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Data Based On: Gross Revenue data is based on 166 franchised locations in the 2024 Reporting Group, as detailed in Table 3a, which were operating for at least 12 months as of December 31, 2024. Expense percentages are based on smaller samples of franchised locations: 113 for COGS, 100 for Marketing, and 62 for Rent (Tables 5a, 5b, 5c). Other expense percentages are derived from the Affiliate Location's Core Operating Expenses, anticipated for franchisees, and imputed franchise fees.

* Calculated based on Average Gross Revenue of $144,599 for all franchised locations (Table 3a). Profit estimates derived by subtracting estimated expenses (as a percentage of gross revenue) from 100%. Expenses include: 1. **Cost of Goods Sold**: Using franchised averages for low (23.2% for Top 1/3rd) and high (25.4% for Bottom 1/3rd) profit estimates (Table 5a). 2. **Payroll**: Fixed at 20% (Affiliate's Core Operating Expenses, Note 4 to Table 1, anticipated for franchisees). 3. **Rent**: Using franchised averages for low (8.0% for Top 1/3rd) and high (43.4% for Bottom 1/3rd) profit estimates (Table 5c). 4. **Marketing**: Using franchised averages for low (6.3% for Top 1/3rd) and high (23.6% for Bottom 1/3rd) profit estimates (Table 5b). 5. **Technology**: Fixed at 1% (Affiliate's Core Operating Expenses, Note 4 to Table 1, anticipated for franchisees). 6. **Other Administrative Expenses**: Fixed at 4% (Affiliate's Core Operating Expenses, Note 4 to Table 1, anticipated for franchisees). 7. **Royalty Fee**: Fixed at 7% (Note 5, Franchise-Related Adjustments). 8. **National Brand Fund Fee**: Fixed at 2% (Note 5, Franchise-Related Adjustments). Total expenses for high profit scenario (using low expense percentages for COGS, Rent, Marketing): 23.2% + 20% + 8.0% + 6.3% + 1% + 4% + 7% + 2% = 71.5%. Estimated high profit = $144,599 * (1 - 0.715) = $41,210.71. Total expenses for low profit scenario (using high expense percentages for COGS, Rent, Marketing): 25.4% + 20% + 43.4% + 23.6% + 1% + 4% + 7% + 2% = 126.4%. Estimated low profit = $144,599 * (1 - 1.264) = -$38,174.14. These profit estimates represent 'Adjusted Earnings' as defined in Note 7 to Table 1, excluding taxes, interest, depreciation, amortization, and certain 'Excluded Operating Expenses' for franchisees.