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

| As incurred | Us, employees, vendors, etc. | | Total Initial Investment ^23, | $73,075 | $222,260 | | | , |

YOUR ESTIMATED INITIAL INVESTMENT: HOSTED EXPRESS SHOPPE

These figures do not include the cost of (i) any Host Facility that you may operate in the same space or (ii) any other surrounding facility.

YOUR ESTIMATED INITIAL INVESTMENT: ICE CREAM TRUCK

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").

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