Sun Pacific Holding Corp (SNPW)

[jimbob4stocks]

In connection with our franchising operations, we receive initial franchise fee (typically $30,000), area development fees ( historically $250,000 to $300,000 per territory and a reduced franchise fee per location of $5,000 to $7,500 per location depending on the territory), franchise deposits and royalties of 5% of gross revenues of sales at franchised restaurants as defined in the franchise agreement. The term of the franchise agreement is generally for 10 years and may be renewed for two additional terms of 10 years subject to certain conditions, including the payment of a discounted franchise fee.