Delta Crown

ITEM 6 OTHER FEES Franchise Agreement Type of Fee1 Amount Due Date Remarks 6% of Gross Revenue per month. After your second year of operations, a Payable to us. See Note 2 for Royalty Fee Weekly minimum Royalty Fee of the definition of Gross Revenue. $250 per week will be applied. See Item 11. See Note 2 for the Marketing Fee 2% of Gross Revenue Weekly definition of “Gross Revenue.” You must spend the required minimum expenditure amount Minimum $2,000 per As per month in your local market Local Advertising month incurred. to promote the Salon. See Item 11. The MarTech fee is considered a component of the Local Advertising requirement but is collected by the Home Office in conjunction with Marketing Fee. Monthly, The MarTech fee is applied Currently, $150 per on date to directly to digital utilities, MarTech Fee hosting and all other central month be determined billing initiatives. We reserve the right to increase this fee in relationship to direct expenses with 30 days’ notice, provided it will not exceed $500 per month. See Item 11. If we established a membership marketing program, we may require your participation for a defined period, thereafter Paid participation may be optional. Minimum $500 per Membership Marketing Monthly as Your fee will be equal to the month, if established incurred actual cost charged by a third party. Currently there are no Membership Marketing requirements. Membership Perks Minimum $100 per Paid If we established a membership DELTA CROWN™ Franchise Disclosure Document | 2025 Type of Fee1 Amount Due Date Remarks Program month, if established Monthly as perks program, we will require incurred your participation. Your fee will be equal to the actual cost charged by a third party. Currently there are no Membership Perks Programs requirements. If we require you to participate in an established cooperative advertising campaign for your Paid market area, your $1,500 At least $1,500 per minimum monthly cooperative Cooperative Advertising Monthly as month, when established contribution will satisfy your relevant local advertising requirement. Currently there are no cooperatives. This fee applies to all training onsite or offsite, or hosted virtually, including but not limited to advanced training, opening training, transfer/resale training. The fee of $500 per day, is payable to us before we provide the applicable training. We may, at our option, send our personnel to your Salon to provide mandatory re-training if Additional Training and $500 per day plus we deem it necessary based on Assistance reimbursement of travel, Before performance concerns, a history lodging and dining costs assistance of customer complaints, are (if applicable). deemed non-compliant or have failed to attend or participate in mandatory training and/or meetings. You will be responsible for all training fees and associated travel costs if such training is required. We reserve the right to adjust the manner in which training is provided – including but not limited to virtual and online. See Note 3. If we establish an On Demand Paid Training Program, we will On-Demand Training Minimum $200 per require your participation. We Monthly as Fee Month, if established reserve the right to increase the relevant OD Training Fee with 30 days’ notice, provided it will not DELTA CROWN™ Franchise Disclosure Document | 2025 Type of Fee1 Amount Due Date Remarks exceed $300 per month. Currently there is no On- Demand Training Fee. See Note 3. See Item 11. Continuing Education Varies with Upon See Note 3. Requirements circumstances demand At least one representative is required to attend, no more than once per year, any designated convention, regional meeting or annual training meeting. For any required training you do not attend, you will pay the same registration fee as attendees – Convention or Currently, $500 per Before whether you attend or not. Continuing Education attendee Convention Currently this fee is $500 for Enrollment Fee Convention and is drafted automatically. You are responsible for all costs of attending convention, including travel, lodging, meals and wages. We may increase this fee in our discretion, provided it will not exceed $2,500 per attendee. Technology Fees are for use of our online systems, intra-net, data sharing, business intelligence, and more. We reserve the right to increase this Currently, $200 per Technology Fee Monthly fee in relationship to direct month per Salon expenses and provided it will not exceed $1,000 per month. To be paid in the same manner and time frame as the Royalty Fee. See Item 11. This fee is imposed by us but payable to a third party and may Point of Sale (POS), increase only up to the actual Currently, $499 per VoIP, Text Messaging & As incurred rates determined by the third- month Marketing Systems party provider. This subscription includes technical support provided by the POS supplier. The then-current fee as This amount is payable to third Bookkeeping Provider & imposed by the third- parties and subject to third party party provider, which is As incurred pricing and the packages Software currently $250 per month required. We reserve the right to for services. The charge this fee directly in the DELTA CROWN™ Franchise Disclosure Document | 2025 Type of Fee1 Amount Due Date Remarks software, Quickbooks future. Online, is separate and currently $20 per month for Simple Start plan These amounts are payable Home Office and passed through The then-current fee, to our vendor. Any increases in Email; Microsoft Office currently $8 to $25 per this fee are equal to the increases As incurred 365 month for Email and imposed by the vendor. We Office 365 reserve the right require that these fees be paid directly to the vendor directly in the future. These amounts are required by Music License Fees As incurred use but paid to a third party You may recommend suppliers Our actual costs and to us at any time; however, you expenses incurred in must reimburse our costs and evaluating the proposed Upon expenses in evaluating the Supplier Approval Fee supplier, plus a Supplier demand proposed supplier and pay our Approval Fee amounting Supplier Approval Fee if you to $500 per inspection request us to inspect and evaluate a proposed supplier. We do not charge a fee if the transfer of the Salon is from an individual to a business entity for convenience of operation, however, you must reimburse us for our related costs and $5,000, plus our related Before expenditures. Transfer Fee4 attorneys’ fees transfer See Note 4 for other circumstances where we charge a reduced Transfer Fee. See Item 17 for more information about restrictions and conditions of transfers. When you sign the See Item 17 for more Renewal Fee $3,000 new information regarding renewal franchise agreement $1,000 per year added to When Upon transfer, transferee must remaining term assumed transferee assume the remaining term on Extended Term Fee by transferee (not to signs their your franchise agreement and exceed an initial term of franchise may, at their option, purchase 10 years) agreement additional years for the Extended