To help you evaluate the Armand's Franchise opportunity, we offer the most frequently asked questions and our answers. This is not intended to take place of a comprehensive franchise offering circular, but to serve as a quick reference for your business planning needs. Of course, you may have questions or concerns that are not covered here and we will be delighted to discuss them with you. Thanks for thinking about Armand's!
	What's so darn special about Armand's Pizza? Originally, when owner and founder Lew Newmyer opened the first Armand's Chicago Pizzeria in the spring of 1975, Armand's signature product was the first deep dish pizza offered in the Washington, D.C. metropolitan area. Its' success was immediate! The attraction is the high quality of the pizza: fresh dough made daily, our own special sauce, fresh market vegetables, top quality meats and a unique, signature mozzarella cheese that gives Armand's pizza an almost addictive flavor! Twenty-eight years in business, an unprecedented 25 "Best Pizza" awards from the readers of Washingtonian Magazine, and 10 area locations are testimony to the quality, originality and marketability of Armand's Pizza. Do I need restaurant experience to own an Armand's franchise? No, but it doesn't hurt! Naturally, a background in restaurant operation, food service or hospitality is a benefit to an operator but it is not mandatory. A strong desire to succeed, an aptitude for business, a willingness to learn, an enthusiastic attitude and outgoing personality, a genuine appreciation for people, and good, ol' common sense are the fundamentals most needed for the successful entrepreneur. Armand's provides every franchisee with thorough training programs and materials necessary to effectively operate an Armand's franchise, but you must supply the desire and the drive to be the best! What expenses are involved in starting an Armand's franchise? Franchise Fee: Paid to Armand's Restaurant Franchising, Inc., for the right to own and operate an Armand's Chicago Pizzeria. This is a one-time fee. Real Estate and Construction: Most franchises are on leased premises. The leases run concurrent to the term of the franchise agreement. Build-out and leasehold improvements to a leased property is substantially less expensive than purchase and ownership of real estate. Professional Fees: Development of your business plan, construction and design of your location, review and counsel of your legal documents will require the services of architects, contractors, accountants, and, unfortunately, lawyers. Furnishings, Fixtures and Equipment: The purchase, shipping, and installation of equipment, furniture and fixtures to the restaurant. Possibly the inclusion of designer fees for consulting. Signage: Interior and exterior signs and displays. Permits and Licenses: To include business license, occupancy license, building permits, ABC license, insurance certificates and any other applicable licensing required to own and operate a food service establishment. Deposits: Security money that will be required by landlords, utility companies, service and maintenance contractors. Opening Inventory: The cost of all food and beverage stock, paper goods, tableware, small wares, uniforms, cleaning and sanitation supplies. Working Capital: Money to be dedicated for salaries, travel, lodging, meals and incidental expenses for your management staff to attend and complete the mandatory Armand's training program. Funds for pre-opening costs of hiring and training personnel, and expenses for debt service, payroll, occupancy costs and insurance premiums. Grand Opening Advertising and Marketing: Costs of local advertising and promotional activity to "introduce" your products and services to your marketplace. This is done in conjunction with recommendations and direction from Armand's Franchising. How much of an investment will an Armand's franchise require? There is a wide range of cash requirements depending on the type of Armand's restaurant you choose to open, and the location and size of your establishment. For budgetary purposes the current range is $150,000.00 to $500,000.00. The following chart shows the approximate cost ranges for the initial set up and opening of an Armand's Pizzeria and can be used to estimate your loan needs when dealing with the financial institution of your choice. Item Investment Range Initial Franchise Application And Processing Fee $15,000.00 $15,000.00 Leasehold Improvements $47,000.00 $203,225.00 Furniture, Fixtures, Equipment $63,000.00 $215,200.00 Working Capital and Prepaid Expense $8,900.00 $30,210.00 Initial Signs and Advertising $6,500.00 $20,330.00 Training Expenses $3,360.00 $11,040.00 Miscellaneous $2,240.00 $6,970.00 Does Armand's offer financing assistance? Armand's does not offer, directly or indirectly, financing to franchisees for any items. However, we do have relationships with several lending institutions and companies to whom we can direct you. We do not assume any liability for these institutions, nor do we receive any compensation for referrals. Availability and terms of financing from a lender are usually dependent upon the general availability of money, the credit worthiness of the franchisee, other security held by the franchisee, and the lender's policies. What franchise opportunity is available to me? Armand's is looking for owner-operated units in specific target areas. These areas are determined by demographic suitability, proximity to existing Armand's territory and the franchisee's preference. Armand's prefers to locate new units in areas that directly adjoin existing franchise territories thereby growing the market recognition by a "building block" logic. However, there are many areas that, although remote, possess the Armand's demographic or aesthetic. How do I select a location? The single most important decision that can be made regarding a business, and restaurant business in particular, is the location. Although there is no magic formula for picking a successful location, Armand's has learned through experience the types of sites most suited to the Armand's restaurant concept. First, it should be in an area that you are familiar and comfortable with. One in which you know the community and the people. This helps you avoid the "stranger in a strange land" syndrome. Whenever possible we encourage prospective franchisees to seek locations in the same area in which they live. Other important considerations are visibility to traffic, ease of access, parking, proximity to businesses and residential areas, volume of pedestrian traffic in the immediate area, and preferably near a college or university. Students just can't get enough pizza! For a full service Armand's you will need to look for a space with 2,500 to 3,000 square feet of space. For a delivery & carry out store, 1,300 to 2,000 square feet is recommended. Armand's will provide complete assistance and consulting while you are selecting a site. What's the cost of an Armand's franchise? The initial franchise fee is $15,000.00 which is payable upon signing of a Franchise Agreement. Subsequent fees for additional locations are substantially less. Armand's also entertains offers for purchase of a Master Franchise, the purchase of exclusive rights to an entire area or region to be franchised by a single group. What's the royalty fee each month? The monthly royalty fee for a full service or delivery & carry out Armand's is four percent (4%) of gross monthly sales. This fee is payable by the 10th day of the month following the reporting month. How long does my franchise agreement last? The initial franchise term is 10 years and typically coincides with the terms of your lease agreement. Assuming that you have complied with all the terms of your franchise agreement and have kept up with any upgrades or modifications as required by the Armand's System, you will be able to extend your agreement term in 5 year option blocks with no additional franchise fee required. What are the advertising expenses? It pays to advertise! In real business that's not just a cliché, it's a fact. As an operator you will be required to spend a minimum of 2% of your gross monthly sales for local, in-house generated advertising. In addition, Armand's may establish a marketing fund for chain-wide advertising and promotion that will require a payment of 1% of gross monthly sales. This fund will be administered by Armand's Franchising to meet the needs of the franchise system and to further the image, growth and profitability of all Armand's units. Does Armand's provide training? Yes, of course! There is absolutely no substitute for hands-on, in the trenches, operational training. Armand's will have the franchisee and/or its' designated manager and up to two additional persons train in one of our existing units for a period of three (3) weeks. In addition, a comprehensive training manual containing particulars of operations, procedures, recipes and policies must be thoroughly studied and learned by these same personnel. Armand's expects this training to be completed at least two weeks prior to opening. At this point Armand's assists in one (1) week of on-site "dry run" training with all other personnel and management one week prior to opening. Is there any assistance in opening my franchise? Armand's will provide up to seven (7) days of additional support training and supervision in the month immediately following the opening of the franchise. Armand's wants each unit to get off the ground as smoothly as possible and will work closely with you and your staff in an effort to ensure this. How many employees will I need? On average, most Armand's locations operate with three (3) full time managers and thirty (30) to forty (40) full and part-time hourly wage personnel, depending upon the type, size and volume of the location. Does Armand's help with the purchase of products and supplies? One of the advantages of the Armand's System is our buying power. We have negotiated an extremely competitive centralized distribution program with a non-affiliated supplier. The program includes automated, on-line ordering, constant product monitoring and updates, a vast selection, and a dedicated service representative for the Armand's account. What about ongoing support and guidance with operations? Most information you will need for immediate operations is contained in the Confidential Operations Manual that you receive with your franchise. Additionally, Armand's personnel will make routine site visits and inspections to your location to interact and consult with you about all the facets of your operation. From time to time, Armand's may make available additional training courses in restaurant management, food processing technology, customer service techniques, and marketing and sales building. Armand's also hosts quarterly owners meetings, which serve as a vital instrument in idea exchanges between the various franchises. This, coupled with our periodic newsletter, the "Pan-O-Rama," will keep you in the loop in the Armand's family. We also offer refresher-training courses for franchise personnel as required. How soon can I open? Once we have approved your site and the lease has been signed, it normally takes three (3) to four (4) months to become operational. Of course, time frames are totally contingent upon construction schedules, equipment availability, and your personal time schedule. How many fingers am I holding up right now? Armand's has absolutely no way of knowing, although we hope it's one thumb! What's important now is to follow these steps: (1) Fill out the Armand's Franchise application included with this brochure; (2) Armand's will contact you to arrange a personal interview; and (3) Armand's will consider all factors in reaching a decision to grant a franchise. This is a serious business to us, and should be to you as well. Many persons apply for Armand's franchises on a regular basis. We use the best methods we know of to screen applicants and make our determinations. Your financial picture, your business experience, your education, and your business plan are all important factors, but even more so, we are looking for a personality type, because this is a business about people! We will be working and dealing with you, not your financial portfolio, so we are very concerned with who you are, what you want, and where you want to go. Your excitement and enthusiasm for the goal will ultimately be the deciding factors in your success or failure, and to that degree, Armand's will be looking for those traits in you! Click here to download the franchise evaluation form

This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of one of these states, we will not offer you a franchise unless and until we have complied with the applicable pre-sale registration and disclosure requirements in your jurisdiction. Although information contained herein is from sources deemed reliable, such information has not been verified and is submitted subject to errors, omissions, change of price or withdrawal or further change without notice. Prospective Purchaser’s should conduct their own study to determine the feasibility of the business and property as to their requirements.

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