FDD Talk 2014: Our Latest Views on Wireless Zone’s Average Gross Commissions and Transaction Numbers

Highlights of Wireless Zone’s Item 19 Financial Performance Representations (2014 FDD)

• Wireless Zone franchisees sell and service wireless telephones, wireless data, satellite communications, personal communications devices and other forms of wireless, wireline and Internet based communication devices, services and accessories, and entertainment and security products and services.

• Below are tables containing financial performance representations based on Providers’ postpay activations and upgrades data (unaudited) of all franchised Stores for the calendar year 2013, as provided to Wireless Zone by Providers. Providers report postpay activations and upgrades data to Wireless Zone using a reporting system applicable to all of the Stores. Wireless Zone has not audited these figures.

• The average number of postpay activation and upgrade transactions in the tables are net of deactivations.

• Wireless Zone offered substantially the same services to all of the Stores whose data is reported in the tables below. The Stores offer substantially the same products and services to consumers.

• The first table below reports data for all 409 Stores that were open at any time as a franchised Store for a full month during 2013. There were 397 franchised Stores open on January 1, 2013 and during the year, 15 franchised Stores opened, totaling 412 franchised Stores that were technically open at any time during 2013. One Store was not open for a full month during 2013; 2 franchised Stores did not do any business in 2013 and were treated as closed on January 1, 2013 for purposes of the table.

• The second table reports data for all 358 Stores that were open as franchised Stores during the entire calendar year 2013. A total of 370 franchised Stores open as of January 1, 2013 remained continuously open during the entire calendar year 2013, of which 12 were continuously open but were converted from franchised Stores to company-owned Stores during the year. These twelve company-owned Stores are excluded from the second table.

• The third table reports data for the top 10% of the 358 franchised Stores that were open during the entire calendar year 2013.

• The fourth table reports data for the bottom 10% of these 358 franchised Stores. The rankings of the top 10% and bottom 10% of these 358 franchised Stores were based on the total number of transactions per Store per month, postpay activations and upgrades combined.

• Finally, the last table below reflects data for all franchised Stores that opened during 2013 and had at least 1 full month of data. A total of 15 franchised Stores opened in 2013, 1 of which opened in December 2013. Because Wireless Zone omitted data for the month in which each of these 15 franchised Stores opened, since using only a partial month’s data would understate the number of transactions occurring per month, there is no data to report for the 1 franchised Store that opened in December 2013.

• The financial performance representation figures do not reflect the costs of sales, operating expenses, royalties, 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 data reported in the tables below are averages and could vary greatly by geographic region, the length of time the Store has been in business, the length of time Provider has been operating in the area, your particular Provider, the terms of contract with Provider, the service plan selected by the Store customer, and customer usage.

• Some Stores have realized the number of transactions, commission levels, and residuals listed in the charts. Your individual results may differ. There is no assurance that you will realize as many transactions or commission levels or residuals.

All Franchised Stores Open at Any Time During 2013 (409 Stores)

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