JENNY CRAIG - FDD UFOC ITEM 7 Detail

(a)                  

ITEM 7.����������������� ESTIMATED INITIAL INVESTMENT

YOUR ESTIMATED INITIAL INVESTMENT

Mu It is tat e Jenny Craig FDD 3/2008

Notes:

(1) All amounts are non-refundable, except that security deposits you pay to the landlord and utilities are sometimes refundable. As described in Item 5, the Initial Franchise Fee is refundable, less $5,000, if the Franchise Agreement is terminated under the Site Selection Addendum. If you sign a Development Agreement, the Development Fee will be $10,000 for each Weight Loss and Weight Management Centre to be established under the Development Schedule. In addition, if you enter into a Development Agreement for the establishment of 3 or more Weight Loss and Weight Management Centres, and provided you are in compliance with the Development Agreement, the Initial Franchise Fee for each of the 3^rd, 4^,h, and 5^,h Weight Loss and Weight Management Centres established under the Development Agreement will be reduced to $22,500; and the Initial Franchise Fee for the 6^lh and for each additional Weight Loss and Weight Management Centre established under the Development Agreement will be reduced to $20,000. If you are a transferee who is executing our then-current form of Franchise Agreement for a full term, you will pay a pro rata portion of the Initial franchise Fee for the additional months that the new franchise agreement extends beyond the remaining term of the existing Franchise Agreement at the time of transfer.

(2)                  This estimate is for the first 3 months rent and a security deposit equal to one month''s rent for a facility of 1,000 to 2,000 square feet in a shopping center with parking and access to public transportation. The estimate assumes you pay annual rent in an amount ranging from $10.00 to $30.00 per square foot. Actual rent for Weight Loss and Weight Management Centres varies widely because of different locations, size of the premises, and market conditions in different areas.

(3)                  As described in Item 5, if we deem on-site evaluation necessary and appropriate under the Site Selection Addendum, we reserve the right to charge you a Site Evaluation Fee.

(4)                  If you are opening a New Centre, we can require you to use the services of an approved site selection and acquisition services company.

(5)                  This estimate is for a Centre with 4 to 7 rooms consisting of a reception area, consulting rooms, a food storage room and a lavatory. The cost to construct interior alterations and improvements and decorate the Centre depends on the extent of the renovations needed to convert space into these separate offices and areas, and any allowance you negotiate with the lessor for construction.

(6)                  If you are opening a new Centre, we can require you to use the services of an approved construction management services company.

(7)                  This estimate is for indoor and outdoor signage consisting of two-foot channel light letters. The cost of each Centre''s sign depends on a number of factors, including the requirements of the landlord, local sign ordinances, and the number and types of signs to be installed.

(8)                  These estimates are for 6 desks, 25 chairs, reception area fixtures, carpeting, graphics, and shelving. The actual cost may vary widely depending on the market conditions. If you select more costly furnishings or decor you could exceed these estimates. Payment for these items will generally be made to third parties but may, in some instances at your election, be made to us or one of our affiliates.

(9)                  Estimates for installation of commercial freezers, either walk-in or stand alone, for storing frozen food products. Other equipment includes televisions, videocassette recorders, telephone systems, and scales.

(10)               You must expend at least $3,000 on grand opening advertising and promotional programs when your Centre has its initial grand opening, pursuant to a grand opening marketing plan developed by us or developed by you and approved by us in writing (the "Grand Opening Advertising Program"). The Grand Opening Advertising Program must be executed and completed within 60 days after the Centre commences operation. You must submit to us, for our prior written approval, a marketing plan and samples of all advertising and promotional material not prepared or previously approved by us. For the purpose of the Franchise Agreement, the Grand Opening Advertising Program will be considered local advertising and promotion.

(11)               The amount of training expense will depend, in part, on the cost of personnel you hire. The initial staff generally consists of three employees, one of whom may be the Centre Director. You will incur some or all of the costs for training your staff before opening. We provide instructors and instructional materials. You pay for transportation, lodging and meals for yourself and your employees and wages for your employees. The costs you incur will depend on the distance you travel and the accommodations you choose. Additionally, you (or the principal designated to supervise the Centre) and one additional employee of the Centre must attend our initial training program. You will incur salary, travel, lodging and meal expenses.

(12)               Computers are purchased from JC Management. Each Centre must have at least 4 computers, plus associated peripherals, currently costing $20,000 to $35,000, depending on the size of the Centre. JC Management currently provides the POS software at no charge (this excludes any other software, which is your cost). This software currently consists of a generic POS and customer service management software. We or JC Management can require you to upgrade the Centre Computer Systems hardware or software at any time. See Item 11 of this Franchise Disclosure Document for more information.

(13)              Estimates are for supplies and inventory of food products, printed materials, cleaning expenses, temporary warehouse and/or receiving facilities to store products shipped before the Centre being fully constructed, and office and general supplies for three months after the opening of your Centre.

(14)              Estimated annual premiums for insurance covering product liability claims, personal injury, and property damage with us named as a co-insured, with limits of at least $1,000,000 combined single limit, and with an insurer meeting the requirements of Section 11 of the Franchise Agreement.

(15)              Estimated deposits and expenses for three months of utilities consisting of electricity, gas, water and telephone. The amount of the deposits will depend on practices of the utility companies and their estimates of your monthly expenses and credit.

(16)              You may be required to register your business with your state government and local agencies. They may charge a fee for registration.

(17)              Estimate applies to employing an architect, engineer, or us to prepare preliminary floor plans and final drawings for the Centre in accordance with our standard plans.

(18)              You should consult an attorney or accountant or both to advise you before you sign the Franchise Agreement or Development Agreement.

(19)              You will need capital to pay on-going expenses, including payroll, to the extent that these costs are not covered by sales revenue, before operations begin and during the initial period of operations. The figure in the chart is for the first 3 months of operations of the Centre. New businesses usually generate a negative cash flow.

(20)              We relied on JCI''s and our experience of over 20 years in the industry when preparing these figures.

There are no other direct or indirect payments to us when you purchase your franchise.

There are no incremental initial investment costs if you become an area developer. You simply will have an obligation to open additional Centres over a period of time.