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Business Description

Pritikin ICR LLC is the franchisor. To simplify the: language in this disclosure document, the terms “we", “us'', “our,” “franchisor,” and “Pritikin” also refer to Pritikin IGR LLC. The terms “you,” “your,” “licensee,” and “franchisee” refer to the person (or professional company) to whom we grant s license, the licensee. If the licensee is a partnership, corporation, or otherentity , 'you” includes the licensee's owners, Unless otherwise defined in this disclosure document all initially capitalized terms appearing in this disclosure document have the same meaning as provided in the Pritikin ICR Program Certification Agreement (the “Certification Agreemehf), a sample copy of which is included as Exhibit A of this disclosure, document (For the purpose of this FDD and the Certification Agreement, we use the terms “franchisor” and “licensor” interchangeably, and the terms “franchisee" and “licensee” interchangeably based on industry practice and without any intended difference in the meaning of those terms. The, use of these terms does not affect whether the Certification Agreement and our relationship with a provider is a “franchise” under U.S: law regulating franchises.), We were formed in Delaware Oh February 5, 2013, and our principal business address is 7701 Forsyth Boulevard, Suite 60Q, Clayton,, Missouri 6310& (tel - 800-677-0257). We do business under the names “Pritikin”, “Pritikin ICR”, and our legal name. To the extent that we have appointed agents for service of process, they are listed in Exhibit D to this disclosure document.

Prior Experience

We and our affiliates have developed programs to promote individuals' health and wellness through programs that include a healthy eating plan, exercise and lifestyle edueatidn (the “Pritikin Principles”). Our affiliates andi their predecessors have been offering various programs and resources (including residential life change programs,, books, and prepared foods featuring the Pritikin Principles and the “Pritikin” name) since 1974, Our parent is Pritikin LLC, a Delaware limited liability company,, whose principal business address is 8755 NW 36th Street, Doral, Florida 33178. Neither we nor our affiliates have had a predecessor in the past ten years. We have three affiliates, each of which is a Delaware limitedi liability company with its principal address at 8755 NW 36th Street, Miami, Florida 33178: i Affiliate Description Florida Pritikin Center LLC The Pritikin Longevity Center first began operating in December 1975. The Pritikin Longevity Center began offering the Pritikin ICR Program, principally as live lectures, in January 2012. This affiliate operates the Pritikin Longevity Center in Doral, Florida, and prepares and sells certain meals to its customers. Pritikin Foods LLC This affiliate operates an online retail “store,” through which it offers various product lines such as books and CDs, gift items, wellness packages, housewares, and a food line, branded with the “Pritikin” name. As part of the food line, our affiliate sells prepared frozen foods and meals and packaged food items (such as canned Soups, sauces, spices, and other items). At this time; the Pritikin Store is operated only online, although we expect it to sell some or all of these items and other items and products through additional retailers. Pritikin Program FDD PK 150184.3 (April 30, 2019) Page 1 'Pritikin-2019 FDD (6) Affiliate Description which may include online and In-store sales. Our Pfitikin-certified Providers will be licensed to offer and sell these items and products at their Pritikin ICR Program faciNties to their patients who attend the Pritikin Programs (as defined below). Pritikin Tfademafk Company, LLC and The Pritikin Organization LLC our affiliate, Pritikin Trademark Company, LLC (“PTC”) owns the “Pritikin” trademarks; and other intellectual property, and' The Pritikin Organization LLC (which is the parent of PTC), licenses thefrademarks to uS. We do not currently operate businesses similar to the businesses that are offered under this diselosure document. However, as noted above, our affiliate Florida Pritikin Center LLC operates the: Pifitikin Longevity Center, which has offered programs similar to those that licensees will conduct since January 2012. In the future, we or our affiliates may provide services at hospitals and other health care facilities that are not our affiliates using the Pritjkin Principles. If we or pur affiliates do so, these activities and operations may be similar to the businesses we are licensing other health care providers to operate under the; Pritikin-certified ICR Program as described below. Other than the licenses being offered in this Disclosure Document and providing training materials and certification services on an on-going basis to our licensees aS described in this Disclosure Document, we do not and have not in the past offered franchises in this or any other line of business. Other than the activities described in this Itern,, we are not, currently involved in Other business activities. We firstigranted a license to a hospital (in a transaction that was exempt under the FTC Franchise Rule) in March 2013. Except for offerings that were exempt under the FTC Franchise Rule, we began offering the licenses described in this Disclosure Document in August 2013.

Business Offered

The program that is offered under this Disclosure Document is unusual in that it is intended prirriarily for existing hospitals and cardiology practices. Among the programs that'we and our affiliates have developed is our proprietary program that, incorporates the Pritikin: Principles into an 'intensive cardiac rehabilitation program. “ICR” program refers to a physician-supervised program that furnishes cardiac rehabilitation services more frequently and often in a more rigorous manner than in other cardiac rehabilitation programs. Our ICR program has been approved by federal Centers for Medicare & Medicaid Services (“CMS”) (an agency within the U.S. Department of Health & Human Services) for reimburserfient of up to 72 sessions provided to qualifying patients, based on the current ICR program requirements under Medicare Part B (we refer to Our ICR program as the “Pritikin Program”), CMS approval of the Pritikin Program was based on the data derived from patients who participated in the Pritikin Program provided in a residential setting at the Pritikin Longevity Center in Florida and a former location in California. Pritikin iProgram FDD PK 1:50184.3 (April 30,.2019) Rage2: Pi;itikin-2019;FOD'(7-) To further expand the reaGh; of the Pritjkin Prograrn, we also developed a program and system (the “System”) through which health care facilities and other centers (which may include rehabilitation and fitness centers with medical offices) that provide cardiac rehabilitation (each a “Provider”) to patients can convert their cardiac rehabilitation programs and becorne licensed and certified by us to offer and teach, a program to their IGR patients that complies with the requirements that we have established relating to the Pritikin Program (the “Pritikin-certified ICR Program”), and to use our Proprietary Marks (which are further described beiovy) in connection With these activities. At this time, We anticipate that most Providers will be hospitals, acute care facilities, or cardiology practices, although we may receive inquiries from other providers as well. As part of the Systerh, we will train a participating, Provider's key employees (“Named Professions”) and your personnel acting as yOur “Mental Health ProfessiOnar in the Pritikin Program and provide our certification once the Provider satisfies alf requirements to become certified by Us, to provide the Pritikin Program (this is referred to as ,being “Pritikin-Gertified”). We also provide the Provider with access to resources useful to the Provider in implementing the Pritikin-certified ICR Program and in continuing to meet the requirements to be Pritikin-certified. Additional information regarding the training and certification process is provided in Items 8 and 11 of this disclosure document. Once a Provider is Pritikin-certified, we will provide it with our proprietary informational binders that its Named Professionals and ICR patients Will use.each time the Provider conducts the Pritikin Program for its patients. These are the “Administrative Resource'Binders” and the “Patient Resource Binders” (and the current fees for these Binders are listed in Items 5 and 6). We have also developed a proprietary series of best practices (“Best Practices”) to improve patient enrollment in and patient continuation with the Pritikin-certified iCR Program as may be prescribed by the patient's physician. Each Provider that uses the System is referred to as a Tritikin-ceirtified Provider”. Each Provider and its health care professionals retain full; control and independent judgment regarding all medical, pharmaceutiGai, professional and ethical aspects of their medical and related health care practices, including all individual patients and their treatments. In connection with a Pritikin-certified Provider's activities in conducting the Pritikin-certified ICR Program, Providers will use the “Pritikin” name; as well as other trademarks, service rnarks, trade names, signs, logos, and other indicia of origin that we may periodically designate (together, these are our “Marks”) to identity itself as, being part of the network of health care facilities that Offers the Pritikin Program. The license to use the Marks does not extend to the Pritikin-certified Provider's overall medical and health care operations and facilities, but is limited to the portion of its operations that are devoted to conducting the Pritikin-certified ICR Program and to activities that we approve to promote the Provldor's participation in the Pritikin Program (together these operations will be referred to as the “Pritikin ICR Business”), The features described above are not necessarily all of the elements of the System. We may Change, improve, add to, delete from; and further develop the elements Of the System from time to time. We will provide oUr mandatory and suggested specifications and procedures for the Pritikin Program in a collection of confidential rhateriais (the “Manuals”). If you apply to become a Pritikin-certified Provider and we approve you, then we will both sign a license agreement, which is our Pritikin iCR Program Certification Agreement (the “Certification Agreement”) (our current form of Certification Agreement is included as Exhibit,A to this diseiosure document). You Will conduct your Pritikin ICR Business at only the facility (or facilities) that we determine acceptable and identify in the Certification Agreement (each facility will be a “Facility” and the space(s) at the Facility allotted for your Operations of the Pritikin ICR Program with your patients will together be the “ICR Space”). This disclosure document Pritikin Program FDD PK 150184.3; (April 30, 201,9) Page 3 Phtikin ^ 2019 FDD (8) describes the licenses we offer for Pritikip I.GR Businesses and the support services we provide to Pritikin-ceftified Providers. For each approved Facility, a Provider must have at least three “Named Professionals” (a Program Director, a Registered Dietician, and a, Medical Director) as well as an exercise physiologist or specialist (an “Exercise Physiologist”),, each of whom must meet our minimum standards for qualifications. Additionally, each of your Named Professionals must attend and complete to our satisfaction our training program. Additional information regarding the requirements regarding the. Director and Exercise Physiologist positions and requirements or recommendations as to their qualifications and certifications is included in Item 11 under “training and Personnel”. Addltibnally, you must provide us with the names of the individuals on your staff (of employees or independent contractors) who will perform the following functions: acting as: your “Mental Health Professional”; and acting as your “Culinary Chef for the patient cooking instructional classes that are part of our Pritikin ICR Program. We do not require that you hire personnel specifically for these functions, but rather that you inform us as to who will perform these functions.

Initial Fees

One of the requirements to become a Pritikih-certified Provider is that your three “Named Professionals” and “Mental Health Professional” must successfully complete Our initial training program on the Pritikin-certified ICR Program, which is conducted at the Pritikin Longevity Center. You must pay a training fee for each person who attends the training program. Our training fee is currently $6,500 per person per week and includes accommodations, meals and training at the Pritikin Longevity Center (the “Training Fee”), Your Program Director must attend one Week of training, your Registered Dietitian must attend one week of training, your Medical Director must attend three days of training, and your Mental Health Professional must attend three days of training. As such, the total Training Fees that a Provider must pay for each Facility will be $19,500 unless the Provider sends additional persons for training ($19,500 is $6,5o0 per week for a total of 3 weeks of training). Our Pritikin-certified ICR Program includes patient cooking instructional classes. We provide a three-day culinary training class. We require that your Registered Dietitian, or an individual who you determine will act as a “culinary chef for you, attend this culinary training. Your Registered Dietitian may attend the culinary training at the same time as his or her Director training for no additional charge. If your Registered Dietitian does not do so, your intended Culinary Chef will need to attend culinary training, and you must pay our culinary training fee, which is currently $1,500 ($500 per day for the 3-day training) (the “Culinary Class Fee”). We do not require that you pay the Training Fees or Culinary Class Fee before you begin operating. But rather, you must pay the Training Fees and Culinary Class Fee within 30 days of the time you first begin billing patients for the Programs that you provide. The Training Fees and Culinary Class Fee (if applicable) will be fully earned when paid, and are not refundable. The Training Fee and Culinary Class Fee structure described above is uniformly applied to all Providers, and during 2018, we applied uniformly the Training Fee structure that was in effect during 2018. We do not offer financing for these fees. Additional information regarding the requirements regarding the Named Professionals and Exercise Physiologist positions and requirements or recommendations, as. to their qualifications and certifications is included in Item 11. Pritikin Program, FDD, PK 150184.3 (April 30, 201.9) Page 7 Pritikin -.'2019 FDDd-2) Purchase of Binders. Brochures, and Posters ‘ — 1-1 I Binders. During training, we will provide yoU with Pur proprietary Administrative Resource Binders, Workshop Binders, and Patient Resource Binders (together “Binders”) that each of your Narhed Professionals and IGR patients will use each time you conduct the Pritikin Program. We provide yOU with three copies of the Administrative Resource Binder and one copy of the Workshop Binder at no charge. If you wish to purchase additional copies of the Administrative Resource Binder or the Workshop Binder, the fee is currently $70 per Binder. For the Patient Resource Binder; before you begin COnductihg the Pritikin-eertified ICR Program for your patients, you must Obtain from us a number of (but no less than three) Patient Resource Binders for each Facility that is sufficient to provide one copy to each patient who you expect to take the Pfitjkin- certified ICR Program Within 60 da^ys of signing the Certification Agreement. The current fee for the Patient Resource Binder is $39.25 per Binder. Based oh an order of three Patient Resource Binders,, your purchase costs before you begin operating your Pritikin ICR Business will be approximately $118 plus shipping. Your actual costs, however, may vary depending On the number of Binders you elect to purchase^ before beginning operations, You will reorder Binders from us as needed to meet your volume of patients. Purchases of binders are not refundable. Brochures. We have developed brochures used in connection vyith offering the Pritikin ICR Program. These will be viewed by your physicians and patients each time you introduce the Pritikin ICR Program. You must purchase the brochures from os. As of the date of this disclosure document, the cost is approximately $1.00 per physician brochure and $0.50 for each patient brochure, We may in certain circumstances permit additional copies of these materials to be downloaded at no additional charge. Before! you begin conducting the Pritikin-eertified ICR program for your patients, you must purchase these brochure from US. While the number of brochures needed may vary Significantly among Providers based on a number of factors, including the number of physicians with which each Provider works and the number of current or anticipated patients of each Provider, we recommend that before you begin Operating (with the low end being the required minimum purchase) you purchase 25 to 100 physician brochures and 50 to 300 patient brochures. Based on an order using those ranges, your purchase costs before; you begin operating your Pritikin, ICR Business will be approximately $50 to $250. Your actual costs, however, may vary depending on the number of brochures you elect to purchase before beginning operations, You will need to reorder brochures from us as heeded fo meetyour volume of patients. Purchases of the brochures are not refundable. Posters. We have developed a set of 6 individual posters that Pritikin-eertified Providers will display. You must purGhase from us at least 1 set of these 6 posters for each ICR Prograiti Site, although you may choose to purchase and display additional individual, posters from this set. As of the date of this disclosure document, the cost is $70 per poster, so your total costs will be $420 plus shipping, unjess you elect to purchase additional posters. Purchases of the posters are: not refundable.

Financing

We do not offer direct or indirect financing to you. We do not guarantee any promissory note, lease, or other obligation you may make to others

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchises and franchisor-owned Outlets, jf there is a reaspnable basis for the information, and if the Information is included in the disclosure document. Financial performance Information that differs from that, included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing Outlet yOU are considering buying; or (2) a franchisor supplements the information provided in this Item 19; for example, by providing information about possible performance at a particular location or under particular circumstances