American LegalNet, Inc. www.FormsWorkFlow.com Form B - Franchisor=s Costs and Sources of Funds FRANCHISOR=S COSTS AND SOURCE OF FUNDS Disclose the Franchisor=s total costs for performing its pre-opening obligations to provide goods or services in connection with establishing each franchised business, including real estate, improvements, equipment, inventory, training and other items stated in the offering: CategoryCosts Real Estate Improvements Equipment Inventory Training Other (describe) Totals 1.State separately the sources of all required funds: American LegalNet, Inc. www.FormsWorkFlow.com Instructions for Preparing Form B: Franchisor=s Costs and Source of Funds 1. The Franchisor=s Costs and Source of Funds form should accompany each initial or renewal filing. Do not use with amendments. 2. In section 1, estimate the franchisor=s total costs to perform its pre-opening obligations to provide goods or services for establishing a new, typical franchised business. 3. Provide only incremental cost estimates; i.e., expenses incurred that are independent of salaries and overhead for the franchisor=s own employees or employees of affiliates that may provide these services. 4. In Section 2, state separately the sources of all required funds. For example, this could include the franchisor=s operating funds, initial franchise fees collected, etc.