What is the highest amount a Carvel franchisee might expect to pay for the equipment package?

| $5,300 | As incurred | Before opening | Us | | Opening Inventory21 | $500 | $5,000 | As incurred | Before opening | Vendors | | Additional Funds - 3 Months22 | $250 | $5,500 $122,775 $316,350 | As incurred | As incurred | Us, employees, vendors, etc. |#### YOUR ESTIMATED INITIAL INVESTMENT: CINNABON CO-BRANDED SHOPPE 26

Explanatory Notes:

The above charts are estimates of a franchisee's total initial investment in one Shoppe, based on our experience franchising Shoppes. The charts should be read in conjunction with the following notes.

You should review this information, including the footnotes, carefully, conduct your own investigation and seek the help of qualified advisors before making any decision about an initial investment in a Shoppe.

None of these fees or payments are refundable unless otherwise noted below.

1. Initial Franchise Fee. See Item 5. For Co-Branded Shoppes, the Initial Franchise Fee estimate includes both the Initial Franchise Fee paid to us ($30,500) and the initial franchise fee paid to Cinnabon under the Cinnabon^® Franchise Agreement for the right to operate a Cinnabon^® franchise ($30,500).

2. Construction and Build Out Costs. This estimate includes fees paid to a general contractor you engage to build out the Shoppe to meet our Standards (and for a Co-Branded Shoppe, the standards of the Co-Branded Franchisor too). Leasehold improvements include but are not limited to HVAC, electrical, carpentry, floor covering, and painting. The cost of a general contractor will vary widely depending on the size and condition of the premises, whether or not there are any existing and comparable leasehold improvements in the premises, the extent and quality of improvements you desire over and above our minimum requirements, your landlord's cash contribution to the cost of the improvements, and the local costs of material and labor. In certain major metropolitan markets such as Boston, Chicago, New York, Los Angeles, San Francisco, Seattle, and Washington, D.C., costs could be significantly higher than the estimates provided here due to local market rates for materials and labor. For Co-Branded Shoppes (other than Swirl Shoppes), the estimate is based on mall and streetside locations. The Swirl Shoppe estimate is based on streetside locations.

The range of estimated costs relates to a Hosted Express Shoppe being built in connection with the construction of a Host Facility, so a number of the costs already being incurred to build-out and begin operating the Host Facility (e.g., permitting, insurance, construction of leasehold improvements, equipment, etc.) will often alleviate or reduce many of the costs that would otherwise apply to build out the Hosted Express Shoppe. These figures do not include any of the costs relating to the investment required for the Host Facility. If you are building a Hosted Express Shoppe that will be located in an existing Host Facility, you should review the chart above for the standard Express Shoppe that is not located in a new Host Facility.

• 1. Permitting. This estimate includes the cost of acquiring construction permits, including permit fees. Your costs will vary depending upon your Shoppe's location. In some markets, the costs of required permits may significantly exceed our estimates.
• 1. Equipment Package. You must purchase or lease from an Approved Supplier certain equipment (like kitchen equipment) and machinery that complies with our Standards (and for a Co-Branded Shoppe, the standards of the Co-Branded Franchisor too). Your actual costs will vary depending on a number of factors including, without limitation, building codes and health requirements of the state where your Shoppe is located.

The amounts for Full Shoppes and Co-Branded Shoppes include two soft-serve machines and one freezer. The amounts for Express Shoppes and Hosted Express Shoppes include only one soft-serve machine and one freezer. Your expenses will be higher if you purchase additional soft-serve machines, which currently cost between $13,610 and $31,313 each. Your expenses may also be higher if you elect to purchase an additional soft-serve freezer, which currently costs approximately $24,000.

• 1. Millwork. You will incur expenses for millwork at the Shoppe, which may include the cost of purchasing cabinets and counters from Approved Suppliers and installing them in the Shoppe.
• 1. Furniture. You must purchase from Approved Suppliers furniture that meets our Standards, such as tables, chairs, and office furniture.
• 1. Menu Board, Graphics, and Interior Signage. This estimate includes the cost of purchasing digital and/or static menu boards and interior signage from Approved Suppliers. The cost will vary based on the size of your Shoppe.
• 1. Exterior Signage. You must purchase exterior signage from Approved Suppliers. The cost of your exterior sign will vary depending on the size, color, quantity and backlit channel letters of the sign and other specifications as we require.
• 1. Computer System. You must purchase, lease, and/or license and install at the Shoppe the POS System, computer systems, mobile hardware, software, online ordering platform, associated computer hardware, telephone lines, network connections, communications equipment, high speed internet access (e.g. DSL or cable), credit card, gift card and loyalty card processing equipment, and other equipment that we require from time to time (collectively, the "Computer System"). The Computer System currently includes a backoffice PC, one monitor, one back-office multi-function printer, between one and four POS System terminals (between one and two for Express Shoppes and Ice Cream Trucks and none for Hosted Express Shoppes), one firewall device, a dedicated iPad® or Windows® tablet/computer, and one POS System server in addition to other related software, phone and network connections, and equipment. The estimate includes the cost of purchasing the POS System from our designated Approved Supplier under the CapEx Program. You may also be required to purchase training software from a vendor that we designate. For Co-Branded Shoppes, the Computer System that we require meets both our and the Co-Branded Franchisor's standards.
• 1. Smallwares. This estimate includes the cost of purchasing cooking utensils and supplies, cleaning supplies, other smallwares, and other tools necessary to operate the Shoppe.
• 1. TV/Music. We may require you to install televisions and audio equipment in the Shoppe and to enter into subscriptions for television and audio services.
• 1. Architect/Engineer. You must engage a licensed architect that we accept in writing and licensed engineers (e.g., mechanical, electrical, plumbing, or structural engineers) as necessary to draft standard construction plans for your Shoppe. Your costs will vary depending upon the location of the Shoppe, its condition, and the need for additional designs, plans, and drawings, if applicable.
• 1. Rent. The figures in the table reflect our estimates for leasing the Shoppe premises and include only one month of rent. A typical Full Shoppe occupies about 800 to 1,600 square feet of space and may be located in either a free-standing building, an in-line retail plaza space, or other non-traditional venue. A typical Express Shoppe or Hosted Express Shoppe occupies about 100 to 500 square feet of space. A typical Cinnabon Co-Branded Shoppe or Swirl Shoppe occupies about 1,800 square feet of space.

Your rent will depend on the site's size, condition, visibility, accessibility, and location, local market conditions, demand for the premises among prospective lessees, and the arrangement you negotiate with the landlord. In certain major metropolitan markets such as Boston, Chicago, New York, Los Angeles, San Francisco, Seattle, and Washington, D.C. and in certain other high demand districts, prevailing market rents could be significantly higher than the high estimate. Because of the wide variation in lease rates for retail space, you should consult with a local commercial real estate broker to get a more accurate estimate of costs in your market.

If you are opening a Hosted Express Shoppe, these rental costs will likely be incurred in connection with locating and leasing the site for the Host Facility.

If you choose to instead purchase real estate, we are unable to estimate the total cost of purchasing suitable premises for your Shoppe or the amount of any down payment that would be required.

• 1. Grand Opening Marketing. You must conduct a grand opening advertising campaign with the opening of your Shoppe. You must pay all costs of the grand opening, including publicity costs, promotional costs, plus the full cost of any price reductions or other customer inducements. Costs may vary depending on your market and the type of advertising used, however, you must spend on grand opening advertising promoting the opening of your Shoppe at least (i) $7,500 for a Shoppe in a Streetside Location, (ii) $3,000 for a Shoppe in an Other Location, (iii) $6,000 for a Co-Branded Shoppe in an Other Location (which covers both brands), and (iv) $15,000 ($25,000 if the Shoppe is one of your first four Co-Branded Shoppes in an Emerging Market) for a Co-Branded Shoppe in a Streetside Location (which covers both brands) in accordance with an advertising plan that we designate or approve. We may require you to pay this amount to us or the Ad Fund for us to spend in accordance with a grand opening advertising plan that we designate or approve.
• 1. Legal and Accounting Fees. This estimate includes the cost of legal and accounting fees that you may incur in establishing your business. Such expenses may include fees payable to attorneys and accountants that you will need to use for the review of this Disclosure Document and the related agreements (and for Co-Branded Shoppes, the cost to review the Franchise Disclosure Document and related agreements for the Co-Branded Franchise), as well as for entity formation and lease negotiation.

Source: Item 7 — Estimated Initial Investment (FDD pages 42–52)