How does the estimated initial investment for an Aerus franchise (Item 7) relate to the franchisor's assistance provided (Item 11)?

ASSOCIATE PROGRAMS)**

| Type of Expenditure | Estimated Cost – Standard Program | Estimated Cost – Associate Program | Method of Payment | When Due | To Whom Payment is to be made | |---------------------------------------------------------------------------------|-----------------------------------------|------------------------------------------|--------------------------------|--------------------------------------------------|------------------------------------------| | Initial Franchise(1) Fee | $3,000 | $1,000 | Lump Sum | At Signing of Franchise Agreement | Us | | Beyond Addendum(2) | $0 to $100 | $0 to $100 | Lump Sum | As Arranged | Us | | Fee | | | | | | | Leasehold | $0 to $15,000 | $0 to $5,000 | As Arranged | As Arranged | Other Suppliers; | | Improvements(3) | | | | | Contractors | | Furniture Fixtures | $2,500 to | $2,000 to | As Arranged | As Arranged | Us, our affiliate or | | and Equipment(4) | $15,000 | $5,000 | | | Other Suppliers | | Vehicle(5) | $0 to $8,440 | $0 to $8,440 | As Arranged | As Arranged | Suppliers | | Initial Inventory (supplies, consigned products, spare parts, etc.)(6) | $15,000 to $90,000 | $5,000 to $20,000 | Lump Sum and As Arranged | Upon Placement of Order and As Arranged | Us, our affiliate, or Other Suppliers | | Pre-Opening Training | $1,000 to | $1,000 to | As Arranged | As Arranged | Airline, Hotel, | | Expenses(7) | $7,000 | $7,000 | | | Restaurants, etc. | | Supplies (stationary, | $100 to $600 | $100 to $600 | As Arranged | As Arranged | Suppliers | | business cards, etc.) | | | | | | | (for 3 months) | | | | | | | Permits & Licenses | $50 to $200 | $50 to $200 | Lump Sum | As Arranged | Licensing Authorities | | Insurance deposits and Premiums (for first year)(8) | $1,500 to $2,000 | $1,500 to $2,000 | Lump Sum | As Arranged | Insurers | | Architect Fees | $0 to $5,000 | $0 to $2,000 | As Arranged | As Arranged | Architect | | Other Professional | $500 to $1,000 | $500 to $1,000 | As Arranged | As Arranged | Attorneys, | | Fees | | | | | Accountants, etc. | | Site Lease (for | $500 to $10,000 | $500 to $3,000 | Lump Sum | Monthly | Landlord | | 3 months)(9) | | | | | | | Utility Deposits | $350 to $450 | $350 to $450 | Lump Sum | As Arranged | Utility Companies | | Advertising and | $0 to $5,000 | $0 to $2,500 | As Arranged | As Arranged | Suppliers, Media, | | Promotion | | | | | etc. | | Type of Expenditure | Estimated Cost – Standard Program | Estimated Cost – Associate Program | Method of Payment | When Due | To Whom Payment is to be made | |------------------------------------|-----------------------------------------|------------------------------------------|----------------------|-------------|-------------------------------------| | Signage | $1,000 to $5,000 | $1,000 to $2,500 | As Incurred | As Incurred | Signage Suppliers | | Additional Funds | $5,000 to | $3,000 to | As Incurred | As Incurred | Employees, | | (3 months)(10) | $50,000 | $10,000 | | | Suppliers | | Goodwill(11) | $0 to $200,000 | $0 to $25,000 | Lump Sum | At Close | Us and Our affiliates | | TOTALS | $30,500 to $417,790 | $16,000 to $95,790 | | | | Notes: Your estimated initial investment will vary depending upon if you choose the Standard Program or the Associate Program. Except as otherwise noted in this Disclosure Document, all fees payable to us are non-refundable. Inflation, tariffs, and worldwide events may impact various costs, including, among others, furnishings, fixtures, equipment, building costs, vehicle costs, and inventory.

Note 1. See Item 5 of this Disclosure Document for more information about the initial franchise fee. In limited circumstances, we will finance or reduce the initial franchise fee. See Item 10 for more details about financing of initial franchise fees.

Note 2. The Beyond Fee is only applicable to franchisees who sign a Beyond Addendum.

Note 3. The cost of leasehold improvements will vary depending on the condition and size of the site, the local cost of contract work, and the location of the Franchised Business, and zoning requirements. The high estimated figures include remodeling walls, ceilings, floors, and other construction including electrical and carpentry work. The low estimate assumes that the leasehold is in suitable operating condition immediately on your taking possession of the premises and/or that the landlord will make the leasehold improvements and amortize their cost over the term of the lease.

Note 4. The furniture, fixtures and equipment that you will be required to purchase or lease will vary depending on the size of the premises and the type of Franchised Business you choose to operate. We require a standard interior decor style. This estimate also includes the cost of the required computer system, as well as high-speed internet access, printer, scanner, fax, and bar code scanner.

Note 5. The low end of our estimate includes fuel, maintenance expenses and car payments for three months for an existing vehicle, and the high end of our estimate includes a 10% down payment for a new vehicle and three months of payments. We do not require a vehicle and vehicle wrap under either the Standard or Associate Programs, however, it may be desirable to have one.

Note 6. Opening inventory of products and supplies will vary based on your expected volume of business, the size of your premises, and the size of any storage areas on the premises. You will order an initial inventory of Consigned Products. The estimate above includes your Security

Deposit for an initial supply of Consigned Products, which Security Deposit is fully earned and payable according to the Manuals at the time of signing of the Franchise Agreement. Also included in the estimate is the cost of an initial supply of parts and supplies. See Item 8 of this Disclosure Document for more information about your purchase requirements.

Note 7. This amount represents our estimate of transportation and living expenses for two trainees attending our initial training program in Dallas, Texas. You will be responsible for paying these expenses. The high end of our estimate includes the extra week of initial training required if you sign a Beyond Addendum. Please see Item 11.

Note 8. The estimated cost of annual premiums for the insurance policies required by the Franchise Agreement will vary significantly based on your location, and the claims experience of commercial businesses in the area, as well as your claims experience in other businesses you operate.

Note 9. You must purchase or lease a retail location for your Franchised Business.