LEMON TREE

Data Based On: 32 franchised outlets open and reporting for at least one full year as of December 31, 2024.

* Average Gross Revenue: Calculated as the simple average of the 'Mean' values across the four quartiles, as each quartile consisted of 8 franchised units (equal weighting). Formula: (Q1 Mean + Q2 Mean + Q3 Mean + Q4 Mean) / 4 = ($604,874 + $366,722 + $278,631 + $157,919) / 4 = $352,036.50. Median Gross Revenue: Calculated as the average of the 'Median' values of Quartile 2 ($359,910) and Quartile 3 ($300,203), as these represent the middle two quartiles in a 32-unit sample. Formula: (Q2 Median + Q3 Median) / 2 = ($359,910 + $300,203) / 2 = $330,056.50. Revenue Top Quartile: Taken directly from the 'Mean' of Quartile 1: $604,874. Revenue Bottom Quartile: Taken directly from the 'Mean' of Quartile 4: $157,919. Best Guess Profit Range (Low and High): Estimated by subtracting the calculated total annual expenses (low and high estimates) from the average gross revenue ($352,036.50). Expense Estimation Methodology: Midpoints of provided expense ranges were used, weighted by reported percentages. For categories with partially unstated percentages (due to OCR limitations) or 'X or greater' ranges, conservative assumptions were made for low and high estimates: 1. Monthly Rent (32 responses): - Ranges: $2000-$3000 (40.6%), $3001-$4000 (50%). Remaining 9.4% for $4001-$5000, $5001-$6000, $6001+. - Low Estimate: Assumed the unstated 9.4% falls into the $4001-$5000 range (midpoint $4500). Calculated monthly: (0.406 * $2500) + (0.50 * $3500) + (0.094 * $4500) = $3,188.00. Annual: $38,256.00. - High Estimate: Assumed the unstated 9.4% falls into the highest category '$6001 or greater' (estimated average $7000). Calculated monthly: (0.406 * $2500) + (0.50 * $3500) + (0.094 * $7000) = $3,423.00. Annual: $41,076.00. 2. Weekly Payroll (32 responses): - Ranges: $1000-$2000 (34.4%), $2001-$3000 (25%), $3001-$4000 (18.8%), $4001-$5000 (9.4%), $5001-$6000 (12.5%). - Weighted average of midpoints: (0.344 * $1500) + (0.25 * $2500) + (0.188 * $3500) + (0.094 * $4500) + (0.125 * $5500) = $2,909.50. Annual: $151,294.00. 3. Weekly Supplies (32 responses): - Ranges: $0-$500 (9.4%), $501-$1000 (43.8%), $1001-$1250 (28.1%), $1501-$2000 (9.4%). Remaining 9.3% for $1251-$1500 and $2001+. - Assumed the unstated 9.3% is split equally (4.65% each) between $1251-$1500 (midpoint $1375) and $2001 or greater. - Low Estimate: Assumed '$2001 or greater' average is $2250. Calculated weekly: (0.094 * $250) + (0.438 * $750) + (0.281 * $1125) + (0.0465 * $1375) + (0.094 * $1750) + (0.0465 * $2250) = $1,001.19. Annual: $52,061.75. - High Estimate: Assumed '$2001 or greater' average is $3000. Calculated weekly: (0.094 * $250) + (0.438 * $750) + (0.281 * $1125) + (0.0465 * $1375) + (0.094 * $1750) + (0.0465 * $3000) = $1,036.06. Annual: $53,875.25. 4. Yearly Insurance (32 responses): - Ranges: $2500-$3000 (9.4%), $3001-$3500 (18.8%), $3501-$4000 (9.4%), $4001-$4500 (18.8%), $4501-$5000 (43.8%). - Weighted average of midpoints: (0.094 * $2750) + (0.188 * $3250) + (0.094 * $3750) + (0.188 * $4250) + (0.438 * $4750) = $4,101.50. Annual: $4,101.50. 5. Monthly Utilities (32 responses): - Ranges: $501-$750 (18.8%), $751-$1000 (40.6%), $1001-$1250 (21.9%), $1251 or greater (18.8%). - Low Estimate: Assumed '$1251 or greater' average is $1500. Calculated monthly: (0.188 * $625) + (0.406 * $875) + (0.219 * $1125) + (0.188 * $1500) = $1,001.13. Annual: $12,013.50. - High Estimate: Assumed '$1251 or greater' average is $2000. Calculated monthly: (0.188 * $625) + (0.406 * $875) + (0.219 * $1125) + (0.188 * $2000) = $1,095.13. Annual: $13,141.50. Total Estimated Annual Expenses Low: $38,256.00 (Rent) + $151,294.00 (Payroll) + $52,061.75 (Supplies) + $4,101.50 (Insurance) + $12,013.50 (Utilities) = $257,726.75. Total Estimated Annual Expenses High: $41,076.00 (Rent) + $151,294.00 (Payroll) + $53,875.25 (Supplies) + $4,101.50 (Insurance) + $13,141.50 (Utilities) = $263,488.25. Best Guess Profit High: $352,036.50 - $257,726.75 = $94,309.75. Best Guess Profit Low: $352,036.50 - $263,488.25 = $88,548.25.