TDA) | $307,119 | $39,703 | $73,153 | 1 (33%) | | | | |

Notes:

• 1. Table 1 shows summary financial performance for the three Better Blend businesses operated by our affiliates for calendar year 2023. These were the only three locations operating during this period. This information is a historic financial performance representation. It is not a projection of future performance.
• 1. The Florence, KY, store opened in 2018. It is in a suburban shopping center. The downtown Cincinnati, OH store opened in 2020. It is an urban area targeted at workers as well as residents. The Clifton, OH store opened in 2021; it is near the University of Cincinnati and its customers are mostly students and employees from the University.
• 1. "Sales" means the total revenue derived from the sale of goods or services, before discounts. It does not include sales taxes. It does not include sales of gift cards (but does include redemption of gift cards). It does not include gratuities collected on behalf of employees.
• 1. "Cost of Goods Sold" means to direct costs of producing the goods sold, i.e., food, beverage, and other inventory items.
• 1. "Labor" means store employee compensation. It does not include compensation for our owners or the district manager.
• 1. "Gross Rent" means base rent plus other costs (such as common area maintenance) paid to the landlord of the store premises.
• 1. "Other" includes various other expenses, such as bank charges, business insurance, repairs and maintenance, payroll taxes, software, and utilities. It includes a flat amount of $9,000 per store for marketing, as an allocation of a portion of the company-wide marketing. It includes only unit-level costs and does not include corporate overhead such as legal and accounting fees.
• 1. "Net Profit" is Sales less expenses shown above. It does not include interest, taxes, depreciation, or amortization.
• 1. "Royalty Fee" and "Marketing Fund" are the fees these locations would have paid if they had been franchised.

**Some outlets have sold and earned these amounts. Your individual results may differ

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 38–40)