BUSINESS PLAN[LOCATION NAME]

Information, data and drawings embodied in this business plan are strictly confidential and are supplied on the understanding that they will be held confidentially and not disclosed to third parties without the prior written consent of [INSERT YOUR COMPANY NAME].

TABLE OF CONTENTS

EXECUTIVE SUMMARY 3ABOUT IRON TRIBE FITNESS 4WHAT SETS US APART 4MISSION STATEMENT 6PROGRAMS 6PRICING 7IRON TRIBE BACKGROUND 8KEY BENEFITS OF FRANCHISE 10OUR INDUSTRY 11PROPOSED LOCATION 13MARKET ANALYSIS 14COMPETITIVE ANALYSIS 17MARKETING 18FINANCIAL PROJECTIONS 19APPENDIX 22

EXECUTIVE SUMMARY

Iron Tribe Fitness (ITF) is an innovative and successful business concept with a business model that works. Iron Tribe began with the dedication to a simple idea: create an innovative, fun, and result-driven place for people to achieve their fitness goals.

Social pressures and media hype has been the main catalysts for the increasing popularity of fitness in America. People are constantly being reminded of the risks, costs and societal stigmas associated with poor health. Stroke and heart attacks continue to be the leading causes of death in the US and obesity rates continue their ascent in adults and even more prevalent in children. Recently, the health of Americans has been further scrutinized when measured up against that of other countries.

It is our company’s belief that the vast majority of traditional fitness centers produce poor results and low value to consumers. Historically, these companies focus on filling their building with shiny new machines to attract their members. After they recruit their members, there is little to no concern whether their member receives fitness results. This is where ITF comes in – by offering a high-quality product, focused on results, we deliver value.

Iron Tribe began in February, 2010 in Homewood, AL. The founders tinkered, tested and experimented with the concept to achieve the formula for Iron Tribe’s long-term success. Just recently, with four clubs under their belts, Iron Tribe has begun franchising. Our company feels confident in the strength in the business concept and would like to seize on the opportunities that a franchise will offer.

The following information comprises a comprehensive business plan for a franchised location of Iron Tribe Fitness (ITF). Our company believes that Iron Tribe Fitness will revolutionize the fitness market for a number of reasons. We also believe that the following plan outlines many reasons why our proposed ITF location will reflect long-term success and profitability:

● ITF IS A HIGH QUALITY PRODUCT WELL POSITIONED FOR AGGRESSIVE GROWTH IN THE MARKET.

● ITF WILL CREATE ITS OWN NICHE WITHIN THE FITNESS INDUSTRY.

● THE ITF FRANCHISE IS WELL ORGANIZED AND WILL SUPPORT THE SUCCESS OF OUR COMPANY.

● THE GROWITH AND ATTRACTIVE CHARATERISTICS OF OUR INDUSTRY.

● THE DEMOGRAPHICS OF OUR SPECIFIC MARKET SUPPORTS THE FEASABILITY OF OUR LOCATION.

ABOUT IRON TRIBE FITNESSITF is functional movement programming for real people. At ITF the only thing constant is change. The goal of our program is to confuse your muscles and never allow them to adapt to a routine. The days of back and bi's, chest and tri's, or never-ending bouts of cardio are over. Each day brings with it, a new WOD and its challenges. We teach the Olympic lifts and we craft our fitness program around movements and exercises that train your body to be able to tackle any challenge life may throw your way. This can be as simple as helping your neighbor re-arrange furniture to pulling yourself out of a swimming pool without a ladder. You'll never see our athletes take time off between reps or exercises. Each WOD is performed at the highest intensity possible for that athlete. There is no wasted time or movement.

Intensity breeds efficiency, and that is our goal- to make you as efficient of an athlete as possible. By working against the clock we are able to track progress and document improvements over time. Drastically reducing your workout time transforms your body like nothing you've ever seen. Sure, it breaks all the rules, but that's the point.

WHAT SETS US APARTIron Tribe Fitness has created its own segment in the fitness market. While, traditional health clubs offer consumers a resource to pursue an individual pursuit of their fitness goals, Iron Tribe Fitness offers something entirely different. We are a socially engaging, culturistic concept that offers result-driven, accountable, interactive programs to embrace members while they attain their fitness goals. We nurture members through nutrition and fitness to create a stronger individual and by embracing this social platform, a stronger tribe.

Iron Tribe Fitness provides value. Traditional health clubs do not offer consumers the results that ITF can provide. Consumers are burned out on the monotony and undervalued results that traditional health clubs have provided them. ITF provides accountability, which translates into results, thus providing what every consumer is seeking – VALUE.

The failure of traditional health clubs to deliver value to consumers is evident in the fact that up to 45 percent of fitness-club members quit going in any given year, according to the International Health, Racquet & Sportclub Association (IHRSA). In all of the marketing that these clubs do to promise value to consumers, they fail to deliver. These clubs promote disassociation between members, with flat-screen TVs and iPods to keep them preoccupied.

At ITF, we promote a community culture that helps in driving results. At Iron Tribe, we don’t do your typical open gym format. Instead, members are part of the Tribe, working out together and not lost in their own world or reading a magazine on a machine. Members hold each other accountable. We believe that this tribal spirit creates accountability between members and motivates each member to reach their individual goals. Iron Tribe is a socially engaging platform where members develop lifelong friendships. At ITF, we focus on results and value that unlike traditional health clubs, fail to deliver.

ITF delivers a quality product with maximized value. For this reason, our company’s brand perception is unlike many clubs in our industry. Most fitness center concepts move up and down the value chain, but budget and high-end specialty models like Iron Tribe Fitness have historically shown growth while the middle of the chain has experienced demise.

MISSION STATEMENTOur Mission is to teach and support healthy lifestyles, be a leader in result-based fitness and encourage fellowship within our global based community.

● We believe in conditioning the body as a tool for greater purpose.● We are committed to accountability, progress and meaning.● We invite you to BE ABLE.● We’re not selling the quest for beauty, we promise strength

PROGRAMS

THE ITF 101The ITF 101 is an introductory class we require tribe members to take before diving into a regular Tribe class. The guidance they receive from coaches and the accountability and encouragement they receive from classmates (and they give back to them) all helps new students learn the ropes… and eventually climb them! During the 12 day course, Iron Tribe Fitness Coaches will introduce the methods behind the program, the progressions to the movements, the science behind WHY it works and even nutrition so tribe members learn how to fuel their body and their workouts. Not only do our members learn all about the program but they also get amazing results in this first 30 days beginner’s class. We have had members lose as much as 25 pounds in the first 30 days!

TRIBE CLASSESITF offers several classes throughout the day to accommodate tribe members’ schedules. Once they complete the Iron Tribe Fitness 101, they will be able to attend the class of their choice. Being part of a class is the key here. At Iron Tribe, we don’t do your typical open gym format. Instead, members are part of the Tribe, working out together and not lost in their own world or reading a magazine on a machine. Members hold each other accountable.

TRIBE KIDSWant to know the secret to getting your kids to step away from the video games? Equip them with real power. Tribe Kids takes the principles of ITF’s adult classes and brings them down to size… showing them the fun and benefits of being strong, athletic and healthy at an early age.

Whether they already play little league sports or haven’t learned how to do a cartwheel, our coaches will help them achieve a level of fitness and functionality they’ll carry with them for a lifetime. Tribe Kids develops the 10 components of fitness:

● Flexibility● Strength

● Accuracy● Coordination

● Cardiovascular endurance● Balance● Agility

● Power● Speed● Stamina

Plus, the program fine-tunes their movements to help prevent injuries and keep them active in sports. ITF coaches work closely with each child to make sure he/she is doing the movements correctly and helps identify their strengths so they can perform with confidence and success.

SPECIALTY CLASSESITF also offers specialty classes that suit the individual needs of our tribal members.

● Women’s Only: We understand that, considering we also used to belong to globo gyms where avoiding cheesy pickup lines was often part of the workout. Even though all our members are a close-knit tribe, regardless of gender, ITF offers all-female classes at different times, depending on the ITF location.

● Strength Class: This is a class that we offer that focuses on strength training. We want our tribal members to Be Able, Be Confident, and Be Strong!

FOODAt Iron Tribe Fitness, we’re committed to pushing tribal members towards their personal best and that quest includes the Paleolithic diet or “Paleo.” In our Iron Tribe 101 class members learn everything they need to know about the Paleo Diet. One of the largest obstacles to diving full-fledged into the thoughtful, healthy and organic Paleo diet, is time. ITF offers exciting new Paleo food lines: InnerFire Grill and Sweat Angel Bakery. Fresh meals are dropped off at member’s ITF gym on Monday, Wednesday and Friday at 6:30am.

PRICINGITF will set its pricing structure appropriately to coincide with the cost of living and demographic environment of the community it serves. The basic idea is that as more sessions are purchased, we reward the clients commitment by allowing them to lock into a lower rate. Iron Tribe Fitness offers a high-quality product, we believe price equals perception and it is important that our pricing says we are the best.

Sample pricing is below:

CLASSES 4 MONTH 8 MONTH 12 MONTH3x WEEK $250 $240 $2304x WEEK $285 $275 $265

UNLIMITED $310 $300 $290

IRON TRIBE FITNESS BACKGROUNDOur company’s confidence in the long-term success of the ITF business model is partly based on the sound leadership from our franchisors. The ITF Franchise is led by professional, resourceful entrepreneurs that not only believe in the product, but live the product.

Forrest Walden, Founder Forrest has been in the fitness industry since 1996 and he honestly couldn’t imagine doing anything else. He started working out regularly in college because he was the smallest guy on the cheerleading squad at Auburn and needed to put on about 30 pounds to hang with the other guys and have the strength to press his partner above his head!

Putting on that 30 pounds of muscle changed his life and made him aware of just how powerful exercise and physique development could be on the entire human psyche. He started pursing natural bodybuilding contests as a way to express his passion for fitness and placed very well in several local contests. Others starting asking him how to get into shape and before he knew what had happened he was in the personal training industry!

Forrest opened his first personal training studio, Fitness Together, in 2001. He eventually grew that into six studios that he owned and operated right here in Birmingham. He ended up selling all of those studios to purchase the franchise rights to develop the one on one training franchise in AL, FL and NC. He just recently sold the rights to his territories after building his three states to over 55 locations.

After finding CrossFit in 2007, he had been unable to shake the feeling that he just had to get back directly in the fitness industry and help people transform their lives. He loved everything about fitness and felt like the more people he could help find it and implement it in their lives the better. He started training people in the CrossFit regimens and methodology out of

his garage. More and more people started to come to his garage to workout and that’s when Forrest decided to start Iron Tribe Fitness.

Opening Iron Tribe Fitness in February of 2010 has been one of the most fun projects that he has ever been a part of! From selling out the Homewood gym in record time to opening the 280, Downtown and Mountain Brook gym’s to now franchising the model, it has been an incredible journey!

Jim Cavale - Business DevelopmentAs the ITF Director of Business Development, Mr. Cavale works on the objective of expanding and growing ITF. Mr. Cavale has done everything including opening and managing one of the company’s Birmingham locations, overseeing all four corporately owned locations and helping to build the proprietary software and technology platforms. Mr. Cavale has a B.A. in Broadcast Journalism and offers the company an extensive entrepreneurial background with an online video production company and Eporro.com, a BETA website that allowed high school student-athletes to build Recruit Profiles with their highlight videos and academic transcripts. In 2010, the success of Eporro’s BETA testing led Jim to the creation of NextSpex.com to provide the service at no cost for high school student-athletes in Alabama and Louisiana.

Luan Nyguen - Director of TrainingMr. Nyguen offers ITF a degree in Exercise Science/Sports Medicine from the University of South Alabama. Mr. Nguyen has been in the fitness industry since 2002 as a personal trainer and has also owned his owned personal training studio since 2004 that he sold in 2010. As the Director of Training for Iron Tribe Fitness, he gets the opportunity to create a product that is safe, effective and fun! He works with the best coaches in the world and helps put together events that allow the members to unite and bond through competitions, goal setting and fundraisers. He also gets to be a large part of an awesome team whose vision is to teach functional movement and the paleo diet to as many people as possible, to spread and expand the Iron Tribe Fitness family on a global scale.

KEY BENEFITS OF IRON TRIBE FITNESS

A good relationship between the franchisor and franchisee is critical for the success of both parties. Since franchising establishes a business relationship for years, the foundation must be carefully built by having a clear understanding of the franchise program. ITF provides our company with unparalleled support during start-up phase and on an ongoing basis:

● Site selection-When you buy an ITF franchise, they take the guesswork out of the site selection process. First, they will conduct

demographic studies within your area of interest. They will then assist you in finding the ideal location for your studio.

● Lease Negotiation-Many people are inexperienced in the area of leasing and lease negotiation and often end up paying much more than they need to with little or no concessions. ITF has expertise in negotiating a favorable lease.

● Gym Layout-With a construction management team in place they have sample drawings to help me choose the best, most efficient layout for my gym.

● Gym Start Up-with over 100 items to take care of prior to opening ITF, it is very easy to become overwhelmed in the process. Their experienced staff will work with our management to make the entire process easy.

● Save money in negotiations-many areas of business involve negotiations. They will help our company save money in startup costs, insurance, advertising contracts, employee costs and in many other areas.

● Operations Manual-with years of operating successful ITF’s, they have created an operations manual for franchise owners. This will act as the blue print to success and provide our company tips, strategies and systems that are proven to work.

● The WOD Board Intranet-ITF has a proprietary intranet that will house all manuals, forms, procedures and checklists. In addition it will have videos on every aspect of store operation from sales to coaching. The WOD board also has a help desk for any help, tips or assistance along the way.

● Test Marketing-They continue to test ideas and strategies at corporate locations in order to provide franchise locations with the latest and most effective methods to grow our company. All campaigns are posted to the WOD board for me to use in my individual location.

● Marketing-Direct mail pieces, strategic business partnerships, referral campaigns, coach incentives and other marketing programs have been created and tested to increase our client base.

● Advertising-There is a collaborative fund to produce effective marketing. With every franchisee contributing it can give ITF leverage in buying advertising.

● Franchise School-during our training program, I will be taken through important processes running an ITF. All aspects of the ITF program are systemized to make it easy on our company. Everything we will cover is also in video format for easy reference later.

● Customized Software-ITF software allows me to accurately track clients, client data, client scheduling and payments to stay organized.

● Website-customized website that interacts with the corporate website with the same feel and design. Very interactive where clients can schedule classes, get information and read blogs.

OUR INDUSTRYThe US fitness centers industry includes about 22,000 companies and nonprofits in the US that operate about 30,000 fitness and recreation centers with combined annual revenue of around $22 billion.

Major companies within our industry include 24 Hour Fitness, Life Time Fitness, and LA Fitness. Roughly 2,600 centers are operated by YMCAs and another 2,500 by community centers. Our industry is fragmented: the 50 largest companies account for about 30 percent of revenue, and only a few dozen companies own more than 10 centers. Industry demand is partly linked to income levels and partly to market demographics. Our industry is also labor-intensive: average annual revenue per worker is about $45,000.

Our industry is incredibly resilient and innovative. This is shown in the growth of health club memberships during the ‘Great Recession’. According to the International Health, Racquet & Sportclub Association (IHRSA), global health club membership exceeded 120 million in 2010, more than 128 million consumer were members of a fitness club in 2010. In 2010, worldwide industry revenue reached $71 billion and the number of clubs totaled 133,500 (IHRSA).

There have been specific factors that have increased the demand for fitness in America. These include the rising costs of healthcare. Health expenditures in the United States neared $2.6 trillion in 2010, over ten times the $256 billion spent in 1980. (Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group, National

Health Care Expenditures Data, January 2012.) Addressing this growing burden continues to be a major policy priority. With high costs of health

care, consumers have placed a growing emphasis on fitness as a preventive measure.

Aging populations and rising health care costs have led to a rise in fitness demand. In addition, the obesity epidemic is a long-term and critical goal that health professionals, government leaders and corporate America continue to look for new ways to change lives. Staying healthy and lean, feeling and looking one’s best, and managing stress continue to be values that Americans prize highly. Not only does Iron Tribe address these values, but we address them in an exciting, result-driven, and interactive way.

Iron Tribe Fitness will continue to enjoy strong growth for years to come. There are certain elements of our industry that are highly attractive for investment:

Increasingly favorable demographics:

Our working capital requirements stay relatively stable as membership grows. Unlike many industries, working capital requirements

grow as the business grows. In our industry our working capital requirements do not significantly increase as membership grows.

Our industry owns a powerful infrastructure: Unlike many industries, consumers are being told from every direction that regular exercise is vital to a healthy and productive lifestyle. Physicians, journalists, schools, medical institutions, U.S. government, American Medical Association, American Heart Association, American Cancer Society, and most importantly, social peers are all advising their audiences to regularly exercise. Almost every university in the country is investing in world-class fitness centers for their students. These influences will continue to be a positive impact on the future of Iron Tribe Fitness.

Our industry provides unrivaled value (some concepts more than others): Iron Tribe provides facilities and programs that will keep people healthy and engaged in their progress toward a fit lifestyle. This progress toward a fit lifestyle also has other benefits including prevention of disease, diabetes, hypertension, cancer, etc. From both a societal perspective and an individual perspective, Iron Tribe Fitness provides a path for human progress. Study after study has shown that individuals value health as the most important value in their lives. Health has ranked higher than wealth, friends, and a great job. In this regard, compared to other industries our industry provides preventive wellness that will continue to result in unrivaled value for consumers.

Our industry is attractive for communities and landlords: Not only does our industry offer communities jobs, but we offer communities and their citizens a positive outlet for their free time. Health clubs and fitness centers are attractive for communities because we are a positive influence on society in a number of ways. In addition, because our industry is essentially a fixed cost business concept, landlords and commercial developers who are looking to fill retail spaces are especially interested in fitness centers due to daily off-hour traffic that is generated and the amenity value that we offer to other businesses.

PROPOSED LOCATIONThe proposed location will be at ________________________________. ITF will perform detailed studies when financing is secured and the process of site selection begins. The space will be anywhere from 3000 to 5000 square feet.

STAFFThe following key personnel will be employed by our company with manage and operate ITF:

Lead CoachThe title of lead coach is given to a full time coach who is responsible for either a morning or evening shift of classes. They are responsible for the warm up creation, delivery of the WOD, teaching protocols and cool downs for each of the classes in their agreed upon time blocks. The lead coach is also in charge of overseeing and instructing the co-coach for the maximum productivity within the assigned class. I would recruit for this position.

Co-CoachThe co-coach is a position added when a class size is large and requires a second set of eyes on clients to ensure proper form, answer questions and to assist the lead coach. The co-coach may have the opportunity to grow

within our system and take over for a lead coach if performance dictates. I would recruit for this position.

Facility ManagerThe facility manager handles the day to day duties of running the gym including but not limited to staffing, facility cleanliness, schedule, sales and other duties relating to business operations. I myself would take on this role in the beginning.

InternsI would utilize interns during semesters and summer programs that display the core values of ITF and want to make a career with ITF.

MARKET ANALYSIS

The market analysis of your business plan will be specific to your location. The market analysis will outline the demographics of your specific area to support the feasibility of your location. Included at the end of this business plan is the market study for Birmingham, AL including the four corporately owned stores as well as additional expansion opportunities in that market. Additionally, is a detailed site analysis similar to what I will receive for my chosen area.

COMPETITIVE ANALYSISThe competitive analysis section of your business plan will be specific to your location. A competition analysis is important for a business plan because it (a) reveals ITF’s competitive position in the marketplace, (b) assists you to develop strategies to be competitive, and (c) investors and other readers of the business plan will expect it. The following is an example of a competitive analysis for an ITF location in the Hoover, AL area:

PRIMARY COMPETITION

Ignite Fitnesshttp :// ignitefitnesshoover . com / 2801 John Hawkins Parkway, Hoover, AL 35244 CrossFit Hoover is a licensed affiliate of Crossfit. Shane Rodriguez is a CrossFit Level 1 certified trainer and owns and operates Ignite Fitness. He owned, operated and managed Lifestyle Fitness for 7 years. Pricing ranges from $150 to $199 and is in operation Monday through Saturday. Ignite also offers Yoga and classes for kids. Our company believes that the franchise support along with the growing franchise network of ITF will maximize our market share in competing with Ignite Fitness.

Crossfit RPMhttp :// www . crossfitrpm . com / 100 Little Valley Court, Hoover, AL 35244RPM Inc. was founded in 2006 with the objective to train each and every athlete, no matter the level or sport, to increase their performance in every discipline of training including Linear Speed, Lateral Speed, Agility, Power, Strength, Endurance, Technique, and Flexibility. Co-Owner and Director, Derek Rios is Crossfit Level 1 Certified. Pricing ranges from $150 to $200 and is in operation Monday through Saturday. Our company believes that the franchise support along with the growing franchise network of ITF will maximize our market share in competing with Ignite Fitness.

SECONDARY COMPETITION

Hoover Recreation Centerhttp :// www . hooveral . org / Default . asp ? ID =268 600 Municipal Drive, Hoover, ALThe Hoover Recreation Center is a municipal facility owned and operated by the City of Hoover for the benefit of residents. Annual membership is available and guests of members are welcome. The facility offer a variety of fitness and recreation programs, with over fifty fitness classes and twenty recreation programs on seasonal basis. Hours are Monday - Friday 5:00am to 9:0pm, Saturday 8:00am to 5:50pm, and Sunday 1:00pm to 5:50pm. Our company does not expect to compete with the rec center directly, but the center does represent a substitute product within our industry.

Gold’s Gymwww . goldsgym . com 3427 Colonnade Parkway, Birmingham, AL Gold's Gym International, Inc. is an international chain of co-ed fitness centers (gym’s) originally started in California by Joe Gold, each gym features a wide array of exercise equipment, group exercise classes and personal trainers to assist clients. Its headquarters are in Irving, Texas. Today, Gold's Gym claims to be the largest chain of co-ed gyms in the world, with more than 650 locations in 42 states and 30 countries. Nationally, Gold's Gym has a membership of more than three and a half million, split almost equally between male and female patrons. Gold's Gym locations are equipped with cardiovascular and strength training equipment and offer group exercise classes such as group cycling, pilates, Latin dance, yoga and stretching through the company GGX (Gold's Group Exercise) program. Gold’s Gym offers the classes that indirectly compete with ITF, these include: Advanced Pilates Confusion, Beginner Mat Pilates, Mat Pilates and Freestyle Cycle. Membership dues vary, but the company typically offer the following packages:

● Strong Start Plan: $499 Annually (Free Group Exercises)● 12- month Commitment: $20.99 Bi Weekly Dues ($42/month)

MARKETINGOur company is confident in the marketing tools that our franchisor will offer to our company. We also believe that the relationship between franchisor and franchisee will deliver focused and measurable results.

ITF has identified several effective marketing strategies for the months of startup and growth. ITF has contracts with vendors to supply its Franchisee’s with effective materials at a reasonable cost. A detailed marketing strategy is part of the franchise agreement. Some of the marketing initiatives are as follows:

● Social Media: Social Media Marketing, including Facebook and Twitter is a large part of ITF’s marketing plan. Social media is used to

promote the brand, develop a following, and to communicate with both current and potential members. ITF is based around creating a socially engaging platform and social media allows ITF to further build upon that ideal. In addition, social media allows ITF to take advantage of the word-of-mouth that social media tends to offer within the users’ online interaction.

● Collaborative Marketing: The franchise offers monthly marketing expense for each studio to promote ITF. The more stores in the area the more is spent. Often these collaborative marketing strategies include billboard, guerilla marketing techniques, or even in some circumstances – print.

● Referrals: Referrals from existing clients are the most important sources of new business. ITF uses “Bring a Friend Day” to promote getting referrals and has been very successful with these types of strategies. They have done this once a month and have also done Bring a Kid day.

● Direct Mail: Direct mail Promotions-to affluent households within a five to ten mile radius.

Our company does not expect to compete with Gold’s Gym directly, but the gym does represent a substitute product within our industry. ITF focuses on a market segment that offers a high-quality, segmented product to consumers.

FINANCIAL PROJECTIONS

STARTUP COSTS NEEDED

Initial Franchise Fee $35,000Construction/Lease Hold Improvements $35,000 to $55,000Lease Deposit $3,500 to $5,000Equipment, fixtures, furniture $45,000 to

$60,000

Clothing Inventory $3,500 to $5,000Supplement Inventory $1,500 to $2,500Working Capital $30,000 to $45,000Signage $3,500 to $5,000Permits and licenses $500 to $1,000Training $1,500 to $2,500Insurance $3,500 to $4,500Utility Deposit $1,000 to $1,500

TOTAL $163,500 to $217,000

Iron Tribe Fitness makes earnings claims in their Item 19 of the Franchise Disclosure Document of the following numbers by which I have constructed my pro forma.

IncomeNew clients a month 18.5

Average Client Value a month (no profit centers) $206

Average Client Value a month with profit centers $253

Average attrition a month 2.5%

ExpensesOperating Expenses $6,962 to $9,872 / month

Cost of Goods Sold with no profit centers $0

Cost of Goods Sold with profit centers $35.25 per member

Labor Range $10,300 to $19,185 / month

Manager $40,000 base with 7.5% net profit bonus

Lead Coach $40,000 to $44,000 annual base

Co-Coach $25/hr to $24,000 annual base

Rent Ranges $2,750 to $3,750 / month

PROJECTED BREAK-EVEN ANALYSIS

Monthly Revenue Break-even 0Assumptions:Average Percent Variable Cost 0Estimated Monthly Fixed Cost 0

PRO FORMA PROFIT AND LOSS2012 2013 2014

SALES 0 0 0Direct Cost of Sales 0 0 0Other Production Expenses $0 $0 $0 Total Cost of Sales 0 0 0Gross Margin 0 0 0Gross Margin % 0 0 0EXPENSES Payroll 0 0 0Sales and Marketing 0 0 0Depreciation 0 0 0Leased Equipment $0 $0 $0 Utilities 0 0 0Insurance 0 0 0Rent 0 0 0Payroll Taxes 0 0 0Franchise Fee 0 0 0Total Operating Expenses 0 0 0Profit Before Interest and Taxes 0 0 0EBITDA 0 0 0Interest Expense $0 $0 $0

Taxes Incurred 0 0 0Net Profit 0 0 0Net Profit/Sales 0 0 0

PROJECTED BALANCE SHEET 2012 2013 2014AssetCurrent AssetsCashAccounts ReceivableOther Current AssetsTotal Current AssetsLong-term AssetsLong-term AssetsAccumulated DepreciationTotal Long-term AssetsTotal AssetsLiabilities and CapitalCurrent LiabilitiesAccounts PayableCurrent BorrowingOther Current LiabilitiesSubtotal Current LiabilitiesLong-term LiabilitiesTotal LiabilitiesPaid-in CapitalRetained EarningsEarnings Total Capital Total Liabilities and Capital Net Worth