Financial Review Franchise Group Inc.

• • • . • American Freight Founded: 1994 | Headquarters: Delaware, Ohio Company Overview Created through the combination of American Freight and Sears Outlet 2 Category-defining retailer of value furniture and appliances with more than 345 locations across 30+ states Serves as a liquidation channel for major appliance vendors Covers 128 of 210 designated market areas in the U.S. Simplified supply chain that leverages domestic manufacturers and distributors Expected to continue to gain market share in the value furniture segment as other players of scale move towards premiumization FRANCHISE GROUP INC. Well Positioned in the Value Furniture Retail Segment Nearest Competitors Continue to RH ARHAUS POTTERY BARN ETHAN ALLEN Raymour & Flanigan LA BOY HAVERTYS MATTRESSFIRM Premium Price Point sleep number. Mid-Price Point IKEA VCF VALUE CITY FURNITURE ROOMS Ashley TOGO HOMESTORE BOB'S DISCOUNT FURNITURE 18 American Freight Locations 8 13 5 2 CT RI 41 13 16 27 DE 15 2 10 6 14 11 10 12 8 9 AF Outlet Locations. 36 AF DC Locations 34 10 2 Fiscal 2020 Mix by Merchandise Category Mattresses 11% Other 10% Trend Up the Value Chain Furniture 42% BIG LOTS Appliances 37% Value Price Local Stores AMERICAN FREIGHT Local Point FURNITURE MATTRESS APPLIANCE Stores 14

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