## Highlights of Nothing Bundt Cakes’ Item 19 Financial Performance Representations (2014 FDD) – Part 2

- Your expenses will vary depending upon the location of your Bakery. This analysis does not contain complete information regarding costs associated with starting up and operating a Bakery. Revenues vary substantially from Bakery to Bakery.

### Explanatory Notes for Part III – Average Net Revenues, Average Cost of Goods Sold, Average Gross Margin, and Average Occupancy Costs

- The table below presents the average net revenues, average cost of goods sold, average gross margin, and average occupancy costs achieved by 37 of the 40 Reporting Franchisees from January 1, 2013 through December 31, 2013 (the “2013 Calendar Year”).

- Specifically, Table One below profiles 19 of the 37 franchisees who achieved net revenues in excess of $800,001 during the 2013 Calendar Year.

- Table Two profiles 10 of the 37 franchisees who achieved net revenues ranging between $600,001 and $800,000 during the 2013 Calendar Year.

- And Table Three profiles 8 of the 37 franchisees who achieved net revenues ranging between $300,000 and $600,000 during the 2013 Calendar Year.

- Excluded from this Part III are the results of 3 of the 40 Reporting Franchisees who failed to provide Nothing Bundt Cakes with complete financial statements during the 2013 Calendar Year.

- “Average Net Revenues” is determined by taking the sum of included franchisees’ Net Revenues divided by the number of franchisees included in each table.

- “Cost of Goods Sold” includes all direct costs including dry ingredients, packaging, and decorating costs. The average presented in each table below is determined by dividing the sum of included franchisees’ cost of goods sold by the number of franchisees included in each table.

- “Average Gross Margin” is defined as Average Net Revenues less Total Average Cost of Goods Sold. The percentage for each table below was determined by dividing the Average Gross Margin by Average Net Revenues.

- “Average Occupancy Costs” is defined as all charges imposed under the lease agreements, including base rent, percentage rent, common area maintenance charges, and utilities. The average presented in each table below is determined by dividing the sum of included franchisees’ rent costs by the number of included franchisees. The percentage was determined by dividing Average Occupancy Costs by Average Net Revenues.

- Part III includes 4 Bakeries owned and operated by Nothing Bundt Cakes’ President, Craig Moore.

### Explanatory Notes for Part IV – Average Net Revenues and Percentage Growth in Average Net Revenues for Bakeries Opened During 2011 and 2012

- The table below sets forth the Average Net Revenues and the Percentage Growth in Average Net Revenues achieved by all 19 Bakeries that opened during the 2011 calendar year and 4 Bakeries that opened during the 2012 calendar year and have been open and operating a full 24 months as of the issuance date of the disclosure document.

- “Average Net Revenues First 12 Months of Operation” was calculated by taking the sum of the included franchisees’ Net Revenues achieved during the first 12 months of operations, and dividing it by the total number of included franchisees.

- “Average Net Revenues Second 12 Months of Operation” was calculated by taking the sum of the included franchisees’ Net Revenues achieved during the second 12 months of operations, and dividing it by the total number of included franchisees.

- The Average Net Revenues reflect the first and second full 12 months of business, and does not necessarily reflect sales achieved during any entire calendar year (January through December).

- The “Percentage Growth in Average Net Revenues” was calculated by taking the difference between Average Net Revenues Second 12 Months of Operation and Average Net Revenues First 12 Months of Operation, and dividing it by the Average Net Revenues First 12 Months of Operation.

- Two of the Bakeries profiled in Part IV are owned and operated by Nothing Bundt Cakes’ President, Craig Moore.

### Part III – Average Net Revenues, Average Cost of Goods Sold, Average Gross Margin, and Average Occupancy Costs

**Table One – Net Revenues of $800,0001 or More During the 2013 Calendar Year**

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