What is the total estimated initial investment for an Anago franchise, including the initial fee (Item 5), legal/accounting fees (Item 7), and any required computer equipment purchases (Item 8)?

[Item 5: INITIAL FEES]

Initial Fees / Subfranchise Fee Deposit

In order to apply to become our master franchisee or subfranchisor, you must submit to us a completed application and pay the Initial Fee. The Initial Fee to obtain Anago Subfranchise Rights is $98,000 for the counties and/or cities that will comprise your territory. The Initial Fee is payable to us in full upon signing the Subfranchise Rights Agreement and isfully earned and non-refundable. However, if we do not offer you the right to enter into an Anago Subfranchise Rights Agreement or we offer you the right but you fail to enter into the agreement, in either case, within 30 days following your execution of a deposit agreement (the "Deposit Agreement") in the form attached as Exhibit C to this Disclosure Document, we will refund the amount you paid when you signed the Deposit Agreement, less any amounts as described in the Deposit Agreement. You are responsible to pay any sales, use or other taxes (other than our income tax) relating to the purchase of an Anago Subfranchise Rights Business.

[Item 7: YOUR ESTIMATED INITIAL INVESTMENT]

• 1. We require that all Subfranchisors be a business entity utilizing a name containing a combination of numbers or letters totaling four characters. Once you are incorporated, a registration of a fictitious name, e.g., JKCA, Inc. d/b/a Anago of (your city name) will be required. Under no circumstances do we allow you to use any of the Proprietary Marks, including Anago, as part of your business entity name. These fees may vary from state to state depending on each state's laws and the prevailing rate of attorneys' fees. These costs are paid to attorneys, newspapers and governmental agencies, and are not refundable and usually incurred before beginning business. You will be responsible for the development of your Franchise Disclosure Document (FDD) and, if required, state registration. We will assist you by giving you a current template. As part of your FDD development, you are required to provide audited financials on an annual basis, the cost of which is included in this estimate.

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]

The costs associated with purchasing your computer system range from $15,000 to $25,000. There are no contractual limitations on the frequency and cost of upgrading or updating your computer system.

[Item 7: YOUR ESTIMATED INITIAL INVESTMENT]

Your actual investment will depend on local conditions in your geographic area, the real property and equipment purchased (new or used), number and quantity of personnel employed, the location and size of the Area, the charges for legal and accounting services incurred by you including preparation of your Franchise Disclosure Document as well as applications and registrations for the offer and sale of franchises.

Further, the Subfranchisor is not required to operate a Unit Franchise nor is it permitted to do so without executing a separate Unit Franchise Agreement; accordingly, these total costs relate only to the estimated initial investment to begin operating a Master Franchise, not a Unit Franchise.

We urge you to retain the services of an experienced accountant or financial advisor in order to develop a business plan and financial projections for your Anago Subfranchise Rights Business.