KBRA Assigns the Final Ratings to FOCUS Brands Funding LLC – Series 2018-1 Senior Secured Notes and Downgrades the Series 2017-1 Senior Secured Notes

NEW YORK, NY (October 29, 2018) – Kroll Bond Rating Agency (KBRA) announces the final ratings to one class of notes of FOCUS Brands Funding LLC, Carvel Funding LLC, McAlister’s Funding LLC, and Jamba Juice Funding LLC, a whole business securitization.

Focus Brands Inc. (“FOCUS” or the “Company”) completed its first whole business securitization (“WBS”) in April 2017. The transaction is a master trust, and the Senior Secured notes, Series 2018-1 Class A-2 (the “Series 2018-1 Notes”) represent the Company’s second securitization within the trust. FOCUS Brands Funding LLC (the “Master Issuer”), Carvel Funding LLC, McAlister’s Funding LLC and Jamba Juice Funding LLC (together, the “Co- Issuers”) are issuing $300 million of Series 2018-1 Notes (pari passu with the Series 2017-1, Class A-2 Notes). In connection with the issuance, the Company is contributing additional collateral related to Jamba Juice.

The Company is the franchisor and operator of branded locations under the brands Auntie Anne’s, Carvel, Cinnabon, Jamba Juice, McAlister’s Deli, Moe’s Southwest Grill and Schlotzsky’s. The collateral includes existing and future franchise and development agreements, existing and future company-operated location royalties, licensing fees, vendor payments and fees (excluding Jamba Juice), intellectual property, and related revenues. The proceeds from the offered notes are being used to repay the outstanding principal amount of the Series 2017-1, Class A-1 Notes, pay transaction fees and expenses, fund certain accounts, and may also be used to fund shareholder distributions.

In conjunction with the issuance of the Series 2018-1 Notes, KBRA is lowering the rating of the Issuer’s Series 2017-1, Class A-1, Class A-2-I and Class A-2-II Notes (“Series 2017-1 Notes”) to ‘BBB (sf)’, the same rating level as the Series 2018-1 Notes, which are pari passu with one another within the master trust. While the collateral performance is in line with KBRA’s expectations, the additional debt associated with the issuance of the Series 2018-1 Notes modestly increase the overall leverage of the transaction, which brings total leverage for the Issuer to be more in line with other recently KBRA-rated WBS transactions in the ‘BBB (sf)’ rating level in the restaurant sector. Additionally, the rating also reflects the potential integration risk associated with the Jamba Juice acquisition, which was completed in September 2018.

Series, Class Initial Principal Amount Rating Series 2018-1, A-2 $300,000,000 BBB (sf)

Series, Class Initial Principal Initial Current Rating Action Amount Rating Rating Series 2017-1, A-1 $200,000,000 BBB+ (sf) BBB (sf) Downgrade Series 2017-2, A-2-I $200,000,000 BBB+ (sf) BBB (sf) Downgrade Series 2017-2, A-2-II $400,000,000 BBB+ (sf) BBB (sf) Downgrade

To access ratings, reports and disclosures, click 2017-1 and 2018-1.

Related Publications: (available at www.kbra.com)

▪ FOCUS Brands Funding LLC, Carvel Funding LLC, McAlister’s Funding LLC, and Jamba Juice Funding LLC – Series 2018-1 New Issue Report ▪ Global General Rating Methodology for Asset-Backed Securities

Analytical Contacts:

Xilun Chen, Senior Director (646) 731-2431 [email protected]

Shi Shen, Associate (646) 731-2480 [email protected]

James Chiavaro, Analyst (646) 731-2383 [email protected]

Anthony Nocera, Senior Managing Director (646) 731-2350 [email protected]

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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.