If I lease a location for my Amorino franchise, will it be subject to Amorino's approval?

currency exchange rate fluctuations.

• 1. For any of the Store types, you must own a location approved by us or you must lease a location approved by us. Whether you own or lease, you must improve, construct, remodel and decorate the space to our specifications. These estimates assume that your location will be a leased, unimproved, unfinished retail store-type unit. A Traditional Store typically occupies 500 to 1,500 square feet of commercial space. A Kiosk Outlet typically occupies 100 to 500 square feet of commercial space. These POS types typically are located on a major thoroughfare, or in or adjacent to a retail strip mall or shopping center, or in an urban storefront. A Mobile Structure outlet typically occupies 60 to 100 square feet of commercial space, and is typically located within an

enclosed shopping mall, college campus, or other closed market environment. Your lease is subject to our approval and must contain certain terms we require, as described in your franchise agreement. Rents may range from $20.00 to $200.00 per square foot per year, depending upon factors such as size, condition and location of the leased premises. Your rent will generally be a fixed base rent plus common maintenance, taxes and insurance. However, some leases will be on a "gross basis" which would typically include all common maintenance, taxes and insurance. Your lease may also provide for percentage rent, which will be a percentage of your sales at the Store.

• 1. Construction, build-out, fit-out, and modification costs can vary significantly depending on the initial condition of the leased space, whether or not the landlord will contribute to your buildout costs, zoning requirements, potential requirement for fire sprinkler systems, soundproofing requirements, the local market of qualified builders, and unforeseen contingencies that arise during the construction process. We recommend that you consult with a professional architect, the township or municipality with jurisdiction over your leased space, and obtain written quotations from several builders before entering into a franchise agreement with us. The estimates above include a general contractor's fee (generally equal to 10% to 15% of total construction costs), contractor's insurance, materials and supplies, tools, labor and subcontractor fees, and other cost to construct leasehold improvements conforming to our standards.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–32)