PIGTAILS AND CREWCUTS - FDD UFOC ITEM 7 Detail

ITEM 7³⁵¹

^"ESTIMATED ³⁵³INITIAL INVESTMENT³⁵⁴ Below are estimates of your total initial investment.�Your actual investment and expenditures may vary from the estimates below��� depending on many factors including where your Salon is situated, the size of your Salon, your ability to negotiate to your benefit with your landlord, your management capabilities, and the amount contributed by your landlord³⁵⁶t³⁵⁷

Note 1: The initial franchise fee includes the loan of our Operations Manual and initial training for you and your Operating Manager (if someone other than you). See Item 11 of this Offering Circular ³⁷⁹for additional information about the initial training program. A portion of the initial franchise fee is refundable under certain conditions (See Item 5 of this Offering Ctfetto³⁸⁰). We offer a discount structure if vou agree to develop and operate at leasjJLoj; 5 Salons (See Item S\. This chart assumes vou have not entered into an Development Addendum³*''

Note 2: These figures presume that you will be leasing the Pigtails & Crewcuts Salon premises. Leasing expenses will vary depending upon the size of the premises, its location, and the requirements of individual landlords. Landlords typically require payment in advance of the first and/or last (or more) month''s rent. The total estimated initial investment shown in the chart above includes the amount of these estimated annual rental³⁸²nre-onening³⁸³ costs (including the "triple net" costs). Some franchisees prefer to own the Pigtails & Crewcuts Salon premises in which they will operate. The costs of purchasing vary so widely as to preclude reasonable estimation by us. Regardless of whether you lease or purchase the Pigtails & Crewcuts Salon premises, a typical Pigtails & Crewcuts Salon occupies approximately 1,200 to 1,800 square feet of space. The Pigtails & Crewcuts Salon may be either a freestanding building or an in-line retail plaza space, but, in any event, the Salon must have ample parking, good visibility and availability of prominent signage. The cost of leasehold improvements will vary widely depending upon the size and condition of the premises, whether or not there are any existing and comparable leasehold improvements in the premises, the extent and quality of improvements desired by you over and above our minimum requirements, landlord''s cash contribution to the cost of the improvements, and the like. The amount shown is based upon our past experience. These figures may vary considerably throughout different parts of the United States.

Note 3: We provide initial training at no charge, but you must arrange and pay for all food and lodging expenses for the people who attend the initial training program. Costs vary depending on the distance traveled and the type of lodging.

Note 4: You must conduct a grand opening advertising campaign with the opening of your Salon. You must pay all costs of the grand opening, including publicity costs, promotional costs, plus the full cost of any price reductions or other customer inducements. We will assist you with developing and carrying out the grand opening campaign. Costs may vary depending on your market and the type of advertising used.

Note 5: This figure includes security deposits, utility costs, insurance premiums, business licenses, and permits.

Note 6: This estimates your expenses during the first three months of operation. These expenses include payroll costs (excluding any wage or salary paid to you), other miscellaneous expenses and working capital. These figures are estimates based on our past business experience. We cannot guarantee that you will not have additional expenses starting the business. Your costs will depend on factors like how closely you follow our methods and procedures; your management skill, experience and business knowledge; local economic conditions; the local market for our product; the prevailing wage rate; competition; and the sales level achieved during the initial period.

Note 7: We relied on our own experience, our predecessor''s experience in operating the original Pigtails & Crewcuts Salon, and our management''s business acumen to compile these estimates. These figurcs³⁸⁴Your actual investment and expenditures³⁸⁵ may vary considerably throughout different parts of the United States_T³ⁱⁱ⁶ depending on many factors including where vour Salon is situated, the size of vour Salon, vour ability to negotiate to vour benefit with vour landlord, vour management capabilities, and the amount contributed bv vour landlord³⁸⁷. You should review these figures carefully with a business advisor before making any decision to purchase the franchise.

Note 8: We do not offer direct or indirect financing to franchisees for any of these items.
The availability and terms of financing will depend on factors like the availability of financing
generally, your credit worthiness, collateral you pledge, policies of your lending institution, and
economic conditions in your area. The estimate does not include anv finance charges,
interest, or debt service obligations. Except for a portion of the initial franchise fee, no
amounts�� in�� the�� chart�� are�� refundable.����������������������������������������� See�� also�� Item�� 10�� of this Offering

CircuIar³⁸⁹disclosure document³⁹⁰.