CAMILLES SIDEWALK CAFE - FDD UFOC ITEM 7 Detail

ITEM 7

YOUR ESTIMATED INITIAL INVESTMENT

Please review the chart in conjunction with the notes that follow in this Item 7.

In general, none of the expenses listed in the above chart are refundable, except anv security deposits vou are required to make mav be refundable and the initial franchise fee is partially refundable in certain circumstances (see Item 5").

Notes:

1.                   The initial franchise fee is discussed in detail in Item 5 above. It is not refundable, except as discussed in Item 5. This fee may be different if development rights are purchased. Amounts paid to suppliers or third parties (other than us) may or may not be refundable, depending on the arrangement you make with your supplier. In addition, if you are a Development Agent, you will pay us a lump sum, non-refundable Development Agent Rights Fee of between $600,000 and $1,500,00 when you sign the DAA.

2.                   It is our standard practice to select a site within your geographic area, utilizing the services of our network of real estate brokers. Our brokers are familiar with commercial real estate contracts and terms and will identify a suitable location and, at our discretion, assist in negotiating lease terms with the landlord. The terms of the lease and the amount of the monthly lease payment and security deposit will depend on the geographic location and size and condition of the premises and the demand for the premises by other prospective tenants. These recurring overhead costs cannot be estimated. You will lease space from the owner of the mall or retail center on terms negotiated by you and the owner, with the assistance of our network of real estate brokers.

3.                   Leasehold improvement and construction costs vary significantly depending on the condition, location, size and configuration of the Restaurant premises, the layout of the mall or retail center, and other factors relating to the geographic location of the business, suppliers, government regulations, labor costs and other considerations. You will contract directly with the architect, construction contractor and possibly other construction suppliers on terms negotiated by you. We will assist you to supervise and manage the construction of the facility under our Construction Consulting Agreement, which is attached as Exhibit G to the Franchise Agreement. The above estimates are based upon the historical experience of our franchisees building more than 10 franchise locations. See also Item 6 for certain pre-opening costs vou mav incur if vour Restaurant is located within a Wal-Mart store.� In addition, if vour Restaurant will be located within a newlv constructed Wal-Mart Store, vou will incur the Leased Premises Improvement Charge (see Item 5); the Leased Premises Improvement Charge is not included in the above table.

4.                    This estimate includes the cost of all equipment, including the cash register and accounting reporting system, and the estimated charges for you to hire a general contractor for the construction in the mall or retail center.

5.                    You will contract with a local architect and pay the architect directly. This fee is an estimate of the architect cost based upon historical experience of our franchisees building more than 10 franchise locations.

6.                  This category includes an estimate of security deposits, utility deposits, food service licenses and other prepaid fees that you will be required to pay.

7.                  The cost of initial inventory and supplies, including food supplies, vary with the local market. The above figures are based upon estimates of reasonable quantities of inventory and supplies for the start-up of the business. The cost of the Gift Card program is $275 for the initial setup which includes the fee for 2 IP terminals, first month''s service fee and initial supply of 500 Gift Cards and 500 Camille''s branded brochures.

8.                  This category includes miscellaneous opening costs and expenses such as installation of telephones, initial insurance premiums, cost of uniforms and employee recruitment, out-of-pocket expenses for travel to training, training costs, and other miscellaneous costs, including the preparation by the Development Agent of a business plan.

9.                  This category is an estimate of initial operating capital required to initiate the operation of the business. This is only an estimate of the amount of operating capital needed.

10.               These fees are for miscellaneous real estate costs, such as broker incentives and market analysis studies.

11.               Additional funds may be required by the franchisee before the Restaurant is opened and to maintain the business during the first few months of operation. This category is intended to cover unforeseen costs that may arise during the initial six month phase of the business. It is anticipated that the Restaurant will not open for at least four months from the date of execution of the Franchise Agreement and cash flow may be minimal during the first few months the business is open. The amount included for this category is based upon the experience of at least 10 franchisees.

12.               We require you to use a web-based statistical analysis tool developed by Prediction Analytics, lnc.("Prediction") which will help you and your real estate broker better determine the site that you select for your Restaurant. Prediction is a designated supplier. See also Items 8 and 11.

13.               We cannot guarantee the actual total cost to open the franchise or the amount of operating capital required to operate the business. Your actual costs may vary greatly and will depend on many factors such as the size and condition of the space and cost to convert to a Camille''s Sidewalk Cafe, liquor licenses, your management skill, experience and business acumen, local economic conditions, the local market for the products, the prevailing wage rate, advertising expenditures, rental charges, level of competition, and the sales level achieved during the initial period. These figures should be reviewed carefully with a business advisor before making a decision to purchase the franchise. In compiling these figures, we relied on the experience of 10 or more franchisees who have built franchise businesses since 1999.

The above estimates of your initial investment do not include optional business organizational expenses or overhead expenses such as legal fees for review of the Franchise Agreement, review of the lease and the contracts with construction suppliers, organization of a new business entity, etc. Whether or not any such expenses are incurred is entirely at your discretion and cannot be predicted or estimated by us.

We have not included a separate table for the initial investment if you sign an Area Development Agreement. If you become an area developer, you will pay a development fee equal to $30,000 for the first restaurant to be developed plus $15,000 for each additional restaurant to be developed under the Area Development Agreement. The development fee is applied pro rata to the initial franchise fees due for each restaurant to be developed after the first. Other than the initial fee for the Area Development Agreement, actual start-up costs pertaining to the actual Restaurants opened under the Area Development Agreement are as estimated above, subject to potential increases over time or other changes in circumstances. If you execute an Area Development Agreement, your professional fees such as legal and financial may be higher.

We have not included a separate table for the initial investment if you sign a Development Agent Agreement. The Development Agent must own a minimum of two "Camille''s Sidewalk Cafe" Restaurants in the Development Area before signing the Development Agent Agreement. In addition, if you are a Development Agent, you will pay us a lump sum, non-refundable Development Agent Rights Fee of between $600,000 and $1,500,00 when you sign the DAA. In addition, the States of California. Illinois. New York and Virginia require vou to register as a subfranchisor, which includes filing vour own disclosure document with your own financial statements. We estimate that vour legal, accounting and registration filing fees in those states will initially cost between $10.000 and $20.000. You will incur annual re-registration fees (see Item 6),