LEMON TREE

Data Based On: 31 franchised outlets open for at least one full year as of December 31, 2023

* Average gross revenue was calculated as a weighted average of the mean gross revenue across the four quartiles: (8 units * $571,156 + 8 units * $352,476 + 8 units * $262,310 + 7 units * $171,866) / 31 total units = $344,858.00. Median gross revenue was calculated as a weighted average of the median gross revenue across the four quartiles: (8 units * $561,369 + 8 units * $348,158 + 8 units * $257,870 + 7 units * $186,742) / 31 total units = $343,431.29. Best guess profit range was estimated by subtracting the estimated total annual operating expenses from the weighted average gross revenue. Operating expenses considered were Salon Payroll, Salon Supplies, Salon Rent, Salon Insurance, and Salon Utilities. Annual figures were derived by multiplying monthly expenses by 12 and weekly expenses by 52. Estimated Annual Payroll: Weighted average weekly payroll was calculated from provided percentages and midpoints: (45.2% * $1,500 + 25.8% * $2,500.5 + 12.9% * $3,500.5 + 16.1% * $4,500.5) = $2,499.27. Annual payroll = $2,499.27 * 52 = $129,962.25. Estimated Annual Supplies: Weighted average weekly supplies was calculated from provided percentages and midpoints: (38.7% * $250 + 45.2% * $750.5 + 16.1% * $1,125.5) = $617.18. Annual supplies = $617.18 * 52 = $32,093.44. For Salon Rent, Salon Insurance, and Salon Utilities, the sum of explicitly stated percentages was less than 100%. The remaining percentage was allocated to unquantified 'or greater' ranges to create a low and high estimate for annual expenses: - To estimate 'best_guess_profit_high' (lower expenses): The remaining percentage for rent (6.4%) was assumed to be in the $5001-$6000 range (midpoint $5,500/month). For insurance (9.7%), it was assumed to be in the $4001-$4500 range (midpoint $4,250/year). For utilities (6.4%), it was assumed to be in the $1251+ range (midpoint $1,375/month). - Estimated Annual Rent (low): $39,276.00 - Estimated Annual Insurance (low): $3,250.50 - Estimated Annual Utilities (low): $10,305.00 - Total Annual Expenses (low estimate for high profit): $129,962.25 + $32,093.44 + $39,276 + $3,250.50 + $10,305 = $214,887.19. - Best Guess Profit High = $344,858.00 - $214,887.19 = $129,970.81. - To estimate 'best_guess_profit_low' (higher expenses): The remaining percentage for rent (6.4%) was assumed to be in the $6001+ range (midpoint $6,500/month). For insurance (9.7%), it was assumed to be in the $6001+ range (midpoint $6,500/year). For utilities (6.4%), it was assumed to be in the $1251+ range (midpoint $1,500/month for a slightly higher estimate). - Estimated Annual Rent (high): $40,044.00 - Estimated Annual Insurance (high): $3,468.75 - Estimated Annual Utilities (high): $10,401.00 - Total Annual Expenses (high estimate for low profit): $129,962.25 + $32,093.44 + $40,044 + $3,468.75 + $10,401 = $215,969.44. - Best Guess Profit Low = $344,858.00 - $215,969.44 = $128,888.56.