Where can I find the performance data for the Brightstar Care affiliate-owned agencies that were previously franchisee-owned?

[Item 19: FINANCIAL PERFORMANCE REPRESENTATIONS]

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the Disclosure Document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.

FACTUAL BACKGROUND

The historical financial performance information in this Item 19 includes certain information as of December 31, 2024, relating to (i) our franchisees' operation of their respective BrightStar agencies and (ii) BrightStar affiliate-owned agencies that were previously owned by franchisees. Revenue is calculated based upon the date the franchisee's minimum revenue performance requirements begin (the "Start Date"), which is the date on which an agency has the ability to perform 50% or more of the BrightStar business model.

In some instances, franchisees operate more than one BrightStar agency. Except as stated below, the information contained in this Item 19 includes information as of December 31, 2024, for all BrightStar agencies operated by our franchisees and by our affiliates as company-owned agencies (if what are now company-owned agencies were previously operated by a franchisee during some portion of 2022, 2023, or 2024). If a franchisee or an affiliate operates more than one BrightStar agency in the same market, the information in Sections A, B, and C includes financial information only for the franchisee's or the affiliate's first agency unless the franchisee or the affiliate acquired what was a first agency from another franchisee (as described below).

In 2022, BrightStar offered incentives for approved franchisees to expand by acquiring other existing territories through the resale process or committing to develop additional new territories. We recognized that scale can benefit our well-established franchisees. In Sections A, B, and C, we also include any franchised agencies that previously were a franchisee's first franchised agency but have since been acquired by other franchisees or by our affiliates and are now considered a second or subsequent agency.

FRANCHISEE AND AFFILIATE-OWNED RESULTS

We used our Athena Business System (ABS) to gather the information for this Item 19 relating to our franchisees' and affiliate-owned (but formerly franchised) agencies' revenue, gross margins, customer and employee counts, mix of business, National Accounts program, and payer sources.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 92–107)