Supreme Smoothie® presents the following estimate of your initial investment to construct and open one Supreme Smoothie Franchise. The estimates presented cover the period before the opening and for the initial phase of your Supreme Smoothie Franchise. They do not provide for your cash requirements to cover operating losses after the initial phase or personal living expenses. You must have additional sums available, whether in cash or through unsecured credit lines, or have other assets that you may liquidate, or that you may borrow against, to cover your personal living expenses and any other operating losses after the initial phase of your Supreme Smoothie Franchise.


Supreme Smoothie® urges you to retain the services of an experienced accountant or financial advisor in order to develop a business plan and financial projections for your Supreme Smoothie Franchise. Your actual investment will vary depending upon local conditions peculiar to your geographic area or market, for example, real estate demand, availability and occupancy rates. Additional variables that will impact your initial investment may be: size of your facility; age of the structure; length of your lease or other instrument under which you will have the right to occupy the Premises; if your space is to be built out by the developer with no initial out-of-pocket cost to you; lease arrangements; location in the market; whether you are converting existing Premises and whether in the same business; costs of demolishing existing leasehold improvements; construction costs; whether variable expenses and whether you currently hold a lease of an acceptable location. Supreme Smoothie anticipates that most Supreme Smoothie Franchisees will be located in major shopping malls or major in-line strip malls or shopping centers rather than free-standing buildings. Supreme Smoothie does not expect you to purchase real estate or construct the building containing your Supreme Smoothie Franchise although this may be done.

	Expense		Amount		Method of Payment		When Due		To Whom Payment Is To Be Made
	Initial Franchise Fee		$20,000		Lump Sum		On signing the Franchise Agreement		Franchiser
	Grand Opening Advertising Expenditure		$6,000 to $7,000		As incurred		During first three months after opening		Third Party
	Office and Store Supplies		$2,500		Lump Sum		Before beginning business		Franchiser and Third Party
	Opening Inventory		$9,500 to $16,100		Lump Sum		Before beginning business		Franchiser and Third Party
	Insurance		$2,000 to $5,000		Lump Sum		Before beginning business		Third Party
	Printing and Signage		$2,000 to $6,000		As Incurred		Before beginning business		Franchiser and Third Party
	Office/Kitchen Equipment		$21,300 to $32,000		As Incurred		Before beginning business		Third Parties
	Prepaid Rent and Security Deposit		$2,800 to $6,000		Lump Sum		Before beginning business		Per agreement with landlord
	Leasehold Improvements		$30,000 to $80,000		As Incurred		Before beginning business		Various contractors / suppliers
	Utility Deposits		$700 to $1,450		Lump Sum		Before beginning business		Landlord and utility companies
	Licenses and Permits		$1,200 to $1,700		Lump Sum		Before beginning business		Governmental authorities
	Fictitious Name Registration and/or Incorporation and Legal Review; Professional Fees		$1,300 to $2,600		Lump Sum		Before beginning business		Third Parties
	Travel, Lodging, Meals, Etc for Initial Training		$1,000 to $2,000		As Incurred		On signing the Franchise Agreement		Franchiser
	P.O.S. System		$2,000 to $2,500		As Incurred		Before beginning business		Third Party
	Miscellaneous Start-Up Costs		$1,100 to $4,300		As Incurred		Before beginning business		ÝThird Parties
	Additional Funds (6 months)		$15,000 to $30,000		As Incurred		Before beginning business		Third Parties
	TOTALS		$118,400 to $219,150