Medifast Weight Control Centers

A Franchise opportunity throughMedifast Franchise Systems, Inc.

Medifast Products and Programs have been Recommended by over 20,000 Doctors and Used by Over a Million Customers since 1980

FAST SAFE SIMPLE LONG TERM PORTABLE

Vision Vision

To create health, hope, and happiness through clinically proven weight-management products, programs, and support

Mission MissionTo combat the obesity epidemic and improve health in two ways:

• Through clinically proven weight-management products & programs

• Through multiple, innovative support channels, each of which meets different personal weight management, health, and wellness needs

• Rapidly growing addressable market and significant market penetration opportunities

• Vertically integrated with a unique four channel business model

• Company owned state of the art manufacturing & distribution

• Strong historical track record of growth in sales, profits and cash flows

• Consistent profitability and return on invested capital

• Publicly traded since 2003 on the American Stock Exchange

Over 70 Unique Food

Items

4

• Company-owned state-of-the-art manufacturing and distribution facilities

• Consistent production of high level, quality products

• Established cadence of new product introduction

• Key component of our value proposition

• Extensive variety of products

Owings Mills, MD

Ridgely, MD

Dallas, TX

Baltimore, MD

Product Manufacturing & Distribution

(Our Core Competency)

Company Accolades

MacDonald Center forObesity Prevention & Education Scientific Advisory Board

Clinically Proven and Scientifically Based

Strong, Consistent Financial Performance

33% CAGR

(2007 - 2012)

Reported Revenue of Medifast Inc.

Source: U.S. Census Data, CDC Data, IBIS World, MarketData Enterprises

Unserved Weight Loss$47B

-Diet Soft Drinks -Artificial Sweeteners -Health Club Revenues

ServedWeight Loss

$18B

Total Market – $65BServed Market – $18B

U.S. Weight Loss Market is Estimated to be a $65B per Year Industry

Source: U.S. Census Data, CDC Data, IBIS World, MarketData Enterprises

U.S. Population314M

15 or Older251M

Overweight/Obese 173M

Dieting93M

2/3 of the U.S. Population is Overweight or Obese

The Obesity Market is “Growing”

5 Year Strategy

• In 2012, Medifast developed a long term strategy to enable significant growth over the next 5 years

• Implementation of this strategy is now underway as we continue to focus on Increasing and expanding coverage in new and existing markets.

• Expansion of the franchise model is a key component of this strategy

Significant Growth Opportunity to cover “White Space”

Corporate and Franchise Locations

86 Corporate Locations(1)

36 Franchise Locations

Future Expansion Opportunity

TX28(3)

FL22

NJ - 1 PA Corp 7 / Fran 2

CA16

AZ5

MN7 WI

1

LA2

AL2

NC3

VA 6

MD – Corp 7 / Fran 1

DE - 1

D.C. - 11Mid Atlantic

37(2)

Franchise Opportunity

Weight Loss & Management with a Team of Professionals Dedicated to Member Success

• Brick-and-mortar centers offering supervised & structured programs

• Currently operating 86 company-owned & 36 franchise-owned centers

What are Medifast Weight Control Centers?

Our Core Business Model

The key to the success of the MWCC business model is directly tied to the success of each Member and their weight loss and maintenance journey.

This model focuses on the building blocks that help a member achieve long term success, and generates revenue through both new Member acquisition as well as existing Member retention.

• Member Acquisition – The strategy behind attracting new customers into the center, conducting a consultation and helping them decide if Medifast is the right fit for them. Ultimately, signing them up on a Medifast program.

• Member Retention – Once a customer becomes a member, the strategy behind providing exceptional service, guidance and support, to help lead them through their weight loss journey.

MWCC Franchise Management Team

Frank IovinoVice President &

General Manager, MWCC

Jodi JohnsonDirector of Operations & Field

Management

Chris KelleherManager Franchise

Operations

Debra Markwitz Corporate Counsel, MWCC

Jennifer CruiseMWCC Marketing

Manager

Dom VietriEVP, MWCC

• Live in multi-adult, married family households

• Tend to live in households with children present

• Tend to be 44+ and not members of minority ethnic groups

• Tend to own homes and live in single family dwellings (5+ years)

• Tend to live in suburbs or metro fringe

• Likely to earn mid to higher incomes with higher home values

• Tend to have higher than average education levels

Medifast Customer Profile

16

What MWCC Members

are Saying!“The staff members are the best. They stay on top of my progress and help me when I'm having a rough time... I couldn't do it without them!”

“The personnel is outstanding; upbeat, very friendly, knowledgeable and professional. Kathy is excellent. I like the reminder phone call. The weekly appointments give me necessary feedback. Food prices are competitive with cost for regular supermarket food.”

“I like the one-on-one experience with the counselors who have been very helpful and helped to make me successful in this journey that I have undertaken.”

“The counselors are caring, helpful, knowledgeable and supportive. Better yet, the program really WORKS! People must understand that ... for the program to work, they must take personal responsibility to follow it ... no cheating. No one else can "make" you lose the weight ... it's up to an individual to feel motivated and commit to losing the weight! I did take personal responsibility and lost almost 40 lbs in 6 months! Better yet, I've maintained my goal weight for over 2 years now.”

Overall Customer Satisfaction

9.5 out of 10!

Franchisee Support

Manufacturing & Distribution

Ops Support

Training Compliance & Legal

Field Support

Best Practices

Franchisee

Marketing Support

Technology Platform

Medifast has a variety of resources and support to help you succeed!

SupportBuilding Success Together

Team Support

• On-Site Business Development Specialists

• Real Estate & Development Specialist

• General Operations Specialists• Marketing Specialists & Vendor

Resources• Trainers• Compliance Specialists• IT Project Managers• Nutrition Support Team

Support Programs & Tools

• Business Start-Up Manual• Real Estate & Development Manual • General Operations Manual • Marketing, Sales and Member Journey

Manual• Initial and Continuous Training

Programs• Compliance Programs• Document & Marketing Asset Libraries• Technology & Systems Solutions • Branded Replicated Websites• Marketing Support

Q & A20