Budget Blinds

None of the fees or payments you make to us are refundable. Whether payments to others are refundable depends upon the arrangements you make with them. Except as disclosed in Item 10, we do not offer direct or indirect financing for any of the above items. 16 1. Payable only with your first franchise agreement. The Initial Franchise Fee is discounted by 15% if you are a veteran, active service member or spouse of a veteran or active service member of the United States armed forces, as more particularly described in Item 5. The Initial Franchise Fee includes initial training and the Start-up package. 2. If you are buying your Territory from us rather than from an existing franchisee, when you sign a franchise agreement, you must pay us either (a) an Initial Territory Fee of $70,000 for a Tier 1 Territory, $45,000 for a Tier 2 Territory or $30,000 for a Tier 3 Territory, or (b) if you are buying your first two territories simultaneously, an Initial Territory Fee of $70,000 for a Tier 1 Territory and a discounted Additional Territory Fee of $60,000 for a second Tier 1 Territory, for a total of $130,000 for two Tier 1 Territories. The Additional Territory Fee for Tier 2 and Tier 3 Territories purchased at the same time as the first territory is the same as the Initial Territory Fee for Tier 2 and Tier 3 Territories. If you buy a second territory at a later time, the Additional Territory Fee is equal to the then-current Initial Territory fee. The Initial Territory Fee is discounted by 15% if you are a veteran, active service member or spouse of a veteran or active service member of the United States Armed Forces, as more particularly described in Item 5. 3. There is no additional charge for the initial training program for the franchisee and up to one employee of the Franchised Business. The training program is described in Item 11. Our estimate is for transportation, meals and lodging in excess of $1,000 while attending training. We provide you with a $1,000 travel voucher to attend initial training. 4. Additional attendees will be admitted only if space is available. Any additional attendees must complete all class requirements. High estimate assumes one additional attendee. 5. If you decide to obtain an office/workspace outside of your home, or if you choose to operate from a retail location, your initial investment will be higher depending on real estate or leasing market conditions in your area. Generally, most office/workspace locations are approximately 500 – 1,200 ft2 and are located in a strip mall, or other commercial building. 6. Google Business Profile requires a business address in order to display your business in search results. If you work from your home, you will need to establish a business address separate from your residential address. An example of a business address would be a serviced office. 7. This is a new or used white commercial-grade cargo van or extended van on which the BUDGET BLINDS® Marks are placed. The vehicle may be bought or leased but you should not purchase your vehicle for cash unless you will still have at least that same amount available as additional working capital to operate your business. We give you the wrap as part of the start-up package and you pay to have it installed on your vehicle by a vendor of your choosing. If you are acquiring your vehicle from a selling franchisee, you must have the new wrap installed within twelve months of the Operating Date otherwise it is forfeited and you will be required to purchase a wrap if we require you to update an outdated wrap on your vehicle at a later date. If you provide evidence that your vehicle already has the current wrap installed, we will issue a credit for $1,000 provided you make a claim for the credit within twelve months of the Operating Date. From time to time your affiliation with HFC may allow for discounts on these vehicles and our recommendation is to check with your Regional Operations Manager before purchasing or leasing. 17 8. If a laptop is selected, a minimum 14 inch screen with high resolution is recommended. Windows operating system or Apple OS is required for compatibility with required software. You will need to install Office 365, the cost of which is included in the above estimate. 9. Such policy must be on an occurrence basis with a combined single limit for bodily injury, death or property damage of not less than $1,000,000. We must be named as an additional insured. 10. Such policy must be on an occurrence basis with a combined single limit for bodily injury, death or property damage of not less than $2,000,000. We must be named as an additional insured. 11. A contractor's license and bond are required only in states that require a contractor's license. If you do not have the requisite years of experience to qualify for a contractor’s license, in some states you may pay a contractor to supervise your work while you obtain the necessary experience. Some franchisees in California have had to pay as much as $2,000 per month for up to three years for this service. 12. As part of the Start-up package, we give you some product samples and sample books from selected suppliers at no additional charge. We only provide a Start-up package if you are purchasing your first territory. We do not provide additional samples and sample books when you sign a subsequent franchise agreement. If you want more or additional sample books from other approved suppliers or samples of other products, you must obtain them from the supplier. 13. This category estimates an additional cash reserve available to cover initial operating expenses during the first three months of operation. The amount of additional funds that you may need varies based on a variety of factors, including whether you choose to have an office outside your home, the number of employees you choose to hire and the salary and other benefits you choose to pay, gasoline purchases and vehicle maintenance expenses, the extent to which you are actively involved in operating your business, your skill, experience and business acumen, local competition, local economic conditions (including rent and wage scales and the cost of supplies), and the actual sales levels that you reach during the initial 3-month period. We have based this estimate on the experience of our United States franchisees. The "Additional Funds" category is not the only source of cash, but is in addition to cash flow from operations. We cannot estimate your cash flow from operations and encourage you to contact our existing franchisees to evaluate this on your own. We recommend you have $100,000 in working capital for your first year of operation.