What constitutes an Operational Company Owned Outlet for Bee Organized, as defined in the FDD?

[Item 19: FINANCIAL PERFORMANCE REPRESENTATIONS]

• (q) Operational Franchise Outlet means, as to a particular Calendar Year, a Franchise Outlet that was open and in operation prior to the commencement of the Calendar Year.

For example, if a Franchise Outlet first opened for business in February 2023, as to the 2023 Calendar Year, the Franchise Outlet would qualify as a New Franchise Outlet, see definition above, and not as an Operational Franchise Outlet.

If this Franchise Outlet remained in operation throughout the 2024 Calendar Year, it would qualify as an Operational Franchise Outlet during the 2024 Calendar Year.

• (r) Outlet refers to a Bee Organized Business that is either a Company Owned Outlet or a Franchise Outlet, as the context requires.

(s) Project – means a unique transaction wherein a Bee Organized Business provides a Client with a distinct service on-site at the Client's home or a Client designated location, which results in Gross Sales. A Bee Organized Business can provide one Project or multiple Projects for a Client during a particular Calendar Year and can provide one Project or multiple Projects for a Client during any service visit. For purposes of clarification, if a Client hires a Bee Organized Business for a kitchen organization and a garage organization, the Bee Organized Business would be providing two Projects to the Client, even is the Projects are provided and/or paid for simultaneously. The number of Projects provided by a Bee Organized Business during a particular Calendar Year is calculated by the total Hours spent by an Outlet on working on Projects during the Calendar Year divided by the average number of hours per project of all Outlets in the Bee Organized franchise System, which is 18.

BASES AND ASSUMPTIONS

ANALYSIS OF RESULTS OF COMPANY OWNED OUTLET

During the 2024 Calendar Year we had one Company Owned Outlet which constitutes an Operational Company Owned Outlet. Our Company Owned Outlet commenced operations in September 2015 and is based in Overland Park, Kansas. This Outlet operates in an Operating Territory that is comprised of approximately 150,388 Qualified Households, which is the equivalent of three Territories. This Outlet is representative of the Franchised Business and constitutes an Operational Company Owned Outlet for the 2024 Calendar Year.

• (d) Company Owned Outlet means an Outlet owned either directly or indirectly by us, our affiliate or any person identified in Item 2 of this Disclosure Document.

A Company Owned Outlet also includes any Outlet that is operated as a joint venture owned in part by us, our affiliate or any person identified in Item 2 of this Disclosure Document, or that is managed by us our affiliate or any person identified in Item 2.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–50)