Description of Payment

Amount of payment or forumla to calculate payment (USD)

To whom the payment is made

When the payment is due

1

Franchise License Fee

$45,000 (Exclusive of Tax)

Master Franchisee

During and at completion of construction

2

Set up costs (including franchise license fee)

Variable: $100,000 to $290,000

Master Franchisee

During and at completion of construction

3

Continuing Franchise Fee

4% of weekly gross sales (Exclusive of Tax)

Master Franchisee

On the Monday of each week

4

Advertising Contribution

2% of weekly gross sales (Exclusive of Tax)

Franchisor

On the Monday of each week

5

Lease Occupancy Costs (rental, outgoings etc)

This varies from site to site and presently our experience is that these may vary between $20,000 and $160,000 per annum. Our Legal costs are $1,250 (Exclusive of Tax) with an Admin fee of 2% of base rent (Exclusive of Tax).

Franchisor 
(who then pays the landlord)

In accordance with the applicable lease of the business premises usually at the beginning of each month

6

Working Capital

This varies between $40,000 and $80,000.

The party from whom you purchased the Goods & Services.

In accordance with the parties normal trading terms.

7

Term of Franchise and Renewal Fee

Term of Franchise is 10 years and renewable and is $12,500

Franchisor

Upon Renewal of Franchise on Anniversary