in consideration of the franchise granted herein, Twenty-Five Thousand Dollars ($25,000.00) payable by certified check or cashier's check in United States currency due upon execution of the Franchise Agreement. The franchise fee is fully earned by Pretzel Time upon the payment in full thereof and is nonrefundable (except as specifically provided in this agreement) as consideration for expenses incurred by Pretzel Time in furnishing assistance and services to Franchisee and for Pretzel Time's lost or deferred opportunity to franchise others, and not as compensation for the use of the copyrighted works, Marks or Trade Dress. Franchisee acknowledges and agrees that this franchise fee is reasonable. The fee is not reduced if Pretzel Time is unable to obtain a TCBY Franchise. An additional $1,000 is payable by Franchisee to Pretzel Time as a Yogurt Fee if Yogurt Product is included in the Franchise. 4.B. DEFERRAL OF FRANCHISE FEE. Payment of the initial franchise fee is deferred for franchises to be located in Minnesota and for Minnesota residents until the franchise Unit opens at which time the franchise fee must be paid in full to Pretzel Time. Franchise fees for Maryland residents and franchises to be located in Maryland will be escrowed until the unit is opened. There may be other stores in which state administrators have required fees or royalties to be deferred or escrowed. 4.C. ROYALTY FEE. Franchisee, in partial consideration of the grant of a franchise, agrees to pay to Pretzel Time a continuing Royalty of seven percent (7%) of Franchisee's net revenues (as defined in Section 1) on a weekly basis as specified in this Section; provided only 4% Royalty shall be payable on TCBY frozen yogurt and other TCBY frozen yogurt products. The Royalty is not uniform as to all franchisees, it is fully earned, and is