Can the new fees imposed by 1-800-GOT-JUNK? increase during the term of the Franchise Agreement?

We may in the future require you to pay us and our affiliates for specific products and services that we provide or that we collect on behalf of third-party suppliers. These may be products and services that we currently require franchisees to purchase, or they may be newly required products or services pursuant to our reserved rights to modify the System. These required payments cannot be quantified as of the date of this disclosure document because they are currently unknown or unanticipated; but in any event will be applicable for products and services that we reasonably deem are necessary or beneficial for the operation of the System, are valuable and desired by franchisees or customers, or are made necessary by future developments such as changes in technology, partnerships with new vendors or suppliers, or changes in customer preferences. Once imposed, these fees may increase from time to time during the term of the Franchise Agreement generally in proportion to our cost increases to provide the product or service.

Specified dollar amounts are subject to an inflation adjustment annually in proportion to the change in the Consumer Price Index, U.S. Average, all items, maintained by the U.S. Department of Labor (or any replacement index selected by us).

Name of Fee Amount Due Date Remarks Payment Processor Application Fee We plan to collect an application fee for each transaction processed by our preferred payment processing vendor. The fee will be 0.12% on the amount of each transaction processed, which we may increase to a maximum of 0.9% during the term of the franchise agreement. At time of payment processing This applies to franchisees that have signed up for payment processing with our preferred vendor. We currently plan to contribute this fee to the Sales, Marketing and Technology Fund, but reserve the right to retain it in the future.

Name of Fee Amount Due Date Remarks Additional Training and Retraining Payment for additional training or retraining at our then-current training fee (currently up to $100 per person per day), plus our related out-of-pocket costs including all transportation and lodging expenses incurred by our personnel. Subject to increase; see Note 4. Within 30 business days of billing by Franchisor There is no separate charge for initial training of the Principal Operator and any other director, officer, or shareholder that we require. The costs of transportation, accommodations, meals and living expenses associated with additional training, for which you are responsible, are not disclosed since they will vary greatly depending upon the timing of the training and your location in relation to Vancouver, British Columbia, the site of training (or another location to be determined).

Source: Item 6 — Other Fees (FDD pages 11–17)