ads), direct marketing (mailings to your area and materials to use and mail locally), telemarketing campaigns, virtual sales assistant customer prospecting email campaigns, social media campaigns, and other programs during the first several months upon taking possession of the Center.

10.  Interest:  lesser of 18% per annum or the highest rate allowed by applicable law

• Due Date:  On demand.

• Interest may be charged on all overdue amounts.

11.  Non-Compliance Fee:  2.5% of Gross Sales

• Due Date:  On demand, following your failure to cure a default.

• If you are in default of your Franchise Agreement and you fail to timely cure the default, FASTSIGNS may, at its option, charge a noncompliance fee in the amount of 2% of Gross Sales payable to it in the same manner as the Service Fee, and a non-compliance fee in the amount of 0.5% of Gross Sales payable to the FASTSIGNS National Advertising Council, Inc. payable in the same manner as the Ad Fund contribution.

• The Non-Compliance Fee will continue until the default is cured.

12.  Transfer Fee:  $17,500

• Due Date:  Submitted with transfer agreement.

• You may transfer your interest in the Franchise Agreement for a fee.

13.  Resale Consulting Fee:  $3,000 to $7,500

• Due Date:  50% on signing Resale Services Consulting Agreement and 50% paid at closing.

• You may request that FASTSIGNS assist you in selling your Center.

14.  Renewal Fee:  15% of the then-current initial franchise fee

• Due Date:  On signing the renewal Franchise Agreement.

• You must give FASTSIGNS at least 8 months’ notice; remodel décor as appropriate and upgrade equipment to current standards; and sign then-current Franchise Agreement.

15.  Indemnification:  varies according to loss

• Due Date:  On demand.

• You must indemnify FASTSIGNS when certain of your actions result in loss to it under the Agreements.

16.  Attorneys’ Fees and Costs, and Collection Agency Costs:  amount varies

• Due Date:  When billed.

• If FASTSIGNS incurs legal expenses or collection agency fees because of your breach of the Agreement, you must pay those expenses.

17.  Post-Termination and Expiration Expenses:  amount varies

• Due Date:  When billed.

• If you fail to make the necessary changes to distinguish the appearance of your Center premises from that of other FASTSIGNS Centers after the Franchise Agreement terminates or expires, FASTSIGNS may cause those changes to be made and charge you those expenses.

18.  Audit Fee:  cost of audit

• Due Date:  When billed.

• If you have understated any amount you owe to FASTSIGNS by more than 2%, you must pay the cost of the audit.

19.  Technology Fee:  you will pay a Technology Fee (“Tech Fee”) of $50 per month through the end of your first year of operation. Beginning your second year of operation, you will pay a Tech Fee of $100 per month.

• Due Date:  Monthly on the 15th of the month.

• FASTSIGNS reserves the right to increase the Tech Fee. Any increase will not exceed $200 per month. FASTSIGNS will provide you with 180 days’ prior notice before increasing the Tech Fee.

20.  Google Workspace Accounts:  $25 to $110 per each additional account

• Due Date:  Annually.

• FASTSIGNS provides you with 2 Google Workspace accounts at no charge: one principal Google Workspace account and one for your FASTSIGNS center. You will pay a yearly charge of $50 for each Google Workspace account after the 2 free Google Workspace accounts.

• You will pay a discounted yearly charge of $25 per Google Workspace account for each full-time Outside Sales Professional who you hire that is registered in, reporting sales, complying with FASTSIGNS’ Outside Sales Program, and generating $200,000 in annual sales after their first 12 months of employment.

• Upgrading a Google Workspace account to unlimited data storage is an additional $60 per year.

21.  Franchise Convention:  amount varies

• Due Date:  As incurred.

• You, your Managing Principal, or your Key Management Employee must attend the franchise convention for all FASTSIGNS franchisees a minimum of once every 3 years.

• You are responsible for the registration fee and any and all expenses for you, your Managing Principal, or your Key Management Employee.

22.  Early Termination Damages:  amount varies

• Due Date:  30 days after early termination of Franchise Agreement.