A.E.S. Fitness

Required spending. After you open, you must spend at least 6% of gross sales each month on marketing your business. 14 A.E.S. Fitness FDD 2024 Computer Systems We require you to purchase computer systems and software as follows: Intuit Software License Swipe License/Account Laptop Computer Smart Phone Printer/Scanner Verizon Connect Work QuickBooks License The system will include our current POS/CRM system, credit card processing system, and accounting platform, such as QuickBooks. These systems will generate or store data such as inventory/product details, sales transactions, client, employee, scheduling, reporting, and accounting information.

We require you to purchase computer systems and software as follows: Intuit Software License Swipe License/Account Laptop Computer Smart Phone Printer/Scanner Verizon Connect Work QuickBooks License The system will include our current POS/CRM system, credit card processing system, and accounting platform, such as QuickBooks. These systems will generate or store data such as inventory/product details, sales transactions, client, employee, scheduling, reporting, and accounting information.

Type of Fee Amount Due Date Remarks Royalty 6% of your gross Monthly, on the See Note 1 and Note 2. sales 5th of the following month Marketing Fund 1% of your gross Monthly, on the Contribution sales 5th of the following month Market Cooperative As determined by Monthly, on the We have the right to establish local or Contribution co-op. Currently, 5th of the regional advertising cooperatives. The none. following month maximum contribution that a co-op may require is 5% of gross sales. Replacement / Currently, $350 per Prior to attending If you send a manager or other employee Additional Training day training to our training program after you open, we fee will charge our then-current training fee. Third party vendors Pass-through of Varies We have the right to require franchisees to costs, plus use third-party vendors and suppliers that reasonable we designate. Examples can include administrative computer support vendors, mystery charge. Currently, shopping, and customer feedback systems. none. The vendors and suppliers may bill franchisees directly, or we have the right to collect payment for these vendors together with a reasonable markup or charge for administering the payment program. 3 A.E.S. Fitness FDD 2024 Type of Fee Amount Due Date Remarks Software Currently, $416- Monthly Verizon Connect (WORK) subscription $550 QuickBooks Online We require you to use certain software as described in Item 11. You pay subscription fees directly to the software supplier, and not to us. Non-compliance fee $500 On demand We may charge you $500 if your business is not in compliance with our system specifications or the franchise agreement and you fail to correct the non-compliance after 30 days’ notice. Thereafter, we may charge you $250 per week until you correct such non-compliance. Reimbursement Amount that we Within 15 days of If we pay any amount that you owe or are spend on your invoice required to pay to a third party, you must behalf, plus 10% reimburse us. Late fee $100 plus interest on On demand We may charge a late fee if you fail to the unpaid amount at make a required payment when due. a rate equal to 18% per year (or, if such payment exceeds the maximum allowed by law, then interest at the highest rate allowed by law) Insufficient funds $30 (or, if such On demand We may charge an insufficient funds fee if fee amount exceeds the a payment made by you is returned maximum allowed because of insufficient funds in your by law, then the account. maximum allowed by law) Costs of collection Our actual costs As incurred Payable if we incur costs (including reasonable attorney fees) in attempting to collect amounts you owe to us. Breach of territory The greater of (i) On demand If you serve a customer outside of your fee $500 or (ii) 75% of territory without our prior written the amount paid by permission, we may impose this fee. the customer outside of your territory.

Type of Fee Amount Due Date Remarks Royalty 6% of your gross Monthly, on the See Note 1 and Note 2. sales 5th of the following month Marketing Fund 1% of your gross Monthly, on the Contribution sales 5th of the following month Market Cooperative As determined by Monthly, on the We have the right to establish local or Contribution co-op. Currently, 5th of the regional advertising cooperatives. The none. following month maximum contribution that a co-op may require is 5% of gross sales. Replacement / Currently, $350 per Prior to attending If you send a manager or other employee Additional Training day training to our training program after you open, we fee will charge our then-current training fee. Third party vendors Pass-through of Varies We have the right to require franchisees to costs, plus use third-party vendors and suppliers that reasonable we designate. Examples can include administrative computer support vendors, mystery charge. Currently, shopping, and customer feedback systems. none. The vendors and suppliers may bill franchisees directly, or we have the right to collect payment for these vendors together with a reasonable markup or charge for administering the payment program. 3 A.E.S. Fitness FDD 2024 Type of Fee Amount Due Date Remarks Software Currently, $416- Monthly Verizon Connect (WORK) subscription $550 QuickBooks Online We require you to use certain software as described in Item 11. You pay subscription fees directly to the software supplier, and not to us. Non-compliance fee $500 On demand We may charge you $500 if your business is not in compliance with our system specifications or the franchise agreement and you fail to correct the non-compliance after 30 days’ notice. Thereafter, we may charge you $250 per week until you correct such non-compliance. Reimbursement Amount that we Within 15 days of If we pay any amount that you owe or are spend on your invoice required to pay to a third party, you must behalf, plus 10% reimburse us. Late fee $100 plus interest on On demand We may charge a late fee if you fail to the unpaid amount at make a required payment when due. a rate equal to 18% per year (or, if such payment exceeds the maximum allowed by law, then interest at the highest rate allowed by law) Insufficient funds $30 (or, if such On demand We may charge an insufficient funds fee if fee amount exceeds the a payment made by you is returned maximum allowed because of insufficient funds in your by law, then the account. maximum allowed by law) Costs of collection Our actual costs As incurred Payable if we incur costs (including reasonable attorney fees) in attempting to collect amounts you owe to us. Breach of territory The greater of (i) On demand If you serve a customer outside of your fee $500 or (ii) 75% of territory without our prior written the amount paid by permission, we may impose this fee. the customer outside of your territory.