FDD Talk: Cash Sales for Hypoxi Studio in Charlotte, North Carolina (2012 FDD)

Highlights of Hypoxi’s Item 19 Financial Performance Representations (2012 FDD)

• Hypoxi America Franchise Systems, Inc. offers a franchise to establish and operate a Hypoxi Studio, which features and offers for sale to the public, programs/membership to a specialty studio with patented targeted body contouring equipment, individually customized packages for Hypoxi members, guidance in the implementation of individual programs, and various merchandising relating to the Hypoxi brand.

• The total investment necessary to begin operation of a Hypoxi Studio is approximately $202,090 for the low and up to $496,165 for the high. This includes approximately $135,790 to $211,165 that must be paid to the franchisor or an affiliate.

• The total investment necessary to begin operation of a Hypoxi Area Developer Franchise is approximately $212,090 for the low and $505,165 for the high. This includes approximately $145,790 to $221,165 that must be paid to the franchisor or its affiliate.

• The franchisor is affiliated with Hypoxi Austria, which was formed in July 1998. Hypoxi Austria developed the Hypoxi Method, licenses Hypoxi Studios outside of the U.S., and has over 2,000 studios established worldwide. Hypoxi Austria does not offer franchises or conduct business in any other lines of business.

Analysis of Net Sales

• This Analysis of Sales shows the yearly Net Sales for the Hypoxi Studio located in North Carolina for the fiscal year 2011.

• The studio discussed in this section is co-owned and operated by the franchisor’s President. The Hypoxi Studios in Orlando, FL and Houston, TX are owned by licensed individuals and they may provide information to you independently but are not obligated to do so.

• For purposes of this Analysis, “Cash Sales” equals all cash and credit sales.

• The Cash Sales included in this Item 19 comes directly from Bank Statements of the Studio. The figures have not been audited and the franchisor has not undertaken to independently verify (i) the accuracy of the information or (ii) whether the information was prepared in accordance with generally accepted accounting principles.

• The sales figures in this financial performance representation reflect historic financial performance of the franchisor’s one studio based on its actual operation. The franchisor’s staff was also responsible for training and support of the two licensees, which took time away from its Charlotte location. A franchisee will not have these responsibilities when they operate their own Hypoxi Studio.

• Note that the expenses for a Hypoxi Studio will vary depending on many factors, including local and regional variations in real estate, leasing rates, construction costs and building specifications, local and regional variations in utility and telephone rates, insurance costs, local and state taxes and wage rates, the availability of sufficient labor pool, costs of supplies used, services offered, the efficiency and managerial skills of the franchisee, local economic factors, the type of area in which the Studio is located, and whether the Studio is managed by the owner of the Studio or by an employee manager.

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