Under what conditions can a Hydrodog franchisee request to purchase a customer account from another franchisee?

| Name of Fee(1) | Amount(4) | Due Date | Remarks | |-------------------------------------------------|-----------------------------------------------------------------------------------------------------|-----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Technology Fee | A Technology Fee of $150 per month plus $99 per month for each HydroDog Vehicle | Payable on the 1st day of each calendar month | The Technology Fee includes, but is not limited to, website listing, data hosting, scheduler, customer relationship management (CRM), workflows, virtual assistant technology, and learning and development platforms. We reserve the right to modify, add, or remove technology services as business needs evolve, in our sole discretion, and you agree to comply with all such modifications and additions, including paying any associated increased fees. Fees may be payable to us or directly to vendors. | | Additional HydroDog Vehicle Marketing Fee | $5,000 per HydroDog Vehicle | Upon demand | For each HydroDog Vehicle you acquire for use in the Territory, you must pay us an additional marketing fee of $5,000 for use in your Territory. | | Paragon Training Fee | The then current fee, currently $999 per program | As incurred | Payable to our approved vendor if you elect to utilize our approved supplier for grooming training. | | Transfer Fee | $20,000 per Territory sold plus any related broker fees | Payable upon approval of transfer. | If you sell your franchise to a prospect, we shall be entitled to a commission. The rate, terms, and conditions of this commission will be outlined in a separate agreement, and you will be required to pay this commission upon the transfer of the franchise (subject to state law). | | Encroachment Fee | $1,000 for each instance | Upon demand | If you provide any services to customers in another franchisee's territory without permission you shall pay an encroachment fee of $500 to us and $500 to the franchisee who owns the territory. | | Renewal Fee | $20,000 | At the time you sign the new franchise agreement | Payable if you qualify to renew your Franchise Agreement and choose to enter into a successor franchise agreement. | | Customer Sales Center Fee | Currently $0 - $99 | If implemented, monthly | We may establish, at our discretion, a centralized call center and online booking system (the "Customer Sales Center") to process all orders for services or products. |

| Name of Fee(1) Customer Account Transfer Fee | Amount(4) An amount agreed upon by the parties | Due Date As Agreement | Remarks If a customer account is identified by us as belonging to the territory of another franchisee, and you desire to provide services or products to such customer account, you may submit a written request to such other franchisee, with a copy of such written request provided to us, to purchase from the other franchisee the rights to provide services or products to the customer account. The other franchisee shall have no obligation to sell the customer account to you. In the event the other franchisee desires to sell the rights to the customer account to you, then the other franchisee shall respond to you in writing of such acceptance of your offer, and you shall pay such other franchisee a customer account transfer fee in an amount that shall be mutually agreed by both parties. |

Source: Item 6 — OTHER FEES (FDD pages 12–16)