ATL International

7 Whether you purchase an All Tune and Lube® franchise, an ATL Motor Mate® franchise, and/or an All Tune Transmissions® franchise, or some combination of these three franchises for operation at a single location approved by ATL, you will pay a uniform $5,000 initial advertising fee per Center location to the ATL Advertising Fund 7 days before you begin franchise school at our headquarters in Maryland. The $5,000 initial advertising fee is spent in the initial promotion of your Center. (See Item 11.) If you purchase the assets of a Center from an existing ATL franchisee, the initial advertising fee you are required to pay ATL at closing on the purchase is reduced to $3,000. Before you open your Center, you must purchase customer receipts, which can be specific to requirements of your state, and on the type of franchise you will operate. While you are not required to use a computer system or computerized customer receipts, a source that ATL suggests is Advantage Systems dba ShopPro® (See Items 8 and 11); if you use ShopPro® you must purchase from us ShopPro® computerized customer receipts and ShopPro® manual repair/service estimate forms. The minimum initial order for ShopPro® computerized customer receipts is typically $500 per 2,500, together with 1,500 ShopPro® manual estimate forms for an additional $650 - $1,500. Typically, franchisees also purchase a package of promotional items, brochures, forms and supplies from ATL before Center opening that will range from $2,917.50 - $2,982.50 (July 31, 2024 prices), depending on what you buy. As described in Items 7-8, ATL is an approved supplier for certain equipment, signs, and fixtures for use in the Center. While we do not require you to purchase those items from us, we may offer you the opportunity to do so at your option. We do not refund the franchise license fee, the transfer fee, or any other fee or amount you pay to ATL for any reason.

Payroll Data Processing Services While you have the option to choose any payroll service you wish, a source for payroll and payroll related tax filing data processing services that ATL suggests is ADP, LLC (“ADP”). In late-fiscal year 2016 - 2017, ATL reached an agreement with ADP, under which ATL franchisees will receive a 20% discount of prices from ADP. ADP will pay ATL a 10% revenue share from payroll services purchased by ATL franchisees. ATL received no revenue from ADP under the above program for the 2023 - 2024 fiscal year. In this and future fiscal years, ATL reserves the right to apply any funds we receive from ADP (under the above program or any similar program) for any general corporate purpose we choose without crediting any of the above amounts to individual franchisee accounts.

29 persons attending franchise school that you pay are disclosed in Note 3 to Item 7. (Also see franchise agreement–paragraph 5E.) As noted in the tables below, the Initial Training program is generally given every 6 to 8 weeks. Therefore, a franchisee generally completes the first part of the training before opening the Center. The second part of the Initial Training is the in-Center training. An ATL employee or designee will conduct this portion of the training program in your Center just before your Center opens and during the course of your Center's opening. ATL's Initial Training/franchise school is conducted by Daniel J. Sparby, Senior Vice President, who has been employed by ATL for more than thirty-five years. Other ATL employees, as well as representatives of several suppliers, give instruction in areas in which they specialize, such as Center Administration, Technical/Equipment and Center Operation. Examples of items used as instructional materials are the Manual, the All Data® DVD-driven automotive information system, brochures, bulletins, handouts, various ATL forms and other materials. The Initial Training required by ATL for each of the three franchises before and during your Center opening currently consists of the following: