n Program. If you are an honorably discharged veteran and you meet our qualifications for purchasing a Franchise Business, for your first Franchise Business only, we will discount our standard Initial Franchise Fee by 10% (a discount of $5,950). Under these circumstances, the Initial Franchise Fee for that Franchise Business will be $53,550.

DEVELOPMENT FEE

We also offer to certain qualified persons rights to develop 2 or more Franchise Businesses within a Development Area under a Stretch Zone Area Development Agreement. In consideration of the Area Development Rights we grant to you, you will pay to us a Development Fee based on the number of Franchise Businesses you commit to developing. To develop 2 Franchise Businesses, the Development Fee is $119,000, representing the Initial Franchise Fees for both Franchise Businesses. To develop 3 Franchise Businesses, the Development Fee is $148,750, representing the Initial Franchise Fees for the first 2 Franchise Businesses and 50% of the Initial Franchise Fee for the 3rd Franchise Business. When you sign the Franchise Agreement for your 3rd Franchise Business, you must pay the remaining 50% of the Initial Franchise Fee for the 3rd Franchise Business. To develop 4 Franchise Businesses, the Development Fee is $178,500, representing the Initial Franchise Fees for the first 2 Franchise Businesses and 50% of the Initial Franchise Fees for the 3rd and 4th Franchise Businesses. When you sign the Franchise Agreement for each of your 3rd and 4th Franchise Businesses, you must pay the remaining 50% of the Initial Franchise Fee for the applicable Franchise Business. To develop 5 Franchise Businesses, the Development Fee is $238,000, representing the Initial Franchise Fees for the first 3 Franchise Businesses and 50% of the Initial Franchise Fees for the 4th and 5th Franchise Businesses. When you sign the Franchise Agreement for each of your 4th and 5th Franchise Businesses, you must pay the remaining 50% of the Initial Franchise Fee for the applicable Franchise Business. To develop 6 Franchise Businesses, the Development Fee is $267,750, representing the Initial Franchise Fees for the first 3 Franchise Businesses and 50% of the Initial Franchise Fee for the 4th, 5th and 6th Franchise Businesses. When you sign the Franchise Agreement for each of your 4th, 5th and 6th Franchise Businesses, you must pay the remaining 50% of the Initial Franchise Fee for the applicable Franchise Business. To develop 7 or more Franchise Businesses, generally, the Development Fee is equal to (a) 100% of the Initial Franchise Fees for 50% of the number of Franchise Businesses to be developed under the Area Development Agreement, plus (b) 50% of the Initial Franchise Fees for the other 50% of the number of Franchise Businesses to be developed under the Area Development Agreement, with the balance of any Initial Franchise Fee to be paid when you sign the applicable Franchise Agreement. The Development Fee is fully earned by us upon signing the Area Development Agreement.

FURNITURE, FIXTURES AND FURNISHINGS

You must purchase from us the furniture, fixtures, and furnishings necessary to operate your Franchise Business. The cost varies from $3,590 to $7,100 according to local market conditions, the size of the Premises, your selections made from our approved line of items, price differences among suppliers, the location of the Premises and other related factors. We do not deliver or install these items. You are solely responsible for all related shipping and installation costs.

INITIAL CONTRIBUTION TO MEDIA FUND

You will make an initial Advertising Contribution of $500 to the Media Fund.

GRAND OPENING FEE

Within 60 days after you sign the Franchise Agreement, you will pay us a Grand Opening Fee of $14,950 to provide grand opening support for your Franchise Business during, approximately, the three weeks before and the three weeks after the opening of the Franchise Business. We will assist you with the grand opening plan, as outlined in the Operations Manual, to introduce your Franchise Business to the community. We will provide you with promotional support, such as social media scheduling and posting, email scheduling and sending, photography, press release writing and promotion, print assets, grand opening assets, such as ribbon and scissors, and tools to assist in the capture of content – tripod, Bluetooth microphone, etc.

UNIFORMITY AND REFUNDABILITY OF INITIAL FEES

None of the initial fees paid to us that are described in this Item 5 are refundable under any circumstances. These initial fees are uniform for all of our franchisees, except as otherwise provided in this Item 5.