Please use the following questions and answers to learn more about our Franchise Program.

1. Q. Does Rum Runners assist with site selection?
     A. Yes. We are very much involved in site selection process. Whether a new facility or an existing restaurant, we work hand-in-hand with you to pick and approve the best available site in your market

2. Q. What size specifications are required for a Rum Runners restaurant?
     A. The Rum Runners model is generally between 3,500 sq. feet (minimum) to 5,500 sq. feet (maximum). Once a site is selected and approved we will work with you on the design and layout of the facility.

3. Q. How long does my Franchise Agreement last?
     A. The initial term is 10 years. Renewals for up to 2 additional 5 years periods are available as long as renewal requirements are met.

4. Q. Will I receive any training?
     A. Yes. All Franchisees, and their designated managers, must attend and successfully complete the training program. Franchisees pay their own costs, and those of their designated managers, for transportation, lodging and meals.

5. Q. Do I receive assistance when opening my Rum Runners location?
     A. Yes. In addition to your initial management training, Rum Runners USA corporate staff will work with you in your unit at the time your unit opens.

6. Q. Is it necessary to have previous retail or restaurant experience to be a Rum Runners Franchisee?
     A. Previous restaurant experience is not mandatory, but it is highly recommended. It is very important to understand the span of hours that are typically associated with working or managing in a restaurant environment.

7. Q. What form of continuing operational guidance will I receive?
     A. Initially you will receive a confidential Rum Runners USA Operations Manual covering the daily operations and training for your franchise. On an ongoing basis Rum Runners USA will send your updates, revisions and new information that will be distributed to all locations. In addition, representatives from Rum Runners USA corporate offices will make periodic visits to the store and work directly with the franchisee offering feedback and advice based on what they observe including but not limited to, customer service, live entertainment, marketing, merchandise, staff training and much more. Rum Runners USA also sends out regular exclusive marketing newsletters to each franchise to aid and assist each location in their ongoing efforts to drive business to our stores.

8. Q. What is the charge for the continuing services and Royalty Fee?
     A. 4% of Gross Sales.

9. Q. What is the franchise fee for a single store?
     A. As per our 2005 UFOC agreement the Rum Runners franchise fee is $25,000 per store.

10. Q. What is the average investment for a Rum Runners Franchise?
       A. As per our 2005 UFOC agreement the average range of costs associated with opening a Rum Runners franchise is $228,475 - $958,700.

11. Q. Am I given territorial protection?
       A. Yes. We will establish a territory for your franchise in relation to population density surrounding your location. Within this area no other Rum Runners franchise will be developed.

This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for informational purposes only. Franchise offerings can only be made by a Uniform Franchise Offering Circular. Currently, the following states regulate the offer and sale of franchisees:

• 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 the franchise offering is currently registered in the state and the Uniform Franchise Offering Circular is effective.