Hear Again Franchising

Data Based On: Data for average, median, high, and low net sales, and average gross profit, are based on 7 franchised outlets. EBITDA and estimated profit ranges are derived from average franchised outlet revenue combined with adjusted margin percentages from affiliate-owned outlets, which are stated to be materially similar and whose EBITDA figures are explicitly labeled 'if franchised'.

* Average gross profit ($291,615.14) calculated by summing individual gross profit values from Table 2 for the 7 franchised outlets ($920,062 + $347,678 + $96,713 + $297,956 + $211,260 + $42,502 + $125,135 = $2,041,306) and dividing by 7. The average EBITDA ($67,503.42) was calculated by multiplying the average gross revenue of 7 franchised outlets ($375,019 from Table 3) by the 'Adjusted Margin' (EBITDA margin) of 18% from Table 1 for '16 Affiliate-Owned Outlets'. This margin is used because Note 7 on Page 2 defines 'Adjusted Margin' as EBITDA divided by Net Sales 'in each classification' and the text on Page 1 states Affiliate-Owned Outlets operate in a 'materially similar manner' to how franchisees will operate. The 'best_guess_profit_low' ($18,750.95) and 'best_guess_profit_high' ($93,754.75) were estimated by applying the 'Individual Unit Low End' Adjusted Margin (5%) and 'Individual Unit High End' Adjusted Margin (25%) respectively, from Table 1, to the average gross revenue of 7 franchised outlets ($375,019). The 'High' and 'Low' net sales values from Table 3 represent the highest and lowest individual revenues among the 7 franchised outlets, not averages of specific quartiles.