The following questions and answers are designed to provide basic information about the structure, cost and support systems of our Franchise program.

What types of Franchises are available?
Both Single-Unit and Multi-Unit Franchises...for Fast-Casual Restaurants and Sandwich Shops.

What does a Single-Unit Franchise cost?

The Single-Unit Franchise fee is $25,000. Under our Area Developer’s Agreement, Multiple-Unit fees are as follows:

Second Unit	$20,000
Third and Additional Units	$15,000

All of the first unit fee and a $5,000 deposit on all subsequent fees are required when an Area Developer’s Multi-Unit Franchise Agreement is signed. The balance of the Franchise Fee for each unit is required when a lease is executed for said additional unit. Additional units are opened in accordance with an established time schedule.

What is the total investment?
It varies dependent on size and location of unit, with an estimated average initial investment for a Single-Unit as follows:

	Sandwich Shop	Fast-Casual Restaurant
Initial Franchise Fee	$25,000	$25,000
Leasehold improvements, equipment, fixtures, point-of-sale, phone and music systems and signage and architectural	$113,500	$195,000 to $235,000
Working capital, initial inventory, security deposits, miscellaneous, start-up costs, grand opening advertising	$41,500 to $61,500	$57,000 to $77,000
Total investment range	$180,000 to $240,000	$277,000 to $337,000
Average investment	$210,000	$307,000

Dependent on size and location of unit Restaurant square footage: 1,500 to 2,500; Sandwich Shop square footage: 750 to 1,000.

Equipment cost includes the major equipment, point of sale system, fixtures, furniture and installation needed for your unit. Leasehold improvements consist of store construction costs, which vary according to location and condition of the space. These include, but are not limited to, electrical, plumbing, flooring, walls, material, signage, decor and architectural.

Initial inventory consists of all product inventory, wares and other products and supplies needed to open your unit.

Deposits include utility, insurance and security deposits, as required. Working capital includes amounts for start-up costs.

What is the time frame to open a Stallone’s Fast-Casual Restaurant or Sandwich Shop?
Upon site acceptance...it’s possible to obtain permits, licenses, place orders for fixturing and equipment, make leasehold improvements and complete training in as little as five months.

Is there a fee for ongoing service?

Yes. The royalty fee for continuing service is 5% of the net sales. Net sales are the total receipts from all sales, but do not include sales tax or equivalent taxes.

What about advertising?
To promote on a local and/or regional level, Franchisees are required to contribute 3% of their net receipts for media advertising. There is also a mandatory contribution of one-half of one percent (.05%) of net sales to an advertising production fund administered by the Franchisor. Franchisor will contribute similar percentages for company-owned units.

What kind of training can I expect from the Company?
Comprehensive. The multi-week corporate training program at corporate headquarters and company unit and at Franchisee’s own unit, includes everything from food preparation to catering to business management.

What help will I get constructing my unit?

Franchise Corporate will assist in overviewing the construction of your unit, to maintain consistency of design appearance, the quality of materials and to assure operational efficiency. The Company also offers Franchisee the option of a turnkey project through it’s design/engineering/construction management associates. Separate contracts for these professional services are required. Cost is in addition to estimated average initial investment.

Where can I locate my unit?
Because Franchise Corporate assists in developing sites, you are afforded a far greater selection of choice locations through the skill of an experienced company.

When I want to sell my Franchise?
As with any business, you can sell your Franchise to any buyer approved by the Company. There is a fee for administrative and legal expenses.

Am I required to buy my food products from the Company?

All products (food inventory) will be purchased throught Franchisor-approved suppliers. Proprietary products will be supplied to you, by the Franchisor, or through approved vendors.

Am I required to buy my equipment and supplies from you?
Equipment, fixtures, furniture, signage, etc. may be purchased or leased from Franchisor-approved manufacturers, suppliers and/or distributors. With the purchasing power of our company, we can generally provide favorable pricing for our franchisees. Our Operations Department continually evaluates suppliers based on their ability to meet or exceed our high quality standards and specifications.

Does Company offer a financing program?
Not directly. But we can assist in obtaining financing for qualified franchisees.

I’m interested, what’s the next step?

Complete the Confidential Franchise Application and return it to us; this obligates neither party in any way and is merely an expression of your interest. If you qualify, we’ll contact you to schedule a personal meeting and provide you with the required disclosure document, including our complete Franchise Agreement.