What is the total estimated initial investment range for a Kitchen Solvers franchise?

YOUR ESTIMATED INITIAL INVESTMENT

• (1) The above chart assumes that you did not qualify for any discounts, and that you paid the standard Initial Franchise Fee.

• (2) These are the estimated initial investments for beginning operations for a KITCHEN SOLVERS Business. The estimated initial investments will vary depending on factors like whether you operate your Business out of your home or lease an office and showroom, your financial condition and the arrangements and business decisions you make. Except where otherwise noted, all fees that you pay to us are nonrefundable. Third-party lessors and suppliers will decide if payments to them are refundable. Neither we nor our affiliate finance any portion of the initial investment.

• (3) See Items 6 and 11 for additional information on training.

• (4) As described in Item 5, you must purchase a Supplies Package from us for use in your Business. A detailed list of the items currently included in the Supplies Package is included as Appendix C to the Franchise Agreement (which is attached to this Disclosure Document as Exhibit B).

• (5) You must spend 5% of your expected annual gross sales on localized and digital marketing efforts, unless we approve otherwise in writing. During the initial 3-month operation period of your business, you are required to spend a minimum of $3,000 per month on marketing, unless we approve otherwise in writing. We reserve the right to approve all local marketing and advertising, and we can request you to provide copies of your invoices and receipts evidencing your local marketing activities at any time. Your local marketing requirements for the first partial calendar year after you sign the Franchise Agreement will be identified on Appendix B to the Franchise Agreement. The amount identified in the table above reflects three (3) months of local marketing expenses.

• (6) Your initial investment may not include any amount for office space, and we recommend that you initially operate your Business from your home. If you lease an office, showroom or shop space outside of your home, this expense will vary based upon local real estate market conditions and the size of the space you lease. The estimate provided assumes a high end of $4,500 per month for a warehouse or shop. If you choose to have a showroom for your Business it must meet our specifications and standards for showrooms and you may incur additional expenses for furniture, fixtures, equipment and signage. Typically, a showroom is a minimum of 200-300 square feet of office space with 400-600 square feet of shop space and would be located in a light industrial park that will allow you to receive merchandise.

• (7) You must use a computer system and Apple iPad in connection with the operation of your Business. The low range assumes you already have a computer system, iPad, and office equipment necessary to operate your Business.

• (8) You must use either a motor vehicle or enclosed trailer with your Business. You may use your existing vehicle if it meets our standards and specifications. The low end of the range assumes you will use your existing vehicle with signage as noted below. If you do not currently own a vehicle that is capable of pulling a trailer or your existing vehicle does not meet our standards and specifications, you must purchase or lease a vehicle capable of serving in that capacity. The estimate for a lease on a vehicle that will serve as an installation vehicle is $700 and includes sales tax and license and title fees. If you choose to purchase a trailer, the cost of the trailer will range from $6,000 to $8,000.

• (9) You must wrap your motor vehicle or enclosed trailer with the approved branded vehicle wrap before you open your location. This is a one (1) time fee paid to our locally recommended vendor. The low end suggests one (1) motor vehicle or trailer is being wrapped. The high end of the range suggests you are wrapping a motor vehicle and a trailer. Materials and labor availability may cause you to use a different vendor.

• (10) Insurance premium estimates are for general liability, workers compensation and commercial auto and such other insurance coverage that we designate. The amount indicated in the Chart above is the estimated cost for three (3) months of insurance premiums for a single Territory. See Item 8 for additional information on insurance.

• (11) This amount includes utility deposits and business licenses. Deposits are generally refundable, but license fees are not. Business licenses include specialty or general contracting fees that are required on a per state or per county basis. Also, includes any other general business permits or fees required to create your business entity in your state. This range can change on a per state and/or county basis.

• (12) This amount is an estimate for attorneys' fees in connection with your purchase of the franchise.

• (13) This amount is an estimate of the third-party software fees that you will need to spend in connection with establishing and maintaining proper records and financial statements during the first three months.

• (14) This estimates the amount that you may pay an accountant during the first three months. The low amount estimates the amount you may spend if you use our recommended accounting firm for their bookkeeping services. The high amount estimates the amount you may spend if you use your own accounting firm or if you engage an accounting firm for more than minimal services.

• (15) This estimates the amount that you may spend during the first three months on back office services such as payroll services and general human resource services. The low estimates the amount that you may spend on these services if you do not have any employees during the first three months.

Source: Item 7 — Estimated Initial Investment (FDD pages 16–21)