Introductory Presentation

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1 Introductory Presentation

2 WEEK 6 WEEK WEEK 1 2 WEEK 5 WEEK 3-4 STRUCTURED HORIZON WELCOME TO THE FAMILY FRANCHISE AGREEMENT DELIVERY PERSONALIZED FRANCHISE AGREEMENTS DELIVERED DAY OF DISCOVERY MEET THE EXECUTIVE LEADERSHIP TEAM AND SEE THE ENTIRE CORPORATE SYSTEM FIRSTHAND VALIDATION CALL,,,, INTRODUCTION TO VALIDATION REVIEW OF THE FOUNDATION SERIES; LAYING OUT THE PARAMETERS OF VALIDATION MARKETING & OPERATIONS IN DEPTH REVIEW OF THE TURNKEY MARKETING SYSTEMS & OVERVIEW OF THE BACK END ADMINISTRATIVE AND SUPPORT SERVICES UNIT ECONOMICS STARTUP EXPENSES, OPERATING EXPENSES INTRODUCTORY CALL OUR HISTORY, OUR CONCEPT, WHAT MAKES US UNIQUE, AND HOW WE MAKE MONEY OFFER OR SALE TO THAT PROSPECTIVE PURCHASER MEETS AN EXEMPTION FROM FRANCHISE REGISTRATION UNDER CALIFORNIA LAW. CURRENTLY, IN CALIFORNIA OFFER OPPORTUNITIES TO OWN AND OPERATE MEDI

3 The Market & Opportunity OBESITY IS COMMON, COSTLY, AND ON THE RISE The American Medical Association has classified OBESITY as a disease. Obesity is the fastest-growing health problem in America and the second leading cause of preventable death. More than one-third of U.S. adults (37.9%) are obese.* Obesity-related conditions include heart disease, stroke, type 2 diabetes, and certain types of cancer, some of the leading causes of preventable death. THE TOTAL ECONOMIC COST OF OVERWEIGHT AND OBESITY IN THE U.S. IS ESTIMATED AT: $305 BILLION/ YEAR** *CDC prevalence rate of obesity based on figures places percent of adults age 20 and over **Pianin, E., & Ehley, B. (2014, June 19). Budget busting U.S. obesity costs climb past $300 billion a year. The Fiscal Times. Retrieved from

4 Obesity Trends OBESITY TRENDS AMONG U.S. ADULTS BRFSS, 1986 (BMI 30, or ~30 lbs. overweight for 5 4 person) No Data <10% 10%-14% *Source: CDC Behavioral Risk Factor Surveillance System

5 Obesity Trends OBESITY TRENDS AMONG U.S. ADULTS BRFSS, 2014 (BMI 30, or ~30 lbs. overweight for 5 4 person) I I <20% 20%-<25% 25%-<30% 30%-<35% 35% No Data Available *Source: CDC Behavioral Risk Factor Surveillance System

6 Company History EARLY ORIGINS Recognizing America's obesity epidemic and the need to help people lose weight and keep it off, Edward Kaloust has built Medi-Weightloss into one of the most exciting investment opportunities available today. Founded in 2005, began franchising in units sold, 87 open in 26 states and Dubai Helped over 220,000 patients lose over 3 million pounds Edward Kaloust, Founder & CEO

7 Comprehensive Approach COMPREHENSIVE WEIGHT LOSS & WELLNESS SOLUTION The Medi-Weightloss Program provides extensive and comprehensive care in all aspects of weight loss, including medicine, nutrition, and fitness. This includes a body composition analysis for patients, individualized weight loss plans based on patients medical history and health, and education on proper nutrition and exercise. Science is what makes Medi-Weightloss different from the competition. The program was developed by physicians, obesity researchers, dietitians, and experts in exercise physiology. Medi-Weightloss utilizes the latest clinical research available to help patients maximize their weight loss* and keep the weight off long term. State-of-the art portal allows patients to track progress, find and rate recipes, and follow exercise plans based on their lifestyle. Signature Products and Supplements, vitamin-based injections, and prescriptionmedication evaluations are tools that enhance patients' overall well-being and help them stay on track. *On average, patients compliant with the Medi-Weightloss Program lose 6.4 pounds the first week and 14 pounds the first month.

8 Medi-Weightloss Features OPPORTUNITIES FOR MULTIPLE REVENUE STREAMS Regular patient visits Signature Supplements & Products InterActive Exercise equipment Medi-Weightloss Adolescent Program Medi-Weightloss Signature Menus Medi-Weightloss DM for diabetics

9 Brand Differentiators THE BENEFITS OF A PHYSICIAN-SUPERVISED PLAN Physicians at our locations ensure that each plan is appropriate for that individual. Physicians consider a patient s health, medical history, goals, and food and exercise preferences to help customize a plan. Patients receive monitoring and plan modification based on changing health indicators. Our physicians only prescribe FDA-approved medications to medically appropriate patients. Patients remain under a clinician s care throughout the program. Dr. Zbella, Medi-Weightloss

10 AVG. TOP TIER - 16 FRANCHISEES Gross Revenue $ 1,139,735 * Net Income Before Franchise Fees and Other Expenses AVG OF ALL REPORTING FRANCHISEES (46) AVG of top 1/3 of all reporting franchise locations in 2015 $ 438,445 * AVG of top 1/3 of all reporting franchise locations in 2015 Gross Revenue $ 741,012 * AVG of all reporting franchise locations in 2015 Net Income Before Franchise Fees and Other Expenses AVG. BOTTOM TIER - 15 FRANCHISEES Gross Revenue $ 247,194 * AVG of all reporting franchise locations in 2015 $ 405,266 * Net Income Before Franchise Fees and Other Expenses AVG of bottom 1/3 of all reporting franchise locations in 2015 $ 97,549 * AVG of bottom 1/3 of all reporting franchise locations in 2015 * Please see item 19 of the FDD for full financial details. The historical financial data on this page is derived from financial reports provided by forty (40) Medi-Weightlos franchised locations to Medi-Weightloss Frachising USA, LLC ( Medi ). Financial reports were not provided by every franchised location and, therefore, may not accurately reflect the overall performance of our entire franchise system. Medi has not audited this information or independently verified the information. Written substantiation for the above figures will be made available to you upon reasonable request. Your individual results may differ. There is no assurance that you ll sell or earn as much. The figures do not include all of the costs that may be incurred by the franchised business, such as franchise fees and office supplies. Medi does not represent that any operator can expect to generate the revenues shown, or any other particular level or range of profits or margins. Actual performance will vary by location and market area. Your success will depend largely on your abilities and efforts. If you rely on our figures, you must accept the risk of not doing as well. Consult your own financial and legal advisors.

11 Medi-Weightloss SUPPORT TEAM A 2:1 Franchise to Corporate Staff ratio with 50+ Corporate Employees providing unparalleled support in the franchise industry Dedicated Franchise Performance Team, including Certified Franchise Executives, MBAs, MDs, and PhDs in their respective fields CEO CBO Business Development Legal Medical Affairs R&D/ Compliance Marketing/Aligned Communications/ Events Franchise Operations Corporate Operations Training Franchise Development Strategic Development Finance HR Support IT

12 Territory Restrictions DESIGNATED TERRITORY BASED UPON EACH LOCATION Generally minimum population of 100,000 $70,000 or higher household income Radius varies (usually 2 miles)

13 Inventory Analytics

14 Real Estate* Site selection Strip mall, medical suite Lease negotiations 5-year leases are recommended Location build-out 1,500-2,000 sq. ft. *Franchisees are responsible for locating a site for their franchise and negotiating a lease.

15 What Is Advantage? Ad antage Portal for all resources Practice management software Drug and inventory management Accounting Online shopping portal Marketing and operations resources Automated enrollment system Your key to a fast start-up

16 JOE RODA General Counsel / VP, Business Development St Gregory Development Group E: joe@stgdevelopmentgroup.com T: Find us on Facebook Facebook.com/1.877.MED.LOSS Follow us on Twitter! twitter.com/mediweightloss Watch our Videos! Youtube.com/mediweightloss

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