Positioning • Essentials • Investment Request Info

Initial Investment

THE INITIAL INVESTMENT DATA PROVIDED IS A SUMMARY OF THE INFORMATION THE RISING ROLL GOURMET UNIFORM FRANCHISE OFFERING CIRCULAR (UFOC). TO RECEIVE THE UFOC, PLEASE CONTACT US.

Explanatory Notes:
1. See Item 5 of the Disclosure Document.

2. Your Restaurant will be approximately 2,000 to 2,500 square feet of Class A or Class B space
and will include a dining room, a food counter and prep area, a kitchen area, a walk-in
refrigerator, a storage room, restrooms, and a small office. The rental for your Restaurant will
vary considerably depending on the size and location of the Restaurant. See Item 11 of this
Disclosure Document. We must approve any site you propose. You will have up to 120 days to
select the site for your Restaurant. See Item 12 of this Disclosure Document.

Class A retail space is defined by the Building Owners and Managers Association (“BOMA”) as
space in the most prestigious buildings competing for premier retail space users with above-
average rental rates for the area along with high-quality standard finishes, state of the art systems,
exceptional accessibility, and a definite market presence.

Class B space is defined by BOMA as space in buildings competing for a wide range of users
with rents in the average range for the area. Building finishes are fair to good for the area and the
systems are adequate, but the building does not compete with Class A at the same price.

The figures shown in the table include your real property rental for three months.

3. The figures shown in the table assume you are leasing a Restaurant site that requires average
build-out. If you purchase the Restaurant site, or if your site requires extensive build-out, your
expenses may be considerably higher. If your site requires little build-out, your costs may be
considerably lower. The figures in this table assume that your Restaurant will be between 2,000
to 4,000 square feet and, if your Restaurant exceeds this size, your costs will increase. Net build
out costs will fluctuate based on any contribution your landlord may or may not contribute. The
figures include the Architect Fee described in Item 5.

4. The figures shown in the table (i) include two point-of-sale systems with computers and (ii) are based on the lease of such equipment. See Item 11 of this Disclosure Document.

You will need to lease or purchase at least two point-of-sale systems with a server. We specify
particular brands of computer hardware and related hardware you must use. We must be able to
obtain sales and other information we require automatically on our request from your computer.
See Item 11 of this Disclosure Document. The estimates shown assume that you lease two point-
of-sale systems with two computers. If you purchase your point-of-sale system and computer
hardware, your initial costs will be higher. The estimates do not include the costs of the computer
software described in Item 11 of this Disclosure Document; we include these under the
“Miscellaneous Opening Expenses” heading. We estimate these costs will be between $500 and
$1,000. We do not require you to use any software we have developed, although we reserve the
right to do so in the future. See Item 11 of this Disclosure Document.

5. You will need deli cases, display cases, a walk-in refrigerator, a stand-alone refrigerator, tables, chairs, stoves, microwave ovens, convection ovens, grills, racks, a meat slicer, sinks, prep tables, and an ice machine. You will also need a fax machine, a music system, and telephones, in
addition to office furniture and miscellaneous fixtures, other equipment, supplies, and signs. You
will offer catering services, so you will need to purchase or lease a van.

Your costs will vary depending on the size, configuration, and condition of the items you select,
general economic conditions, your geographic location, and your persistence in obtaining the best
prices available. The estimates shown in the table assume that you lease good-quality new items;
if you elect to purchase them, your initial costs will be substantially higher. The figures shown
include security deposits for the items you lease.

6. This represents your initial investment in food and ingredients. See Item 8 of this Disclosure
Document.

7. Landlords, utility companies and equipment leasing companies will probably require you to pay deposits and prepaid expenses.

8. Before you open the Franchised Business, you must obtain certain insurance coverages we
require, with coverage limits, endorsements, and other terms and conditions we require. We
presently require the following insurance coverages from a carrier rated A or better by Alfred M.
Best and Company, Inc.:

All policies must: (i) insure you; (ii) name us as an additional insured; (iii) provide that your
insurance carrier must give us at least 30 days’ written notice before any cancellation or
modification of your policies; and (iv) contain a waiver by the insurance carrier of all subrogation
rights against us and other parties covered by the insurance. Your insurance costs may not be
uniform because insurance premiums differ depending on your location, your insurance
company’s assessment of the risk of insuring you, the amounts of insurance you need, your
insurance history, applicable law in the jurisdiction where your Restaurant is located, and general
economic conditions. We may increase the minimum insurance limit or require different kinds of
insurance to reflect changes in prudent business practices, and in response to court awards and
other relevant circumstances.

9. These figures include the costs and expenses you will incur to: (i) obtain legal counsel to review the Franchise Agreement and this Disclosure Document, and forming your company; (ii ) obtain an accountant to set up your accounting systems; (iii) obtain any business licenses you will need to operate the Franchised Business; and (iv) purchase signage, smallwares (like pots and pans), a menu board, and décor items.

10. You or the attendees you designate must attend our Manager Training before you open your
Restaurant. See: (i) Item 6, Explanatory Note 6; and (ii) Item11, of this Disclosure Document.
Costs vary due to the number of attendees you designate, distances from your location to our
training site, and the quality of the food and lodging your attendees choose. The figures include
the Training Fee described in Item 5.

11. Your advertising cost is directly related to the amount and type (in-person meetings, yellow page advertisements, targeted advertisements, television and radio advertisements, brochures, newspaper advertisements, direct mail, etc.) of advertising you conduct. You must spend at least
2% of your prior year’s Gross Revenues or $20,000, whichever is greater, on a program of local
advertising in your Territory, plus 1% of your Gross Revenues for the National Advertising Fund.
You must spend at least $5,000 in grand opening advertising and other promotions during the
period beginning 30 days before you open your Restaurant and ending 60 days after you open
your Restaurant. Your grand openingadvertising is in addition to your Local Advertising
Requirement.

12. The “Additional Funds”category covers the initial expenses you are likely to incur while you
establish the Franchised Business. These expenses include costs of performing background
checks, hiring employees, and purchasing other goods and services. Your expenditures will
depend on factors like your business skills and experience, general and local economic
conditions, competition, the prevailing wage rate, the amount of services you provide during the
initial period, how well your business is performing, and the number of hours you are willing to
invest in your Franchised Business. We assume that one or more of your owners will serve
multiple roles in your Franchised Business, including the roles of full-time Manager. These
expenses do not include any draw or salary for the owners of the Franchised Business.

13. In compiling this chart, we relied on the experience of WSquared in the operation of fast-casual sandwich and deli restaurants, and on information we and W Squared gained from our experience in food service, franchising, and the System. Many of the expenses listed in the table are not within our control and are determined more by general and local economic conditions rather than our actions. We do not offer direct or indirect financing to you for any of these expenses. A bank or other lending institution may finance all or a part of your investment on terms we cannot
estimate. The availability and terms of financing will depend on factors like the availability of
financing, your creditworthiness, collateral you may have, lending policies of your financial
institution, and local economic conditions.

The amounts shown are estimates only and are likely to vary significantly for many reasons.
You should review these estimates carefully with a business advisor before you make any
decision to enter into the Franchise Agreement with us.

14. See Item 5 of this Disclosure Document. If you and we enter into the Option Addendum and you open a new restaurant under it, your costs will be substantially the same as shown in the table,
except that: (i) your training expenses may be lower; and (ii) you may be able to advertise jointly
with the Franchised Business, thereby amortizing your expenses for your Opening Advertising
and Telephone Listing over two businesses rather than one.

None of the communications on this web site should be construed as an offer to sell a franchise. We will not offer any franchise for sale: (i) until your state has duly registered our franchise offering or duly exempted our franchise offering from registration, if your state requires registration or exemption; and (ii) until we have duly delivered our Uniform Franchise Offering Circular to you in compliance with applicable law.