Highlights of Martinizing Dry Cleaning’s Item 19 Financial Performance Representations (2013 FDD) – Part 2

Explanatory Notes for Class II – Full Plant Stores Serving Multiple Pick-Up Locations

• The average gross sales information (without taking into consideration any expenses) reported in Table 2 below was compiled by MFI from monthly gross sales reports received for 12 Full Plant Stores servicing 1 to 3 affiliated pick-up stores that do not provide on premise dry cleaning (“Pick-Up Stores”) operating as of December 31, 2012 (under franchise agreements providing for payment of royalties based on a percentage of gross sales) and which the Full Plant Store reported to MFI at least 24 consecutive months of sales activity prior to December 31, 2012.

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  Some of the affiliated Pick-Up Stores have not been operating for 24 months and the sales activity reported for those stores ranges from 8 to 12 consecutive months.

• Each of the 12 Full Plant Stores is treated as a Reporting Store in Table 2 below, with the average gross sales information of the Full Plant Store combined with the average gross sales information of the Pick-Up Stores affiliated with the particular Full Plant Store.

• The 41 Reporting Stores (Tables 1 and 2) are all located in the United States.

• MFI offers substantially the same services to each Reporting Store, but the type and extent of services offered to the public by each Reporting Store may vary depending on the individual franchisee.

• None of the Reporting Stores are owned or operated by MFI.

• The Reporting Stores represent approximately 62% of the total Martinizing Stores operating in the United States as of December 31, 2012 under franchise agreements similar to the Franchise Agreement attached to the 2013 FDD, and approximately 20% of the total Martinizing Stores operating in the United States as of December 31, 2012.

• The balance of the Martinizing Stores operating in the United States as of December 31, 2012 under franchise agreements similar to the Franchise Agreement attached to the 2013 FDD, did not meet the criteria of Class I or Class II described above.

• The monthly gross sales reports of the Reporting Stores were prepared by the individual franchisees without an audit and have not been verified by MFI.

Class II – Full Plant Stores Serving Multiple Pick-Up Locations

First Group

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