Highlights of Roosters Men’s Grooming Center’s Item 19 Financial Performance Representations (2013 FDD) – Part 2

• Chart Two below describes the Average Customer Ticket of 23 of the 23 Included Franchisees during the Reporting Period.

• For the 23 Included Franchisees profiled in Chart Two, a “Customer Ticket” is calculated by dividing each Included Franchisee’s Gross Sales during the Reporting Period by each Included Franchisee’s total guest count during the Reporting Period. The Average Customer Ticket is calculated by averaging the 23 Customer Tickets.

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  Your results may vary upon the location of your Franchised Business. This analysis does not contain information concerning certain operating costs or expenses. Operating costs and expenses may vary substantially from business to business.

• The figures in Item 19 exclude labor expenses, which is defined as the sum of all employee-related expenses including wages, salary, bonus commission, payroll taxes, insurance benefits, other benefits, and workers’ compensation expenses, including the costs of a salon manager.

• The figures in Item 19 exclude finance charges and depreciation. Interest expense, interest income, depreciation, amortization, and other income or expenses will vary substantially from business to business, depending on the amount and type of financing you obtain to establish your Franchised Business.

• The figures in Item 19 exclude bank service charges, licenses and permits, repairs and maintenance expenses, travel expenses, and finance charges, which you will incur as a franchisee.

• The figures in Item 19 exclude royalty fees and advertising fund contributions, which you will incur as a franchisee.

• The figures in Item 19 exclude professional or other administrative expenses, which you may incur, such as legal and accounting fees.

• The figures in Item 19 exclude taxes, office equipment and supplies, computer and Super Salon POS Deluxe with Integrated Processing package costs, telephone, and educational and training expenses.

• Rent will vary significantly depending on the location of your Franchised Business and the local real estate market. Your rent will also vary depending on the size and condition of the property that you lease.

• Expenses and costs, as well as the actual accounting and operational methods employed by a business, may significantly impact profits realized in any particular operation.

• This analysis does not contain complete information concerning the expenses you may incur in operating a Roosters Franchised Business.

• Some centers have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

Chart Two – Average Customer Ticket

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