[Item 7: ESTIMATED INITIAL INVESTMENT]

Explanatory Notes – Development Agreement:

• (1) You may incur additional legal, accounting and other fees for reviewing the Development Agreement. The table does not include an estimate for this. Except as indicated, these fees are not refundable. We do not finance your investment.
• (2) For each Bakery you develop under the Development Agreement, you will also incur the expenses in the above tables for a Franchised Bakery or Licensed Bakery, including initial fees.
• (3). This is the initial fee total for all Franchised Bakeries established under a Development Agreement. There are no additional initial fee amounts relevant to a Development Agreement, aside from the initial fees due under a Franchise Agreement or License Agreement for each Bakery to be developed, as noted in Note 2 above.

The amounts noted in Item 7 as payable to us are not refundable. We cannot predict (and encourage you to consider) the implications of public policy on inflation, tariff rates, impact of climate change, and commodity and other cost fluctuation due to immigration restrictions. [Item 7: ESTIMATED INITIAL INVESTMENT]

Explanatory Notes – Franchised Bakery:

• (1) The estimated costs for a Franchised Bakery are based on open shop bidding practices with no premium built in for the cost of union labor.

The estimated costs are for a new Bakery.

Except as indicated, these fees are not refundable.

We do not finance your investment.

• (2) These amounts are discussed in detail in Item 5.

The initial franchise fee must be paid when the Franchise Agreement is signed.

Please see the information provided above in Item 5 regarding the Development Agreement.

If you have also signed a Development Agreement, and you are in compliance with your obligations under the Development Agreement and all of your Franchise Agreements, then we will apply a credit from your development fee toward the initial franchise fee.

The amount of the credit will be $10,000 for each Bakery you agree to develop.

Unless otherwise agreed, the minimum number of Bakeries you will be required to develop is two.

Item 5 for more details.

[Item 7: ESTIMATED INITIAL INVESTMENT]

Explanatory Notes – Licensed Bakery:

• (1) The estimated costs are for an airport location. Except as indicated, these fees are not refundable. We do not finance your investment.
• (2) These amounts are discussed in detail in Item 5. The initial license fee must be paid when the License Agreement is signed. Please see the information provided above in Item 5 regarding the Development Agreement. If you have also signed a Development Agreement, and you are in compliance with your obligations under the Development Agreement and all of your License Agreements, then we will apply a credit from your development fee toward the initial license fee. The amount of the credit will be $10,000 for each Licensed Bakery you agree to develop. Unless otherwise agreed, the minimum number of Licensed Bakeries you will be required to develop is two. Item 5 for more details.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–25)