Item 5 - INITIAL FEES
You must pay to LDI a nonrefundable initial franchise fee of $65.000.73.500. You have the option to pay LDI the entire $6^TOOO73T5Q0 initial franchise fee on the date you sign the
Agreement or LDI will make a no interest loan to you for up to $'10,000ii,5ilfl of the initial
franchise fee, which is payable to LDI within 90 days after your completion of initial training.
(See Item 11) LDI may also offer you financing for a portion of the initial franchise fee. (See
6
LDI Franchise Disclosure Document - &4il2/2012
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Item 10) The initial franchise fee is uniform for all Strategic-Partners, with S^^TOOO^OSOM
typically paid on the date you sign the Agreement. LDI is a participant in the "Vet Fran,"
"Minority Fran" and "Green Fran" Initiatives, and offers a $42^^0015.000 reduction in the initial
franchise fee to qualified U.S. military veterans, minority and Green Industry candidates,
respectively (but these discounts cannot be combined).
The initial franchise fee is comprised of the following components: (1) an initial license
fee of $2#T00030.000 for the right to use the Marks during the term of the Agreement and any
successor Business; (2) an initial training, supply and support fee of $36.250.38.750. of which
$20^00025^000 is used to cover costs incurred in providing marketing programs, and the
remainder to cover costs incurred in providing the initial training program, guidance and
assistance, advertising and sales promotion support, set up of bookkeeping systems, office
supplies, computer hardware and software, hand tools and accessories and repair parts; (3) a
nonrefundable deposit of $ 4 7 ^ 2 ^ for the Turf Tamer Walk BehindStand-On Applicator
Lease; and (4) a nonrefundable deposit of $2,250 for the Turf Tamer Power Seeder Lease. In
certain states where agronomic conditions are not conducive to a seeding program (as
determined by LDI), the Turf Tamer Power Seeder is deleted from the initial franchise package
and the initial franchise fee is reduced to $62.750.71.250.
If you operate an existing Lawn Doctor Business, are in compliance with the terms of all
agreements with LDI, are in sound financial condition, and have demonstrated a desire and
ability to make the commitment of time and capital necessary to operate an additional Lawn
Doctor Business, LDI may offer you the right to operate an additional Lawn Doctor Business
under a separate Agreement for a reduced initial franchise fee. Whenlf you Gxccuto thesign an
Agreement, ynii miir,t pny nno nf tho following initial franchise foes for the for an additional
Lawn Doctor Business which will ontitlo you to receive the different services and materials
specified below (nono of tho options include the Turf Tamer Power Seeder):
(4^ Option A: $55.850. This initial franchise fee entities you to send 2 persons to
the initial training program and provides you with the guidance and assistance,
Servicing Vehicle layouts and modifications, office supplies, computer hardware
and software, hand tools and aooossorios and repair parts, as woll as a
nonrefundable deposit of $1,500 for a Turf Tamer Walk Behind Lease; or(2)
Option B: $17.800. This initial franchise feeyou will pay an initial franchisee
fee of S22.0Q0 that entities you to operate the Business using the Marks in the
Territory granted under the Agreement. Under this option, vou do You will not
receive the standard initial training, support and supplies for the additional
Lawn Doctor Business which LDI provides to new Strategic-Partners or a credit
for the Turf Tamer Walk Behind Loaso.
You must pay the entire initial franchise fee for an additional Business when you sign the
Agreement, although financing is available (see Item 101
LDI also offers a reduced Initial franchise fee to employees of Strategic-Partners who
have 5 years of experience in the Lav™ Doctor system and who qualify to become
Strategic-Partners. The fee is the same as Option Air^jti^l franchise fee is reduced bv S15.000
LDI Franchise Disclosure Document - &ifl2/2012
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for employees who qualify. Since some Strategic-Partners qualified for the discounts
described aboveT in this Item 5. the initial franchise fees LPT received during its 2011 fiscal
LDI currentiy has a policy under which it pays a $10,000 referral fee to any
Strategic-Partner, LDI employee or vendor who refers to LDI a candidate who (i) is not currently
in the Lawn Doctor system, (ii) has not previously inquired about becoming a Strategic-Partner,
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