Highlights of Woodhouse Day Spa’s Item 19 Financial Performance Representations (2013 FDD)

• Set forth below is an analysis of the Actual Gross Sales of certain franchised Woodhouse Day Spas. Actual results vary from Spa to Spa and the franchisor cannot estimate the results of any particular franchise.

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  The Gross Sales numbers reported below are based on the reported sales of (A) the 3 franchised Spas which were in operation for at least 12 full calendar months as of December 31, 2012 and (B) the 22 franchised Spas which were in operation for at least 24 full calendar months as of December 31, 2012 (the “Sample Spas”).

• The 25 Sample Spas were divided into 3 categories.

• Each Sample Spa with a population having an aggregate discretionary income of $650 million or less within a 10 mile radius of the Spa were placed in the “Type 1 Category.”

• Each Sample Spa with a population having an aggregate discretionary income of between $650 million and $3 billion within a 10 mile radius of the Spa were placed in the “Type 2 Category.”

• Each Sample Spa with a population having an aggregate discretionary income of more than $3 billion within a 10 mile radius of the Spa were placed in the “Type 3 Category.”

• Where there are more than 1 Spa in a category, the franchisor averaged the Gross Sales of the Spas in that category by adding the Gross Sales of those Spas and dividing by the number of Spas in that category.

• The aggregate discretionary income information was sourced from data in the 2010 U.S. Census and 2012 U.S. Census projections.

• The franchisor compiled these figures from the individual Spas’ actual reported Gross Sales for the period from January 1, 2012 through December 31, 2012. This information has not been audited or otherwise verified by the franchisor.

• The financial performance representation figures do not reflect the cost of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

• The revenues of your Spa will be directly affected by various factors, such as competition in the marketplace, the quality of management and service at the Spa, your pricing decisions, and other factors. The amount of sales realized will vary from unit to unit.

Average Gross Sales of Certain Franchised Woodhouse Day Spas for the Period from January 1, 2012 Through December 31, 2012

Type 1 Spas

Minimum Number of Months in Operation:  12 Months

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