[U.S. Lawns Home Office]

I apologize for the delayed response. It's been a hectic few weeks! To answer your questions...

Can you explain your declining royalty structure?

I will refer directly to our Franchise Disclosure Document to answer this question:

Royalty Fees

-4% of all gross billings if owner’s gross billings in the calendar month are $41,500 or less.

-3.75% of all gross billings if owner’s gross billings in the calendar month are over $41,500 but equal to or less than $62,500.

-3.5% of all gross billings if owner’s gross billings in the calendar month are over $62,500 but equal to or less than $83,250

-3% of all gross billings if owner’s gross billings in the calendar month are over $83,250

-If owner’s gross billings in a calendar month are over $104,166, owner will pay 3% of all gross billings up to and including $104,166, plus 1.5% of the gross billings in excess of $104,166.