PALM BEACH TAN

Data Based On: Data is based on 391 franchised Legacy Locations that were in operation during the entire 12-month period ended December 31, 2024.

* 1. Average gross revenue and median gross revenue for franchised units are directly extracted from Page 6, Table 1, 'TOTAL REVENUES(2)'. 2. 'best_guess_profit_low' and 'best_guess_profit_high' are estimated EBITDA for franchised units. This estimation is based on the assumption that franchised units have a similar operating cost structure (before interest, taxes, depreciation, and amortization) to company-owned units, as implied by the statement on Page 7 that they are 'substantially similar'. 3. Company-owned operating costs (pre-EBITDA) range from a low of $203,050 to a high of $699,026, as per Page 3, Table 1. 4. Additional franchisee-specific costs (not included in the company-owned operating costs) are sourced from Page 3 ('Annual Costs Legacy Brand Franchisees Will Incur Not Included in Costs Above') and Page 4 (advertising contribution requirement). These include: - Royalties (Subsequent Years): $28,109 - Customer Experience Management Program: $480 - Sunlync and Software Support Fee: $3,600 - Advertising fund contribution (2% of average gross revenue $526,688): $10,533.76 - Local advertising spend (3.5% of average gross revenue $526,688): $18,434.08 - Total additional franchisee costs: $28,109 + $480 + $3,600 + $10,533.76 + $18,434.08 = $61,156.84 5. 'best_guess_profit_low' calculation: Average Gross Revenue ($526,688) - (Highest Company-Owned Operating Costs ($699,026) + Total Additional Franchisee Costs ($61,156.84)) = -$233,494.84. 6. 'best_guess_profit_high' calculation: Average Gross Revenue ($526,688) - (Lowest Company-Owned Operating Costs ($203,050) + Total Additional Franchisee Costs ($61,156.84)) = $262,481.16.