Common use of Fees Taxes and Other Charges Clause in Contracts

Fees Taxes and Other Charges. 6.1 Franchisee agrees to pay to the Franchisor during the term of this Agreement the following: a. An initial franchise fee of Forty Thousand Dollars ($40,000.00), in full within 30 days of delivery of execution copies of this Agreement to Franchisee; provided, however, if the Restaurant is a Turnkey Restaurant the initial franchise fee shall be payable upon execution of this Agreement. Notwithstanding the foregoing, if this Agreement is executed for a second or subsequent Restaurant under a Development Agreement, the initial franchise fee shall be as set forth in the Development Agreement. All such payments shall be made by cashier's check or other form of payment acceptable to the Franchisor. Franchisee hereby acknowledges and agrees that the grant of this franchise and the agreements of the Franchisor contained in this Agreement constitute the sole and only consideration for the payment of the initial franchise fee and the initial franchise fee shall be fully earned by the Franchisor upon execution of this Agreement. In that regard, upon the payment of any portion of the initial franchise fee, the entire initial franchise fee shall be deemed fully earned and non-refundable in consideration of the administrative and other expenses incurred by the Franchisor in granting this franchise and for the Franchisor's lost or deferred opportunity to franchise to others. b. A monthly royalty fee in the sum of four percent (4%) of Franchisee's monthly Gross Sales (as defined in Section 7.1). c. A fee, which shall be used in accordance with Section 8, for advertising, public relations and promotion and for the creation and development of advertising, public relations and promotional campaigns (“Advertising Fee”), in the amount of: (i) five percent (5%) of Franchisee's monthly Gross Sales, as defined in Section 7.1 if the Restaurant is located outside of the Los Angeles designated market area ("DMA") or (ii) four percent (4%) of Franchisee's monthly Gross Sales, as defined in Section 7.1 if the Restaurant is located within the Los Angeles DMA. Franchisor reserves the right to increase the Advertising Fee in the future by gaining an approval vote of fifty-one percent (51%) of all then existing Franchisor-owned and franchised restaurants operating under the El Pollo Loco® System. Each such restaurant shall be entitled to one vote. d. The amount of all sales taxes, use taxes and similar taxes imposed upon or required to be collected or paid by the Franchisor on account of goods or services furnished to Franchisee by the Franchisor, whether such goods or services are furnished by sale, lease or otherwise. Franchisee shall reimburse the Franchisor for the invoice amount within seven (7) days after the invoice has been delivered to Franchisee pursuant to Section 23.3 of this Agreement. 6.2 Franchisee agrees to pay interest to the Franchisor on any amounts which may become due to the Franchisor from Franchisee, if such are not paid when due, at the rate of fifteen percent (15%) per annum or the maximum interest rate permitted by law, whichever is less.

Fees Taxes and Other Charges. 6.1 Franchisee agrees to pay to the Franchisor Company during the term of this Agreement the following: a. An initial franchise fee of Forty Thousand Dollars ($40,000.00), in full payable as follows: (i) Fifteen Thousand Dollars ($15,000.00) upon execution of this Agreement (and within 30 days of delivery of execution copies of this Agreement to Franchisee); and (ii) Twenty-five Thousand Dollars ($25,000.00) on the earlier of (x) forty-eight hours following the commencement of physical construction or remodeling of the Restaurant; or (y) 12 months following Company’s execution of this Agreement; provided, however, if the Restaurant is a Turnkey Restaurant the initial franchise fee shall be payable upon execution of this Agreement. Notwithstanding the foregoing, if this Agreement is executed for a second or subsequent Restaurant under a Development Agreement, the initial franchise fee shall be as set forth in the Development Agreement. All such payments shall be made by cashier's ’s check or other form of payment acceptable to the FranchisorCompany. Franchisee hereby acknowledges and agrees that the grant of this franchise and the agreements of the Franchisor Company contained in this Agreement constitute the sole and only consideration for the payment of the initial franchise fee and the initial franchise fee shall be fully earned by the Franchisor Company upon execution of this Agreement. In that regard, upon the payment of any portion of the initial franchise fee, the entire initial franchise fee shall be deemed fully earned and non-refundable in consideration of the administrative and other expenses incurred by the Franchisor Company in granting this franchise and for the Franchisor's Company’s lost or deferred opportunity to franchise to others. b. A monthly Grand Opening Fee in an amount of no less than Five and nor more than Ten Thousand Dollars ($5,000.00—$10,000.00), payable upon payment in full of the Initial Fee. The Company will use those funds exclusively for marketing and advertising for the Restaurant’s Grand Opening. c. A weekly royalty fee in the sum of four percent (4%) of Franchisee's monthly ’s weekly Gross Sales (as defined in Section 7.1below). c. d. A fee, which shall be used in accordance with Section 88.1, for advertising, public relations and promotion and for the creation and development of advertising, public relations and promotional campaigns (“Advertising Fee”), in the amount of: (i) of five percent (5%) of Franchisee's monthly ’s weekly Gross Sales, as defined in Section 7.1 if the Restaurant is located outside of the Los Angeles designated market area ("“DMA") ”), or (ii) four percent (4%) of Franchisee's monthly ’s weekly Gross Sales, as defined in Section 7.1 7.1., if the Restaurant is located within the Los Angeles DMA. Franchisor reserves the right to increase the Advertising Fee in the future by gaining an approval vote of fifty-one percent (51%) of all then existing Franchisor-owned and franchised restaurants operating under the El Pollo Loco® System. Each such restaurant shall be entitled to one vote. d. e. The amount of all sales taxes, use taxes and similar taxes imposed upon or required to be collected or paid by the Franchisor Company on account of goods or services furnished to Franchisee by the FranchisorCompany, whether such goods or services are furnished by sale, lease or otherwise. Franchisee shall reimburse the Franchisor Company for the invoice amount within seven (7) days after the invoice has been delivered to Franchisee pursuant to Section 23.3 24.3 of this Agreement. 6.2 For any calendar year in which the Company has received the approval of the Qualified Franchisees (as that term is hereinafter defined) which own sixty percent (60%) of the El Pollo Loco restaurants owned by all of the Qualified Franchisees located in Franchisee’s DMA (as that term is hereinafter defined), Franchisee agrees to shall pay interest an advertising fee (the “DMA Advertising Fee”) based upon a percentage of Franchisee’s monthly Gross Sales generated during such calendar year, which fee shall be paid monthly along with and in addition to the Franchisor on any amounts which may become due advertising fee required to be paid pursuant to Section 6.1(c). The DMA Advertising Fee shall be used in accordance with Section 8.1. Such DMA Advertising Fee percentage will be determined, and is subject to the Franchisor from approval, by the Qualified Franchisees in Franchisee, if such are not paid when due, at the rate of fifteen percent (15%) per annum or the maximum interest rate permitted by law, whichever is less’s DMA.

Fees Taxes and Other Charges. 6.1 6.1. Franchisee agrees to shall pay to the Franchisor during the term of this Agreement the following: a. An initial franchise fee of Forty Thousand Dollars ($40,000.00), in full within 30 days of delivery of execution copies of this Agreement to Franchisee; provided, however, if the Restaurant is a Turnkey Restaurant the initial franchise fee shall be payable upon execution of this Agreement. Notwithstanding the foregoingAs our sole and absolute right to determine, if this Agreement is executed for a second or subsequent Restaurant under a Development Agreementyou may be offered an Initial Term of less than 20 years and as such, the initial franchise fee shall will be as set forth in the Development Agreementappropriately pro-rated. All such payments shall be made by cashier's check or other form of payment acceptable to the Franchisor. Franchisee hereby acknowledges and agrees that the grant of this franchise and the agreements of the Franchisor contained in this Agreement constitute constitutes the sole and only consideration for the payment of the initial franchise fee and the initial franchise fee shall be fully earned by the Franchisor upon execution of this Agreement. In that regard, upon the payment of any portion of the initial franchise fee, the entire initial franchise fee shall be deemed fully earned and non-refundable in consideration of the administrative and other expenses incurred by the Franchisor in granting this franchise and for the Franchisor's lost or deferred opportunity to franchise to others. b. A monthly royalty fee in the sum of four equal to five percent (45%) of Franchisee's monthly immediately prior month’s Gross Sales (as defined in Section 7.1). c. A monthly advertising fee, which shall be used in accordance with Section 8, for advertising, public relations and promotion and for the creation and development of advertising, public relations and promotional campaigns (“Advertising Fee”), in the amount of: (i) five percent (5%) of Franchisee's monthly immediately prior month’s Gross Sales, as defined in Section 7.1 if the Restaurant is located outside of the Los Angeles designated market area (“LA”) Designated Market Area ("DMA") or (ii) four percent (4%) of Franchisee's monthly immediately prior month’s Gross Sales, as defined in Section 7.1 if the Restaurant is located within the Los Angeles DMA. If the Restaurant is located within the LA DMA, the Advertising Fee may be increased, as our sole and absolute right to determine, to not more than one percent (1%) above your original Advertising Fee during the Initial Term of your Franchise Agreement and upon 90 days written notice to you. Some existing franchisees may pay lower Advertising Fees. Restaurants owned and operated by us will contribute on the same basis as those existing franchisees within the same DMA. Franchisor also reserves the right to increase the Advertising Fee in the future by gaining a voting mechanism. Except as otherwise provided in existing franchise agreements, each operating restaurant (both company-owned and franchised restaurants) located in the geographical area that would be affected by such an increase in the Advertising Fee shall be entitled to one vote. Franchisor must gain an approval vote of fifty-one percent (51%) of all then existing Franchisor-owned and franchised such operating restaurants operating under within the El Pollo Loco® Systemapplicable geographical area. Each The minimum geographical area that would be affected by such restaurant shall an increase would be entitled to one voteno smaller than a local DMA, although, multiple local DMAs may be involved. d. The amount of all sales taxes, use taxes and similar taxes imposed upon or required to be collected or paid by the Franchisor on account of goods or services furnished to Franchisee by the Franchisor, whether such goods or services are furnished by sale, lease or otherwise. Franchisee shall reimburse the Franchisor for the invoice amount within seven (7) days after the invoice has been delivered to Franchisee pursuant to Section 23.3 of this AgreementFranchisee. 6.2 e. Monthly POP Fees for in-restaurant and drive-thru point-of-purchase materials. f. Monthly Gift Card Discount Fees associated with the sale of gift cards (charged to the restaurant that redeemed the gift cards and earned the sales revenue) g. Franchisee’s pro-rata share of costs for the Customer Feedback Program(s). h. Re-inspection fees per re-inspection of Franchisee’s Restaurant, (required if a deficiency or unsatisfactory condition is noted and a subsequent re-inspection is necessary to determine if the deficiency or unsatisfactory condition has been cured) and a Coaching fees (required if Franchisee’s Restaurant has failed two (2) consecutive inspections or as determined by Franchisor in our sole and absolute right in certain circumstances). i. A surcharge of twelve cents ($0.12) for each case of chicken (Whole Birds and Saddles) ordered by franchise and company operators as contributions to the obsolete inventory fund used to pay for pertinent, unsold inventory of qualified suppliers at the conclusion of limited time promotions and to expedite the delivery of products for situations in which sales exceed prior forecasts. We periodically review the added cost per case and as our sole and absolute right, determine whether to increase or decrease the cost per case. 6.2. Franchisee agrees to shall pay interest to the Franchisor on any amounts which may become due to the Franchisor from Franchisee, if such are not paid when due, at the rate of fifteen percent (15%) per annum (pro-rated) or the maximum interest rate permitted by law, whichever is less.

Fees Taxes and Other Charges. 6.1 Franchisee agrees to shall pay to the Franchisor during the term of this Agreement the following: a. An initial franchise fee of Forty Thousand Dollars ($40,000.00), in full within 30 days of delivery of execution copies of this Agreement to Franchisee; provided, however, if the Restaurant is a Turnkey Restaurant the initial franchise fee shall be payable upon execution of this Agreement. Notwithstanding the foregoingIn our discretion, if this Agreement is executed for a second or subsequent Restaurant under a Development Agreementyou may be offered an Initial Term of less than 20 years and as such, the initial franchise fee shall will be as set forth in the Development Agreementappropriately pro-rated. All such payments shall be made by cashier's ’s check or other form of payment acceptable to the Franchisor. Franchisee hereby acknowledges and agrees that the grant of this franchise and the agreements of the Franchisor contained in this Agreement constitute constitutes the sole and only consideration for the payment of the initial franchise fee and the initial franchise fee shall be fully earned by the Franchisor upon execution of this Agreement. In that regard, upon the payment of any portion of the initial franchise fee, the entire initial franchise fee shall be deemed fully earned and non-refundable in consideration of the administrative and other expenses incurred by the Franchisor in granting this franchise and for the Franchisor's ’s lost or deferred opportunity to franchise to others. b. A monthly royalty fee in the sum of four equal to five percent (45%) of Franchisee's monthly ’s immediately prior month’s Gross Sales (as defined in Section 7.1). c. A monthly advertising fee, which shall be used in accordance with Section 8, for advertising, public relations and promotion and for the creation and development of advertising, public relations and promotional campaigns (“Advertising Fee”), in the amount of: (i) five percent (5%) of Franchisee's monthly ’s immediately prior month’s Gross Sales, as defined in Section 7.1 if the Restaurant is located outside of the Los Angeles designated market area ("“LA”) Designated Market Area (“DMA"”) or (ii) four percent (4%) of Franchisee's monthly ’s immediately prior month’s Gross Sales, as defined in Section 7.1 if the Restaurant is located within the Los Angeles DMA. If the Restaurant is located within the LA DMA, the Advertising Fee may be increased, in our sole discretion, to not more than a half percent ( 1⁄2%) above your original Advertising Fee during the Initial Term of your Exhibit D of Multi-State Disclosure Document Control No. 040114 - Franchise Agreement Franchise Agreement and upon 90 days written notice to you. Some existing franchisees may pay lower Advertising Fees. Restaurants owned and operated by us will contribute on at least the same basis as those existing franchisees within the same DMA. Franchisor also reserves the right to increase the Advertising Fee in the future by gaining a voting mechanism. Except as otherwise provided in existing franchise agreements, each operating restaurant (both company-owned and franchised restaurants) located in the geographical area that would be affected by such an increase in the Advertising Fee shall be entitled to one vote. Franchisor must gain an approval vote of fifty-one percent (51%) of all then existing Franchisor-owned and franchised such operating restaurants operating under within the El Pollo Loco® Systemapplicable geographical area. Each The minimum geographical area that would be affected by such restaurant shall an increase would be entitled to one voteno smaller than a local DMA, although, multiple local DMAs may be involved. d. The amount of all sales taxes, use taxes and similar taxes imposed upon or required to be collected or paid by the Franchisor on account of goods or services furnished to Franchisee by the Franchisor, whether such goods or services are furnished by sale, lease or otherwise. Franchisee shall reimburse the Franchisor for the invoice amount within seven (7) days after the invoice has been delivered to Franchisee pursuant Franchisee. e. Monthly POP Fees for in-restaurant and drive-thru point-of-purchase materials. f. Monthly Gift Card Discount Fees associated with the sale of gift cards (charged to Section 23.3 the restaurant that redeemed the gift cards and earned the sales revenue) g. Franchisee’s pro-rata share of this Agreementcosts for the Customer Feedback Program(s). h. Re-inspection fee of $250 per re-inspection of Franchisee’s Restaurant, (required if a deficiency or unsatisfactory condition is noted and a subsequent inspection is necessary to determine if the deficiency or unsatisfactory condition has been cured). i. A surcharge of eighteen cents ($0.18) for each case of chicken and twenty-nine cents ($0.29) for each case of pinto beans ordered by franchise and company operators as contributions to the obsolete inventory fund used to pay for pertinent, unsold inventory of qualified suppliers at the conclusion of limited time promotions. We periodically review the added cost per case and in our sole discretion, determine whether to increase or decrease the cost per case. 6.2 Franchisee agrees to shall pay interest to the Franchisor on any amounts which may become due to the Franchisor from Franchisee, if such are not paid when due, at the rate of fifteen percent (15%) per annum (pro-rated) or the maximum interest rate permitted by law, whichever is less.. Exhibit D of Multi-State Disclosure Document Control No. 040114 - Franchise Agreement