New York Pizzeria

You must purchase and use the point of sale system we designated in the Operations Manual. The approved supplier for the point of sale system, if we designate one, will also be included in the Operations Manual. You must purchase a maintenance contract for your point of sale system, which we anticipate will cost Russo’s New York Pizzeria 2025 FDD A9 31 up to $1,200 per year. You must obtain any upgrades and/or updates to the software used with the point of sale system, at your expense. In addition, we may require you to update and/or upgrade all or a portion of your point of sale and/or computer system during the term of your Franchise Agreement, at your expense. The Franchise Agreement does not limit our ability to require you to update and/or upgrade your point of sale and/or computer system or the cost of any update and/or upgrade. Neither we nor any affiliate of ours is responsible for providing you with any upgrades, updates or maintenance for your point of sale or computer system. You must also use the C-Tuit polling software as we require. We will bill you monthly for an Intranet Service Provider Fee and a portion of this fee ($33) is the base fee for the required C-Tuit polling software.

9. Retail Equipment / Delivery Vehicle. This line item is for the furniture, fixtures and equipment, kitchen equipment (ice machine, microwave oven, work tables, shelving, grill, convection oven and oven stand proofer), artwork, bar equipment and supplies, restaurant equipment and kitchen smallwares, interior décor, copier, desks, chairs, storage cabinet, file cabinet, adding machine and basic office supplies, etc. You must purchase equipment meeting our specifications to be used in the Restaurant. You may not purchase used furniture, fixtures and equipment for your Restaurant. If the property was previously a restaurant and exhaust systems are in place, then the costs could be lower, if no modification is needed. Your delivery vehicle, which can be leased (and which amount is estimated in these figures) can be either a van or sedan. 10. Electronic Cash Register with Modem. We require that you use in the Restaurant either the Micros POS computer hardware and software or the Toast POS computer hardware and software system, which includes monitors, touch screen displays, printers, keyboards and primary desktop station. Typically, you will use two Russo’s New York Pizzeria 2025 FDD A9 18 terminals per Restaurant and two remote printers; but many of our locations use three or four terminals. We have the right, as described in Item 11, to poll your system at our discretion. You must pay the cost for us to initiate access to your system through our monitoring software.

9. Retail Equipment / Delivery Vehicle. This line item is for the furniture, fixtures and equipment, kitchen equipment (ice machine, microwave oven, work tables, shelving, grill, convection oven and oven stand proofer), artwork, bar equipment and supplies, restaurant equipment and kitchen smallwares, interior décor, copier, desks, chairs, storage cabinet, file cabinet, adding machine and basic office supplies, etc. You must purchase equipment meeting our specifications to be used in the Restaurant. You may not purchase used furniture, fixtures and equipment for your Restaurant. If the property was previously a restaurant and exhaust systems are in place, then the costs could be lower, if no modification is needed. Your delivery vehicle, which can be leased (and which amount is estimated in these figures) can be either a van or sedan. 10. Electronic Cash Register with Modem. We require that you use in the Restaurant either the Micros POS computer hardware and software or the Toast POS computer hardware and software system, which includes monitors, touch screen displays, printers, keyboards and primary desktop station. Typically, you will use two Russo’s New York Pizzeria 2025 FDD A9 18 terminals per Restaurant and two remote printers; but many of our locations use three or four terminals. We have the right, as described in Item 11, to poll your system at our discretion. You must pay the cost for us to initiate access to your system through our monitoring software.

Gross Sales shall expressly exclude: (a) sums representing sales taxes collected directly from customers, based upon present or future laws of federal, state or local governments, collected by you in the operation of the Restaurant; (b) any other tax, excise or duty which is levied or assessed against you by any federal, state, municipal or local authority, based on sales of specific merchandise sold at or from the Restaurant, provided that such taxes are actually transmitted to the appropriate taxing authority; (c) the full value of meals furnished to your employees as an incident to their employment, up to an amount equal to 1% of your Restaurant’s Gross Sales. The full value of meals furnished to your employees that exceeds 1% must be included in Gross Sales during the week in which the meals were furnished, for the purpose of determining the amount of Gross Sales upon which the Royalty Fee is due; and (d) voided transactions, which are customer sales which are not completed, and for which no payment of any kind is received by the Restaurant, up to an amount equal to 2% of your Restaurant’s Gross Sales. The full value of voided transactions that exceeds 2% must be included in Gross Sales during the week in which the voided transactions occur, for the purpose of determining the amount of Gross Sales upon which the Royalty Fee is due. (e) the use of third party delivery services (grub hub, uber eats, etc); franchisee royalties are paid on the gross sales (not the net revenue received by the franchisee from third party delivery services);the cost the third party delivery service charges the franchisee is a delivery cost that the franchisee absorbs as a cost of doing business; third party delivery services are not required and Russo's has its own delivery service.