Dog Training Elite

We require that the use of a point of sale (POS) system designated by us to be purchased or leased from our designated supplier. At this time, we use and we require that you use the Chase merchant mobile Point of Sale System or POS software and hardware, but this may change at any time and the cost to change the system is incurred by you alone [franchise agreement paragraph 6.1.12]. The POS system currently provides:

TYPE OF FEE AMOUNT DUE DATE REMARKS Successor $2,500 Prior to entering A successor franchise agreement is Franchise Fee1 into a successor available to you only if you meet each franchise agreement of the requirements described in the franchise agreement at the time of your timely election to enter into a successor agreement. Royalty1 8% of gross sales Payable weekly to Gross sales include all revenue from be received by the franchise business, including Tuesday of the trades, but do not include sales tax. following week (a We reserve the right to require sales week runs royalties to be paid in accordance with Sunday – Saturday) our electronic funds transfer or automatic withdrawal program as developed. Brand Fund 1% of gross sales Same as royalties See Note 4 below. Fee1,4,5 SEO Fee 1 3 Currently, Payable monthly This fee will be for our designated $500/per month third-party provider to manage SEO campaign in your market. This fee may be charged by a third-party supplier or us and may be updated periodically in our manuals. Google Currently, one- Payable monthly You must set a budget for monthly AdWords3,4 time $1,500 setup Google AdWords with our approved fee; $2,050 to third-party provider. This amount can $4,025/per month be applied toward your local marketing obligation. See Note 4. Late Charges1,2,3 $50/per month Payable with Charges will begin to accrue after the (up to a royalty or on due date of any required payment or maximum of 2x demand report. Subject to increase by up to the total amount 10% per year (cumulative). owing per instance per late payment and up to $500 per late report) Interest on Late 18% interest or Payable with Interest begins to accrue on the total Fees and maximum rate royalty or on amount (fee plus any later charge) after Reports1,2 permitted by state demand the due date of any required payment law or report.

You are required to participate in the loyalty, gift card, discount, memberships, subscription, and coupon programs we develop. You are not allowed to implement any sort of loyalty, coupon, membership gift card or subscription model without our prior written permission [franchise agreement paragraph 6.2.2(ii)]. Accounting We require you to use a current version (not more than 1-year old) of the QuickBooks accounting system. We reserve the right to have independent access to your account. Generally, QuickBooks is updated annually for a cost of up to $500 per year if purchased, and there is currently a monthly fee of approximately $40 to $100 per month if you purchase a monthly subscription [franchise agreement paragraph 6.1.12 (iv)]. We can change the required accounting software at our discretion.

5 Marketing Events. You must also attend a minimum of 6 large marketing events and 6 smaller marketing events each year. Home shows, RV shows, and similar types of events are considered large marketing events, and farmers’ markets, city, county or state fairs, and other similar venues are considered small marketing events, as otherwise described in our manuals. The amount you spend attending these marketing events can be counted toward your local marketing expenditure requirement. Upon our request, you must provide us with a report of your attendance at such events along with a report of the leads generated from each event. 6 Indemnification. You must indemnify us from damages and costs related to your acts, errors or omissions in the operation of your franchise business or your franchise business generally, and including any allegation that you are our employee, or that we are a joint employer or otherwise responsible for the acts or omissions relating to your employees, and other laws regarding public accommodations for persons with disabilities. You are not required to indemnify us for liability caused by our willful misconduct, gross negligence, strict liability, or fraud. 7 Tech Fee. The tech fee currently includes the following (fees, terms, and conditions subject to change by the applicable provider): CRM software set up for 2 users and our brand features (additional users can be purchased), G-Suite account setup for up to 2 accounts (additional accounts can be purchased), learning management platform and system, domain name and website hosting and maintenance for the brand website, and social media setup for Facebook & Instagram and access to social media posting guide. 8 System Non-Compliance. We may issue you a fine for certain violations of the franchise agreement and/or manuals. The amount of the fine will be set forth in the manuals and are paid to us to reimburse us for our administrative and management costs for us to address the violation. If you do not correct the violation within the time required by us, we have the right to put you in default. All fines are to be paid in accordance with our electronic funds transfer or automatic withdraw program.

5 Marketing Events. You must also attend a minimum of 6 large marketing events and 6 smaller marketing events each year. Home shows, RV shows, and similar types of events are considered large marketing events, and farmers’ markets, city, county or state fairs, and other similar venues are considered small marketing events, as otherwise described in our manuals. The amount you spend attending these marketing events can be counted toward your local marketing expenditure requirement. Upon our request, you must provide us with a report of your attendance at such events along with a report of the leads generated from each event. 6 Indemnification. You must indemnify us from damages and costs related to your acts, errors or omissions in the operation of your franchise business or your franchise business generally, and including any allegation that you are our employee, or that we are a joint employer or otherwise responsible for the acts or omissions relating to your employees, and other laws regarding public accommodations for persons with disabilities. You are not required to indemnify us for liability caused by our willful misconduct, gross negligence, strict liability, or fraud. 7 Tech Fee. The tech fee currently includes the following (fees, terms, and conditions subject to change by the applicable provider): CRM software set up for 2 users and our brand features (additional users can be purchased), G-Suite account setup for up to 2 accounts (additional accounts can be purchased), learning management platform and system, domain name and website hosting and maintenance for the brand website, and social media setup for Facebook & Instagram and access to social media posting guide. 8 System Non-Compliance. We may issue you a fine for certain violations of the franchise agreement and/or manuals. The amount of the fine will be set forth in the manuals and are paid to us to reimburse us for our administrative and management costs for us to address the violation. If you do not correct the violation within the time required by us, we have the right to put you in default. All fines are to be paid in accordance with our electronic funds transfer or automatic withdraw program.

You may not create a website for your franchise business. You cannot engage in marketing on the Internet, including posting for re-sell, items on third party resell or auction-style websites such as eBay, Craigslist or Amazon without our prior written permission. You may not claim any web listing on sites such as Yelp. We have the right (but not the obligation) to manage and control all online reviews for your franchise We may allow you to place pre-approved information concerning your franchise business on our website or a subdomain, as developed by us. We 31