What are all the fees a B Bops franchisee might pay, considering both Item 5 and Item 6?

• A.

Initial Franchise Fee.

In consideration of the Franchise granted hereunder, Franchisee shall pay Company upon execution of this Agreement an initial franchise fee of: (i) Thirty Thousand Dollars ($30,000) if Franchisee does not own an existing B-Bop's Restaurant at the time of entering into this Agreement; or (ii) Twenty-Five Thousand Dollars ($25,000) if Franchisee does own an existing B-Bop's Restaurant at the time of entering into this Agreement.

• B.

Royalty and Service Fee.

Franchisee agrees to pay Company a monthly royalty and service fee equal to five percent (5%) of gross sales (as defined in Section 9(D)

Franchisee or Franchisee's proposed manager shall, prior to the opening of the Franchise for business, attend and complete to the satisfaction of Company a training course to be conducted by Company at its principal office. The training course shall include on-site instruction regarding standard management procedures for operation of a B-Bop's Restaurant. The course and all materials necessary to conduct such training for up to two (2) persons will be provided by Company as part of the initial franchise fee. Franchisee shall pay all compensation, travel, lodging and other expenses

As noted in Item 6 of this disclosure document, you are required under the terms of the Franchise Agreement to pay the Company a monthly advertising fee equal to three percent (3%) of the gross sales of your Franchise. The Company, however, reserves the right to waive payment of all or part of the advertising fee by you and other franchisees for such period as the Company may in its discretion deem appropriate.

• 1. The Company will provide additional training to you or your employees. A fee of up to $2,000 may be charged by the Company for such additional training.

Situations in which the Company is entitled to reimbursement for the performance of your obligations include, without limitation: (a) your failure to procure insurance coverage for the Franchise; (b) your failure to maintain the Franchise in a clean, safe and attractive condition; or (c) your failure upon termination or expiration of the Franchise Agreement to cease all display of the Licensed Marks or to make such modifications and alterations to the Franchise premises as may reasonably be necessary to effectively distinguish the Franchise premises from the appearance of a B-Bop's Restaurant.

• E.

Franchisee pays to Company a nonrefundable renewal fee of Five Thousand Dollars ($5,000) payable in full upon execution of the then current franchise agreement;