Item 7

Type of Expenditure Amount (low to high) Method of Payment When Due To whom payment is to be paid
Initial Franchise Fee $50,000-$600,000 Lump sum At signing Us
Real Estate $1,500-$5,000 As Arranged As Arranged Lessor
Initial Supplies $1,500-$2,000 As Incurred As Incurred Suppliers
Equipment & Office Furniture $10,000-$25,000 As Arranged Before Opening Suppliers
Business Licenses & Permits, Deposits & other Prepaid Expenses $1,000-$4,000 As Incurred As Incurred Government Agencies and Suppliers
Insurance $1,000-$3,000 As Arranged Before Opening Insurance Carrier
Certifications $3,000-$5,000 As Incurred As Incurred Transportation, Hotels and Restaurants
Legal Fees & Registration Expenses $1,500-$10,000 As Incurred As Incurred Attorneys and State Agencies
Computer Hardware & Software Licensing $5,000-$10,000 As Incurred As Incurred Suppliers
Initial Advertising Expenses $3,000-$5,000 As Incurred As Incurred Suppliers
Additional Funds-- 3 months $50,000-$100,000 As Incurred As Incurred Vendors and Employees
TOTAL ESTIMATED INITIAL INVESTMENT $127,500-$769,000