Item 7

Type of Expenditure Amount Method of Payment When Due To Whom Payment is Made
Initial Franchise Fee $25,000-$59,500 Lump Sum Prior to Execution of Franchise Agreement The Company
Travel and living expenses while attending initial training $1,000-$2,000 As Incurred During Initial Training Airlines, Hotels, and Restaurants
Real Estate
Opening Inventory $4,000-$6,000 Lump Sum Prior to Opening Suppliers
Fixtures and Equipment (including computer equipment) $58,000-$68,000 Lump Sum Prior to Opening Contractors and/or Suppliers
Leasehold Improvements $75,000-$115,000 Lump Sum Prior to Opening Contractors and/or Suppliers
Supplemental Services Fee $3,000-$5,000 Lump Sum Prior to Opening The Company
Professional Fees $1,000-$5,000 As Incurred Prior to Opening Suppliers
Permits and Licenses $1,000-$3,500 As Incurred Prior to Opening Local and State Agencies
Lease Deposit $0-$10,000 Lump Sum Prior to Opening Landlord
Signage $4,000-$8,000 Lump Sum Prior to Opening Suppliers
Miscellaneous Opening Costs $3,000-$5,000 As Incurred As Incurred Suppliers, Utilities, etc.
Insurance $1,300-$2,500 Lump Sum Prior to Opening Insurance Company
Grand Opening Advertising $30,000 Lump Sum Prior to Opening The Company
Additional Funds - 6 months $40,000-$75,000 As Incurred As Needed Employees, Creditors and/or Suppliers
Total $246,300-$394,500