Detailed Information on Tommy’s Express Car Wash’s Initial Franchise Fee, Royalty Fee + 24 Other Fees (Items 5 and 6, 2022 FDD)

1.  Initial Franchise Fee:  $50,000

• You must pay to Tommy’s Express an initial franchise fee of $50,000. The initial franchise fee is payable in a lump sum when you sign the Franchise Agreement. The initial franchise fee is imposed uniformly on franchisees and is not refundable under any circumstances.

• Tommy’s Express currently offers honorably discharged veterans of the U.S. Armed Forces a 20% reduction to the initial franchise fee for the first Franchised Business purchased.

2.  Multi-Unit Development Fee:  100% of the initial franchise fee for the first Business to be developed, plus a deposit of 50% of the reduced initial franchise fee for each additional Business to be developed under the Multi-Unit Development Agreement

• If you qualify to develop and operate multiple Tommy’s Express Car Wash Businesses, then you will pay to Tommy’s Express a development fee equal to 100% of the initial franchise fee for the first Business to be developed, plus 50% of the initial franchise fee for each additional Business you commit to develop under the Multi-Unit Development Agreement.

• The initial franchise fee for the first Business under the Multi-Unit Development Agreement is $50,000; for each additional Business after the first, the initial franchise fee is $40,000.

• The development fee is payable to Tommy’s Express when you sign the Multi-Unit Development Agreement, is imposed uniformly on all multi-unit developers, is fully earned by by Tommy’s Express when received, and is not refundable.

3.  Initial Purchases:  $2,915,121.19 to $3,259,014.64

• You must purchase from Tommy’s Express’ affiliate, VQ, Inc., the complete equipment package, Tommy’s Express’ design and specification package, including Tommy’s Express’ construction management services, your initial inventory of detergents, chemicals, solutions, uniforms, signage, certain items for retail sale, parts and equipment, and certain hardware and software as specified in the chart in Item 7.

• The total cost of these items ranges from $2,915,121.19 to $3,259,014.64 depending on the size of your Franchised Business, and is due and payable as follows: approximately $43,500 to $70,000 for architectural drawings when you secure an approved site for your Franchised Business, 15% of the total cost when your construction permits are issued, 50% of the total cost when building materials are delivered (approximately 12 weeks later), 34% of the total cost when equipment is delivered (approximately 10 weeks later), and the remaining balance prior to your opening.

• Amounts paid to Tommy’s Express’ affiliate are non-refundable.

4.  Royalty:  4% of Gross Sales

• Due Date:  Tuesday of each week (or the next business day if any Tuesday is not a business day).

• Royalty Fees are calculated based on Gross Sales for the previous week ending Saturday.

• Amounts due will be withdrawn by EFT from your designated bank account.

5.  Brand Development Fee:  1% of Gross Sales

• Due Date:  Payable with the Royalty Fee.

6.  Local Marketing:  2% of Gross Sales

• Due Date:  Tommy’s Express recommends you spend at least this amount each month.

• You will spend this money directly with your local marketing vendors. All marketing materials must be approved by Tommy’s Express before you use them.

7.  Technology Fee:  $90 to $150 per week

• Due Date:  Payable with Royalty.

• Payable to Tommy’s Express, its affiliate, or a designated third party.

8.  Transfer Fee (Franchise Agreement):  50% of the then-current initial franchise fee if the transfer is to a new franchisee for the System; 25% of the then-current initial franchise fee if the transfer is to an existing franchisee

• Due Date:  Upon transfer.

• No fee is imposed for a one-time transfer to a corporate entity formed by you for the convenience of ownership. The transfer fee is calculated based on the then-current initial franchise fee charged for a new franchise.

9.  Transfer Fee (Multi-Unit Development Agreement):  $20,000

• Due Date:  Upon transfer.

• Tommy’s Express has the right to require you to transfer all of your Tommy’s Businesses to the same transferee.

10.  Renewal Fee:  $2,500

• Due Date:  Upon renewal of the Franchise Agreement.

11.  Initial Training (for New or Replacement Employees):  Tommy’s Express’ then-current per diem training fee, plus expenses; current training fee is $200 per day

• Due Date:  Before training

• Training for the first three people is included in the initial franchise fee. If you request that Tommy’s Express provide its initial training program to any additional employees, or to new or replacement employees during the term of your Franchise Agreement, you must pay Tommy’s Express’ training fee as well as the trainees’ expenses, including travel, lodging, meals, and wages.

12.  Additional On-Site Training:  Tommy’s Express’ then-current per diem rate per trainer, plus expenses; current per diem rate is $500

• Due Date:  When billed.

• If you request that Tommy’s Express provide additional training at your Franchised Business, or if Tommy’s Express believes you need additional training, you must pay Tommy’s Express’ daily fee for each trainer it sends to your Franchised Business, and you must reimburse each trainer’s expenses, including travel, lodging, and meals.

13.  Insufficient Funds Fee:  $100

• Due Date:  If incurred.

• If any EFT transaction or other payment to Tommy’s Express or its affiliate is denied by your bank.

• If you incur three insufficient funds fees in any 12-month period, Tommy’s Express may terminate your Franchise Agreement.

14.  Interest on Late Payments:  1.5% per month or the highest rate allowed by applicable law, whichever is less

• Due Date:  On demand.

• Payable on all overdue amounts.

• Interest accrues from the original due date until payment is received in full.

15.  Audit:  cost of audit

• Due Date:  When billed.

• Payable only if Tommy’s Express finds, after an audit, that you have understated any amount you owe to Tommy’s Express or Gross Sales by 2% or more. You must also pay the understated amount plus interest.

16.  Costs and Attorneys’ Fees:  will vary under circumstances

• Due Date:  As incurred.

• If you default under your agreement, you must reimburse Tommy’s Express for the expenses it incurs (such as attorneys’ fees) in enforcing or terminating your agreement.

17.  Indemnification:  will vary under circumstances

• Due Date:  As incurred.

• You must reimburse Tommy’s Express for the costs it incurs if it is sued or held liable for claims that arise from your operation of the Franchised Business or for costs associated with defending claims that you used the Proprietary Marks in an unauthorized manner.

18.  Transfer Damages:  will vary under circumstances

• Due Date:  15 days after termination.

19.  Evaluation of New Products or Suppliers:  reimbursement of Tommy’s Express’ costs, but not more than $5,000 per request

• Due Date:  On demand.

• If you request that Tommy’s Express evaluate new products or suppliers for the System.

20.  Management Fee:  20% of Gross Sales, plus expenses

• Due Date:  If incurred.

• Tommy’s Express has the right to step in and operate your Franchised Business in certain circumstances. If Tommy’s Express does this, you must pay its then-current management fee and reimburse its related expenses, including travel, lodging, and meals for its representative(s).

21.  Insurance:  reimbursement of Tommy’s Express’ costs, plus a 10% administrative fee

• Due Date:  On demand.

• If you do not purchase the required insurance coverages, Tommy’s Express may, but is not required to, purchase insurance coverage on your behalf.

22.  Prohibited Product or Service Fine:  $250 per day of use of unauthorized products or services

• Due Date:  On demand, if incurred.

• In addition to other remedies available to Tommy’s Express.

• This may not be enforceable under California law.

23.  Repairs and Maintenance; Equipment Replacement, Remodeling/Redecorating:  will vary under circumstances

• Due Date:  As incurred.

• Payable to Tommy’s Express, its affiliates, and approved suppliers.

• You must regularly clean and maintain your Tommy’s Business and replace its equipment as needed to operate in accordance with Tommy’s Express’ requirements.

• Tommy’s Express may require you to remodel or redecorate your Business to meet Tommy’s Express’ then-current image for all Tommy’s Businesses. Tommy’s Express will not require you to remodel or redecorate your Business more frequently than every five years.

24.  Proprietary Software:  if Tommy’s Express establishes additional proprietary software for the System, you may have to pay an initial license fee anticipated to be up to $2,500 and annual license fees anticipated to be up to $1,800 per year

• Due Date:  When billed annually.

• Tommy’s Express reserves the right to develop additional proprietary software including mobile apps, for all Tommy’s Franchised Businesses to use, or Tommy’s Express may have additional proprietary software developed for it.

25.  Point-of-Sale Software Licensing and Support:  varies; then-current charges

• You will be required to sign a license agreement with Tommy’s Express’ point-of-sale provider and pay support fees directly to the point-of-sale provider or to Tommy’s Express if it is providing point-of-sale support.

26.  Mystery Shopper Fee:  then-current charges

• You shall participate in any independent evaluation service designated by Tommy’s Express to conduct a “mystery shopper” quality control and evaluation program with respect to Tommy’s Express or affiliate-owned and/or franchised Tommy’s Businesses.