Item 7

Type of ExpenditureAmountMethod of PaymentWhen DueTo Whom Payment is Made
Initial Franchise Fee$25,000-$59,500Lump SumPrior to Execution of Franchise AgreementThe Company
Travel and living expenses while attending initial training$1,000-$2,000As IncurredDuring Initial TrainingAirlines, Hotels, and Restaurants
Real Estate
Opening Inventory$4,000-$6,000Lump SumPrior to OpeningSuppliers
Fixtures and Equipment (including computer equipment)$58,000-$68,000Lump SumPrior to OpeningContractors and/or Suppliers
Leasehold Improvements$75,000-$115,000Lump SumPrior to OpeningContractors and/or Suppliers
Supplemental Services Fee$3,000-$5,000Lump SumPrior to OpeningThe Company
Professional Fees$1,000-$5,000As IncurredPrior to OpeningSuppliers
Permits and Licenses$1,000-$3,500As IncurredPrior to OpeningLocal and State Agencies
Lease Deposit$0-$10,000Lump SumPrior to OpeningLandlord
Signage$4,000-$8,000Lump SumPrior to OpeningSuppliers
Miscellaneous Opening Costs$3,000-$5,000As IncurredAs IncurredSuppliers, Utilities, etc.
Insurance$1,300-$2,500Lump SumPrior to OpeningInsurance Company
Grand Opening Advertising$30,000Lump SumPrior to OpeningThe Company
Additional Funds - 6 months$40,000-$75,000As IncurredAs NeededEmployees, Creditors and/or Suppliers