Notes:

• 1. As described in Item 5, through our Manager-to-Franchisee Pathways Program, the Preliminary Agreement Deposit will be waived for certain qualified managers.
• 1. If you have paid a Preliminary Agreement Deposit, it will be applied toward the initial franchise fee due for your type of Shop upon signing the Franchise Agreement. You will not sign the Franchise Agreement and pay the initial franchise fee until a site has been authorized. As described in Item 5, if your Shop will have a term of fewer than 10 years,

your initial franchise fee will be prorated based on the number of years in your initial term. Also, the initial satellite fee for a Satellite Shop is $8,000, subject to those restrictions described in Item 5. The test fee under a Test Shop Addendum is $2,500.

If you signed a Development Agreement, you must pay a Development Fee, from which you may be entitled to a credit against the initial franchise fee for the Scoop Shops to be developed under the Development Schedule. Additionally, the initial franchise fees for Scoop Shops developed under a Development Agreement will vary. See Item 5 for further detail regarding initial franchise fees and Development Fees.

As described in Item 5, initial franchise fees for Scoop Shops, Satellite Shops and Test Shops will be waived if you qualify for our Manager-to Franchisee Pathways Program.

• 1. As described in Item 11, you must pay a design firm to prepare layout and dimensions and preliminary drawings, and to prepare final plans for construction based upon the standardized design and specifications that we provide. You may use a local design firm so long as the local design firm meets our qualifications. The cost of design, plans, and permits will vary depending on store type, building conditions, local, state, and federal requirements and the scope of work. Costs listed are average based on completing design work for a standard vanilla shell; sites not brought to vanilla shell basic standards will incur additional expenses. Local, municipal, county and state regulation may require that you obtain licenses and permits to operate the Shop. See Item 11 under the heading "Construction and Layout of Shop" for additional information.
• 1. The cost of construction of the typical Shop will vary considerably depending on the size of the store, condition of the leasehold, cost of local financing and other local conditions, including labor costs, and materials as well as local building ordinances which may mandate higher construction costs. These costs are based on an estimated range of approximately $115 to $155 per square foot for each Shop. Costs may be significantly higher in certain areas of the country including but not limited to: large cities and metropolitan areas such as New York, Los Angeles, and others, as well as tourist areas and coastal regions. Also, if union labor is required or if a franchisee chooses, or is required to comply with specific design elements, these costs may increase beyond the estimate.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 28–37)