Area Development Program

Refundability of Initial Fees.

Notes

1. Royalty Fee: The Royalty Fee begins immediately on the first month your Business is open for operation. The Royalty is due and payable monthly on the 10th day of each month, to be paid according to our specifications. Royalty and other fees shall be payable to us by direct deposit. See Schedule 5 of the Franchise Agreement. We reserve the right to change the time and manner of payment at any time upon written notice to you.

Notes

1. Initial Franchise Fee: The Initial Franchise Fee shown in the table above is for a single territory. All fees payable to us in the above table are non-refundable. Whether fees paid to third parties are refundable would depend on their policies.

2. Vehicle: You will need a vehicle to operate this franchise. These figures assume you will lease or finance the cost of an appropriate vehicle. If you pay cash for a vehicle, you will incur additional costs.

3. Inventory and Supplies: The opening inventory and supplies will vary based on expected volume of business.

4. Computer Hardware, Software, and Phones: You must obtain computer hardware, software, and smart phones to operate this business.

5. General Office Supplies: This amount is for general office supplies needed to begin operations.

6. Grand Opening Marketing and Advertising: You must spend these sums to promote the opening of the Franchised Business pursuant to our specifications.

7. Business Licenses and Permits: Estimated costs of obtaining required licenses and permits to operate your business. Some costs may vary depending on the location of the Franchised Business.

8. Insurance: You must purchase insurance per our specifications. Your costs will vary.

9. Professional Fees: You will incur professional fees to set up your entity, assist with this franchise purchase, and the start of your franchised business.

10. Additional Funds: 3 Months. We relied on our Affiliate experience in the format of the franchise business to compile these estimates. This estimate is for your miscellaneous expenses and working capital.

11. Total: We do not offer financing directly or indirectly for any part of the initial investment.

AREA DEVELOPMENT AGREEMENT

Note 1.The low-end comprises of the initial franchise fee of $20,000 plus the $20,000 for the additional two outlets ($10,000 x 2). The high-end comprises of the initial franchise fee of $20,000 plus the $50,000 for the additional four outlets ($10,000 x 4).

Note 2.The low-end comprises of the low-end estimate from the Item 7.A table, less the $20,000 initial franchise fee, as it is included in the Area Development Fee ($42,500 - $20,000 = $22,500). The high-end comprises of the high-end estimate from the Item 7.A table, less the $20,000 initial franchise fee, as it is included in the Area Development Fee ($55,250 - $20,000 = $35,250).

The estimates in this Chart 7(B) assume that you will be entering into an Area Development Agreement for the right to open and operate three to five Franchised Businesses within a Development Area and the cost of opening the first Franchised Business.

The Area Development Fee ranges from $40,000 to $60,000 for three to five territories, as explained in Item 5 above. The Area Development Fee includes the Initial Franchise Fee on the first territory purchased under the Development Agreement and one-half the Initial Franchise Fee on additional territories. You pay the remaining one-half of the Initial Franchise Fee on additional territories at the time you enter into Franchise Agreements for such territories.

This figure represents the total estimated initial investment required to open your initial Franchised Business under the Franchise Agreement you must enter into with us at the same time as the execution of your Development Agreement.

Other than the Development Fee, this figure does not include the costs associated with opening a second and subsequent locations which will incur additional costs.