How does the Benihana's Item 8 requirement to purchase approved equipment relate to the estimated initial investment costs in Item 7?

ffer greatly from building to building.

(2) You must equip the BENIHANA Restaurant with all equipment, fixtures, signage, smallwares, glassware, plateware, and uniforms ("FF&E") necessary for the opening and operation of the BENIHANA Restaurant. The aggregate cost of such FF&E typically is estimated to be between $500,000 and $700,000. Depending upon the size of the BENIHANA Restaurant, the existing supplies of FF&E items and the number of vendors then selling FF&E items may vary. You will have to negotiate delivery, payment, and refund terms with suppliers.

You agree to purchase and install, at your expense, a point-of-sale data processing system (the "POS System"), including the software specified in the Manual (as defined in Item 8 of this Disclosure Document) provided by us or otherwise specified in writing. Presently, the required POS System is an ALOHA® system. See Item 11 for initial and ongoing costs of the POS System. The POS System shall consist of a PC-based cash register, register tape printer, magnetic stripe reader, credit card devices that accept EMV chip cards, cash drawer, our defined polling and register software and telecommunications equipment, and any other state-of-the-art devices that may be required by us. The POS System shall contain a device that records accumulated sales and cannot be turned back or reset, and a back-up power system for memory storage in the event of power loss. The POS

System will provide a record of products sold, a menu mix report and other reports we require. We have the right to retrieve such data and information directly from your computer as we deem necessary. You will be responsible for the telephonic or transmission costs of such retrieval. You agree to participate in BENIHANA's current online order platform, which may change from time to time, at our discretion. You will install any new or upgraded software programs and equipment whenever we adopt new or upgraded programs to ensure full operational efficiency and communications capability, at your sole cost and expense.

• (3) In order to open the BENIHANA Restaurant, you will be required to purchase an initial inventory of food, beverages (alcoholic and otherwise), linen, paper supplies, etc. The inventory items, quantity, and price may vary based upon building size, availability of supplies, the number of vendors selling such items, etc. The estimated aggregate cost of the initial inventory is $40,000. Payment terms for such items are usually cash on delivery or payment within a specified number of days (usually no more than 30 days) after delivery.
• (4) Depending upon the state in which the BENIHANA Restaurant is located, you may have to purchase a liquor license. In many jurisdictions, the liquor license is issued by a governmental body at the state level and only an annual fee is payable. Other jurisdictions may require city and/or county liquor licenses. Annual license fees may be as little as $200 or as much as $300,000 depending upon the jurisdiction.
• (5) You are obligated under the Franchise Agreement to obtain and keep in effect insurance (both for your and our benefit) as may be required by law or as we may designate. You must obtain and maintain through the term of the Franchise Agreement: (i) comprehensive general liability insurance (with products, completed operations, and contractual liability and independent contractors and escalators coverage) and comprehensive motor vehicle insurance (for owned and non-owned vehicles) against claims for bodily and personal injury, death, and property damage caused by or occurring in conjunction with the operation of the BENIHANA Restaurant (or otherwise in conjunction with your conduct of business under the Franchise Agreement) under one or more policies of insurance, each on an occurrence basis, with single-limit coverage for personal and bodily injury, death and property damage of at least $5,000,000 (or such other amount as we reasonably require); (ii) all-risk building and contents insurance including fire, flood and earthquake, vandalism, and theft insurance for the replacement value of the BENIHANA Restaurant and its contents; (iii) business interruption insurance for a period adequate to reestablish normal business operations; (iv) builders' risk insurance on a completed value non-reporting basis during the period of any remodeling of the BENIHANA Restaurant;