VELOCITY SPORTS PERFORMANCE - FDD UFOC ITEM 7 Detail

^[1] These estimates are based on 15,000 square-foot facility,

^[2] Velocity Sports Performance will use this fee to defray costs relating to providing opening assistance and Initial Franchise Training, Center Director Training, and Sports Performance Director Training, for the Franchise Owner and the Sports Performance Director (including providing their travel, lodging, and meal (excluding dinner) expenses). If the Franchise Owner is not, however, the Center Director, you must pay for the Center Director''s travel, lodging, meal, and other expenses incurred to attend Center Director Training,

^[3] These amounts include the fees you must pay the Designated Architect we select, who may provide site selection services, lease negotiation, construction management and construction-design services for your training centers. These amounts may also substantially vary depending on local market conditions and negotiated tenant-improvement allowances,

^[4] This amount does not include installation which will vary depending upon your market location.

⁶ Including furniture, phones, desk, TV and VCR.

^[6] This amount also includes the computer equipment and software needed to operate the Franchised Business,

^[7] This amount includes the Turf, track, court, and weight-training surfaces.

^B These amounts represent the monthly cost of the premiums for the policies required under the Franchise Agreement.

^[9] This is an estimate of only the range of expenses for your initial start-up phase, which is estimated to be 6-9 months from when you begin operating the franchised business. The additional funds you will need to operate during this phase include payroll costs, rent, utilities, and on-going advertising�but do not include any salary or allowance for an owner''s draw; any royalty fees, advertising contributions, or any other amounts you must pay us; or any additional Inventory you may need after your initial inventory is consumed. These figures are estimates and we cannot guaranty that you will not have additional expenses starting the business. The actual amount of additional funds you will need during the initial phase of operating will depend on factors such as: the size and location of your franchised business, how much you follow our methods and procedures; your management skill, experience, and business acumen; local economic conditions; the local market for your products and services; competition, and other factors. By providing these estimates of your costs, we are not making any representation that you will have any level of sales. The estimates are of your expenses only and do not reflect any offsetting sales revenue you may earn from operations to pay those expenses. We do not make any earnings claims, The estimate of Additional Funds for 6-9 months shown on the table above is not an estimate of working capital that you will need, but relates only to certain (but not necessarily all) expenses for the stated time period. The 6-9 month time period is not a representation of, nor is intended to suggest, when you should expect to break even, if ever..