4. Q: What does a franchise cost?
A. The initial franchise fee is $30,000 payable at the time the franchise agreement is signed.

5. Q: How much total cash do I need?
A. The total cost of owning a Great American BackRub (GABR Canada) franchise will range from $100,000 to $150,000. This will include such items as the franchise fee, leasehold improvements, equipment and fixtures, miscellaneous supplies, opening inventory, grand opening advertising, signage, and some working capital. This price range assumes leasing a location.

6. Q: Are store fronts the only approved locations or can other sites be considered?
A. GABR Canada plans to expand into several venues, including shopping malls, airports and tourist attractions

7. Q: Does GABR Canada provide financing?
A. No. GABR Canada can help direct you to possible sources of financing. However, these are third parties and their decisions are independent of GABR. Franchisees may qualify for the Federal Small Business Loan Guarantee.

8. Q: Are equipment and fixtures competitively priced?
A. GABR Canada will recommend third party vendors. GABR derives no profit from equipment and fixtures

9. Q: What is the royalty fee?
A. The royalty fee for a franchise is 6% of gross receipts, exclusive of sales tax.

10. Q: What about advertising?
A. GABR Canada can elect to establish an advertising fund. When this is established by GABR, the advertising fee will be the greater of 3% of gross receipts or $500 per month.

11. Q: Where may I locate my GABR store?
A. Ideal sites are prime high volume retail locations. Site selection will be done with the approval of GABR Canada staff. Typical store size ranges from 500 to 800 square feet.

12. Q: May I find my own location?
A. Although GABR Canada will assist in finding suitable store sites, it is the responsibility of the franchisee to find a location according to the GABR Canada site selection criteria, however, final approval for a site must be given by GABR Canada. GABR Canada has contracted with a leading retail consultant to find prime locations across Canada.

13. Q: What type of start-up assistance will I receive?
A. GABR CANADA will provide store layout and design specifications for your store, including equipment, fixtures, signs and POS system.

14. Q: Do I receive training by GABR Canada?
A. Yes! All new franchisees must attend and successfully complete the 5-day franchisee-training program at specified GABR Canada facilities.

15. Q: Who trains my employees?
A. All of the massage therapists that you hire will need to meet the minimum educational and training requirements established by the provincial government in which your franchise is located. This means all of the massage therapists will have extensive training prior to coming to work for you. In addition, GABR Canada offers a training course for all new massage therapists.

16. Q: What form of continuing assistance will I receive?
A. First of all, you will receive a GABR Canada Operations Manual detailing all aspects of The Great American Backrub business operation. As the manuals are updated, revisions will be made available to you. You will also receive regular consultations from your Area Representative, who will advise you and offer useful advice and counsel on such system elements as quality, customer service, product information, advertising, record keeping, training, communication and promotion. GABR Canada is very interested in supporting your success as a franchisee.

17. Q: Do I receive guidance on the purchase of inventory and supplies?
A. Yes. GABR Canada evaluates suppliers for you to use, based on their ability to provide products that are made with high quality standards, in sufficient volume and at the lowest competitive prices.

18. Q: Does GABR Canada have inventory control forms and business aids I can use?
A. Yes. GABR Canada uses Point of Sale computer system technology, which will aid you with inventory control ordering and reorder reminder reports. GABR Canada also provides ads, flyers, and other marketing materials which have been professionally prepared to promote your business.

19. Q: Can I sell my GABR franchise?
A. Yes. GABR Canada has the right to approve all transfers. Like any other business, your business can be sold to any buyer approved by the company. There is a transfer fee for administrative, legal, and training expenses that affect the transfer. Terms and conditions of store transfer are covered in your Franchise Agreement. GABR Canada has the right of first refusal to acquire your business. GABR Canada shall have 30 days after receipt of an offer from you to match the offer.

20. Q: What is the term of my franchise agreement?
A. The basic term is 5 years. If you are in good standing, you may renew for an additional 5 years.

21. Q: Who holds the lease?
A. GABR Canada will lease all franchise locations. The location is then sublet to the franchisee on a mirror image sublease. GABR Canada derives no profit by holding the lease.

22. Q: How long before I get my GABR started?
A. This depends on a number of variables, including selecting an acceptable location and the availability in our franchise training program. You may be able to complete training, and have fixtures installed in as little as 90 to 120 days.

23. Q: How do I get started?
A. Here are the steps you will need to go through to become a GABR franchisee.
1. Contact your Area Representative for information and determine if you would like to become a GABR franchisee.
2. Complete a confidential questionnaire.
3. GABR Canada will qualify your application.
4. You will complete an option agreement, which will start the site selection process.

24. Q: I would like to study your franchise agreement. Will you send me one?
A. If a mutual interest develops between you and GABR Canada, then we will provide you with a copy of our Franchise Agreement.