| One of the biggest concerns in franchising for a | | | | Payments of continuing royalty fees are not |
| franchise company is cash flow. And that means a | | | | refundable and must be made via bank wire or such |
| franchisor must pay careful consideration to royalty | | | | other electronic funds transfer procedure as |
| payments from its franchises and franchise outlets. | | | | Franchisor may require.The royalty fee may not be |
| Not only is it important to receive the money, but it also | | | | uniform for all franchises now being offered by the |
| is smart to make sure that the money is due, when | | | | franchisor. Franchisor reserves the right to trade |
| the franchisee can pay it and when the franchising | | | | services for royalties upon our mutual consent. |
| company will need it. If a franchisor collects its royalties | | | | Franchisor reserves the right to administer National and |
| at the end of the month, when rent is due then the | | | | International accounts and collect all monies. Franchisor |
| franchisee may have to choose between rent or | | | | may subtract out the royalty fees and/or the |
| royalties.In carefully considering the cash flow we | | | | promotional fund fees that Franchisee pays Franchisor |
| needed for our franchising company and the ability of | | | | before forwarding any monies due the Franchisee. |
| our franchises to pay the fees owed, we modified our | | | | Payments to the Franchisee will be settled |
| franchise agreements to best fit solving this issue for | | | | monthly.-------- ------------ -----------As they say; cash is |
| all parties concerned. Below you will find a copy of the | | | | king. Every franchising company needs cash to |
| clause that I inserted into each and every franchise | | | | accelerate faster and faster into the market as they |
| agreement;2.2 Continuing Fees2.2.1 RoyaltiesThe | | | | extend their brand-name and grow their companies. |
| royalties for each truck/unit will be $100.00 per month. | | | | And it is not easy to manage a rocketship. All |
| This royalty fee is due and payable in full on the | | | | franchisors would be well advised to consult with a |
| seventeenth (17th) calendar day of each calendar | | | | CPA and an experienced franchising attorney to best |
| month. These royalty payments are to be paid for | | | | strategize how to accomplish this goal. I hope you will |
| every truck and trailer unit Franchisee operates. | | | | consider this in 2006. |