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	$125,000	$225,000
   2	$250,000	$450,000
   3	$375,000	$675,000

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.