STEEL COATED FLOORS

Data Based On: Two (2) System locations (one franchised, one company-owned affiliate) operated on a full-time basis over 2023 and 2024 calendar years. Data extracted specifically for the single franchised location.

* Average gross revenue, average gross profit, and average net income are calculated by averaging the respective values from the 'Franchised Location' column for the 2023 and 2024 calendar years. The 'Net Ordinary Income' is used for 'average_net_income' as per Note 7's definition. 2023 Franchised Location: Total Income: $1,007,018; Gross Profit: $805,612; Net Ordinary Income: $446,591. 2024 Franchised Location: Total Income: $1,176,144; Gross Profit: $913,982; Net Ordinary Income: $371,993. Average Gross Revenue = ($1,007,018 + $1,176,144) / 2 = $1,091,581. Average Gross Profit = ($805,612 + $913,982) / 2 = $859,797. Average Net Income = ($446,591 + $371,993) / 2 = $409,292. Note 4 describes the actual royalty and brand fund contribution for this specific franchisee under their previous agreement, which results in a Total Expense of $577,274 and Net Income of $336,708. However, the annual financial tables provide specific annual figures for Total Expense and Net Ordinary Income, which are used for calculating the averages as they represent the reported performance for those years.