INITIAL INVESTMENT

The following chart provides an estimate of your initial investment for one Restaurant without bagel making or coffee bean roasting machinery and equipment capabilities (small equipment package) or one fully operational café with bagel making and coffee roasting machinery, based on our experience. All fees and payments are non-refundable, unless otherwise stated or permitted by the payee.

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Note 1. See Item 5 for information about the initial franchise fee and when a portion of the fee may be refunded.

Note 2. System franchisees typically lease sites for their restaurants in strip centers. Take-out restaurants (no dine-in accommodations) typically occupy approximately 1,200 square feet of commercial space. If you elect to offer dine-in accommodations, you will need at least 1,800 square feet of commercial space to accommodate seating for 40 people. Monthly rental for leased premises will vary depending upon the location of the Restaurant and then-current, local real estate rental market conditions. Estimates of rental costs may be obtained by contacting local commercial realtors. The range in the chart reflects an estimated lease deposit equal to the first and last months' rent. ACS estimates that your monthly rent may range from $3,000 to $6,000.

Note 3. A one time Construction fee

Note 4. The range in the chart reflects your estimated construction and build-out costs and includes the cost of hiring a general contractor to supervise construction. Your initial investment for leasehold improvements will vary depending upon the size of your Restaurant and its geographic location. Construction costs in some areas of the country may exceed these estimates.

Note 5. You will need to purchase certain equipment, fixtures, furnishings and decor including a warmer, grill, ice machine, sinks, refrigerator, freezer, walk-in box, a computer system and menu board. See Item 11 of this Offering Circular for more information about computer requirements.

Note 6. The cost of permits and licenses will depend upon the county or other geographic location within which the Restaurant is located.

Note 7. The range in the chart reflect the estimate for one exterior sign. The actual cost of your sign will depend upon the size and location of your Restaurant, the particular requirements of the landlord, local and state ordinances and local zoning requirements.

Note 8. The cost of the business insurance coverage required by the Franchise Agreement will vary from state to state and will depend on your prior loss experience, if any, and/or the prior loss experience of your insurance carrier in the state or locale in which you operate, and national or local market conditions. It is estimated that your annual insurance premium, not including worker's compensation insurance, may range from approximately $3,700 to $5,500.

Note 9. The figure in the chart represents the estimated cost of obtaining an initial opening inventory of food and beverage products and paper products which ACS estimates will last for one week. Additional inventory expenses are included in Additional Funds estimate. Your supplier may require prepayment or may require that you pay cash on delivery (C.O.D.) for this inventory.

Note 10. See Item 6 for more information about grand opening advertising.

Note 11. The figure in the chart reflects the estimated cost of lodging and dining expenses for 2 persons attending the initial training program. This estimate does not include estimated travel costs, which will vary greatly depending upon your proximity to the training site.

Note 12. These deposits and the method of payment will depend upon the location of the Restaurant and your creditworthiness. Deposits are typically refundable if you are current on all payments at the time of the request for refund.

Note 13. This is an estimate only of the range of initial start-up expenses for 3 months. These expenses include employee salaries, rent and miscellaneous costs, and the cost to purchase food products and other perishable inventory during the first 3 months your Restaurant is in operation. The amount of additional funds that you may need will vary depending upon the location of the Restaurant, your individual needs and the sales level reached during this period. The estimate does not include royalty and advertising contributions or any allowance for an owner's draw. ACS cannot estimate the operating results of your Restaurant. The estimate of Additional Funds for 3 months shown in the above chart is not an estimate of working capital you will need, but relates only to certain expenses for the time period stated.

In preparing these estimates, ACS relied upon its principals' over 16 years of experience in the restaurant industry, current operating expenses of the similar restaurants and estimates obtained from suppliers and building contractors in the southern New Jersey and eastern Pennsylvania area. These figures are estimates only, and ACS cannot guarantee that you will not have additional expenses starting your Restaurant. Your actual costs will depend on factors such as: how well you follow the System; your management skill; experience; business acumen; local economic conditions; the local market for the products offered by the Restaurant; prevailing wage rates; and the level of competition. You should review these numbers carefully with a business advisor such as a lawyer or accountant before making any decision to purchase a Restaurant franchise.

We do not offer direct or indirect financing to franchisees for any items.