If a Byrider franchisee qualifies for the Multi-Location Flat Rate, what royalty fee do they pay?

WHEREAS, in addition to the Franchise Agreement, Franchisee, or its affiliate, has signed a franchise agreement with Company prior to January 1, 2021 for the operation of at least one (1) business in the System and under the Marks in addition to the Franchisee's Business.

WHEREAS, the Company will allow Franchisee to pay a modified Royalty Fee instead of the Royalty Fee provided in Section 3.10 of the Franchise Agreement in accordance with the terms and conditions set forth in this Addendum.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Company and Franchisee hereby agree as follows:

1. Royalty Fee. Section 3.10 of the Franchise Agreement is hereby deleted in its entirety and replaced with the following:

For "Founder" "Legacy Founder Franchisees," "Interim Founder Franchisees," "Legacy Interim Founder Franchisees," and "Standard Franchisees":

3.10 Royalty Fee. The Royalty Fee commencement date is the earlier of the date the Franchisee's Business is open to the public or the one-year anniversary of the date of this Agreement. The term "Royalty Fee" shall mean that amount calculated monthly as follows:

Gross Sales (Byrider Vehicle Sales):

• B.

Royalty Fee Increase.

The Company and Franchisee acknowledge and agree that the Company reserves the right to increase the Royalty Fee set forth in Section 3.10 of the Franchise Agreement, as amended by this Addendum, by the National Consumer Price Index for All Urban Consumers (CPI-U) – All Items (1982-1984 = 100) for the most recent 12 month period from October through September as published by the U.S.

Department of Labor, or a successor index.

Any increase will be uniformly applied to all franchisees under the same form of franchise agreement.

The Company will notify Franchisee in writing on or before December 1st of each calendar year as to any changes in the amounts for the following calendar year.

• C.

Representation of Ownership.

Franchisee represents and warrants, on its behalf and on behalf of its affiliates, that it and they have at least 51% in common equity ownership and voting control among the Byrider Businesses that it and they own (the "Ownership Qualification").

If Franchisee, or its affiliates, no longer meet the Ownership Qualification, then Franchisee will no longer qualify for, and pay, the MLFR and will instead pay the Royalty Fee as originally provided under Sections 1-3 in this Addendum.

• D.

Traditional Royalty Fee.

The Company acknowledges and agrees that the MLFR shall supersede Sections 1-3 of this Addendum so long as Franchisee (and its affiliates, if applicable): (i) continue to qualify for, and elect to pay, the MLFR; (ii) continue to operate at least two Byrider Businesses; and (iii) remain in compliance with the Franchise Agreement and all other agreements with the Company and its affiliates.

If Franchisee (or its affiliates, if applicable) fail to comply with the foregoing conditions for MLFR, Franchisee will immediately be required to comply with the obligations under Sections 1-3 of this Addendum (including the obligation to pay the Royalty Fee due thereunder).

Category Designation.

For purposes of Section 3.10 of the Franchise Agreement, as revised by this Addendum, Franchisee will receive the Category Designation provided on Exhibit A to this Addendum.

Source: Item 22 — Contracts (FDD pages 87–88)