FDD Talk 2014: Our Latest Views on Mode’s Sales Per Square Foot, Profit Margin, and Pairs of Denim Sold for the Company-Owned Store

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

• Mode sells clothing and accessories for women, men, and children.

• Mode began business operations in February 2007. Currently, Mode owns and operates one store in Fargo, North Dakota. It has granted four franchises, which are currently located in Bismarck, North Dakota; Grand Falls, North Dakota; Sioux Falls, South Dakota; and Overland Park, Kansas.

• The total estimated initial investment necessary to begin operation of a Mode Store ranges from $108,900 to $234,500.

• The sole company-owned outlet, which is located in Fargo, North Dakota, has 1,104 square feet of retail floor space. The Fargo company-owned store has been in business since 2007 and has been at its current location since August 2010.

• The following report and financial representation is based solely upon the financial performance of the Fargo company-owned store during the 2013 calendar year.

• Other than the financial performance representations below, Mode does not make any representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised outlets.