
EXHIBIT C
Overhead Expenses for Custom Blotter Company. Franchise format; Modest sales, With 6% Royalty and 2% Ad Fee + Adjustments [See Note]
The "Variable Selling Expense as % of Sales" assumes a 12% commission paid out to a sales person, plus 8%, for a total of 20%. The added 8% reflects the most common franchise royalty and advertising fee structure: Six percent (6%) is a "royalty payment" (an ongoing fee for owning the franchise), plus two percent (2%) mandatory advertising fee (paid to franchisor or franchisor's advertising entity).