The amount of necessary reserves will vary greatly from franchisee to franchisee and will depend upon many factors, including the rate of growth and success of your business, which in turn will depend upon factors such as the demographics and economic conditions in the area in which your Restaurant is located, the presence of other 'Hard Rock Cafe' Restaurants or other public awareness of our business and trademarks within the general vicinity of your proposed Restaurant, your ability to operate efficiently and in conformance with our recommended methods of doing business, and competition. You must have additional sums available, whether in cash or through a bank line of credit, or have other assets which you may liquidate or against which you may borrow, to cover other expenses and any operating losses you may sustain, whether during your start-up and development stage, or beyond.

You should not plan to draw income from the operation during the start-up and development stage of your business, the actual duration of which will vary materially from restaurant to restaurant and cannot be predicted by us for your Restaurant. They do not provide for your cash needs to cover any financing incurred by you or your other expenses. Except as expressly indicated otherwise, these estimates cover your initial cash investment up to the opening of your Restaurant.

We have prepared these estimates based on our experience.

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