MAGNOLIA BAKERY

Data Based On: One franchised Bakery operating at a Non-Traditional Location at LaGuardia Airport in Queens, New York, open for the full Reporting Period.

* Average EBITDA calculated for the franchised unit ($988,503 revenue) by applying the weighted average EBITDA margin (around 22.08%) of all ten affiliate-owned bakeries to the franchised unit's average gross revenue. The weighted average affiliate EBITDA margin was derived as (Total EBITDA for 8 Flagship stores + Total EBITDA for 2 No-Bake stores) / (Total Revenue for 8 Flagship stores + Total Revenue for 2 No-Bake stores) = ($10,144,017 / $45,950,744). Best guess profit range (low and high) for the franchised unit was estimated by applying the lowest (10.43% from 1 Los Angeles Flagship Bakery) and highest (25.74% from 1 Chicago Flagship Bakery) observed individual EBITDA margins from the affiliate-owned bakeries to the franchised unit's average gross revenue ($988,503). Note 3 states 'The characteristics of the Affiliate-owned Bakeries reflected in this financial performance representation do not differ materially from those of new Bakeries developed by our franchisees,' justifying the use of affiliate data for estimation.