Qualification Criteria

In addition to other criteria, franchise applicants must possess the following, to the Company’s satisfaction:

1. Transferable management skills, strong customer service capabilities, entrepreneurial spirit and demonstrated work ethic.
2. Capital requirements based on the number of Franchise Agreements signed:
   
   

   No. of Franchise Agreements	Liquid Capital Requirement	Net Worth Requirement
   1	$105,000	$175,000
   2	$210,000	$350,000
   3	$315,000	$525,000

3. FICO credit score of 660 or above.
4. Substantial familiarity with the trade area in which stores will be owned.
5. Willingness to diligently exert full-time and best efforts in performing their obligations under the Franchise Agreement.
6. Sound reputation, integrity and similar business values with the Sarku Japan franchise system.