What are the initial fees for a Casiola franchise (Item 5) and how do they compare to the ongoing monthly fees (Item 6)?

Note 1: Initial Franchise Fee and Initial Training Fee – The Initial Franchise Fee for a Casiola Business under a Franchise Agreement is $35,000 for a single Territory. At time of signing your Franchise Agreement you must pay to us a non-refundable initial training fee in the amount of $7,500. All fees are non-refundable. We do not finance any portion of your initial fees.

Note 4: Franchisee Directed Local Marketing – On an on-going monthly basis, you must spend not less than $450 per month for your first Territory plus an additional $450 per month for each Additional Territory on the local marketing of your Casiola Business within your Operating Market and in accordance with our standards and specifications. We may require that this fee be paid directly to us and that we allocate and spend these funds on behalf of your Casiola Business.

Note 5: Local and Regional Advertising Cooperatives – If two or more Casiola Businesses are operating within a geographic area, region, or market designated by us (a "designated market"), we reserve the right to establish and require your participation in a local or regional advertising cooperative within the designated market. If an advertising cooperative is established within a designated market that includes your Casiola Business(s), you will be required to participate in the cooperative and make on-going payments to the cooperative in such amounts and subject to such caps as established by the cooperative members. We anticipate that each Casiola Business franchisee will have one vote for each Casiola Business located within the cooperative market and those cooperative decisions shall be made based on approval of a simple majority vote with a quorum of not less than 25% of the designated cooperative members. Contributions to a local or regional cooperative that we designate will count toward satisfaction of your minimum local marketing requirements and shall not exceed the local marketing requirement.

Note 6: Technology Fee – The continuing monthly technology fee is an administrative fee and is not associated with any particular service but is used, at our discretion, to defray some of our costs related to system website and intranet (the "Technology Fee").

Note 7: Customer Services and Refunds – This fee will be based on the costs incurred by us, including refunds and/or credits that we may undertake on behalf of a customer that was not satisfied with the services or products provided by the Franchised Business. You must guarantee your services to your customers. If we determine that your customer is entitled to reimbursement of fees paid to you or an obligation that you assumed, we may reimburse your customer directly. You must reimburse us for the amounts that we reimburse your customer. You must also participate in any warranty insurance programs that we designate.

Note 1: Initial Franchise Fee – The Initial Franchise Fee for an Operating Market comprised of a single Territory is $35,000. If you elect to increase the size of your Operating Market by adding Additional Territories the total Initial Franchise Fee will range from a low of $65,000 for a total of two Territories to $140,000 for a total of five Territories.