TURNKEY START-UP COSTS

1. FRANCHISE FEE(Non-Recurring)....................$29,900.00
   This is paid to Travel Network to cover cost of assistance and supervision in start-up, continuing asistance and follow-up and covers initial supplies, forms, manuals, etc.
2. SERVICE FEE(Monthly, Flat Fee)
   
   • First 12 months (1st year)...................$350.00/mo.
   • Next 12 months (2nd year).................$550.00/mo.
   • Next 12 months (3rd year)..................$750.00/mo.
   • Thereafter (4th-15th year)...................$C.P.I. Increase*

   As shown, the above fee is based on the age of the agency. It covers the continuing use of the Travel Network name; the continuing training, promotions, and advertising; the use of Travel Network forms, systems, management programs and guidance.

3. ADVERTISING FEES
   • Advertising Information Monthly (AIM)..........$ 50.00/mo.
   • Newspaper....................................................$150.00/mo.

The Travel Network philosophy is to use advertising funds on programs that create sales at your location. Our award winning national and international promotions supported by this monthly contribution are testimony to the successfulness of this economic approach to driving the market.

All advertising fees will be spent on travel consumer and business advertising. Fees will be used primarily on a co-op program to promote the Travel Network name, image, and promote sales for you in your regional area. Advertising is essential in every business. For any one agency to carry on an effective campaign would be far too costly. However, by combining advertising dollars, an effective, hard-hitting campaign can be implemented to promote travel and Travel Network agencies.

A.I.M. is our monthly marketing kit which includes camera-ready art and other materials for reproduction and placement in local media in your market.

*C.P.I.-Consumer Price Index used as basis for yearly increase. The C.P.I. rate is established by the United States Government.