Backyard PE

An amount equal to 15% of your Gross Sales, subject to the following annual minimum amounts that apply only after you begin operating: (a) $750 for the first 12 months following execution of your Franchise Agreement; (b) $1,000 for the second 12 months (i.e. months 13-24) following execution of your Franchise Agreement; and (c) $1,750 for the third 12 months (i.e. months 25-36) and each additional 12-month period thereafter throughout the term of the Franchise Agreement.