The estimated investment costs are shown below for a new KaleidoScoops® - Ice Cream & More Shoppe. The cost for conversion of an existing location may be considerably different.

Notes:

1. You must pay a one time Membership Fee of $3,000.

2. Your first years dues are paid in advance then in subsequent years are billed and paid quarterly.

3. We do not furnish initial training, but you may make arrangements to be trained by another member (see Item 11). The estimates shown are for your expenses if you need to travel and incur meals and lodging while you train at another member’s store.

4. The leasehold improvements you must make include, but are not limited to, flooring, ceiling, lighting, plumbing (including compliance with the Americans With Disabilities Act), electrical upgrades and services, telephone line installation for the Store and for the cash register, and cabinetry. The cost of leasehold improvements will vary depending upon the size, condition and location of the premises, price differences between suppliers and terms negotiated with the lessor.

5. This estimate is for, but is not limited to, the purchase of the following items: Ice Cream dipping cabinets, Walk-In Freezer, Soda Rail, Ice Cream Cake Display Freezer, Sign Frames, and Exterior Signage.

6. Some of our members purchase the following optional equipment: Coffee Equipment, Bakery Display units, Microwaves. If you purchase this optional equipment, you will incur costs up to $15,000.

7. This estimate is for initial basic inventory and miscellaneous supplies necessary to begin operating the Store, including ice cream, cakes, toppings, food products, paper goods, and private label merchandise including.

8. The estimate is for the first month's rent and security deposit typically required to be paid when you sign a lease. The amount will vary depending on the location of the premises, the size of the Store, and the then current rental market.

9. We suggest, but do not require you to conduct a Grand Opening during the first 60 days of operation of your Store. If you elect to do so, you may expend up to $3,000 or more, depending on the nature and extent of your Grand Opening.

10. You must purchase the insurance required by KaleidoScoops, Inc. The estimate is for a 1 year premium (exclusive of vehicle coverage). The cost of insurance will vary based on the types and limits of the insurance you purchase and other factors affecting risk exposure.

11. This estimate covers utility deposits, and license and permit fees.

12. You may need to employ a local architect, and may employ an attorney, accountant or other consultants.

13. This estimate covers business operating costs including payroll, rent, other initial costs and expenses for the first 3 months. NOTE: These figures do not include draw or salary for you. You should have additional sources for payment of personal living expenses.

These figures are estimates and KaleidoScoops, Inc. cannot guarantee that you will not have additional expenses in starting your Store. Your costs will depend on factors as, your business management and marketing experience, local economic conditions, the local market for your products and services, the prevailing wage rates, competition, and the sales level reached during the first 3 months.

KaleidoScoops has compiled these estimates based on the experience of our other members in establishing KaleidoScoops Stores. You should review these figures carefully with a business or financial advisor before making any decision to purchase.