KBRA assigns preliminary ratings to ME Funding, LLC, Series 2026-1 (Massage Envy 2026-1), a whole business securitization (WBS). Massage Envy 2026-1 represents the Issuer’s third securitization following the establishment of the master trust in 2019. KBRA anticipates withdrawing the ratings on the Issuer’s Series 2024-1, Class A-1-VFN, Class A-1-LR and Class A-2 Notes in conjunction with the issuance of the Series 2026-1 Notes, whose proceeds are being used to fully refinance the Series 2024-1 notes and pay related transaction fees and expenses. The transaction collateral includes existing and future franchise and development agreements, regional development agreements, vendor contracts, related franchisee payments and securitization intellectual property (IP).

Massage Envy Franchising, LLC (Massage Envy or the Company) is the largest franchisor in the spa services industry in the US. The Company is known for offering its customers affordable massage, skincare and recovery services in a distinctive and clean environment. As of Q3 2025, Massage Envy had 997 clinics across 49 states and the District of Columbia. As of the last twelve-month period (LTM) ending September 30, 2025 (Q3 2025), the company generated approximately $1.2 billion in systemwide sales (SWS).

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Methodologies

• ABS: Whole Business Securitization (WBS) ABS Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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