Does City Publications require any other fees or payments before the business opens?

¹¹Licenses & Permits. These amounts will be incurred for costs such as operating licenses and permits. Your actual costs may vary from the estimates based on the requirements of local government authorities.

Except as described in this ITEM, you are not required to purchase or lease any goods, services, supplies, fixtures, equipment, inventory or real estate relating to the establishment or operation of the Franchised Business from us or designated suppliers.

Proprietary Products & Services

All computer hardware and software, equipment, forms, marketing materials, stationery, supplies and other materials used in the Franchised Business must comply with our specifications and, if required by us, must be purchased only from approved vendors that we designate or approve. We formulate or modify our specifications for materials to be used in the Franchised Business based on our and our Affiliate's industry knowledge and many years of operating a CITY PUBLICATIONS Business.

We and our Affiliates have developed certain proprietary items and services, including customized direct mail Card Packs, customized Specialty Programs, SEO Programs, Graphics Services for the art design and printing of direct mail card packs, target market mailing lists, lead generation, packaging, branding materials, and other items which are integral to the operation of CITY PUBLICATIONS Businesses ("Proprietary Products & Services"). You must order and purchase all of your requirements of Proprietary Products & Services exclusively from us, our Affiliate(s) or a supplier designated by us. We do not allow you to contract with alternative suppliers for these items and therefore do not have a procedure by which you would submit to us information regarding alternative suppliers. Because we do not allow use of alternative suppliers for these services, you will never pay us for such a review, and there is no stated time frame within which we would be responding. You must also purchase sufficient Proprietary Products & Services as necessary to operate the Franchised Business at full capacity. We commit to provide the Proprietary Products & Services at competitive prices; however,

Subject to applicable laws, ordinances and restrictions, you may operate the Franchised Business from your home or any location.

You will need a space of approximately 100 to 200 square feet for an office.

Should you decide to lease a space, lease acquisition costs are difficult to estimate because of the wide variation in these costs between various locations.

Lease costs will vary based upon variance in square footage, cost per square foot and required maintenance costs.

We assume the landlord will require the first month's rent and possibly a security deposit equal to one month's rent.

The amounts paid are typically not refundable except for a security deposit which may be refunded.

You will generally incur certain deposits with local utilities, for example, electric, telephone, gas, water and others if you are a new customer.

The deposit will vary depending upon the policy of the local utility.

¹Franchise Fee. The Franchise Fee varies as described in ITEM 5 of this Disclosure Document. The Franchise Fee includes payment for: Access to proprietary materials and process to include an initial supply of sales materials; A designated website for your Franchised Business, with a link between our website and ours; Exclusive rights to distribute Card Decks and other approved products within your territory as described in Item 12. The Initial Franchise fee is not refundable. All other items listed in the chart in this Item 7 are paid to third party vendors and those vendors determine the refundability of any of those items.

Source: Item 5 — INITIAL FEES (FDD page 10)