Highlights of HuHot Mongolian Grill’s Item 19 Financial Performance Representations (2013 FDD) – Part 2

Ranges of Annual Gross Revenues, Number and Percentage of Restaurants Attaining Range, and Average Annual Gross Revenues in 2012 of 45 HuHot Restaurants (31 Franchised and 14 Affiliate-Owned)

• Annual Gross Revenues are based on the 12-month data through December 31, 2012. All of these HuHot Restaurants offer substantially the same products and services as will be offered from future franchised Restaurants. Other than the ownership of the Restaurants, there were no material differences in the franchised outlets from the affiliate-owned outlets.

• Annualized Gross Revenues were used when 12-month data was not available.

• The table below does not include the Express concept, since there is only one Express location in Fort Collins, Colorado which had sales of $532,435 in 2012.

• The Gross Revenue figures in this Item 19 do not reflect the cost of sales, operating expenses, or other costs or expenses that must be deducted from the Gross Revenue figures to obtain your net income or profit.

• You will incur at least the following expenses, and possibly more:

• inventory
• labor
• occupancy costs
• pre-opening expenses
• depreciation and amortization
• taxes
• insurance
• operating expenses
• royalty fees to the franchisor
• advertising fees to the franchisor
• other fees to the franchisor in the Franchise Agreement
• professional fees
• bank charges
• telephone
• repairs

• Some outlets have sold this amount. Your individual results may differ.

• The results shown by the affiliate-owned Restaurants may be positively influenced as a result of the owners’ experience.

• Restaurants for which financial performance representations are disclosed in this Item 19 may not have necessarily been profitable.

Annual Gross Revenues:  $3,000,000 and Over

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