Detailed Information on Burn Boot Camp’s Initial Franchise Fee, Royalty Fee + 23 Other Fees (Items 5 and 6, 2021 FDD)

1.  Initial Franchise Fee:  $50,000

• The initial franchise fee for a single franchise (“Initial Franchise Fee”) is $50,000.

• The Initial Franchise Fee is nonrefundable and payable in lump sum. Except for the military discount and area developer discount discussed further below, the Initial Franchise Fee is uniformly imposed for all franchisees currently buying a franchise.

• Burn Boot Camp participates in the International Franchise Association’s VetFran Program. If one of your owners with at least a 50% interest in the Business is a veteran honorably discharged from the U.S. Armed Forces or on active duty in the U.S. Armed Forces at the time the Franchise Agreement is executed, Burn Boot Camp will reduce the Initial Franchise Fee by 15%.

2.  Initial Inventory Package:  $4,460 to $7,488

• Prior to opening, you must purchase from Burn Boot Camp’s affiliate, Burn Retail, an initial supply of branded apparel, nutritional supplements, and various accessories (the “Initial Inventory Package”).

• The Initial Inventory Package includes a minimum of $1,700 in apparel and accessories (including $200 for employee uniforms) and a minimum of $2,760 in nutritional supplements.

• The total package price is estimated to range from $4,460 to $7,488 depending on the size of your facility and the number of trainers you hire. The purchase price for the Initial Inventory Package is nonrefundable and uniformly imposed.

3.  Pre-Opening Marketing Services:  $2,400 to $6,000

• You have the option, but not the obligation, to contract with Burn Boot Camp’s affiliate, Burn Media, for purposes of conducting local marketing and advertising on your behalf.

• If you choose to contract with Burn Media for your pre-opening marketing, Burn Boot Camp estimates the total cost will range from $2,400 to $6,000. The price for these marketing services is nonrefundable and uniformly imposed.

4.  Pre-Opening Technology Fees:  $1,100 to $2,200

• You must begin to pay Burn Boot Camp a technology fee immediately after signing the Franchise Agreement. In exchange for the technology fee, Burn Boot Camp provides you with access to various software, technology, and related services.

• Burn Boot Camp’s current technology fee covers the costs associated with hosting your website and email accounts, and includes the licensing fees associated with your music subscription service and various software programs that you license through Burn Boot Camp.

• As of the issuance date of the current Disclosure Document, the amount of the technology fee is: (i) $100 per month for the month in which you sign the Franchise Agreement through the month in which you sign your lease or purchase contract for your Facility; and (ii) $450 per month for each subsequent month.

• Most franchisees require 2 to 4 months to sign their lease or purchase contract and an additional 2 to 4 months to open, which results in pre-opening technology fees ranging from $1,100 to $2,200. The technology fees are uniformly imposed and nonrefundable.

5.  Development Fee:  $40,000 for the first Business that you agree to open under your Area Development Agreement (ADA), plus $30,000 for each additional Business you agree to open under your ADA

• If you sign an ADA, you will commit to open either 2 Businesses (a “2-Pack”) or 3 Businesses (a “3-Pack). You must pay Burn Boot Camp a development fee (the “Development Fee”) calculated as the sum of the aggregate Initial Franchise Fees for all Businesses you commit to develop under the Development Schedule.

• The following table lists the applicable Initial Franchise Fees and total Development Fee under Burn Boot Camp’s area development program:

2 Pack

• Business #1:  $50,000
• Business #2:  $45,000
• Development Fee:  $95,000

3 Pack

• Business #1:  $50,000
• Business #2:  $40,000
• Business #3:  $30,000
• Development Fee:  $120,000

• You must pay Burn Boot Camp the entire Development Fee at the time you sign the ADA. Burn Boot Camp will not charge an additional fee when you sign a Franchise Agreement for each Business developed under the ADA. The Development Fee is uniformly imposed and nonrefundable.

6.  Royalty Fee:  6% of Gross Revenues per Report Period

• Due Date:  Due by the day Burn Boot Camp specifies during each Report Period for the immediately preceding Report Period.

7.  System Brand Fee:  2% of Gross Revenues per Report Period (may increase up to 3%)

• Due Date:  Same as Royalty Fee.

8.  Graphic Design Fee:  up to $200 per hour (currently, $125 per hour)

• Due Date:  As incurred.

9.  Additional Training:  lesser of $150 per hour or $300 per day per trainer, plus trainer’s expenses

• Due Date:  At time training is scheduled and/or additional assistance is requested by you.

• While the Initial Franchise Fee includes the cost of Burn Boot Camp’s initial training program, the Initial Franchise Fee only covers training for up to 3 individuals, must occur prior to opening, and is non-transferable to other locations or to other franchisees.

• Burn Boot Camp may charge you the additional training fee for any supplemental on-site training that Burn Boot Camp deems necessary and any other post-opening training that Burn Boot Camp provides to you or your staff (or in case of a transfer, to the transferee).

10.  Regional Continuing Education:  you may be required to attend regional continuing education at a cost not to exceed $1,000 per person per session

• Due Date:  As incurred.

• The location for the Continuing Education will be at a location Burn Boot Camp designates, although it reserves the right to provide them over the Internet or phone.

11.  Conference Registration Fee:  up to $1,000 per person per conference (Burn Boot Camp currently only requires 1 person to attend)

• Due Date:  As incurred (once annually).

• In addition to the conference registration fee, you are responsible for all costs and expenses incurred by you and your staff in attending a conference.

• If you fail to attend a required conference, you must still pay Burn Boot Camp a $1,000 conference registration fee to assist in covering the costs Burn Boot Camp incurs to set up and host the conference.

12.  Technology Fee:  varies (currently, $450 per month)

• Due Date:  Monthly.

13.  Minimum Inventory and Other Purchase from Affiliate:  currently, a minimum inventory purchase of $500 per quarter in soft goods such as apparel (excluding nutrition items)

• Due Date:  Quarterly.

• Payable to Burn Retail, but subject to change.

• In addition to the minimum inventory purchase, you may also be required to purchase certain exercise equipment from Burn Retail after opening and you have the option, but not the obligation, to contract with Burn Media to provide local marketing services on your behalf.

14.  Product, Vendor, and Exercise Equipment Testing Fee:  $50 per product or vendor; $150 for equipment testing

• Due Date:  On demand.

• You must pay this fee if you request Burn Boot Camp’s approval for any product, vendor and/or supplier, or exercise equipment that you wish to use in the operation of your Business.

15.  Charges for “Mystery Shopper” and Other Quality Assurance Inspections:  will vary under circumstances

• Due Date:  As incurred.

• Burn Boot Camp may contract a third party to conduct “mystery shopper” and other quality assurance inspections. You must pay the cost of these tests/inspections, but you will not be obligated to pay for more than 2 third-party mystery shopper visits per calendar year.

16.  Temporary Management Fee:  $400 per day; subject to change

• Due Date:  On demand.

• Payable if Burn Boot Camp appoints a representative to manage your Business if you are in default or upon your death or disability.

17.  Renewal Fee:  lesser of $12,500 or 25% of then-current Initial Franchise Fee for new franchisees

• Due Date:  At the time of renewal.

18.  Transfer Fee:  $1,500 for a partial transfer of ownership with no change in control; 75% of then-current Initial Franchise Fee if there is a change in control or transfer to new franchisee; 50% of then-current Initial Franchise Fee if transferee is an existing fully-trained franchisee

• Due Date:  Prior to or at time of transfer.

• All transfers are subject to Burn Boot Camp’s right of first refusal.

• If the transferee was already in Burn Boot Camp’s lead database at the time of first contact between you and the transferee, Burn Boot Camp may require you to pay the amount of any broker fees that it is responsible for paying to third parties (which does not include Burn Boot Camp’s employees).

19.  Relocation Fee:  25% of then-current Initial Franchise Fee

• Due Date:  When Burn Boot Camp approves your request to relocate.

• Payable if Burn Boot Camp approves your request to relocate your Business.

20.  Interest and Late Charges:  1.5% per month or maximum rate allowed by law, plus $25; provided the interest rate cannot exceed the maximum legal rate

• Due Date:  After due date of fees.

21.  Non-Sufficient Funds Fee:  $100

• Due Date:  Immediately when assessed.

• If you write Burn Boot Camp a check that is returned, cancelled, or dishonored, or if Burn Boot Camp debits your bank account and your account has insufficient funds or is inaccessible, you must pay Burn Boot Camp a non-sufficient funds fee.

22.  Non-Compliance Fee:  up to $1,000 per notice of violation

• Due Date:  10 days after notice of violation.

• Burn Boot Camp may assess a non-compliance fee for violations of the Franchise Agreement and/or the Operations Manual.

• Burn Boot Camp reserves all other rights and remedies.

23.  Audit Expenses:  cost of audit fees, plus interest at 18% per annum (1.5% per month) up to the maximum interest allowed by law

• Due Date:  10 days after receipt of audit report.

• Payable only if you understate Gross Revenues by 2% or more. Burn Boot Camp expects the cost to be between $2,500 and $5,000, unless your financial records are not well kept.

24.  Costs and Attorney’s Fees:  will vary under circumstances

• Due Date:  As incurred.

• Payable if Burn Boot Camp engages an attorney to enforce the Franchise Agreement (whether or not formal judicial proceedings are initiated).

25.  Indemnification:  will vary under circumstances

• Due Date:  On demand.

• You must protect, defend, indemnify, and hold Burn Boot Camp harmless against any claims, lawsuits, or losses arising out of your operation of the Franchised Business.

• If you default under the Franchise Agreement and Burn Boot Camp engages an attorney for collection or enforcement, you must reimburse Burn Boot Camp for all damages, legal fees, and costs that it incurs.