Founders Financial Securities LLC

Item 5 - Fees and Compensation
How FFS and IAR are Compensated
Investment Advisory Fees
All fees are determined separately for each account. The fee rates applied by the IAR depend on, but are not limited
to, the type of assets under management, the composition or structure of the account, the size of the account, and
the services rendered to the client. These fees are negotiable, which will result in different clients paying different
fees for similar services. Other investment advisors could offer similar programs that charge less fees or that will not
charge separately for brokerage and transaction costs.

Generally, fees are based on a percentage of the value of assets under management at the time the fee is
assessed, using the fee rate that is in effect on that date. Depending on the program and as outlined in detail later
in this document, fees will be charged quarterly or monthly, in advance or in arrears. IARs can also charge a flat
dollar rate or percentage for managing multiple accounts held away or can charge a combination of percentage of
the value of assets under management. The IAR can also charge the Client commissions if the IAR is also a
Registered Representative.

Complete information regarding fees and charges assessed are described in applicable prospectuses and Client
account opening documents. Clients are advised to review these documents thoroughly prior to opening any
account.

FFS will provide a 30-day notification, in writing, of any change in the amount of the fees and charges. At the
expiration of the 30-day period, the new fees and charges will become effective unless the Client notifies FFS in
writing that the account is to be closed.

  I.    Independence Advisory
        Independence Advisory Accounts Custodied with Pershing
        Clients will pay FFS annual fees to participate in the account, as negotiated by the IAR and the Client.
        These fees are negotiable, which will result in different Clients paying different fees for similar services. The
        annual fees are prorated monthly and will be assessed at the beginning of each month based on the
        account value as of the close of business on the last business day of the preceding month, using the fee
        rate in place at that time. The fee shall be paid monthly in advance and FFS will instruct the custodian to
        deduct the fees from the account. The breakdown of the total fee is provided in detail in the Client’s
        executed Independence Advisory Agreement. Information on all fees and charges will also be provided to
        the Client via confirmations and/or statements.

        Fees for Independence Advisory accounts typically do not exceed 2.50% annually. Independence Advisory
        accounts typically require a minimum account balance of $25,000. Exceptions may be granted by the IAR.
        This may result in some clients maintaining accounts with less than $25,000. For accounts that are opened
        with less than $25,000 with the expectation of additional funding to occur, or if account value falls below
        $25,000, the fee is not to exceed 2.50% or the $125 minimum annual fee, prorated monthly, whichever is

greater. Accordingly, under some circumstances, a Client might pay an effective rate greater than 2.50%.
The annual fee received by FFS and the IAR does not include transaction charges and other account
related fees, which are described fully in the Independence Advisory Agreement provided to the Client at, or
before, establishing an account. The initial fee is due upon account funding and will be calculated at a
prorated amount.

Client will also incur certain charges imposed by investment companies, mutual funds, or third parties other
than FFS and the IAR in connection with investments made through the account, including, but not limited
to, the following types of charges: 12b-1 fees, shareholder services fees, management fees, servicing fees,
other transaction charges and service fees, and IRA and Qualified Retirement Plan fees. Client will also pay
the costs associated with executing trades in Client accounts applied by Pershing, summarized as ticket
charges. FFS will receive a portion of the ticket charges applied by the custodian to trades executed in
Client accounts. This creates a conflict of interest for FFS because the more trades executed in a Client
account the more ticket charges are applied, of which FFS receives a portion. This conflict of interest does
not apply to the IAR. Complete details of the ticket charges are provided in the Client’s executed
Independence Advisory Agreement.

The custodian will utilize a default money market fund or bank sweep option to allocate idle cash in each
Client account. This is done by automatically investing idle cash in the account’s default option. This default
action is primarily taken so that idle cash has the opportunity to earn interest for this type of liquid cash
holding. This money market fund or bank sweep option is also the first option that the custodian will
withdraw funds from to pay any debits on the account, including but not limited to advisory fees. Clients
should ask the IAR for information concerning the current default money market fund or bank sweep option
that the custodian has been instructed to use in Client accounts, the Client should request this information
directly from their IAR. Client may choose a money market fund or bank sweep option other than the
default. However, the custodian only has the ability to suppress 12b-1, shareholder service and other
similar fees on the default options. Further, the Client may find interest bearing liquid accounts not held at
the custodian will credit higher interest and as such should consider this as an option for the liquid cash
positions maintained in the Client account.

The Independence Advisory accounts offer transaction-fee (“TF”) mutual funds, as well as no-transaction-
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Item 7 - Types of Clients
FFS provides and offers investment advisory services to a broad array of clients, including individuals, high net
worth individuals, pension and profit-sharing plans, trusts, estates, charitable organizations, and corporations or
other businesses. The majority of FFS clients are retail clients that fall under the “Individuals (other than high-net-
worth individuals)” category. This category includes, but is not limited to, individual, joint, trust, IRA, 401(k)
participant, and custodial accounts.

The minimum account size varies by the advisory service:

I. Independence Advisory Accounts
     a. Independence Advisory Accounts Custodied at Pershing– $25,000
     b. Independence Advisory Accounts Custodied at Axos– $5,000
     c. Independence Advisory Accounts Custodied at Schwab– $5,000
     d. Independence Advisory for Held Away 401(k) Accounts – No Minimum

 II. Third-Party Asset Manager – will vary based upon sponsoring company standards

III. Managed Portfolio Program – $10,000

IV. Betterment Advisor Solutions – No Minimum

V. Freedom Capital Management Strategies®
      a. FCMS Managed Accounts – no account minimum but there are investment minimums for certain
         strategies within the program
      b. Private Wealth Solutions – Typically $750,000 at the Client household level
      c. Freedom Independence Plan™ – no minimum
      d. FreedomStrategies.com– no minimum

VI. Variable Annuity – will vary based upon insurance company standards

Under certain circumstances, FFS may waive the minimum account size requirement and accept accounts less than
minimums noted. Such circumstances may include but not be limited to anticipated additional assets to be managed
or whether the Client or any family members have assets under management with FFS.