Arwa Coffee

Arwa Coffee Franchising LLC Franchise Disclosure Document | 2026 11 that already has appropriate utility service and hook-ups, including electrical wiring required to operate the Coffee Shop. The high figure represents the estimated cost of building out a “vanilla box” space, and includes the cost of adding or upgrading the HVAC system, electrical wiring installation sufficient for operation of a Coffee Shop, restrooms, and utilities. The estimates included in the table above do not reflect a deduction for the average allowance provided by landlords for tenant improvements and other allowances. This estimate does not include architectural fees or other fees charged by licensed professionals. Note 4: You will be required to purchase certain types of furniture, fixtures, and equipment necessary for your Coffee Shop from our designated third-party supplier. Among other things, you will be required to purchase wall panels or wall decors, tables and chairs, espresso machines, coffee bean grinders, mixers, and rugs. Therefore, you must comply with our branding, color, and design concept of an Arwa Coffee business. Colors and designs will be selected and provided by us. Significant factors that will influence and will increase the cost of furniture, fixtures and equipment will depend on the size of your Coffee Shop. The costs listed here do not include any transportation or set up costs. Note 5: You will be required to purchase certain types of Computer System hardware, software, and other electronic system necessary for operation of your Coffee Shop from our designated third-party supplier. Among other things you must purchase your franchise marketing operating system, CRM system, QuickBooks, sales metrics software, POS software, inventory control system, menus, and music system including any speakers or music player. This amount includes approximately $5,500 for the hardware and initial set up costs for the menu screens. Note 6: You must purchase insurance as required by state law and of the type and with minimum limits as we specify. While there is no specific approved vendor for this item, you are required to purchase from a certified accredited insurance company. See Item 8 for more information. The range shown estimates the cost of coverage for a three-month period dependent upon coverage you may have previously purchased or geographic area in which your Franchised Business will be located. Note 7: Subject to our design and construction specifications and approval, you must purchase interior and exterior signs and displays that we designate including any illuminated signage. You are solely responsible to comply with local ordinances regarding such signage. This estimate includes other elements of brand identification within the Arwa Coffee system such as wall graphics, signage menu boards, and other display items. Note 8: Your initial supplies are comprised of smallwares and supplies such as tea kettles, coffee pots, plates silverware, and uniforms. Your Initial Inventory will consist of proprietary merchandise and food and beverage supplies for your customers. Your on-going inventory bearing Marks must be purchased from us or from our affiliate; however, other initial and on-going inventory must conform to our specifications and must be purchased from our approved suppliers. Note 9: See Item 11 for more information about our training program. The amounts in the chart represent the estimated out-of-pocket costs for up to five individuals to attend training. Note 10: This includes additional funds you will incur before operations begin and during the initial three months of operations. Assuming a staff of 5 employees, we anticipate you will need these funds to pay fixed operating expenses such as payroll, additional inventory, rent, and other operating expenses. It does not include any salary or compensation for you. In compiling these estimates, we relied on our affiliate’s experience in operating a similar Coffee Shop in Richardson, Texas. You should review these numbers carefully with your business advisor before purchasing an Arwa Coffee Shop franchise and understand the cost involved in this Franchised Business. Note 11: All amounts are non-refundable unless otherwise noted. If you develop multiple Coffee Shops under our development agreement, we anticipate that your initial investment for each Coffee Shop developed will be the same as reflected in the above chart, subject to applicable inflationary increases.

Local Marketing. Each month, you must spend at least 1% of your Gross Sales on advertising, promotions and public relations in the local area surrounding the Coffee Shop. You will pay for your ads and promotions directly, but we will provide you with general marketing guidelines and we will review and approve your advertisements. Within 30 days from your fiscal year end, you must provide us with a proof of your spend and if you have not spent the 1% gross sales on Local Marketing the difference must be paid into the Brand Development Fee as an additional contribution. Local or Regional Advertising Cooperatives We do not currently require you to participate in any local or regional advertising cooperatives. Point of Sale and Computer Systems. You must purchase, install, and maintain an electronic point-of-sale cash register system to record sales and transaction data (such as item ordered, price, and date of sale) that we designate for your Coffee Shop. Currently, Square is the only approved point-of-sale system (“POS System”). You will use the POS System to record sales and report sales. You must install and maintain between two and four POS Systems (depending on the size of your Coffee Shop).

NOTES: Note 1. All fees in Item 6 are uniformly imposed and collected by us, payable to us, and are non-refundable, unless otherwise noted. Note 2: “Gross Sales” is the total selling price of all services and products and all income of every other kind and nature related to your Coffee Shop including income related to catering operations and special events and the full value of meals provided to your bona fide employees as a benefit of their employment, whether for cash or credit and regardless of collection in the case of credit. Gross Sales is not reduced by the amount of any discounts on products or services sold to employees, family members, or other businesses you own or control or by the amount paid to, collected by, or shared with third-party food ordering and delivery systems with which we allow the Coffee Shop to do business. Gross Sales is calculated without any deduction for credit card processing fees, delivery commissions, or other costs of sale. Gross Sales further includes amounts paid to, collected by, or shared with third-party food ordering and delivery systems with which we allow the Shop to do business, including but not limited to UBER EATS, DOORDASH, and FAVOR. Gross Sales does not include (i) receipts from any public telephone, vending machine, or video games, if any, installed in your Coffee Shop, except for your share of the revenues; (ii) sales (or similar) taxes that you collect from your customers if you transmit them to the appropriate taxing authority; (iii) proceeds from isolated sales of trade fixtures that are not part of the products and services you offer and that do not have any material effect on the operation of your Coffee Shop; (iv) tips or gratuities paid directly by customers to your employees or paid to you and then turned over to these employees by you in lieu of direct tips or gratuities; or (v) returns to shippers or manufacturers. Gross Sales also does not include proceeds from the sale of gift certificates or stored value cards (all proceeds from the sale of gift certificates and stored value cards belong to us), but it does include the redemption value of gift certificates and stored value cards at the time purchases are made. You are responsible for the accurate reporting of gift certificate and stored value card sales and the corresponding impact on Gross Sales. You have until 30 days after the end of our fiscal year to notify us of any errors you made in calculating Gross Sales as those errors relate to the reporting of gift certificate and stored value card sales. “Selling Price” is defined as the non- discounted, regular menu price. All barter and exchange transactions for which you furnish services or products in exchange for goods or services to be provided by the vendor, supplier or customer will be valued at the full retail value bartered in exchange for the good or services provided to you. Gross Sales also includes the proceeds of any business interruption insurance paid to you. Gross Sales also includes any payments you receive from vendors; chargebacks are not deducted from Gross Sales. Note 3: We currently require you to pay Royalty Fees and other amounts due to us by pre-authorized bank draft. However, we may require an alternative payment means, method, or location at our sole discretion. Note 4. While we currently do not require Arwa Coffee franchisees to attend an annual conference, we can require franchisees to attend one in the future. Note 5. If we terminate your franchise agreement because of your default, or if you terminate the franchise agreement without the right to do so, we are entitled to collect in addition to all other amounts due to us under the franchise agreement, liquidated damages calculated as an amount equal to (a) the product of your

NOTES: Note 1. All fees in Item 6 are uniformly imposed and collected by us, payable to us, and are non-refundable, unless otherwise noted. Note 2: “Gross Sales” is the total selling price of all services and products and all income of every other kind and nature related to your Coffee Shop including income related to catering operations and special events and the full value of meals provided to your bona fide employees as a benefit of their employment, whether for cash or credit and regardless of collection in the case of credit. Gross Sales is not reduced by the amount of any discounts on products or services sold to employees, family members, or other businesses you own or control or by the amount paid to, collected by, or shared with third-party food ordering and delivery systems with which we allow the Coffee Shop to do business. Gross Sales is calculated without any deduction for credit card processing fees, delivery commissions, or other costs of sale. Gross Sales further includes amounts paid to, collected by, or shared with third-party food ordering and delivery systems with which we allow the Shop to do business, including but not limited to UBER EATS, DOORDASH, and FAVOR. Gross Sales does not include (i) receipts from any public telephone, vending machine, or video games, if any, installed in your Coffee Shop, except for your share of the revenues; (ii) sales (or similar) taxes that you collect from your customers if you transmit them to the appropriate taxing authority; (iii) proceeds from isolated sales of trade fixtures that are not part of the products and services you offer and that do not have any material effect on the operation of your Coffee Shop; (iv) tips or gratuities paid directly by customers to your employees or paid to you and then turned over to these employees by you in lieu of direct tips or gratuities; or (v) returns to shippers or manufacturers. Gross Sales also does not include proceeds from the sale of gift certificates or stored value cards (all proceeds from the sale of gift certificates and stored value cards belong to us), but it does include the redemption value of gift certificates and stored value cards at the time purchases are made. You are responsible for the accurate reporting of gift certificate and stored value card sales and the corresponding impact on Gross Sales. You have until 30 days after the end of our fiscal year to notify us of any errors you made in calculating Gross Sales as those errors relate to the reporting of gift certificate and stored value card sales. “Selling Price” is defined as the non- discounted, regular menu price. All barter and exchange transactions for which you furnish services or products in exchange for goods or services to be provided by the vendor, supplier or customer will be valued at the full retail value bartered in exchange for the good or services provided to you. Gross Sales also includes the proceeds of any business interruption insurance paid to you. Gross Sales also includes any payments you receive from vendors; chargebacks are not deducted from Gross Sales. Note 3: We currently require you to pay Royalty Fees and other amounts due to us by pre-authorized bank draft. However, we may require an alternative payment means, method, or location at our sole discretion. Note 4. While we currently do not require Arwa Coffee franchisees to attend an annual conference, we can require franchisees to attend one in the future. Note 5. If we terminate your franchise agreement because of your default, or if you terminate the franchise agreement without the right to do so, we are entitled to collect in addition to all other amounts due to us under the franchise agreement, liquidated damages calculated as an amount equal to (a) the product of your