E S T IM A T E D IN IT IA L I N V E STM E NT AM OUNT M E THOD OF PAYM E NT WHE N D UE TO WHOM PAYMEN T IS TO BE MADE $20,000 LUMP SUM AT SIGNING OF FRANCHISE AGREEMENT PIZZABOGO INTERNATIONAL, INC. $1,000 - 3,000 AS INCURRED PRIOR TO TRAINING AIRLINES, HOTELS AND RESTAURANTS RE AL ESTATE A ND I MP R OV EMEN TS ( N OT E 3) $70,000 – 100,000 LUMP SUM PRIOR TO OPENING CONTRAC TORS AND SUPPLIERS E Q UIPMENT (NOTE 3) $70,000 - 100,000 AS INCURRED PRIOR TO OPENING CONTRAC TORS AND SUPPLIERS SIGNS $6,000 -10,000 AS INCURRED PRIOR TO OPENING CONTRAC TORS AND SUPPLIERS M ISCE LL A NEOUS OP EN I N G COS TS ( N OT E 4) $3,000 - 7,000 AS INCURRED PRIOR TO AND AT OPENING MEDIA AND VENDORS O PE NIN G I NV ENTORY $3,000 - $6,000 AS INCURRED PRIOR TO OPENING VENDORS AS INCURRED EMPLOYEES, LENDERS, LANDLORDS, CREDIT CARDS, UTILITIES, PERSONAL LIVING EXPENSES T YPE OF EXPENDIT U RE I NITIAL FR A NC HI SE FEE ( N OT E 1) TRAVEL AND LIVING EXPENSES WHILE TRAINING (NOTE 2) AD D ITIONA L FUNDS - 3 MON T HS ( N OT E 5) TOTAL (NOTES 6, 7) $40,000 - $50,000 AS INCURRED $213,000-$296,000. CO NTAC T US today to ge t st a r ted. I nve st i n a bi gg e r, b o l de r fut ure ! As s u m e s o n e l o cati o n i n a si ngle exc lusive ter r itor y. This fee inc lud es t h e r i g ht to u s e o u r n a me, a p ro te c te d te r r i to r y w i t h a 1 0 -ye a r l i ce n s e, a l l t h e i n i t i a l t rai ni ng, o p e rat i ng m e t ho d s, co nfi d e nt i al o p e rat i ng m anual, m ar k e t in g mater i a l s, bu si n ess management sof t ware and t he use of ou r we b s i te. Th e fe e g o e s i nto o u r g e n e ra l fu n ds a n d i s n o t re fu n da b l e i n w h o l e o r i n p ar t und e r any c i rc um s t ance s, exce p t t hat i f t he Franc hi s e Agre e m e nt is te r m in ated by ei th er pa r t y p r ior to t he commencement of t he init ial t ra i n i n g p ro gra m, t we nt y- five p e rce nt (2 5 %) o f t h e I n i t i a l Fra n c h i s e Fe e t h at wa s a c t ually p ai d by Franc hi s e e s hall b e re f und e d. D e p e n ds o n n u mber o f tra i nees, d ist ance to t ravel, and accom mod at ion s c h o s e n . As s u m e s squ a re fo o ta ge o f ab out 1500 sq uare feet in a st r ip shop p ing ce nte r i n a co mme rc i a l l y zo n e d a re a a n d to t a l re nt i n c l u di n g C AM o f a b o u t $ 1 6 - $ 2 4 p e r s quare fo o t and o ne m o nt h re nt as s e c ur i t y d e p o s i t. The s e am o u nt s w i l l va r y by th e si te c hosen, t he ant ic ip ated t raffi c, t he am ount o f a c t u a l wo r k re q u i re d, w h e t h e r t h e re a re a ny u s e fu l e q u i p me nt a n d fix t u re s a l re ad y o n t he s i te, and whe t he r t he s i te and / o r e qui p m e nt i s ne w o r u s e d. Th e l o ca l co n stru c ti o n and healt h cod es will also c ause some cos t va r i a n ce. Th i s a s s u me s t h e H VAC s ys te m i s a l re a dy i n p l a ce a n d wo r k i n g. I n o rde r to f ur ni s h yo u a “ t ur nk e y ” f ranc hi s e Lo c at i o n, yo u and o ur affi li ate, p i z z aB OGO Co n stru c ti o n , I n c. (“PC I”), will enter into a mut ually agreeab l e co nt ra c t w h e re by PCI w i l l s u p e r vi s e a n d b e re s p o n s i b l e fo r a l l de s i gn a n d b u i l d- o ut at yo ur Lo c at i o n unt i l a Ce r t i fi c ate o f O cc up anc y i s i s s ue d. Yo u wi l l p ay P CI fo r i ts ser v i ces as well as t he cost s involved und er t he ter ms a n d co n di t i o n s o f s a i d co nt ra c t. Th is i n cl u des gra n d o pen i n g cost s, ut ilit y cost s and any incor p orat ion fe e s. Th is e s t i mates yo u r i n i ti a l st ar t-up ex p enses. These ex p enses d o not i n c l u de i n i t i a l p ayro l l co s t s, s h o u l d yo u c h o o s e to h ave e mp l oye e s. Th e s e fig u re s a re e s t i m ate s, and we c anno t guarante e t hat yo u wi ll no t have ad d i t i o nal ex p e n s e s sta r ti n g th e bu si n e ss. Your cost s will d ep end on fac tor s suc h a s : h ow mu c h yo u fo l l ow o u r me t h o ds a n d p ro ce du re s ; yo u r ma n a g e me nt s k i l l, ex p e r i e nce and b us i ne s s ac um e n; lo c al re gulato r y and e co no m i c co n d it i on s; th e l o ca l ma r ket for our p rod uc t ; t he p revailing wage rate; co mp e t i t i o n ; a n d t h e s a l e s l e ve l re a c h e d du r i n g t h e i n i t i a l p e r i o d. Th e s e i n c l u de t h e f und s yo u s ho uld have avai lab le i n yo ur b us i ne s s to cove r u n ex p e c ted bu si n ess- rel ated ex p enses and also t he savings you should h ave ava i l a b l e to p rovi de yo u r day to day p e r s o n a l l i vi n g exp e n s e s w h i l e yo u g e t t he Franc hi s e s t ar te d. Yo u s ho uld e valuate yo ur ac t ual ne e d s. We re l ied o n o u r exper i en ce to d ate in t he p izza t ake out and d eliver y b u s i n e s s to co mp i l e t h e s e e s t i mate s. Yo u s h o u l d re vi e w t h e s e fig u re s w i t h a b u s i n e s s ad v i s o r b e fo re m ak i ng any d e c i s i o n to p urc has e t he f ranc hi s e. We d o no t o ffer di rec t o r i n d irec t fi nanc ing to franc hisees for any item s.