PRONTOWASH USA - FDD UFOC ITEM 7 Detail

ITEM 7 ESTIMATED INITIAL INVESTMENT

YOUR ESTIMATED INITIAL INVESTMENT FOR A CAR WASH AND DETAIL POINT OF

SERVICE AT A RETAIL MALL LOCATION*

(2)������� Location Fee varies from $0 to $25,000 depending on Tier Grade of location
selected. You pay this fee when your location is selected and lease with property owner is signed.
See Item 5 for matrix.

(3)    The items in these columns (equipment, uniforms, opening inventory, permit and contract administrative fee, grand opening advertising materials and promotional supplies) are part of the start up kit you purchase from us. The low estimate assumes you operate only 2 MDUs. The high estimate assumes you operate 5 MDUs.

(4)    This estimate assumes you purchase approximately 2 to 5 MDUs and accessories. If you choose to purchase additional MDUs, your expenses in this category will be more. On termination or expiration of the Franchise Agreement, we can buy back all or some of the MDUs and other equipment. You may return the MDUs for a refund before termination or expiration of your franchise. The amount refunded will be at a depreciated value. See depreciation schedule attached to the Franchise Agreement.

(5)    The operations set up estimate is for creation of a legal entity to operate and includes government fees and related professional advice. The low estimate assumes you elect not to establish a legal entity or you already have one established.

(6)                Estimated shipping and handling costs to send MDUs and other initial equipment and supplies to you. The low cost assumes shipping 2 MDUs to a location in Florida. The high cost assumes shipping up to 5 MDUs to northern California. We may ship large orders in one or more shipments. MDUs are generally stored at the facility where you operate. We do not require you to transport MDUs to other locations. Accordingly, we do not expect you to incur costs for transporting MDUs from one location to another.

(7)                Estimated cost for your retail layout set up at your POS. The low estimate assumes you operate in an interior covered parking lot. The high estimate assumes you operate in a parking lot located outdoors and requires structural signage and canopies.

(8)                Estimated cost for uniforms, including training shirts, polos, caps, and pants. These estimates assume that you buy two sets of trainee uniforms per technician at a cost of $50 per set; two sets of supervisor/manager uniforms at a cost of $35 per set and that you use our contracted third party uniform providers for on-going servicing. The low estimate assumes 5 technicians on staff. The high estimate assumes 10 technicians on staff.

(9)� Estimated cost for opening inventory, including 6 month supply of cleaning liquids and
related materials for 500-750 car washes per month. This is an inventory/cost estimate and must not
be used to project sales, revenue or income.

(10)            The permit and contract administrative fees cover our expenses for preparing, reviewing and completing your location contracts paperwork and related paperwork to be submitted to government agencies. Low estimate assumes no paperwork is required to be submitted for permits.

(11)            Expenses to travel to and from training location and for hotel and meals for 6 days. This estimate assumes up to $500 for round trip airfare, 6 nights in a hotel at $100 per night, and

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$40 for meals per day for 6 days. The low estimate assumes only one person is trained. The high estimate assumes you bring two other people to the training (3 total).

(12)            Estimated 3 months rent at $150 per designated parking space per month at 10 spaces. The low estimate assumes you have arrangements where you do not need to pay rent.

(13)            You pay this to cover related administrative costs for preparing and reviewing lease documentation by a broker who is used to find a location for your franchise - approximately 1 month rent. The low estimate assumes a broker is not used.

(14)            You must conduct grand opening advertising and have ProntoWash personnel present to assist. The low estimate assumes only promotional flyers and collateral materials at an approximate cost of $1,000 with no travel and living expenses for ProntoWash personnel. The high estimate assumes more extensive public relations and advertising with free car washes at an approximate cost of $6,500 plus related travel and living expenses for two staff members for 7 days and 7 nights including airfare, rental car at $500 and $ 175 a day for hotel and staff member meals.

(15)            Estimated government costs for processing a business license and permits which typically you must obtain from the city, county and/or state.

(16)            Estimated cost for signage at your location. The low estimate assumes only a booth and frame signs, parking space poles, and posters at an approximate cost of $2,000 per Detail Center Hub. The high estimate assumes more extensive signage that will vary based on interior or exterior retail layout, the property management''s preferences as well as the placement of a second hub at a cost of up to $6,000.

(17)            Estimated cost for making improvements to the facility where you are located, for office space, storage and electrical/water access. The low estimate assumes no improvements are needed.

(18)            Estimated cost for fixtures, including storage, lockers, desk, shelves, etc.

(19)            Estimated cost to recruit employees. The high estimate assumes you obtain assistance from an employment placement agency and place advertisements for employment at your location. The low estimate assumes you have washers already available.

(20)            Estimated costs of employee salaries for 3 months at $400 to $500 a week. The low estimate assumes you hire 2 employees at $400 per week. The high estimate assumes you compensate up to 5 employees at $500 per week of which one serves as a sales supervisor and manager. All washers are paid a base compensation and/or a percentage of sales-services.

(21)            You must reimburse our employees'' travel and living expenses while providing initial consultation services to you at your Point of Service (See Item 11). The low estimate assumes we do not send any staff. The high estimate assumes we send one person to your location prior to launch and is based on travel and living expenses for up to 3 days and 3 nights including airfare, rental car at $500 and $175 per day for hotel and meals.

(22)        This estimate is if you elect to lease and upgrade (with appropriate ProntoWash logos) golf carts to provide transportation to your customers. The high estimate assumes you elect to lease 2 golf carts for your POS. The low estimate assumes you do not lease any golf carts.

(23)        Estimate for maintaining on-going inventory. The low estimate assumes you do not maintain additional inventory; the high estimate assumes you purchase additional inventory.

(24)            Estimated one year premium for required insurance. Insurance premiums may vary based on sales and other factors. You must obtain general liability coverage including contractual liability and advertising injury coverage of at least $2,000,000 naming us and the indemnitees identified in the franchise agreement as additional insureds; garage keeper; fire and casualty insurance; business interruption insurance; and worker''s compensation, employer''s liability, unemployment and state disability insurance. We can revise required coverages and amounts.

(25)            Estimated finance fees you may incur and need to repay in the first three months of operation if you obtain financing from a lender to operate your business. The low estimate assumes you do not obtain financing. The high estimate assumes you purchase the franchise, equipment, assets and fixtures through loan(s) from a lender. You will exceed the high estimate if interest rates increase.

(26)            We recommend that you have some additional funds available to pay for royalty and advertising fees for the first three months of operation as well as other expenses. The low estimate assumes royalty and advertising fees for one Detail Center Hub plus approximately $ 1,050 in miscellaneous expenses and the high estimate assumes royalty and advertising fees for one Detail Center Hub plus approximately $7,050 in miscellaneous expenses. The estimate assumes you will not achieve sufficient Gross Sales in the first 3 months of operations to be required to pay more than $ 1,000 in royalties and $ 150 in advertising fees per month. We used our experience in operating and managing company owned locations to provide you this estimate. This is an inventory/cost estimate and must not be used to project sales, revenue or income.

(27)            Estimated charges for you to consult with independent professional advisors like a lawyer and CPA. This estimate also takes into account your hiring of a land use attorney to process permits and other government approval to open your location.

(28)            PDA based POS software and hardware costs include initial software at $800 for initial version and up to $1,''500 for upgraded version with CRM components and corresponding PDA and card processing hardware, which will be approximately $ 1,200 depending on the hardware selected. A monthly maintenance fee of $36 for Primary HUB and $ 18 for each secondary HUB per POS also applies. (See Item 11). The low estimate assumes initial version of PDA software with a base PDA hardware model. The high estimate assumes the additional purchase of a notebook computer for up to another $1,900.

(29)            You may not achieve the low estimate of zero in any category where zero is indicated.

(30)            There may be other factors not listed that may affect your initial investment. If your expenses exceed the high amounts in one or more categories your total investment could exceed the high estimate.

YOUR ESTIMATED INITIAL INVESTMENT FOR A CAR WASH AND DETAIL POINT OF SERVICE AT AN OFFICE BUILDING OR OTHER FACILITY*

Footnotes:

(*) This table provides estimates for a mobile Car Wash and Detail Point of Service located at a parking lot of a Office Building/Other facility. This table estimates your initial investment from the period before your Point of Service opens for business, until about 3 months of operations. We used our and PWl''s experience to make these estimates. These are only estimates. Except as indicated, none of the fees are refundable. See Item 10 for the financing we may provide.

(1) We charge an initial fee of between $5,000 and $15,000 based on the number of parking structures or spaces associated with the location as set forth in the table below:

*Fees are based on whichever threshold is reached first. For example, if the location involves two parking structures with only 1,500 spaces, the initial fee is $ 10,000. If the location involves one parking structure with 2,500 spaces, the initial fee is $10,000.

You pay the initial fee in a lump sum on signing the Franchise Agreement. We do not currently offer financing for the initial fee, but can refer you to third party financing companies on request (See Item 10). If you and we cannot agree on a site for your franchise, either party may terminate the agreement, in which case we will refund the initial fees paid under the franchise agreement less all reasonable costs incurred by us in preparing the franchise agreement and all related documents, the grant of the franchise, and other services and efforts provided. However, in no event will the total refund be more than 50% of the franchise fee paid.

(2)    We charge a non-refundable training fee of $1,500. You pay the training fee in a lump sum on signing the Franchise Agreement. The training fee is only required to be paid for the first location and is waived if you previously received training from us.

(3)    Location Fee varies from $0 to $25,000 depending on Tier Grade of location selected. You pay this fee when your location is selected and lease with property owner is signed. See Item 5 for Matrix.

(4)    The Items in these columns (equipment, uniforms, opening inventory, permit and contract administrative fees, grand opening advertising materials and promotional supplies) are part of the start up kit you purchase from us. The low estimate assumes you operate only 1 MDUs. The high estimate assumes you operate 5 MDUs.

(5)    This estimate assumes you purchase 1 to 5 MDUs and accessories. If you choose to purchase additional MDUs, your expenses will be more. On termination or expiration of the Franchise Agreement, we can buy back all or some of the MDUs and other equipment. You may return the MDUs for a refund before termination or expiration of your franchise. The amount refunded will be at a depreciated value. See depreciation schedule attached to the Franchise Agreement.

(6)    The operations set up estimate is for creation of a legal entity to operate and includes government fees and related professional advice. The low estimate assumes you elect not to establish a legal entity or you already have one established.

(7)    Estimated cost for shipping and handling to send MDUs and other initial equipment and supplies to you. The low cost assumes shipping 1 MDUs to a location in Florida. The high cost assumes shipping 5 MDUs to northern California. MDUs are generally stored at the facility where you operate. We do not require you to transport MDUs to other locations. Accordingly, we do not expect you to incur costs for transporting MDUs from one location to another.

(8)    Estimated cost for your retail layout set up at your POS. The low estimate assumes you operate in an interior covered parking lot. The high estimate assumes you operate in a parking lot located outdoors and requires structural signage and canopies.

(9)      Estimated cost for uniforms including training shirts, polos, caps, and pants. These estimates assume that you buy two sets of trainee uniforms per Technician at a cost of $50 per set; two sets of supervisor/manager uniforms at a cost of $35 per set and that you utilize our contracted third party uniform providers for on-going servicing. The low estimate assumes 2 Technicians on staff. The high estimate assumes 5 Technicians on staff.

(10)   Estimated cost for opening inventory, including 6 month supply of cleaning liquids and related materials for 200-300 car washes per month. This is an inventory/cost estimate and must not be used to project sales, revenue or income.

(11)   The permit and contract administrative fees cover our expenses for preparing, reviewing and completing your location contracts paperwork and related paperwork to be submitted to government agencies. Low estimate assumes no paperwork is required to be submitted for permits.

(12)   Expenses to travel to and from training location and for hotel and meals for 6 days. This estimate assumes up to $500 for round trip airfare, 6 nights in a hotel at $ 100 per night, and $40 for meals per day for 6 days. The low estimate assumes only one person is trained. The high estimate assumes you bring two other people to the training (3 total).

(13)   Estimated 3 months rent at $100 per designated parking space per month at 10 spaces. The low estimate assumes you have arrangements where you do not need to pay rent.

(14)   You pay this to cover related administrative costs for preparing and reviewing lease documentation by a broker who is used to find a location for your franchise - approximately 1 month rent. The low estimate assumes a broker is not used.

(15)   You must conduct grand opening advertising and have ProntoWash personnel present to assist. The low estimate assumes only promotional flyers and collateral materials at an approximate cost of $ 1,000 with no travel and living expenses for ProntoWash personnel. The high estimate assumes more extensive public relations and advertising with free car washes at an approximate cost of $6,500 plus related travel and living expenses for two staff members for 7 days and 7 nights including airfare, rental car at $500 and $ 175 per day for hotel and staff member meals.

(16)   Estimated government costs for processing a business license and permits which typically you must obtain from the city, county and/or state.

(17)   Estimated cost for signage at your location. The low estimate assumes only a booth and frame signs, parking space poles, and posters at an approximate cost of $2,000 per Detail Center Hub. The high estimate assumes more extensive signage that will vary based on interior or exterior retail layout, the property management''s preferences as well as the placement of a second hub at a cost of up to $4,000.

(18)   Estimated cost for making improvements to the facility where you are located, for office space, storage and electrical/water access. The low estimate assumes no improvements are needed.

(19)   Estimated cost for fixtures, including storage, lockers, desk, shelves, etc.

(20)   Estimated cost to recruit employees. The high estimate assumes you obtain assistance from an employment placement agency and place advertisements for employment at your location. The low estimate assumes you have washers already available.

(21)   Estimated costs of employee salaries for 3 months at $400 to $500 a week. The low estimate assumes 2 employees at $400 per week. The high estimate assumes you compensate up to 2 employees of which one serves as a sales supervisor and manager at $500 per week. All washers are paid a base compensation and/or a percentage of sales-services.

(22)   You must reimburse our employees'' travel and living expenses while providing initial consultation services to you at your Point of Service (See Item 11). The low estimate assumes we do not send any staff. The high estimate assumes we send one person to your location prior to launch and is based on travel and living expenses for up to 3 days and 3 nights including airfare, rental car at $500 and $ 175 a day for hotel and meals.

(23)   This estimate is if you elect to lease and upgrade (with appropriate ProntoWash logos) golf carts to provide transportation to your customers. The high estimate assumes you elect to lease 1 golf cart for your POS. The low estimate assumes you do not lease any golf carts.

(24)   Estimate for maintaining on-going inventory. The low estimate assumes you do not maintain additional inventory; the high estimate assumes you purchase additional inventory.

(25)   Estimated one year premium for required insurance. Insurance premiums may vary based on sales and other factors. You must obtain general liability coverage including contractual liability and advertising injury coverage of at least $2,000,000 naming us and the indemnitees

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identified in the Franchise Agreement as additional insureds; garage keeper; fire and casualty insurance; business interruption insurance; and worker''s compensation, employer''s liability, unemployment and state disability insurance. We can revise required coverages and amounts.

(26)   Estimated finance fees you may incur and need to repay in the first three months of operation if you obtain financing from a lender to operate your business. The low estimate assumes you do not obtain financing. The high estimate assumes you purchase the franchise, equipment, assets and fixtures through loan(s) from a lender. You will exceed the high estimate if interest rates increase.

(27)   We recommend that you have some additional funds available to pay for royalty and advertising fees for the first three months of operation as well as other expenses. The low estimate assumes royalty and advertising fees for one Detail Center Hub and the high estimate assumes royalty and advertising fees for one Detail Center Hub plus approximately $3,000 in miscellaneous expenses. The estimate assumes you will not achieve sufficient Gross Sales in the first 3 months of operations to be required to pay more than $500 in royalties and $ 150 in advertising fees per month. We used our experience in operating and managing company owned locations to provide you this estimate. This is an inventory/cost estimate and must not be used to project sales, revenue or income.

(28)   Estimated charges for you to consult with independent professional advisors like a lawyer and CPA. This estimate also takes into account your hiring of a land use attorney to process permits and other government approval to open your location.

(29)   PDA based POS software and hardware costs include initial software at $800 for initial version and up to $1,500 for upgraded version with CRM components and corresponding PDA and card processing hardware will be approximately $ 1,200 depending on the hardware selected. A monthly maintenance fee of $36 for Primary HUB and $18 for each secondary HUB per POS also applies. (See Item 11). The low estimate assumes initial version of PDA software with a base PDA hardware model. The high estimate assumes the additional purchase of a notebook computer for up to another $1,900.

(30)   You may not achieve the low estimate of zero in any category where zero is indicated.

(31)   There may be other factors not listed that may affect your initial investment. If your expenses exceed the high amounts in one or more categories your total investment could exceed the high estimate.

YOUR ESTIMATED INITIAL INVESTMENT FOR A CAR WASH POINT OF SERVICE AT A

CONVERSION LOCATION*

Footnotes;

(*) This table provides estimates for converting your existing car wash/detailing business to a ProntoWash franchise. Your location could be either a Retail Mall location or an Office Building/Other location. The low estimates are based on an Office Building/Other location while the high estimates are based on a Retail Mall location. This table estimates your initial investment from the period before your Point of Service opens for business, until about 3 months of operations. We used our and PWI''s experience to make these estimates. These are only estimates. Except as indicated, none of the fees are refundable. See Item 10 for the financing we may provide. Because you already have an existing business, this table does not include the following expenses which you should have already incurred: retail layout, permit and contract administrative fees, initial rent, lease review costs, permit and business license fees, improvements, fixtures, employee recruitment and initial salaries, insurance and lender finance fees.

(1)    We charge an initial fee that is 50% of the current initial fee for the applicable type of franchise location you will operate, whether a Retail Mall or Office Building/Other location. See Item 5. The low estimate assumes you operate at a Corporate/Other location in one building with less than 2,000 parking spaces. The high estimate assumes you operate at a Retail Mall location.

You pay the initial fee in a lump sum on signing the Franchise Agreement. We do not currently offer financing for the initial fee, but can refer you to third party financing companies on request (See Item 10). If you and we cannot agree on a site for your franchise, either party may terminate the agreement, in which case we will refund the initial fees paid under the franchise agreement less all reasonable costs incurred by us in preparing the franchise agreement and all related documents, the grant of the franchise, and other services and efforts provided. However, in no event will the total refund be more than 50% of the franchise fee paid.

(2)    We charge a non-refundable training fee of between $ 1,000 and $5,000 depending on the size and type of your business. You pay the training fee in a lump sum on signing the Franchise

Agreement. The training fee is only required to be paid for the first location and is waived if you previously received training from us.

(3)    Location Fee varies from $0 to $25,000 depending on Tier Grade of location selected. You pay this fee when your location is selected and lease with property owner is signed. See Item 5 for Matrix.

(4)    The Items in these columns (equipment, uniforms, opening inventory, grand opening advertising materials and promotional supplies) are part of the start up kit you purchase from us. The low estimate assumes you operate only 1 MDUs. The high estimate assumes you operate 5 MDUs.

(5)    This estimate assumes you purchase 1 to 5 MDUs and accessories. If you choose to purchase additional MDUs, your expenses will be more. On termination or expiration of the Franchise Agreement, we can buy back all or some of the MDUs and other equipment. You may return the MDUs for a refund before termination or expiration of your franchise. The amount refunded will be at a depreciated value. See depreciation schedule attached to the Franchise Agreement.

(6)    Estimated cost for shipping and handling to send MDUs and other initial equipment and supplies to you. The low cost assumes shipping 1 MDUs to a location in Florida. The high cost assumes shipping 5 MDUs to northern California. MDUs are generally stored at the facility where you operate. We do not require you to transport MDUs to other locations. Accordingly, we do not expect you to incur costs for transporting MDUs from one location to another.

(7)        Estimated cost for uniforms including training shirts, polos, caps, and pants. These estimates assume that you buy two sets of trainee uniforms per Technician at a cost of $50 per set; two sets of supervisor/manager uniforms at a cost of $35 per set and that you utilize our contracted third party uniform providers for on-going servicing. The low estimate assumes 2 Technicians on staff. The high estimate assumes 5 Technicians on staff.

(8)    Estimated cost for opening inventory, including 6 month supply of cleaning liquids and related materials for 200-300 car washes per month. This is an inventory/cost estimate and must not be used to project sales, revenue or income.

(9)    Expenses to travel to and from training location and for hotel and meals for 2 days. This estimate assumes up to $500 for round trip airfare, 1 night in a hotel at $ 100 per night, and $40 for meals per day for 2 days. The low estimate assumes only one person is trained. The high estimate assumes you bring two other people to the training (3 total).

(10)   You must conduct grand opening advertising and have ProntoWash personnel present to assist. The low estimate assumes only promotional flyers and collateral materials at an approximate cost of $1,000 with no travel and living expenses for ProntoWash personnel. The high estimate assumes more extensive public relations and advertising with free car washes at an approximate cost of $6,500 plus related travel and living expenses for two staff members for 7 days and 7 nights including airfare, rental car at $500 and $ 175 per day for hotel and staff member meals.

(11)   Estimated cost for signage at your location. The low estimate assumes only a booth and frame signs, parking space poles, and posters at an approximate cost of $2,000 per Detail Center Hub. The high estimate assumes more extensive signage that will vary based on interior or exterior retail layout, the property management''s preferences as well as the placement of a second hub at a cost of up to $4,000.

(12)   You must reimburse our employees'' travel and living expenses while providing initial consultation services to you at your Point of Service (See Item 11). The low estimate assumes we do not send any staff. The high estimate assumes we send one person to your location prior to launch and is based on travel and living expenses for up to 3 days and 3 nights including airfare, rental car at $500 and $175 a day for hotel and meals.

(13)   This estimate is if you elect to lease and upgrade (with appropriate ProntoWash logos) golf carts to provide transportation to your customers. The high estimate assumes you elect to lease 1 golf cart for your POS. The low estimate assumes you do not lease any golf carts.

(14)   Estimate for maintaining on-going inventory. The low estimate assumes you do not maintain additional inventory; the high estimate assumes you purchase additional inventory.

(15)   We recommend that you have some additional funds available to pay for royalty and advertising fees for the first three months of operation as well as other expenses. The low estimate assumes royalty and advertising fees for one Detail Center Hub at a Corporate/Other location and the high estimate assumes royalty and advertising fees for one Detail Center Hub at a Retail Mall location plus approximately $3,000 in miscellaneous expenses. The estimate assumes you will not achieve sufficient Gross Sales in the first 3 months of operations to be required to pay more than $500 in royalties (for a Corporate/Other location) or $1,000 (for a Retail Mall location) and $150 in advertising fees per month. We used our experience in operating and managing company owned locations to provide you this estimate. This is an inventory/cost estimate and must not be used to project sales, revenue or income.

(16)   Estimated charges for you to consult with independent professional advisors like a lawyer and CPA. This estimate assumes you already obtained all permits and other government approvals to open your location.

(17)   PDA based POS software and hardware costs include initial software at $800 for initial version and up to $1,500 for upgraded version with CRM components and corresponding PDA and card processing hardware will be approximately $1,200 depending on the hardware selected. A monthly maintenance fee of $36 for Primary HUB and $ 18 for each secondary HUB per POS also applies. (See Item 11). The low estimate assumes initial version of PDA software with a base PDA hardware model. The high estimate assumes the additional purchase of a notebook computer for up to another $1,900.

(18)   You may not achieve the low estimate of zero in any category where zero is indicated.

(19)   There may be other factors not listed that may affect your initial investment. If your expenses exceed the high amounts in one or more categories your total investment could exceed the high estimate.

YOUR ESTIMATED INITIAL INVESTMENT FOR A MASTER FRANCHISE SALES

AGREEMENT (1)

(2)                Your initial fee will be based on the region you select. Each region is priced based on population size. See Item 5 for the list of regions. The low estimate assumes you acquire a less populated area. The high estimate assumes you acquire a highly populated area. You pay the initial fee in a lump sum on signing the Master Franchise Sales Agreement. We do not currently offer financing.

(3)                This is an estimate of the amount of advertising and promotional costs you will incur to generate qualified franchise leads as well as seek property developers to locate operations. The low estimate assumes focusing efforts only on public relations and local print advertising. The high estimate assumes you actively launch public relations efforts, print or radio advertising to generate franchisee leads as well as contacts for properties.

(4)                The training fee charge is to train you and one additional person at our headquarters or other location we designate. This fee includes written materials and manuals. The low range assumes only 1 person is trained and the high range assumes 2 persons are trained at $500 per person.

(5)                Expenses to travel to and from training location and for hotel and meals for 8 days. This estimate assumes you spend $500 for round trip airfare, 8 nights in a hotel at $100 per night, and $40 for meals per day for 8 days. The high estimate assumes you bring one other person to the training.

(6)                This estimate is for you to rent office space for your operations and to support franchisees in your territory in the first 3 months. The low estimate assumes using existing office space from another business or a home office. The high estimate assumes a monthly rent of $500 plus a one month deposit for a 500 sq ft office space.

(7)                This estimate is for expenses related to office supplies, stationary and materials to maintain communication with potential franchisee candidates and existing franchised locations in the first 3 months. The low estimate assumes an expense of $100 a month. The high estimate assumes a monthly expense of $200.

(8)                Estimated travel expenses you will incur to meet with franchise candidates in your territory as well as site visits to existing operations in the first 3 months. The low estimate assumes an expense of $500 a month. The high estimate assumes a monthly expense of $ 1,000.

(9)                Estimated utilities and expenses related to office phone, fax, electricity and internet connections. The low estimate assumes an expense of $200 per month. The high estimate assumes a monthly expense of $300.

(10)            Estimated cost for support staff to manage your territory. This estimate includes administrative as well as field sales and support. The low estimate assumes no additional staff at start of operations. The high estimate assumes a monthly expense of $2,000 for an administrative support or field representative.

(11)            Estimated annual premiums for you to purchase general liability insurance of at least $2,000,000 naming us as additional insured. The low estimate assumes premiums of $100 a month. The high estimate assumes premiums of $200 per month.

(12)            We recommend that you have some additional funds available to pay for operations and other expenses in the first 3 months of operations.

(13)            Estimated charges for you to consult with independent professional advisors like a lawyer and CPA to launch your business, prepare required disclosure documents and if required by your state, register with the appropriate state agency. The high estimate assumes you also retain a land use attorney to review regional permit issues, government regulations and procedures prior to opening franchises. Although you are responsible to pay these costs, you may collect these costs from future franchisees.

(14)            You may not achieve the low estimate of zero in any category where zero is indicated.

There could be other factors not listed that may affect your initial investment. If your expenses exceed the high amounts in one or more categories your total investment could exceed the high estimate.