Chanello's Pizza

Market Two installments of The first At your expense, we will Introduction Plan $10,000 installment is conduct initial marketing on your due prior to the behalf in accordance with a Store’s opening, market introduction plan that and the second you will create, subject to our installment is approval. due within 30 days of the Store’s opening. Local Store 5% of Gross Sales As incurred See Note 4. Marketing POS System Service Bundle: $300 Monthly, except Payable directly to Foodtec fees per month annual for Solutions, the designated system support vendor for the POS system, Enterprise Reporting loyalty program, gift card (remote access to program, online ordering reporting): $35 per system, and marketing month modules. We are not affiliated with Foodtec Solutions. Enterprise Manager We reserve the right to (remote access to implement a proprietary POS menu, coupon, system, which may require customer marketing): different up-front and $30 per month maintenance fees. Third Party Integration: $99 per month

The estimated initial costs of the POS system are $18,000 to $30,000 per location for hardware, software, back-of-house computers, and cabling, assuming 5 terminals or work stations. You must pay monthly user fees to Foodtec Solutions as indicated in Item 6. In addition, we require that you purchase a maintenance agreement for both hardware and software in order to reduce downtime and costs associated with repairs. As of the date of this disclosure document, the cost of Foodtec Solutions’ basic annual system support for the POS system is $900 per restaurant. Any additional support (for example, menu updates, custom reports, and online learning) is billed by the hour directly from Foodtec.

(4) During the first year after opening, you must spend 5% of Gross Sales of the restaurant or $2,000 per month, whichever is greater. After the first year, you must spend not less than 5% of Gross Sales. Food and beverage products that you give away will count toward your LSM obligation, but only at your cost (not the retail value) of the products, and the maximum that we will count toward LSM is one percent (1%) of Gross Sales. Fees that you pay to third-party delivery service providers (such as DoorDash, GrubHub and Uber Eats) do not count toward your LSM obligation. If we determine that you have spent less than the required amount for LSM, we have the right to collect funds from you weekly for LSM; we will use these funds to reimburse you when you provide verification of your costs incurred in Local Store Marketing.

(4) During the first year after opening, you must spend 5% of Gross Sales of the restaurant or $2,000 per month, whichever is greater. After the first year, you must spend not less than 5% of Gross Sales. Food and beverage products that you give away will count toward your LSM obligation, but only at your cost (not the retail value) of the products, and the maximum that we will count toward LSM is one percent (1%) of Gross Sales. Fees that you pay to third-party delivery service providers (such as DoorDash, GrubHub and Uber Eats) do not count toward your LSM obligation. If we determine that you have spent less than the required amount for LSM, we have the right to collect funds from you weekly for LSM; we will use these funds to reimburse you when you provide verification of your costs incurred in Local Store Marketing.

(4) During the first year after opening, you must spend 5% of Gross Sales of the restaurant or $2,000 per month, whichever is greater. After the first year, you must spend not less than 5% of Gross Sales. Food and beverage products that you give away will count toward your LSM obligation, but only at your cost (not the retail value) of the products, and the maximum that we will count toward LSM is one percent (1%) of Gross Sales. Fees that you pay to third-party delivery service providers (such as DoorDash, GrubHub and Uber Eats) do not count toward your LSM obligation. If we determine that you have spent less than the required amount for LSM, we have the right to collect funds from you weekly for LSM; we will use these funds to reimburse you when you provide verification of your costs incurred in Local Store Marketing.