On what does the actual cost of starting an Antioch Pizza Shop business depend?

Varies | | TOTAL | $108,150 - $352,900 | | | | Actual costs will vary for each franchisee will depend on a number of factors including those described below in the Notes. The amount payable to us is nonrefundable. The refundability of other amounts depends upon your agreement with the applicable supplier or other party. Estimates provided in this Item for expenditures other than one-time fees, such as the Initial Franchise Fee, are for the pre-opening phase and through the first 3 months of operations. Our affiliates may offer to invest in the Antioch Pizza Shop Business with you and share in the expense of the initial investment. See Item 10 for details.

Notes for Dine-In, Take-Out/Delivery and Express Restaurants:

• 1. The initial franchise fee is $40,000 for the Dine-In and Take-Out/Delivery Restaurant franchises and $35,000 for the Express Restaurant franchise.
• 1. This estimate includes rent payments for one month before opening and for the first 3 months of your lease. The recommended square footage for the leased premises for a Dine-In Restaurant ranges from 2,000 to 3,000 square feet, and the recommended square footage for the leased premises for the Take-Out/Delivery Restaurant and the Express Restaurant ranges from 1,000 to 2,000 square feet. You may incur less cost than the amount estimated if you negotiate a rental abatement period with the landlord. Our recent experience is that rental abatement is available from many landlords. Real estate costs vary considerably across different markets. Your actual costs may be higher than these estimates.

1. The is estimate includes amounts needed for construction, remodeling, decorating costs and any other leasehold improvements. The low estimate assumes that you are leasing premises that were previously built out for a restaurant, which we recommend. Your actual costs may also vary depending on whether your landlord will provide an allowance for leasehold improvements.

Both estimates assume that the premises to be built out already has electrical and plumbing service and a HVAC unit. If the electrical service, plumbing service, and/or HVAC do not already exist at the leased premises, your expenses may increase up to an additional $100,000 unless the landlord agrees to cover all or some of the expenses of bringing electrical and plumbing service into the premises and/or purchasing and installing a HVAC unit.

1. This estimate covers the costs of furniture, fixtures and equipment necessary for the operation of a restaurant, including the cost (between $3,000 to $4,500) to purchase or lease the point of sale system and other computer systems (as further described in Item 11 below). The low estimate assumes that you are leasing premises that was previously built out for a restaurant and has kitchen equipment in place, which we recommend.

This estimate assumes that you will have a natural gas kitchen. If you have an electric kitchen, you will need to purchase 1 to 3 electric ovens at an estimated cost of $50,000 per oven.

• 1. You must purchase and maintain in full force and effect, at your expense and from a company we approve of, insurance that insures both you and us and any other persons we designate by name. The required insurance coverage must commence as of the date you sign a lease. Insurance costs depend on policy limits, types of policies, nature and value of physical assets, gross revenue, number of employees, square footage, location, business contents, and other factors bearing on risk exposure. The estimate covers through the first 3 months of operation. Fees are payable as directed by your insurance provider. If you sell beer and wine, you will also need to purchase dram shop (liquor liability) insurance. The estimated cost which is not included in the estimate above is $3,000 per year. Some portion of your insurance premiums may be refundable under certain circumstances. Discuss this aspect with your insurance broker or provider.
• 1. The costs for professional services will vary depending on the degrees to which your professional advisors will be involved. This estimate includes the initial costs for (i) fees for accounting services, (ii) attorney's fees, (iii) architectural/engineering consultant's fees, and (iv) fees for preparation of plans and specifications to design the premises of the Antioch Pizza Shop Business in accordance with our System.
• 1. You must conduct adequate pre-opening local advertising at your sole expense, in accordance with our directions and assistance. You will determine the amount of preopening advertising that you must spend to adequately promote your Antioch Pizza Shop Business prior to opening.
• 1. These miscellaneous start-up costs are our estimate of the additional funds required to operate through the first 3 months after opening the Antioch Pizza Shop Business, including wages paid to employees but not including any owner's draw. You may have additional expenses in starting the business. Your actual costs will depend on your management skill, experience and business acumen, your sales figures during the initial

3-month period, your ability to follow the Antioch Pizza Shop system and local market and economic conditions.

Source: Item 7 — Estimated Initial Investment (FDD pages 17–24)