What factors determine whether a Byrider franchisee receives adequate financing?

000- $1,577,500 | | | | *The low figures for "Furniture, Fixtures and Equipment," "Service Center Equipment," "Signage and Awning" and "Technology System" represent the first three months' payment for leasing. The high figures represent the full purchase price of these items at the high range estimated investment. The decision whether to lease, mortgage or to purchase these requirements is a business decision you must make depending on your financial resources and financing arrangements you make. Whether you receive adequate financing depends upon, among other factors, your overall creditworthiness. Byrider Franchising Partners may assist and advise you on financing matters with third parties for leasing or purchasing initial items or otherwise, but Byrider Franchising Partners is not obligated to do so. As noted in Item 5, the initial franchise fee is refundable if Byrider Franchising Partners receives written notice from you within 60 days from the date of the Franchise Agreement and you sign the form of general release required by Byrider Franchising Partners. All other amounts reflected in this Item 7 will not be refundable unless you are able to negotiate a refund with the particular supplier.

Explanatory Notes (The following numbered items correspond to the numbered items in the chart above.)

• 1. The initial franchise fee is refundable if Byrider Franchising Partners receives written notice from you within 60 days from the date of the Franchise Agreement and you sign the form of general release required by Byrider Franchising Partners. If you have already signed a Franchise Agreement, the initial franchise fee for each additional franchise that you acquire is $35,000 for Traditional Franchisees or $40,000 for Ultra Franchisees. If you are a veteran of the U.S. Armed Forces, your initial franchise fee will be reduced by $10,000 (see Item 5).
• 1. At your option, you may purchase a starter kit from our approved suppliers, which currently contains posters, menu boards, springboards, and other internal decorations.
• 1. The figures in the charts assume you will rent the space for your store and are based on our estimates of the cost of your rent for the premises. The ideal property is approximately 1.5-2 acres and the space for your on-premises building typically contains between 3,500 and 6,000 square feet. Rents will vary depending on factors, including size, conditions, location of the premises, the local real estate market conditions, and competition for the rent space. The figures in the charts include the first

three months of rent at an estimated cost of $26-$30 per square foot per year for your onpremises building. In addition, some landlords may require additional security deposits or rental payments when you sign a lease agreement. You should carefully investigate and evaluate all the potential costs associated with a particular franchise location. The estimates provided in the charts do not include construction costs. The actual amounts you pay under the lease agreements will vary depending on the size of the store, the types of charges allocated to tenants, your ability to negotiate with landlords, and the prevailing rental rates in the geographic region.

If you choose to purchase real property on which to build your store, your initial investment will most likely be higher than what we estimate above.

Source: Item 7 — Estimated Initial Investment (FDD pages 32–36)