RONZIO QUESTIONS & ANSWERS

The following questions and answers are designed to help you accurately assess the Ronzio Pizza Shop franchise and to make a fully-informed decision concerning our business opportunity. We have outlined your costs and responsibilities as a Ronzio Pizza Shop franchise owner, as well as several other support systems.

1. What types of franchises are available?
   The individual franchise for a single Ronzio Pizza Shop, and a Regional Franchise Agreement for the establishment of more than one Ronzio Pizza Shop within a designated geographic area.

2. What does an individual franchise cost?
   The individual franchise fee for a Ronzio Pizza Shop is $15,000. The initial franchise fee is payable at the time the franchise agreement is signed.

3. What is the cost of a unit opened under a Regional Franchise Agreement?
   The fee for Ronzio Pizza Shop franchises purchased under a Regional Franchise Agreement is $12,000 per unit. On the signing of the Regional Franchise Agreement, you must pay the initial franchise fee for one franchise plus $2,500 of each fee for all additional shops. The balance of the fee for each shop is due before each shop is opened.

4. How much cash do I need?
   There is a wide range. The cost will vary between $136,500 and $207,500 total initial investment. The estimated costs are broken down as follows:

   Item Initial Franchise Fee Site Development Fee Deposits Leasehold Improvements POS System Equipment & Signage Working Capital Initial Inventory Initial Store Open Advertising Total Initial

   Range of Cost $12,000* – $15,000 $1,000 – $3,000 $5,000 – $8,000 $40,000 – $60,000 $10,000 – $15,000 $55,000 – $85,000 $7,500 – $12,000 $3,500 – $5,000 $2,500 – $4,500 $136,500 – $207,500

   When Due/To Whom Upon Signing – Franchisor As Incurred – Franchisor As Needed – Utilities, etc. As Incurred – Contractors As Incurred – Vendors As Incurred – Vendors As Incurred – Supplies, Payroll As Arranged – Suppliers As Arranged – Suppliers *Multi-Unit Agreement

5. Does Ronzio offer a finance program?
   No. We do not offer any financing in connection with your initial investment but we will assist you in whatever way we can in arranging financing and can in some instances direct you to financing sources. However, these are third parties and their decisions are independent of Ronzio Management, Inc., and are based upon such factors as the availability of financing in general, your credit worthiness, collateral security, and the policies of the various lending institutions.

6. Must I purchase equipment and supplies from you?
   No. These are purchased independently from an approved list of suppliers to insure that the quality standards of Ronzio are met and to ensure product consistency within the Ronzio Pizza Shop System.

7. Who decides what prices I will charge for my products as a Ronzio Pizza Shop franchise owner?
   You do, however, we will provide you with food cost information which will help you in making your pricing decisions.

8. What is the charge for continuing services?
   The weekly continuing royalty fee is 5% of the total gross receipts exclusive of any federal, state, or city taxes collected by the franchisee from customers based upon sales.

9. What about advertising?
   Building recognition of the Ronzio name and reputation is essential objective which benefits everyone. For this purpose, each franchisee must spend a minimum of 2% of gross receipts on local advertising. In addition each franchisee must contribute 2% of gross receipts into the Ronzio Cooperative Advertising Fund. There is a minimum fee of $70.00 per week.

10. Where may I locate my Ronzio Pizza Shop?
    You may designate where you wish to locate your franchise as long as the location meets the Ronzio criteria and does not infringe upon the exclusive territory of any other Ronzio Pizza Shop. We may be able to assist you in locating favorable sites, but the final decision is up to you, subject to our approval.

11. Do I need restaurant experience to own a Ronzio Pizza Shop franchise?
    While not mandatory, restaurant or retail experience is highly recommended. Ronzio Management provides every franchisee with all the training programs necessary to effectively operate a Ronzio Pizza Shop franchise.

12. Do I receive training by Ronzio Management, Inc.?
    Yes. The franchisee and/or his operating manager must attend and successfully complete the 2 week Ronzio Training Program provided by the company at a headquarters designated facility. The cost of the initial training is included in your franchise fee, however, those costs connected with travel and lodging will be at your expense.

13. Do I receive assistance in opening my business?
    Yes. In addition to your initial training period, Ronzio Management, Inc. will send a Project Manager to assist you at your location during the first few days of operation.

14. How much can I expect to earn as a Ronzio Pizza Franchisee?
    No employee or representative of Ronzio Management is authorized to provide prospective franchisees with any representation concerning potential earnings of a particular location. We will provide you and your accountant information to help you prepare budgets for your shop based on actual sales and cost data from other locations. However, the fact that some stores have achieved sales of a certain mount and kept expenses at a certain level is no assurance that you will be able to do the same.