Item 7

Type of Expenditure Amount Method of Payment When Due To Whom Payment is to Be Made
Initial Franchisee Fee $39,500 Lump Sum When you sign the Franchise Agreement Touching Hearts, Inc.
Training Expenses $1,000 - $2,000 As Incurred During Training Third Parties
Office Equipment and Computer-Related Expenses $2,600 - $4,600 As Incurred Prior to Opening Third Parties
Professional/ Business Licenses $2,000 - $3,500 As Incurred As Incurred Third Parties
Additional Funds (3 months) $3,300 - $16,000 As Incurred As Incurred Advertising, Employees, Supplies, Utilities, Signage
Real Estate and Improvements $2,000 - $5,500 As Incurred As Incurred Third Parties
Insurance $2,500 - $4,500 As Incurred Prior to Opening Insurance Companies
TOTAL $52,900 - $75,600