Detailed Information on Made in the Shade Blinds & More’s Initial Franchise Fee, Royalty Fee + 17 Other Fees (Items 5 and 6, 2022 FDD)

1.  Initial Franchise Fee:  $59,000

• When you sign the Franchise Agreement, you must pay Made in the Shade an initial franchise fee of $59,000. The initial franchise fee is not refundable and is imposed uniformly on all franchisees.

2.  Renewal Fee:  $2,500

• Due Date:  With the written notice to renew.

• This fee is for reimbursement of Made in the Shade’s legal and other administrative costs associated with renewal of your Franchise Agreement.

• You must give Made in the Shade at least 6 months’ and not more than 9 months’ notice to renew and meet other renewal conditions.

3.  Website Fee:  $99 to $249/month

• Due Date:  The 1st day of every month.

• This fee, payable to Made in the Shade’s designated web host provider, is for the monthly premium web hosting, support, service, and daily backup for your webpage that lists and promotes your franchise.

• Subject to increase or decrease.

4.  Fee for Non-Designated Supplier Products:  5% of the price of the Manufacturer Product Purchases paid by you to non-designated suppliers that Made in the Shade approves

• Due Date:  On or before the 5th day of each calendar quarter for the immediately preceding calendar quarter.

• If Made in the Shade approves your purchase of Products from non-designated suppliers that it approves, it will require you to pay this fee to it.

5.  Interest:  the lesser of 10% per year or the maximum lawful rate

• Due Date:  Immediately after the designated due date has passed.

• Made in the Shade may charge interest on all overdue amounts.

6.  Software Fee:  up to $199 per month

• Due Date:  As incurred

• You agree to pay this fee for software that Made in the Shade arranges or provides.

7.  Advertising and Promotion Fee:  up to Made in the Shade’s actual cost, plus 20% to cover its administrative costs

• Due Date:  As incurred.

• Currently, there is none. However, Made in the Shade reserves the right to provide you with certain advertising and promotional materials for marketing and advertising and charge you a fee.

8.  Annual Conference Fee:  up to $250 per person

• Due Date:  As incurred.

• Made in the Shade may, in its sole discretion, hold an Annual Conference and require you to attend it.

• You will be responsible for the then-current registration fee plus all expenses, including your and your employees’ transportation to and from the Annual Conference, lodging, meals, and salaries during the Annual Conference.

9.  Inspection and Testing:  cost of inspection, if applicable, and cost of test

• Due Date:  When billed.

• You shall not purchase or lease from any supplier until Made in the Shade approves in writing.

• A charge, not to exceed the cost of the inspection and of the test (including Made in the Shade’s administrative costs attributable to both), shall be paid by you or the supplier.

• Nothing requires Made in the Shade to approve any particular supplier.

10.  Additional Inventory of Sample Products from Designated Suppliers:  $100 to $200 per month or as needed

• Due Date:  On demand.

• You will be provided an initial inventory of sample Products from designated suppliers as part of your initial franchise fee; thereafter, you will be required to maintain an adequate inventory of sample Products for use with prospective customers.

11.  Computer System Fee:  up to Made in the Shade’s actual cost, plus 20% to cover its administrative costs

• Due Date:  As incurred.

• Made in the Shade has the right to charge this fee for any software or systems modifications and enhancements specifically made for Made in the Shade that are licensed to the franchisee and other maintenance and support services that Made in the Shade or its affiliate may furnish to the franchisee.

12.  Initial Training:  initial training: $750 per additional attendee; successor or replacement personnel or additional training: a reasonable fee for training successor or replacement personnel and for any additional training; transferee: $750 per person to attend training

• Due Date:  On demand.

• The fee for initial training for up to two attendees is included in the initial franchise fee. Any additional trainees will incur a fee of $750 per additional attendee.

• Moreover, Made in the Shade reserves the right to charge a reasonable fee for training successor or replacement personnel and for any additional training programs.

• A transferee must pay $750 per person to attend initial training.

• You are also responsible for any and all expenses incurred in connection with any initial or additional training, including, without limitation, the costs of travel, lodging, meals, and wages incurred by the franchisee.

13.  On-site Remedial Training:  the then-current per diem fee for remedial training, plus costs. Made in the Shade’s current per diem rate is $250.

• Due Date:  As incurred.

• If you ask or if Made in the Shade believes it is appropriate, Made in the Shade will (subject to availability) provide trained representatives to conduct on-site remedial training in your Territory or at your Office.

14.  Local Marketing:  Made in the Shade recommends 2% of gross sales

• Due Date:  On demand.

• Made in the Shade recommends but does not require that you spend a minimum of 2% of gross sales of your Made in the Shade Business on local marketing.

15.  Insurance Fee:  insurance premium, plus Made in the Shade’s administrative costs

• Due Date:  As incurred.

• If you fail to procure or maintain any insurance required by the Franchise Agreement, Made in the Shade has the right (without, however, any obligation to do so), immediately to procure such insurance and to charge the insurance premium to you plus its associated administrative costs.

16.  Transfer Fee:  $7,500

• Due Date:  With transfer application.

• You agree to pay this fee to transfer the Franchised Business.

17.  Indemnification:  varies according to loss

• Due Date:  As incurred.

• You must indemnify Made in the Shade when certain of your actions result in loss to it.

18.  Enforcement Costs:  will vary

• Due Date:  As incurred.

• You must pay Made in the Shade’s costs of enforcement (including attorney’s fees and costs) if you do not comply with the Franchise Agreement, or if Made in the Shade is the substantially prevailing party in litigation with you.

19.  Reasonable Expenses in the Event of Death or Incapacity:  reasonable expenses actually incurred

• Due Date:  As incurred.

• In the event of your death or incapacity, Made in the Shade is entitled to reimbursement from you or your estate for any reasonable expenses incurred for continuing Services from the date of your death or incapacity until transfer or termination.