9750 Indiana Parkway Suite2 Munster Indiana 46321

Transcription

9750 Indiana Parkway Suite2
Munster Indiana 46321 Phone 219-922-3565
E-Mail: [email protected]
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by Three Floyds
Brewing Co. in this business plan is confidential; therefore, reader agrees not to
disclose any information without the exlicit written permission of Three Floyds
Brewing Co.
It is acknowledged by reader that information to be furnished in this business plan is in
all respects confidential in nature, other than information which is in the public domain
through other means, and that any disclosure or use of same by reader, may cause
serious harm or damage to Three Floyds Brewing Co. & Three Floyds Brewpub.
Upon request, this document is to be immediately returned to Nick Floyd.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
Table of Contents
1.0
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2
Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.0
Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.1
Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.1.1
Investor Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.1.2
Pub 3-D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2
Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.0
Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.1
Beer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
3.2
Cuisine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.3
Floor Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.0
Excellent Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.1
Dining in Northwest Indiana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.2
Why "Not Normal" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.2.1
Pub 3-D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.0
Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5.1
Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5.2
Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5.2.1
Projection-Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
5.2.2
Munster Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
6.0
Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
6.1
Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
7.0
Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
7.1
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
7.2
Fixed Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
7.3
Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
7.4
Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
7.5
Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
7.5.1
Plan of Distribution and Operating Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
7.5.1.1 Investor Questionnaire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
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Three Floyds Brewpub
1.0 Introduction
INTRODUCTION
This document is the first generation business plan for Three Floyds Brewpub. Three Floyds Brewpub will
be the restaurant/bar facet of Three Floyds Brewing Company of 9750 Indiana Parkway, Munster Indiana.
Three Floyds Brewing Company is a regional microbrewery founded in 1996 in Hammond Indiana and
originally only manufactured kegged beer for the Chicago/Northwest Indiana market. Today Three Floyds
Brewing Company produces both kegged and bottled beer, which it markets in over 15 states,
predominantly in the Midwestern United States. Three Floyds Brewing Company is well known for its high
quality American style ales and lagers, which have won countless awards and accolades.
The last two decades have witnessed an explosion of beer styles available to the American public, primarily
offered by small microbreweries and brewpubs. There are as many styles of beer available today, as there
are wine styles! Recently even major breweries have been forced to introduce new lines of diluted or "fake"
specialty beers. The sophisticated beer drinker has experienced a variety of beer styles and is constantly
searching for new, innovative products. In addition, there has been a growing acceptance of naturally
brewed products that are served unfiltered and unpasteurized. These beers, predominantly ales, hearken
back to styles of "olden days" when Chicago supported over 200 breweries.
The growth of home brewing as a hobby is another factor adding to the demand for microbrewed products.
During leisure time, or when frequenting pubs, the new beer aficionados demand interesting beer and it has
to be good; increasingly they know about ‘off’ flavors and the heterocyclic compounds which gives a beer a
poor or funky flavor. This hobby is concentrated amongst higher income (upper/ upper-middle class) males
and females, and is growing rapidly. Furthermore a number of home brewing/ microbrew magazines are
publicizing and fostering this trend. Beer appreciation seems to be gaining a status and refinement
comparable to wine tasting.
In order to maximize profitability and create an effective platform for Three Floyds’ beers, a brewpub will be
built in Three Floyds Brewing Company’s front office area. By Indiana State Law, the Three Floyds Brewpub
has to be a separate entity from Three Floyds Brewing Company. What this means is that Three Floyds has
an unprecedented offer for fans of Three Floyds Brewing—beer enthusiasts, home brewers and
investors—the opportunity to own a part of the venture and be directly involved in its success and profit
sharing. The region is ripe for an urban style brewpub operation offering a new approach to a successful
formula. We are certain the concept of Three Floyds Brewpub will be a tremendous success. Please read
this business plan and discover how Three Floyds Brewpub can be the best brewpub in the Midwest or the
country.
1.1 Overview
OVERVIEW
Over the last 20 years, a proliferation of beer styles has entered the public domain—brewed principally by
small microbreweries, brewpubs, and foreign breweries. Some of these styles like kölsch, stout, barley wine
and Belgian lambic were long established in the old world, while some newer styles, American Pale Ale and
steam beer, for example, began life more recently on this side of the Atlantic. Increased travel between
Europe and North America in recent decades has played no small part in this process.
These trends in taste, added to the increasing availability of affordable equipment and ingredients, have
stimulated interest in home brewing in general, and in small scale commercial brewing in particular. Such
trends are evident in the rapid development of the microbrewing industry; the U.S. microbrewing industry
has grown from approximately 40 fledgling companies in the early 1980’s to over 1500 currently.
The age-old pairings of food and drink, notable with wine in southern Europe, have counterparts in the
Page 1
cooler north- England, Ireland, Germany and Poland among them, where interesting associations between
beef, pork, sausage and fermented barley- wheat are the basis for the cuisine of the pub or beer garden.
Thus, the concept of a brewpub with its in-house brew and adjacent kitchen has solid historical precedent.
The U.S. microbrewing/brewpub industry began on the West Coast and slowly moved east. Microbrews are
now the norm in cities such as Denver, Portland, San Francisco and Kansas City where some
establishments have gained market shares of greater than 40%.
The Chicago/Northwest Indiana Metro Area remains one of the largest untapped areas available for
microbrewery penetration. Currently, the Southside of Chicago and Northwest Indiana have only four
brewpubs: Flossmoor Station (Flossmoor, IL), Harrison’s (Orland, IL), Aberdeen (Valparaiso, IN), and
Duneland (Michigan City, IN). Imagine four Brewpubs for over 2.5 million people! All of these brewpubs are
designed to appeal to the suburban "casual dining" crowd. In contrast, Three Floyds Brewpub will cater to
the urbanite, the beer connoisseur, the beer tourist, the home brewer, the adventurous suburbanite, and the
"not normal" person! Three Floyds Brewpub will be a world beer destination!
Thus in the next decade, Northwest Indiana will provide a premium opportunity for the creation of a new
brewpub. The consumer demand for quality innovative microbrews is growing massively, and with only four
brewpubs to service 2.5 million people, there appears to be more than a little room for the development of a
superior facility. Three Floyds intends to capitalize on this significantly underdeveloped local market as well
as on the growing national and local trend towards microbrew products.
Highlights (Planned)
$1,200,000
$1,000,000
$800,000
Sales
$600,000
Gross Margin
Net Profit
$400,000
$200,000
$0
2003
2004
2005
2006
2007
1.2 Mission
THREE FLOYDS BUSINESS NICHE
Chicagoans have a distinctive attitude towards restaurant concepts. Often the beer and food served at
"cookie cutter" single theme establishments and brewpubs evoke a ‘been there done that’ response. The
four existing brewpubs in the region have chosen concepts that evoke a certain "déjà vu". Harrison’s is a
classic example of a suburban cookie cutter brewpub with beautiful "prairie style" motifs selling many
macrobrewed products. Duneland, in contrast, is apparently a diner with a brewery addition. Aberdeen is a
British style pub replete with brass rails and dark stained wood. Flossmoor Station, however, is quite uniquePage 2
it is situated in a former railroad stationhouse, successfully developing this theme in beer brands and
cuisine.
In contrast, Three Floyds will create a distinctively unique brewpub environment, modish but still traditional
in a room framed by red wood cabinetry and a zinc bar. There will be a varying menu of the highest quality
world-renowned ales and lagers. Three Floyds will offer its own products along with rotating choices of the
best American and European beers with a distinctive matching cuisine influenced by its own characteristic
flagship beers. Frequently, menu choices will be prepared with the beers as critical culinary ingredients.
Finally, Three Floyds Brewpub will be distinct by providing couches for the weary, displaying art—including
sculpture—for sale on consignment, having regular movie nights, and a personal mug club. In addition,
superior teas, espresso, cappuccino, freshly pressed citrus juices, and in- house root beers will appeal to
those who want non-alcoholic refreshments. It is our belief that by creating such a comfortable, unique
environment we can ensure Three Floyds Brewpub will be a success for years to come.
2.0 Company Summary
2.1 Company Ownership
THREE FLOYDS LIMITED LIABILITY COMPANY
Based on financial projections, Three Floyds Brewpub will be a very profitable venture. Three Floyds
Brewpub will have 2500 total ownership "shares or member units," Three Floyds Brewpub ownership shares
will be split 60% by Three Floyds Brewing, LLC (1500 Shares) and 40% by the third party investors (1000
Shares). Three Floyds Brewpub’s shares will be available to investors in two forms: Gold status and Silver
status. Members will achieve Gold status if they purchase more than 10 shares. Gold status members will
have first right to future stock offerings and brewpub expansions. Gold status members will see quick
returns of $200(4%) in 2003, $760(15%) in 2004, $1200(24%) in 2005, $1600(32%) in 2006, $2200 (44%)
in 2007, $2750 (55%) in 2008 with profit sharing continuing there after. Silver status members will be
allowed to buy a share of the brewpub at the cost of $500 per share but not limited to one share, and see
returns per shares of $20 in 2003, $76 (15%) in 2004, $120 (24%) in 2005, $160 (32%) in 2006, $220
(44%) in 2007 and $275 (55%) in 2008 with profit sharing continuing thereafter.
Investors who purchase over $1000 worth of shares will be entitled to ONE FREE PINT OF BEER A DAY
and will be issued a Pub Card, showing they are an accredited investor and entitled to one free pint a day.
(Note that free pints do not accumulate) All members will be invited to all brewpub functions: parties,
festivals and dinners—plus receive discounts on their own parties.
2.1.1 Investor Returns
Brewpub Stock Holder
2003
2004
2005
2006
2007
2008
$20,000
$76,000
$120,000
$160,000
$220,000
$275,000
$200
$760
$1,200
$1,600
$2,200
$2750
4%
15%
24%
32%
44%
55%
$20
$76
$120
$160
$220
$275
4%
15%
24%
32%
44%
55%
Returns
$Payed out to
Stockholders
Gold $5000
Investment
Silver $500
Investment
Page 3
2.1.2 Pub 3-D
Textures & Colors are exaggerated for effect
Page 4
2.2 Start-up Summary
SEPTEMBER-2003
Business
Plan/Prospectus Finished
Market Business Plan
Market Business
Plan/Building Permit
Start Building OutDemolition of Interior
Start Bar/Restaurant
Build Out
Build Out
Soft Opening-R&D
on Food/Kitchen
Grand Opening Weekend
OCTOBER-2003
NOVEMBER-2003
DECEMBER2003
JANUARY-2004
Halloween Promotions
Thanksgiving Promotions
Holiday Parties
Profit Sharing From 2003
MARCH-2003
APRIL-2003
MAY-2003
JUNE-2003
JULY-2003
AUGUST-1-16-2003
AUGUST-16-31-2003
Raise Capital
Raise Capital
Parking lot
Get Draft System
Working
All Limited Partner Party
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Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures
Consultants
Insurance
Rent
Research and Development
Plans /Permits and Fees
Demolition
Saw Trench and Concrete
GC Overhead
General Conditions
Fire Protection
Heat Vent & Airconditioning
Electrical & Sitelighting
Plumbing
Painting
Drywall
Ceiling
Floor Covering and Base
New exit Door
Window View Wall
Bar and Bar Back
Carpentry
Paving
Exterior Concrete
Brewery Tanks
Six Months operating Capital
Construction Overuns-Cash Reserve
Total Start-up Expense
Start-up Assets Needed
Cash Balance on Starting Date
Other Short-term Assets
Total Short-term Assets
Long-term Assets
Total Assets
Total Requirements
$5,000
$2,000
$2,000
$5,000
$1,500
$1,500
$3,000
$17,000
$15,000
$3,480
$28,133
$5,000
$6,500
$7,100
$15,200
$6,100
$3,900
$4,000
$6,300
$12,600
$2,100
$3,300
$30,000
$17,000
$30,000
$2,970
$50,000
$60,000
$110,000
$455,683
$44,317
$0
$44,317
$0
$44,317
$500,000
Funding
Investment
Gold Class Investors
Silver Class Investors
Other
Total Investment
$250,000
$250,000
$0
$500,000
Short-term Liabilities
Accounts Payable
Current Borrowing
Other Short-term Liabilities
Subtotal Short-term Liabilities
$0
$0
$0
$0
Long-term Liabilities
Total Liabilities
$0
$0
Loss at Start-up
Total Capital
Total Capital and Liabilities
($455,683)
$44,317
$44,317
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Start-up
$500,000
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Expenses
Assets
Investment
Loans
3.0 Products
THREE FLOYDS CUISINE, DESIGN AND DECOR
Cuisine
In the realm of food, multicultural menu choices, which fuse classic European, Asian, African and American
flavors, are established in current dining fashions, following a trend that has lasted a decade or more.
Though not necessarily "hot," combinations of unusual peppers and spices, among a range of ingredients,
will be offered in dishes extending the gastronomic experience with ales and beers, subtle and yet sturdy
enough to retain their distinctive taste when combined with the habenero pepper, cardamom and cumin.
The term fusion may be passé to some jaded cosmopolitan palates, but recipes that successfully meld
classic old world sauces, meats, and fishes with the herbs, ferments, and spices of the globe are enjoying
sustained success in a growing number of superior, and not so superior, restaurants. Dishes emerging from
this movement offer the brewer as many challenges and opportunities as the chef de cuisine.
The brewers at Three Floyds are intrigued by the possibilities of a kitchen that will allow us to present a
Saison with Thai spiced mussel soup with leeks and carrot spaghetti or a Marzen beer with roasted pork
loin with almond pesto. We will also offer the more conventional staples of the western kitchen that have
revered associations with distinct beer styles such as pale ale and steak, bock and veal sausage, porter
and seafood/shellfish. All of our beers have the heft to match a range of thin crust pizzas which will be
permanent menu fixtures.These pairings are only some of more traditional; Three Floyds’ extra pale ale
obtained national recognition a year ago in combination with shrimp, surely a first for seafood and a English
style session ale.
Classics of comfort food at Three Floyd’s Brewpub will include chili, gumbo, roasted onion garlic soup, beer
bratwurst on a soft pretzel bun and a fragrant basmati rice with shrimp or chicken. Indiana’s award winning
micro cheeses will be featured as well perhaps inviting combination with our Behemoth Barley wine or Dark
Lord Russian Stout.
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The vegetarian will be able to find a varied, flavorful menu as well. A veggie burger is not adequate for
those who do not eat meat. Three Floyds’ vegetarian menu will include items like a sweet pepper pilaf,
lentils with cumin, caramelized onions, garlic and tomatoes, and a satisfying caponetta. The rich complex
tastes of the vegetable world are easy for the brewer to complement given the natural origins of his or her
raw materials: hop, barley, wheat, and yeast. Currently, more flavors and tastes are being rediscovered and
developed offering the creative brewer and chef enormous opportunity to work together and prosper. Three
Floyds’ brewpub and the adjacent Three Floyds brewery are the ideal crucible for just this.
Design
The Three Floyds Brewpub will be built in what currently houses Three Floyds Brewing Co offices,
approximately 2000 square feet. Walls will be demolished and a restaurant, bar and kitchen will be built out.
Three Floyds Brewpub bar section will be built out using old stainless steel open fermenters for a European
zinc bar look. Three Floyds bar area will also have couches and a general lounge feel. Three Floyds dining
area will be adorned with all genres of art and have a mix of booths and tables in addition to the Plexiglas
brewery viewing area. Three Floyds kitchen will be built out with the best kitchen equipment including a
Baker’s Pride wood pizza oven. In addition, an oversized kitchen refrigerator and keg cooler will be installed.
Decor
Decor will be provided by the local working artists of the day, with a particular focus on those from the
Chicago/Northwest Indiana area. They will be offered wall space to display their works in a type of informal
gallery. These "objects d’art" will complement and enhance the dining experience. In addition, we will tap
into the local demographic makeup, building a sense of community. This type of atmosphere would enable
the high school artist to be displayed alongside the professional—making the pub walls truly "not normal."
The entire concept is based on an amalgam of styles. The emphasis is on creating a casual, comfortable,
innovative, and slightly off-center space, that will take the quality food, beverage, and service of the elegant
bar/restaurant and meld it with Three Floyds’ "not normal" flair for style and atmosphere. It will comfortably
accommodate both the Munster business diner and the Lansing softball team.
3.1 Beer
QUALITY AND UNCOMPROMISING BEERS
Three Floyds already offers a diverse range of beers from Russian Imperial Stout, to a Belgian Saison.
Once a brewpub has been established, a plethora of styles and brands will evolve. Three Floyds Brewpub
will have 20 tap beers available at all times including: 5-6 taps of products offered all year long; 7-10 taps of
rotated, seasonal and experimental beers; and, 4-5 taps featuring American and European guest beers.
The guest beers will be gathered from the best American microbreweries. In addition, German and Belgian
beers will be offered on tap, a first in Northwest Indiana.
The reason Three Floyds will be able to host a dozen or more of its own brews is due to its current and
projected output capacities. Currently, Three Floyds beer is brewed on a 20-barrel (40 kegs) JVNW brew
house, which is an all-grain system that produces 620 gallons per brew. Three Floyds’ fermentation and
secondary tank capacity is capable of 400 barrels (800 kegs) a month, which dwarfs most other brewpubs’
capacities. Product availability will never be threatened and cannot be hostage to a distant brewery. At
present, Three Floyds Brewing, LLC can produce over 4000 barrels (8000 kegs) per annum. Once the
brewpub is built, Three Floyds will add smaller fermenters and conditioning tanks to make specialty beers
available only at the brewpub. All fermenters in the brew house are clad in high polished stainless steel, and
will be visible to patrons through a glass wall at the rear of the restaurant. Customers will be encouraged to
view our equipment---weekend brewery tours will continue to be available to patrons.
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Three Floyds on tap house beers:
Alpha King™ Pale Ale: Big American Pale Ale; a hop lover’s cult beer and Three Floyds’ flagship beer
6.5% abv-1996 Award of excellence Real Ale Fest Chicago-1998 Silver Medal World Beer Championships1998 1stPlace She-Nanigans Beer Affair-1999 Highly Recommended Beverage Tasting Institute-1999
Silver Medal Indiana State Fair-2000 Best Pale Ale World Expo of Beer Frankenmuth-2000-Exceptional
Beverage Tasting Institute-2000 Silver Medal Indiana State Fair-2002 Favorite Beer Brewpub Shootout
Chicago Beer Society-2002 Silver Medal Indiana State Fair-2003 Best American Pale Ale Ratebeer.com
Robert the Bruce™ Scottish Ale: Big, malty, 90 Shilling Scottish Ale; Three Floyds second biggest seller
7% abv-1997 Gold Medal Real Ale Fest Chicago-1999 Silver She-Nanigans Beer Affair-2000 Exceptional
Beverage Tasting Institute-2002 Gold Medal Indiana State Fair-2002 CHAMPION British Style Ales Real
Ale Fest Chicago-2002 Silver Scottish ale Real Ale Fest Chicago
Behemoth™ Barley Wine: A massive American Barley Wine; caramel- squeals and hoppy appeals 10.5%
abv-1997 Bronze Medal Fall Beer Tasting Chicago Beer Society-1998 Gold Medal World Beer
Championships-1998 Silver Medal Real Ale Fest Chicago-1999 Gold Medal Indiana State Fair-2000 Gold
Medal Indiana State Fair-2000 Bronze Medal Real Ale Fest Chicago-2002 Gold Medal Indiana State Fair2002 Silver Medal Real Ale Fest Chicago
Pride & Joy™ Mild Ale: American version of British Session Ale; 5% abv-1998 Bronze Medal World Beer
Championships-1999 Highly Recommended Beverage testing Institute-2002 Bronze Medal Indiana State
Fair
Dreadnaught™ Imperial India Pale Ale: A hophead’s delight! Huge IPA rapidly becoming another Three
Floyds’ cult beer. 9.5% abv-2002 CHAMPION Beer Indiana
State Fair-2002 Silver Medal Real Ale Fest
rd
Chicago-2002 Gold Medal Indiana State Fair-2003 3 In The World RateBeer.Com
Rabbid Rabbit™ Saison: Belgian-style farmhouse beer; 7.5% abv-1999 Highly Recommended Beverage
Testing Institute-2002 Silver Medal Indiana State Fair
Calumet Queen™: German-style kölsch; Three Floyds’ lightest beer modeled after the Cologne-style beer;
4.5% abv-2002 Bronze Indiana State Fair
Dark Lord™ Russian Imperial Stout: Gargantuan Russian stout brewed with Starbucks coffee, molasses,
and honey; 13% abv-2002 Bronze Medal Indiana State Fair-2003 Best Beer in the World RateBeer.Com
Black Sun™ Stout: Irish-style stout; 5%abv
Alpha Klaus™ X-mas Porter: Alpha King’s cousin and Three Floyds Christmas beer 7.5%abv
Three Floyds’ forthcoming brews:
Gumballhead:American Wheat Beer
Pink Floyd: Framboise
X-Tra Pale: Golden American Pale Ale
Brian Boru: Irish Red Ale
Alpha Kong: Belgian Strong Ale
Drunk Monk: German-style Hefe-Wiezen
Chubby Brown: American Brown Ale
Alien Porter: Funky Belgian-style Porter
Page 9
Evil Elf: Belgian Dubbel
Extra Special Super Best Bitter*
Berliner Wiesse*
Old Ale*
Dortmunder Export*
Helles*
Malt Liquor*
Alt*
Polish Baltic Porter*
Harvest Ale*
Surly Elf Root Beer
* to be named at a later time
3.2 Cuisine
NOT NORMAL MENU
Three Floyds Brewpub kitchen consultant will be Simon Floyd. Simon has worked in two of Northwest
Indiana’s finest restaurants, Café Venezia and Venezia Bar and Grill.Simon started as an assistant chef in
1990 and worked his way to sous chef, line cook and then head chef in 1999. Café Venezia is known for its
fine authentic Italian cuisine. Simon was responsible for kitchen build out and design as well as the new
menu and recipe formulations at Venezia Bar and Grill.
At Three Floyds Brewpub, Simon plans to combine hearty American Bistro with Caribbean, Cajun, Indian,
Californian, Mexican, and classic European-style foods in a truly great pub menu. These foods will feature
fresh flavors of herbs, infused oils and enriched sauces. Many food items will be designed with Three
Floyd’s world-renowned ales and lagers in mind, both as ingredients and to accompany meals. Our menu
will be strategically tailored for metropolitan and regional market pricing which has concluded that patrons
tend to have greater price sensitivity towards lunch items rather than dinner items. Three Floyds menu will
be a moderate 20-30 item list at most. This smaller menu will allow Three Floyds’ chefs to concentrate on
superior taste and consistency-the creation and sustained delivery of a limited number of flawless menu
choices is in keeping with our core brewing concept.
The following is just a sample menu of Three Floyds Brewpub menu—some items will change depending on
the season, but favorites will be kept year round. Quality wood burning oven pizza will be a focus of the
Three Floyds Brewpub menu, since it has the lowest food cost and the best profit margin.
TEXAS CHILI -a hot steak, chipotle, cumin, barley wine and onion stew
Page 10
VIDALIA ONION SOUP- Vidalia onions, shallots, Scottish ale Smothered in Gruyere cheese
HABENERO CHICKEN SOUP-hearty chicken broth made with Rabbid Rabbit Saison, cilantro and
habenero (scotch bonnet) peppers
HOOSIER MICRO CHEESE PLATE-sampler platter of micro cheeses from Indiana cheese makers
REAL SCOTCH EGG-British style sausage wrapped around an extra large grade A hard-boiled egg
JAMBALAYA-Midwestern jambalaya made with chicken, local Polish sausage from Hammond, Tasso and
basmati rice
HOUSE GUMBO-alternating gumbo seasonally
HOUSE SALAD
CAESAR SALAD
BELGIAN FRIES-European style fries served with Belgian mayonnaise, curry sauce and banana ketchup
BREWERS’ OWN CHICKEN BREAST-Oven roasted stuffed chicken breast-spinach, three cheeses, sundried tomatoes and Farmhouse Ale sauce
ALPHA KING’S CHOP- double cut pork chop-grilled applewood bacon, soy glaze served with hot apple
chutney
DAILY FRESH FISH
WOOD OVEN PIZZA-baked with wood in BakersPride oven
ROBERT the BRUCE RIBEYE-Scottish ale marinated bone-in ribeye with grilled onions and mushrooms,
Scottish ale demi-glaze
BRATWURST that FLATTENED MUNSTER-Massive beer bratwurst-Three Floyds signature soft pretzel
bun, sauerkraut, caramelized onions and Düsseldorf mustard
TURKEY FLATBREAD-Mesquite turkey flat bread sandwich-Monterey jack and avocado
OL MUFALATA SANDWICH- proscuitto, coppa, sopressatta, ham, fresh buffalo mozzarella and mixed
greens on half moon sour dough
NEW YORK-Pastrami hot or cold-soft pretzel bun, Düsseldorf mustard, Swiss
PASTA OF THE DAY
VEGETABLE ENTRÉE OF THE DAY
INSAINE WINGS- mild - Thai curry - core black (Dave’s insanity sauce) with Indiana cheese blue sauce,
celery
BELLE PAISE and ASIAGO DIP-Roasted garlic humus and artichoke, belle paise & asiago spinach dip
served with grilled flat bread and nan bread
MASSIVE BAVARIAN PRETZELS-Duo of massive soft pretzels-homemade honey mustard Dreadnaught
I.P.A.dip, portwine cheddar dip and Calumet Queen jalapeno Swiss dip
CHICKEN SATAY-Thai style chicken skewers
LONDON PUB CURRY- hot chicken, onion and kölsch curry over basmati rice
Page 11
ROBERT the BRUCE ICE CREAM-super malty- malted house ice cream
DARK LORD FLOAT-Dark Lord Russian Imperial Stout- Brownie and Ice Cream Float
FRESH FRUIT
NOT NORMAL PRICES
Fundamentally, Three Floyds believes prices should be competitive but not outrageous. The entrée prices
will range from $6-$12 for dinner, $4-$7 for lunch, with a target beer price of $2.50 for "beer of the week,"
$3 for high gravity pints, and experimental/guest beer prices ranging from $3.50 -$6. This range of food and
beer pricing is extremely attractive taking into consideration the quality of the products.
3.3 Floor Plan
Page 12
4.0 Excellent Location
EXCELLENT LOCATION
Three Floyds Brewpub is ideally situated just south of Interstate 80/94 and is only minutes from I-55, I-57, I65, I-90 and I-294, not to mention minutes from U.S. 30 and U.S. 41, nearly two thirds of the United States’
population is within a day’s drive. Three Floyds’ base of operations, the town of Munster, Indiana, is located
in the northwest corner of the state, on the Illinois/Indiana state line. The town of Munster is about 15 miles
south of Lake Michigan and 20 miles south east of Chicago’s Loop, a mere 30 minute drive. This means
Munster is centrally located to Three Floyds Brewpub’s targeted brewpub market, from Orland to the west to
Merrillville and Valparaiso in the east. Munster, Indiana and the six communities surrounding it are home to
over 200,000 residents alone, with Munster residents having one of the higher disposable incomes per
capita.
Three Floyds’ location will also benefit from lower taxes than surrounding states, building costs are 22%
lower than Chicago, electric and gas costs are 10%-15% lower than Commonwealth Edison in Chicago.
Salaries in Indiana average over $5000 less than the rest of the Chicagoland area, which will allow the
brewpub a fixed cost advantage. Three Floyds Brewpub is located right off Calumet Avenue, one of
Northwest Indiana’s busiest thoroughfares. This street will soon be extended to U.S. 30 bringing tens of
thousands past Three Floyds Brewpub daily!
4.1 Dining in Northwest Indiana
DINING IN NORTHWEST INDIANA
The Northwest Indiana region, unlike Chicago, lacks a variety of quality dining establishments. The
Northwest Indiana region is top heavy with fast food, or dining chains such as Bennigans and Applebees.
This leaves the region ripe for an independently owned brewpub, offering exciting, innovative pub cuisine.
Three Floyds’ funky, "not normal" brewpub menu will appeal to urban sophisticates, as well as the suburban
community. Three Floyds will provide an environment that is comfortable and enjoyable for all
demographics. The menu will specifically complement the beer selection—beer brands and styles will be
paired with each dish in order to augment and focus flavor. Three Floyds’ motif will be substantially different
from other chain restaurants. The comfort and "not normal" atmosphere will be unique in comparison to
establishments that typify the region. However, the principal emphasis will remain on the beer. From its
inception, Three Floyds Brewing Co. intends the brewpub to be a definitively superior venue where our
beers, fresh and unbruised by distribution, could be enjoyed at their peak with pristine beer lines.
4.2 Why "Not Normal"
WHY "NOT NORMAL"?
Nick, Simon, and Mike Floyd established Three Floyds in 1996. The facilities were located in a small,
garage warehouse in Hammond, Indiana. "Not normal" became Three Floyds’ motto, by default. The
location and other aspects of the business diverged from the "norm." The Brewing vessels were "not
normal"—four 10 barrel, open fermenters ("Hammond Squares" formerly Swiss cheese tanks and old
Canfields cola tanks) were employed in conjunction with a 5 barrel Horeca brew house fired directly with
wok burners. The beer, of course, was "not normal," due to its over-the-top hoppy West Coast style, as
opposed to the blander, malty, Midwestern style traditions.
Page 13
Since the move to Munster, Three Floyds has continued its "not normal" philosophies in other ways. One
prime example is in the unusual, eye-catching graphic art that employs a truly original use of color all help
to create the "not normal" theme. Whether it is in the packaging, tap handles, t-shirts, or other
paraphernalia, Three Floyds stands out from the rest. Most of the graphics on our website include the major
labels for the beers, so feel free to peruse the various web pages to get a sense of the off-beat style that
has become synonymous with Three Floyds. Overall, everything relating to Three Floyds is "not normal"—a
tradition and motto that will carry over to Three Floyds Brewpub. The "not normal" concept explores the
limits of brewing and pushes the boundaries of the brewing art without the use of adjuncts such as corn or
rice.
4.2.1 Pub 3-D
Textures & Colors are exaggerated for effect
Page 14
5.0 Marketing
5.1 Marketing Strategy
THE MARKETING PLAN
Printed, televised, and guerilla marketing will be an integral part of Three Floyds Brewpub’s publicity. While
construction is underway, events and beer fests will provide opportunities to promote the anticipated
brewpub. Nearing construction completion, we will hold opening events to gain media attention. Additionally,
a publicist will be placed on retainer in order to maximize media coverage.
Three Floyds will purchase advertisements in several print-publications: the Chicago Tribune, the Chicago
Sun-Times, the South Town, the Times, the Post-Tribune, the Reader, the Great Lakes Brewing News, and
the Cream City Suds. Print advertisements will contain food specials, beer news, upcoming events, and
directions to the establishment.
Three Floyds will use cable access advertisements for the first time for brewpub promotion. Cable access
advertisements are low in cost, and may expand the brewpub’s customer base considerably without costand time-intensive marketing strategies. It is important to vary the time and channel the advertisements are
shown in order as to maximize viewing by different groups of people.
Marketing during this first year will be vastly important. In addition to advertisements, participation in beer
festivals will aid publicity by expanding public awareness. These events, usually advertised independently,
offer another route for marketing. Currently, Three Floyds participates in numerous beer festivals, including
the Great Taste of the Midwest, the Real Ale Festival, the Chicago Brew Pub Shoot Out, the Lafayette
Strong Ale Fest, the Great British Beer Fest, and the Great American Beer Festival.
A comprehensive line of accessory products will be added to existing Three Floyds products, emphasizing
the brewpub. Wearable products are the most popular items available at brewpubs. This fact in mind, we
will be offering hats, t-shirts, long sleeve shirts, and sweatshirts, both hooded and regular, in various styles
and sizes that depict beer, brewpub, company, or related graphics in all major sizes. The beneficial side
effect will be the publicity gained from customers wearing the apparel, in other words, a "walking billboard"
(free advertising). Glasses and mugs will be sold as well as other items such as tap handles, bar towels,
and golf-relate merchandise are all being considered once the brewpub has established itself.
5.2 Sales Strategy
THE PROSPECTIVE CLIENTELE
The microbrew customer averages 23 to 55 years of age, typically male. However, female interest in
microbrewing is growing two-fold faster in comparison to the male. The microbrew purchaser has an
average income of $48,000 (home brewers averaging $55,000). People averaging such earnings dine out
approximately two to three times a week (excluding fast food purchases). In Chicago, 300,000-400,000
people dine out every day.
Increasingly, the smaller, more intimate restaurant tends to be the preferred choice of contemporary
consumers. Seating for a hundred or less affords a casual and comfortable atmosphere, along with offering
a small but choice menu, the new restaurant/ bar is rapidly becoming alternative to home dining. These
establishments can deliver a comparable sense of intimacy, and superior cuisine while sidestepping the
hassle home dining often presents.
Page 15
Open seating found in large theme restaurants might still be a popular option for some diners; however,
these restaurants rarely include the sense of security and comfort essential for attracting a regular clientele.
These large theme restaurants are noisy, busy, impersonal, lending themselves to continuous but not
repeat business, the very antithesis of the pub, bistro or trattoria.. The intimacy of a small brewpub can be
equally attractive to the mid-week diner and the power lunch executive. Three Floyds will capture this
intimacy and cultivate a strong, regular customer base.
Finally, the demand for Three Floyds products has created a secure following of home brewers and beer
enthusiasts already. Regular patrons/Three Floyds’ aficionados form a solid foundation for the brewpub
business from which a mug club can be developed—Three Floyds’ fans may bring in their own mugs on
which they may have their names printed and receive a discount on special brews and events.
5.2.1 Projection-Revenues
PROJECTED REVENUES
Two primary financial drivers for developing revenue projections for a brewpub operation are customer
count and average check total per customer. Customer count is based on the number of seats/tables
available and the rate of the turnover of these tables. Taking these projections into account, Three Floyd’s
Brewpub will provide comfortable seating for 80 people - 50 in the dining area and 30 plus in the bar area.
The bar area could, during peak hours, hold up to 50 people elbow to elbow, bumping up maximum
capacity to one hundred-plus patrons.
Based on conservative seating we have assumed weekly average customer counts and made annual
projections for the last two fiscal quarters of 2003 through the year 2008. The second factor in developing
projected revenues is the average food and drink check total by customer. We have assumed an average
lunch check of $6, an average dinner check of $14, and $9 for an average bar check. The average price for
a pint of beer will be $3 with national brewpub averages at one drink for lunch customers, two for dinner
customers, and three for bar customers. Averaging all these factors gives us a mean count of $14 per
person for food and drink. This means if 3825 people patronize Three Floyds Brewpub in October of 2003,
the pub can expect to make $53550 gross revenue for that month alone.
August 2003 is Three Floyds Brewpub target date for opening its doors. The revenue projections for August
are very conservative in anticipation of R&D being performed by the kitchen (taste testing, refinement of
recipes, and experimentation with preparation, presentation, and beer-food pairings). It would be ideal to
have a "soft opening" of the brewpub in early August in order to get the kitchen and bar "dialed in" for the
brisk business that is to follow in the months ahead.
Projected Growth 2003-2008
2003: First year projections show a 5 month steadily increasing customer count averaging just under 550 a
week.
2004: Three Floyds Brewpub First full year has projections seasonally increasing 25% over the previous
year with a 34,139 customer count
2005 Projects further growth over 2004 at 28% growth with a 46778 customer count
2006 Projected growth continues as marketing, sponsorship of special events and advertising keep growth
sustained with a 58006-customer count
2007 Shows continued steady growth as restaurant gets as much recognition as the beers with a
72119customer count
2008 Brewpub matures doing 3-4 turns a day and business is brisk with a 83231customer count
Page 16
We feel these numbers are very conservative with our vast microbrewery and brewpub knowledge and
research. A significant increase early on could come from an early, aggressive marketing campaign,
including a tremendous amount of word of mouth publicity. Three Floyds Brewpub will continue to advertise
every month, endeavor to get critical reviews and propagate an effective marketing database that could
easily bring larger customer counts than are projected.
Another factor that may arrive in time to raise expected revenues, is an amendment to Indiana alcohol laws.
The Brewers’ Guild of Indiana, of which Three Floyds Brewing is a founding member, has lobbied tirelessly
for an amendment that would allow Three Floyds to sell packaged beer to go on Sundays. Once ratified, it
would make Three Floyds THE ONLY LICENSE IN ALL OF LAKE COUNTY, IN (500,000 people!). Three
Floyds Brewpub Sunday sales alone will help us to exceed our projections.
Table: Sales Forecast (Planned)
Sales Forecast
Sales
Food & Beer Sales
Other
Total Sales
Direct Cost of Sales
Food & Beer Sales
Other
Subtotal Direct Cost of Sales
2003
$151,712
$0
$151,712
2004
$477,946
$0
$477,946
2005
$654,612
$0
$654,612
2006
2007
$812,012 $1,009,666
$0
$0
$812,012 $1,009,666
2003
$26,546
$0
$26,546
2004
$83,633
$0
$83,633
2005
$114,549
$0
$114,549
2006
$142,104
$0
$142,104
2007
$176,682
$0
$176,682
Sales Monthly (Planned)
$40,000
$35,000
$30,000
$25,000
Food & Beer Sales
$20,000
Other
$15,000
$10,000
$5,000
$0
Jan Feb Mar Apr May Jun
Jul Aug Sep Oct Nov Dec
Page 17
Sales by Year (Planned)
$1,200,000
$1,000,000
$800,000
Food & Beer Sales
$600,000
Other
$400,000
$200,000
$0
2003
2004
2005
2006
2007
5.2.2 Munster Demographics
DP-2: Profile of Selected Social Characteristics: 2000
Data Set: Census 2000 Summary File 3 (SF 3) - Sample Data
Geographic Area: Munster town, Indiana
NOTE: Data based on a sample except in P3, P4, H3, and H4. For information on confidentiality protection, sampling error, nonsampling
error, and definitions see http://factfinder.census.gov/home/en/datanotes/expsf3.htm.
Number
Percent
SCHOOL ENROLLMENT
Population 3 years and over enrolled in school
Nursery school, preschool
Kindergarten
Elementary school (grades 1-8)
High school (grades 9-12)
College or graduate school
5,897
395
285
2,630
1,256
1,331
100.0
6.7
4.8
44.6
21.3
22.6
EDUCATIONAL ATTAINMENT
Population 25 years and over
Less than 9th grade
9th to 12th grade, no diploma
High school graduate (includes equivalency)
Some college, no degree
Associate degree
Bachelor's degree
Graduate or professional degree
15,068
405
657
4,137
3,225
744
3,461
2,439
100.0
2.7
4.4
27.5
21.4
4.9
23.0
16.2
Percent high school graduate or higher
Percent bachelor's degree or higher
93.0
39.2
(X)
(X)
MARITAL STATUS
17,382
100.0
Subject
Page 18
Never married
Now married, except separated
Separated
Widowed
Female
Divorced
Female
3,595
10,980
71
1,631
1,330
1,105
716
20.7
63.2
0.4
9.4
7.7
6.4
4.1
GRANDPARENTS AS CAREGIVERS
Grandparent living in household with one or more own grandchildren under 18 years
Grandparent responsible for grandchildren
309
103
100.0
33.3
VETERAN STATUS
Civilian population 18 years and over
Civilian veterans
16,317
2,165
100.0
13.3
DISABILITY STATUS OF THE CIVILIAN NONINSTITUTIONALIZED POPULATION
Population 5 to 20 years
With a disability
4,789
290
100.0
6.1
Population 21 to 64 years
With a disability
Percent employed
No disability
Percent employed
11,718
1,118
65.7
10,600
78.7
100.0
9.5
(X)
90.5
(X)
With a disability
3,691
1,336
100.0
36.2
RESIDENCE IN 1995
Same house in 1995
Different house in the U.S. in 1995
Same county
Different county
Same state
Different state
Elsewhere in 1995
20,501
14,180
6,165
3,615
2,550
484
2,066
156
100.0
69.2
30.1
17.6
12.4
2.4
10.1
0.8
NATIVITY AND PLACE OF BIRTH
Total population
Native
Born in United States
State of residence
Different state
Born outside United States
Foreign born
Entered 1990 to March 2000
Naturalized citizen
Not a citizen
21,511
19,811
19,697
11,421
8,276
114
1,700
505
1,028
672
100.0
92.1
91.6
53.1
38.5
0.5
7.9
2.3
4.8
3.1
REGION OF BIRTH OF FOREIGN BORN
Total (excluding born at sea)
Europe
Asia
Africa
Oceania
Latin America
Northern America
1,700
723
768
0
16
149
44
100.0
42.5
45.2
0.0
0.9
8.8
2.6
LANGUAGE SPOKEN AT HOME
English only
Language other than English
Speak English less than "very well"
Spanish
Other Indo-European languages
Asian and Pacific Island languages
20,501
17,579
2,922
908
613
180
1,793
490
440
194
100.0
85.7
14.3
4.4
3.0
0.9
8.7
2.4
2.1
0.9
ANCESTRY (single or multiple)
Total population
Total ancestries reported
Arab
21,511
25,825
14
100.0
120.1
0.1
Page 19
Czech1
Danish
Dutch
English
French (except Basque)1
French Canadian1
German
Greek
Hungarian
Irish1
Italian
Lithuanian
Norwegian
Polish
Portuguese
Russian
Scotch-Irish
Scottish
Slovak
Subsaharan African
Swedish
Swiss
Ukrainian
United States or American
Welsh
West Indian (excluding Hispanic groups)
Other ancestries
222
119
1,083
1,523
563
86
4,202
318
541
3,024
1,725
215
182
4,173
0
294
284
244
883
5
674
107
157
561
142
16
4,468
1.0
0.6
5.0
7.1
2.6
0.4
19.5
1.5
2.5
14.1
8.0
1.0
0.8
19.4
0.0
1.4
1.3
1.1
4.1
0.0
3.1
0.5
0.7
2.6
0.7
0.1
20.8
(X) Not applicable.
1 The data represent a combination of two ancestries shown separately in Summary File 3. Czech includes Czechoslovakian. French includes
Alsatian. French Canadian includes Acadian/Cajun. Irish includes Celtic.
Ancestry Code List (PDF 35KB)
Place of Birth Code List (PDF 74KB)
Language Code List (PDF 17KB)
Source: U.S. Census Bureau, Census 2000 Summary File 3, Matrices P18, P19, P21, P22, P24, P36, P37, P39, P42, PCT8, PCT16, PCT17,
and PCT19
DP-1: Profile of General Demographic Characteristics: 2000
Data Set: Census 2000 Summary File 1 (SF 1) 100-Percent Data
NOTE: For information on confidentiality protection, nonsampling error, and definitions,
see http://factfinder.census.gov/home/en/datanotes/expsf1u.htm.
Number
Percent
Total population
21,511
100.0
SEX AND AGE
Male
Female
10,300
11,211
47.9
52.1
Under 5 years
5 to 9 years
10 to 14 years
15 to 19 years
20 to 24 years
25 to 34 years
35 to 44 years
45 to 54 years
55 to 59 years
1,056
1,460
1,643
1,488
768
1,799
3,354
3,504
1,333
4.9
6.8
7.6
6.9
3.6
8.4
15.6
16.3
6.2
Subject
Page 20
60 to 64 years
65 to 74 years
75 to 84 years
85 years and over
1,071
2,010
1,494
531
5.0
9.3
6.9
2.5
Median age (years)
42.9
(X)
18 years and over
Male
Female
21 years and over
62 years and over
65 years and over
Male
Female
16,286
7,594
8,692
15,695
4,640
4,035
1,646
2,389
75.7
35.3
40.4
73.0
21.6
18.8
7.7
11.1
RACE
One race
White
Black or African American
American Indian and Alaska Native
Asian
Asian Indian
Chinese
Filipino
Japanese
Korean
Vietnamese
Other Asian 1
Native Hawaiian and Other Pacific Islander
Native Hawaiian
Guamanian or Chamorro
Samoan
Other Pacific Islander 2
Some other race
Two or more races
21,292
19,851
222
13
965
487
121
146
25
113
8
65
4
2
0
0
2
237
219
99.0
92.3
1.0
0.1
4.5
2.3
0.6
0.7
0.1
0.5
0.0
0.3
0.0
0.0
0.0
0.0
0.0
1.1
1.0
Race alone or in combination with one or more other races 3
White
Black or African American
American Indian and Alaska Native
Asian
Native Hawaiian and Other Pacific Islander
Some other race
20,053
246
55
1,050
10
331
93.2
1.1
0.3
4.9
0.0
1.5
HISPANIC OR LATINO AND RACE
Total population
Hispanic or Latino (of any race)
Mexican
Puerto Rican
Cuban
Other Hispanic or Latino
Not Hispanic or Latino
White alone
21,511
1,050
814
94
17
125
20,461
19,098
100.0
4.9
3.8
0.4
0.1
0.6
95.1
88.8
RELATIONSHIP
Total population
In households
Householder
Spouse
Child
Own child under 18 years
Other relatives
Under 18 years
Nonrelatives
Unmarried partner
In group quarters
Institutionalized population
Noninstitutionalized population
21,511
21,176
8,091
5,303
6,716
4,991
697
194
369
168
335
311
24
100.0
98.4
37.6
24.7
31.2
23.2
3.2
0.9
1.7
0.8
1.6
1.4
0.1
HOUSEHOLDS BY TYPE
Total households
Family households (families)
With own children under 18 years
Married-couple family
8,091
6,145
2,690
5,303
2,310
100.0
75.9
33.2
65.5
28.6
Page 21
Female householder, no husband present
Nonfamily households
Householder living alone
Householder 65 years and over
647
301
1,946
1,760
972
8.0
3.7
24.1
21.8
12.0
Households with individuals under 18 years
Households with individuals 65 years and over
2,820
2,673
34.9
33.0
Average household size
Average family size
2.62
3.07
(X)
(X)
HOUSING OCCUPANCY
Total housing units
Occupied housing units
Vacant housing units
For seasonal, recreational, or occasional use
8,339
8,091
248
34
100.0
97.0
3.0
0.4
Homeowner vacancy rate (percent)
Rental vacancy rate (percent)
0.9
8.4
(X)
(X)
HOUSING TENURE
Occupied housing units
Owner-occupied housing units
Renter-occupied housing units
8,091
7,209
882
100.0
89.1
10.9
Average household size of owner-occupied unit
Average household size of renter-occupied unit
2.69
1.99
(X)
(X)
(X) Not applicable
1 Other Asian alone, or two or more Asian categories.
2 Other Pacific Islander alone, or two or more Native Hawaiian and Other Pacific Islander categories.
3 In combination with one or more other races listed. The six numbers may add to more than the total population and the six percentages may
add to more than 100 percent because individuals may report more than one race.
Source: U.S. Census Bureau, Census 2000 Summary File 1, Matrices P1, P3, P4, P8, P9, P12, P13, P,17, P18, P19, P20, P23, P27, P28, P33,
PCT5, PCT8, PCT11, PCT15, H1, H3, H4, H5, H11, and H12.
DP-3: Profile of Selected Economic Characteristics: 2000
Data Set: Census 2000 Summary File 3 (SF 3) - Sample Data
NOTE: Data based on a sample except in P3, P4, H3, and H4. For information on confidentiality protection, sampling error, nonsampling
error, and definitions see http://factfinder.census.gov/home/en/datanotes/expsf3.htm.
Number
Percent
EMPLOYMENT STATUS
In labor force
Civilian labor force
Employed
Unemployed
Percent of civilian labor force
Armed Forces
Not in labor force
17,028
10,606
10,606
10,296
310
2.9
0
6,422
100.0
62.3
62.3
60.5
1.8
(X)
0.0
37.7
Females 16 years and over
In labor force
Civilian labor force
Employed
9,004
4,837
4,837
4,697
100.0
53.7
53.7
52.2
Own children under 6 years
All parents in family in labor force
1,136
480
100.0
42.3
Subject
Page 22
COMMUTING TO WORK
Workers 16 years and over
Car, truck, or van -- drove alone
Car, truck, or van -- carpooled
Public transportation (including taxicab)
Walked
Other means
Worked at home
Mean travel time to work (minutes)
10,148
8,442
664
443
157
55
387
26.2
100.0
83.2
6.5
4.4
1.5
0.5
3.8
(X)
10,296
100.0
4,763
938
2,510
30
753
1,302
46.3
9.1
24.4
0.3
7.3
12.6
INDUSTRY
Agriculture, forestry, fishing and hunting, and mining
Construction
Manufacturing
Wholesale trade
Retail trade
Transportation and warehousing, and utilities
Information
Finance, insurance, real estate, and rental and leasing
Professional, scientific, management, administrative, and waste management services
Educational, health and social services
Arts, entertainment, recreation, accommodation and food services
Other services (except public administration)
Public administration
14
641
1,626
331
1,189
551
242
724
1,011
2,647
599
483
238
0.1
6.2
15.8
3.2
11.5
5.4
2.4
7.0
9.8
25.7
5.8
4.7
2.3
CLASS OF WORKER
Private wage and salary workers
Government workers
Self-employed workers in own not incorporated business
Unpaid family workers
8,490
1,110
655
41
82.5
10.8
6.4
0.4
INCOME IN 1999
Households
Less than $10,000
$10,000 to $14,999
$15,000 to $24,999
$25,000 to $34,999
$35,000 to $49,999
$50,000 to $74,999
$75,000 to $99,999
$100,000 to $149,999
$150,000 to $199,999
$200,000 or more
Median household income (dollars)
8,108
319
319
608
636
1,231
1,689
1,206
1,300
401
399
63,243
100.0
3.9
3.9
7.5
7.8
15.2
20.8
14.9
16.0
4.9
4.9
(X)
With earnings
Mean earnings (dollars)
With Social Security income
Mean Social Security income (dollars)
With Supplemental Security Income
Mean Supplemental Security Income (dollars)
With public assistance income
Mean public assistance income (dollars)
With retirement income
Mean retirement income (dollars)
6,235
81,046
2,728
13,500
144
6,790
115
2,883
1,762
18,186
76.9
(X)
33.6
(X)
1.8
(X)
1.4
(X)
21.7
(X)
Families
Less than $10,000
$10,000 to $14,999
$15,000 to $24,999
$25,000 to $34,999
$35,000 to $49,999
$50,000 to $74,999
$75,000 to $99,999
$100,000 to $149,999
$150,000 to $199,999
$200,000 or more
6,170
95
59
330
376
945
1,308
1,117
1,191
385
364
100.0
1.5
1.0
5.3
6.1
15.3
21.2
18.1
19.3
6.2
5.9
Employed civilian population 16 years and over
OCCUPATION
Management, professional, and related occupations
Service occupations
Sales and office occupations
Farming, fishing, and forestry occupations
Construction, extraction, and maintenance occupations
Production, transportation, and material moving occupations
Page 23
Median family income (dollars)
74,255
(X)
Per capita income (dollars)
Median earnings (dollars):
Male full-time, year-round workers
Female full-time, year-round workers
30,952
(X)
53,387
34,490
(X)
(X)
POVERTY STATUS IN 1999 (below poverty level)
Families
Percent below poverty level
With related children under 18 years
174
(X)
123
(X)
34
(X)
(X)
2.8
(X)
4.3
(X)
4.3
Families with female householder, no husband present
54
(X)
39
(X)
10
(X)
(X)
9.2
(X)
11.6
(X)
15.4
Individuals
18 years and over
65 years and over
Related children under 18 years
Related children 5 to 17 years
Unrelated individuals 15 years and over
912
(X)
647
(X)
107
(X)
265
(X)
239
(X)
266
(X)
(X)
4.3
(X)
4.0
(X)
2.9
(X)
5.2
(X)
5.8
(X)
11.5
(X) Not applicable.
Detailed Occupation Code List (PDF 42KB)
Detailed Industry Code List (PDF 44KB)
User note on employment status data
6.0 Management Summary
THREE FLOYDS MANAGEMENT PHILOSOPHY
Three Floyds’ approach to management is designed to involve the employees in the success of the
operation. With the knowledge that they can make a difference, employees will be encouraged to take
charge of their positions and make decisions that benefit the customer, the company, and themselves. They
can be shown that the right attitudes and actions can lead to the company’s continued prosperity as well as
their own.
Brewpub employees will be treated with respect as individuals. It is clear that a respected employee will
treat the customer with the same respect and promote the establishment in a positive, professional manner.
Management will give them the credit due any intelligent person by listening and, if possible, acting on any
reasonable suggestion or complaint.
Brief meetings will be held before each shift to allow the kitchen staff, servers and bar staff to make
suggestions to improve quality, enhance the customer experience, and make the operation run more
smoothly. This will promote a creative atmosphere and reinforce the individuality of the employee. It is the
plan of management to work for a cooperative and collegial atmosphere where good work is rewarded.
Positive reinforcement promotes customer satisfaction, boosts check averages, and lower costs. This
Page 24
philosophy will make Three Floyds Brewpub a great financial success, and a great place to work as well.
Three Floyds Brewpub employees will be educated, so that they can be an expert on the brewing process,
beer styles, and beer/food combinations. Comprehensive knowledge of these categories will reassure
customers that Three Floyds is not simply another restaurant but a full service brewpub. To ensure levels of
expertise are being met, employees will be invited to beer festivals, events, and brewmaster dinners, as
well as being educated through giving tours.
6.1 Personnel Plan
GENERAL PARTNERS:
MIKE FLOYD –Chairman and Co-Founder of Three Floyds Brewing Company.
•
•
•
•
•
•
•
30 plus years, Medical profession, nephrologist
founding partner -Nephrology Specialists, Munster IN
University of Durham, England, UK
Northwestern University Chicago, IL - Fellow and Faculty
Consultant to the Philippine Kidney Foundation
University of Texas at Houston-Faculty and Staff Physician
Author of 40 Scientific publications
SIMON FLOYD-Kitchen Consultant and Co-Founder of Three Floyds Brewing Company
•
2 years, Venezia Bar&Grill Schererville, IN- Head chef experienced in: restaurant and bar
management, restaurant build out, inventory, restaurant sanitation, restaurant inventory
•
•
11years, Café Venezia Merrillville IN Chef
School of the Art Institute of Chicago
NICK FLOYD-President, Head Brewer and Co-Founder of Three Floyds Brewing Company
•
•
•
•
•
Graduate of Siebel Institute of Brewing technology in Brewing Science, Brewing Microbiology/Lab
and Microbrewery Operations
1 Year, The Florida Brewery Auburndale FL- Brewer: brewed on a 300barrel brewhouse system
making adjunct lager beer and malta brands brewed: Falstaff, ABC malt liquor, ABC light, Hatuey
(Cuban), America’s Choice, Braun gold, Rock n Roll beer, Polar Malta, Hatuey Malta, Malta Goya
2 years Weinkeller Breweries Westmont, IL & Berwyn, IL- Head Brewer: ran 2 brewpubs
simultaneously 10 barrel system and 15 barrel system experienced in: beer filtration, formulation,
brewhouse operations, kegging, bottling, yeast handling-brands brewed: Aberdeen Amber, Berliner
Wiesse, Bavarian Hefe-Wiesse, Dusseldorfer Dopplebock, Berwyn Pilsner, E.S.B.
2 years, Golden Prairie Brewing Co. Chicago, IL- Brewer brewed on a 3barrel and 15barrel system,
distribution, kegging Brands brewed: Golden Prairie Ale, Nut Brown, Jolly Olde Ale, Maple Stout,
Buck Wheat Ale
7 Years, Three Floyds Brewing Co. Hammond, IN and Munster, IN-Involved in all aspects of Three
Floyds operations branding, marketing, production, formulation, brewery build outs
JOHN MISH-Vice President, Brewer
•
•
•
•
Graduate Siebel Institute of Brewing Technology in Packaging and Brewing Science
Indiana University Bloomington, IN Degree in Marketing
6 Years, Three Floyds Brewing Co. Hammond, IN and Munster, IN-Brewer: Experienced in all
aspects of production including small batch production, kegging, open fermentation, cellarmanship,
delivery, transportation, inventory, and public relations. Brands brewed: Drunk Monk, Rabbid
Rabbit, Chubby Brown, Black Sun Stout, Robert the Bruce, AlphaKing, Pride&Joy
4 Years, EMT MortonGrove, IL-Water Treatment, sampling and evaluation, air testing, waste water
Page 25
•
testing
4 Years, Fullgraf Inc. St. John, IN-Brick&Masonry industry
JAMES CIBAK-Brewmaster
•
•
•
•
•
Graduate of Siebel Institute of Brewing Technology in Brewing Science, MicroBrewing Operations
and Quality Control
Loyola University Chicago, IL Degree in Business Administration
1 Year, Weinkeller Breweries Westmont, IL &Berwyn, IL-head brewer: ran 2 brewpubs
simultaneously 10 barrel system and 15 barrel system experienced in: beer filtration, formulation,
brewhouse operations, kegging, bottling, yeast handling-brands brewed: Aberdeen Amber, Berliner
Wiesse, Bavarian Hefe-Wiesse, Dusseldorfer Dopplebock, Berwyn Pilsner, E.S.B.
6 Years, Goose Island Brewing Co. Chicago, IL-experienced in all aspects large scale
microbrewery production: formulation, brewhouse calculations, cellaring, filtration, yeast
propagation&handling, double brewing, quality control. Brands Brewed: Honkers Ale, Hex Nut
Brown, Summertime, Baderbrau, I.P.A., Schwarzbier, oatmeal stout
2 years, Three Floyds Brewing Co. Munster, IN-Brewmaster
JOHN FREYER- Head of Sales & Marketing
•
•
•
•
•
•
•
•
•
Founder of Freyer Marketing Chicago,IL
7 Years Three Floyds Brewing Co Munster, IN & Hammond, IN -Head of Sales &Marketing
Beer Sales and Marketing for Louis Glunz Beer Chicago, IL
Founder Joseph Geis Beer Co Chicago, IL
Beer Sales and Distribution Union Liquors Chicago, IL
General Manager Weinkeller Brewery Berwyn, IL
Restaurant & Bar Management Fox's Pub
Assistant General Manager Ruby Tuesday
Assistant Manager (Catering ) Art Institute of Chicago
DICK VAN DYKE-Salesman & Marketing
•
•
•
•
•
•
Formaly Trained Clinical Psychologist
General Manager Public Landing Restaurant Lockport, IL
Nationaly Ranked Beer Judge&Award Winning Homebrewer of over 60 awards
Beer Sales and Distribution for Shagan Distributing Co
Beer Sales and Distribution for Louis Glunz Beer Chicago, IL
Beer Sales and Marketing for Three Floyds Brewing Co Munster, IN
Page 26
Table: Personnel (Planned)
Personnel Plan
Total Payroll
2003
$10,000
$11,950
$2,200
$7,000
$3,000
$34,150
2004
$24,600
$46,800
$13,080
$12,600
$12,600
$109,680
2005
$30,000
$59,400
$15,840
$16,800
$14,400
$136,440
2006
$35,000
$63,600
$15,840
$16,800
$14,400
$145,640
2007
$36,000
$63,600
$15,840
$16,800
$14,400
$146,640
Total People
Payroll Burden
Total Payroll Expenditures
7
$5,123
$39,273
10
$16,452
$126,132
12
$20,466
$156,906
13
$21,846
$167,486
13
$21,996
$168,636
Bartender/Manager
Line Cooks
servers
Dishwasher
bus
7.0 Financial Plan
7.1 Expenses
EXPENSES
Operating expenses can be broken down into three main groups: Food & Beer, Labor, and Fixed Overhead
Food & Beer
We have projected our food cost at 25%. This cost is in line with other brewpub competitors in the Chicago
area. Brewpub food costs range from 12% pizza heavy menu up to 35% menu featuring steak and lobster.
We have assumed an overall bar cost at 10% which is lower than most brewpubs and bars because our
economies of scale are greater. Three Floyds Brewing Company buys malt in 1000-pound super sacks
instead of individual 50-pound sacks, and to further reduce costs, a malt silo will be added. Three Floyds
Brewpub will buy kegged beer from Three Floyds Brewing Company at various prices depending on the
brand $20-$40.
Labor
Three Floyds Brewpub will use its brewers as bartenders and managers in the pub. Brewers will already be
salaried by Three Floyds Brewing Co and have extensive knowledge of Three Floyds Beers, beer history
and beer styles. Eventually a head chef or kitchen manager will be employed full time in 2004. The
remaining labor cost include servers, bus help, line cooks, dishwashers and extra bartenders which will be
hourly. Based on wages of a 40-hour workweek average we have the following monthly estimates.
Bartender $1600 plus tips-Server $1440 plus tips-Bus Help $600-Line Cook $1950-Dish Washer $1400
Labor costs start outs around $6400 a month in the first few months of operation in the second half of 2003
and then slowly increase when gross revenue milestones are hit. High-end labor costs will near $13000 a
month when the brewpub starts to get mature growth and large monthly customer counts.
Page 27
7.2 Fixed Costs
Fixed Costs
Fixed costs include a number of overhead expense items that must be paid monthly. Fixed costs include
lease payments, utilities, insurance, taxes, maintenance and marketing. Utilities are projected at $1200$1500 a month depending on the season. A monthly rent payment of $1500 will be due. Maintenance fees
will run $550 a month. Advertising and marketing will be $2000 a month early on for the marketing blitz then
scaled back to $500 once the brewpub is established. Three Floyds Brewpub has the benefit of sharing
phone, office, accounting and insurance costs with Three Floyds Brewing Co.
7.3 Projected Profit and Loss
Table: Profit and Loss (Planned)
Pro Forma Profit and Loss
Sales
Other Production Expenses
Total Cost of Sales
Gross Margin
Gross Margin %
Operating Expenses:
Advertising/Promotion
Accnt/Leg
Miscellaneous
Payroll Expense
Payroll Burden
Depreciation
office
Utilities
Insurance
Rent
Phone
Total Operating Expenses
Profit Before Interest and Taxes
Interest Expense Short-term
Interest Expense Long-term
Taxes Incurred
Extraordinary Items
Net Profit
Net Profit/Sales
2003
$151,712
$26,546
$0
-----------$26,546
$125,166
82.50%
2004
$477,946
$83,633
$0
-----------$83,633
$394,313
82.50%
2005
$654,612
$114,549
$0
-----------$114,549
$540,063
82.50%
2006
2007
$812,012 $1,009,666
$142,104
$176,682
$0
$0
----------------------$142,104
$176,682
$669,908
$832,984
82.50%
82.50%
$9,000
$1,500
$2,500
$34,150
$5,123
$0
$1,000
$7,500
$5,000
$7,500
$1,000
-----------$74,273
$50,894
$0
$0
$3,054
$0
$47,840
31.53%
$6,000
$3,600
$6,600
$109,680
$16,452
$0
$2,400
$18,000
$13,600
$18,000
$2,400
-----------$196,732
$197,581
$0
$0
$11,855
$0
$185,726
38.86%
$6,000
$3,600
$6,600
$136,440
$20,466
$0
$2,400
$18,000
$16,800
$18,000
$2,400
-----------$230,706
$309,357
$0
$0
$18,561
$0
$290,796
44.42%
$6,000
$3,600
$6,600
$145,640
$21,846
$0
$2,400
$18,000
$18,000
$18,000
$2,400
-----------$242,486
$427,422
$0
$0
$25,645
$0
$401,777
49.48%
$6,000
$3,600
$6,600
$146,640
$21,996
$0
$2,400
$18,000
$18,000
$18,000
$2,400
-----------$243,636
$589,348
$0
$0
$35,361
$0
$553,987
54.87%
Page 28
Profit Monthly (Planned)
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
Profit Yearly (Planned)
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
2003
2004
2005
2006
2007
Page 29
Gross Margin Monthly (Planned)
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Gross Margin Yearly (Planned)
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
2003
2004
2005
2006
2007
Page 30
7.4 Projected Cash Flow
CASH FLOW
Given the assumptions detailed above, Three Floyds Brewpub generates positive cash flow in its first
month! $47,000 in the last few months of 2003, $186,000 in 2004, $290,000 in 2005, $400,000 in 2006,
$550,000 in 2007, and $679,000 in year 2008.
Table: Cash Flow (Planned)
Pro Forma Cash Flow
2003
2004
2005
2006
2007
Cash Received
Cash from Operations:
Cash Sales
$151,712
$477,946
$654,612
$812,012
From Receivables
Subtotal Cash from Operations
$0
$151,712
$0
$477,946
$0
$654,612
$0
$812,012
$1,009,66
6
$0
$1,009,66
6
Additional Cash Received
Extraordinary Items
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of other Short-term Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
$0
$0
$0
$0
$0
$0
$0
$0
$151,712
$0
$0
$0
$0
$0
$0
$0
$0
$477,946
$0
$0
$0
$0
$0
$0
$0
$0
$654,612
$0
$0
$0
$0
$0
$0
$0
$0
$812,012
$0
$0
$0
$0
$0
$0
$0
$0
$1,009,66
6
Expenditures
Expenditures from Operations:
Cash Spent on Costs and Expenses
Wages, Salaries, Payroll Taxes, etc.
Payment of Accounts Payable
Subtotal Spent on Operations
2003
2004
2005
2006
2007
$6,460
$39,273
$46,166
$91,898
$16,609
$126,132
$130,668
$273,408
$20,691
$156,906
$178,653
$356,250
$24,275
$167,486
$211,831
$403,592
$28,704
$168,636
$250,128
$447,469
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Short-term Assets
Purchase Long-term Assets
Dividends
Adjustment for Assets Purchased on Credit
Subtotal Cash Spent
$0
$0
$0
$0
$0
$0
$0
$0
$91,898
$0
$0
$0
$0
$0
$0
$0
$0
$273,408
$0
$0
$0
$0
$0
$0
$0
$0
$356,250
$0
$0
$0
$0
$0
$0
$0
$0
$403,592
$0
$0
$0
$0
$0
$0
$0
$0
$447,469
$59,814
$104,131
$204,538
$308,669
$298,362
$607,031
$408,420
$1,015,45
0
$562,197
$1,577,64
8
Net Cash Flow
Cash Balance
Page 31
Cash (Planned)
$120,000
$100,000
$80,000
Net Cash Flow
$60,000
Cash Balance
$40,000
$20,000
$0
7.5 Projected Balance Sheet
Table: Balance Sheet (Planned)
Pro Forma Balance Sheet
Assets
Short-term Assets
Cash
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
2003
$104,131
$0
$104,131
2004
$308,669
$0
$308,669
2005
2006
2007
$607,031 $1,015,450 $1,577,648
$0
$0
$0
$607,031 $1,015,450 $1,577,648
$0
$0
$0
$104,131
$0
$0
$0
$308,669
$0
$0
$0
$0
$0
$0
$0
$0
$0
$607,031 $1,015,450 $1,577,648
Accounts Payable
Current Borrowing
2003
$11,974
$0
$0
$11,974
2004
$30,785
$0
$0
$30,785
2005
$38,352
$0
$0
$38,352
2006
$44,995
$0
$0
$44,995
2007
$53,205
$0
$0
$53,205
Total Liabilities
$0
$11,974
$0
$30,785
$0
$38,352
$0
$44,995
$0
$53,205
$500,000
($455,683)
$47,840
$92,157
$104,131
$92,157
$500,000
($407,843)
$185,726
$277,883
$308,669
$277,883
Liabilities and Capital
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
$500,000
$500,000
$500,000
($222,117)
$68,679
$470,455
$290,796
$401,777
$553,987
$568,679
$970,455 $1,524,442
$607,031 $1,015,450 $1,577,648
$568,679
$970,455 $1,524,442
Page 32
7.5.1 Plan of Distribution and Operating Agreement
PLAN OF DISTRIBUTION AND OPERATING AGREEMENT
General
The Company is hereby offering for sale to a limited number of investors in this
Offering by subscription, and subject to acceptance or rejection in whole or in part by
the Company, in its sole and absolute discretion, a minimum of One (1) Shares and a
maximum of One Thousand (1000) Shares of its common stock at a cash purchase
price of $500 per Share. In this Offering, the Minimum Investment is one (1) Shares or
$500, and the Maximum Investment is 400 Shares or $200,000. The Minimum
Investment and Maximum Investment limitations may be waived or modified by the
Company in its sole and absolute discretion.
The Company has not employed securities dealer or underwriter in connection with this
Offering. No commissions or discounts have been or will be paid by the Company to
anyone in connection with the Offering or sale of any of the Shares.
Each person who agrees to purchase Shares in this Offering must execute a
Subscription Agreement and an Operating Agreement.
The Shares will be sold by the officer and director of the company who will be deemed
to be brokers under the federal securities laws pursuant to the exemption provided by
Section 40.3a4-1(a) of the rules and regulations of the SEC as promulgated under the
Securities Exchange Act of 1934. The selling officer and director of the Company will
not be compensated by the Company in any way for his assistance in the Offering
except that, upon Closing, such selling officers and directors shall be entitled to
reimbursement from the Company for expenses actually and reasonably incurred by
them in connection with the sale of Shares in this Offering.
Operating Agreement
The Shares will be subject to the terms of an Operating Agreement which shall not limit
the transferability of the stock purchased pursuant to the terms set for the in the
Offering. All investors will be required to execute an Operating Agreement. The
Operating Agreement to be executed by subscribers is contained in the Subscription
Materials. The Operating Agreement was prepared by counsel for the Company in the
course of its representation of the Company. Subscribers are urged to retain
independent counsel to protect their interests with respect to the Operating Agreement.
Who May Invest
Page 33
The Shares are being offered pursuant to the "seed capital" exemption from the
registration requirements of the Securities Act for securities offerings of non-reporting
companies that do not exceed an aggregate annual amount of $1,000,000. The
Offering made pursuant to this Memorandum is intended to be conducted under the
Securities Act in accordance with Regulation D promulgated by the SEC. The Shares
to be offered and sold will be "freely tradable" and and will be limited to transactions (1)
registered under state law requiring public filing and delivery of a disclosure document
to investors before sale, or (2) exempted under state law permitting general solicitation
and advertising so long as sales are made only to accredited investors.
As a result of the Company’s formation as a limited liability company, there is no
restriction on who may be a member. As such, a non-resident alien, corporation,
partnership, LLC or any type of trust may become a member of the Company.
Investors should obtain independent legal and/or accounting advice with respect to the
tax implications of becoming a member in a limited liability company.
Each investor will be required to represent that such investor has received all
information requested by such investor with respect to the Company Each investor will
also be required to represent that: (I) the investor’s overall commitment to investments
which are not readily marketable is not (and the investor’s acquisition of the Shares will
not cause such overall commitment to become) disproportionate to the investor’s net
worth; (ii) the investor has adequate net worth and means of providing for his or her
current needs and personal contingencies to sustain a complete loss of such
investment in the Shares and (iii) the investor has carefully evaluated the risk of
investing, either alone or together with a purchaser representative.
The Company will require each investor to complete an Investor Questionnaire. The
Investor Questionnaire deals with the suitability of an investment in the Shares for the
investor and the answers given by an investor may cause the Company to make such
further inquiry as it deems appropriate. The Company, in its sole and absolute
discretion, may reject subscriptions, in whole or in part, or allot to a particular investor
fewer than the number of Shares of subscribed for by such investor, without regard to
the order of receipt of subscription funds or whether the Offering is oversubscribed.
The Company reserves the right to modify or increase the suitability standards with
respect to certain investors in order to comply with any applicable state or local laws,
rules or regulations or otherwise.
Each investor will be required to execute an Operating Agreement governing the rights
and obligations of all members of the Company.
How To Subscribe
If a qualified investor desires to subscribe for Shares, the investor should deliver the
following to the Company:
Page 34
• A properly executed: Subscription Agreement and Operating Agreement.
• A certified or cashier’s check payable to "Three Floyds Brewpub LLC Escrow
Account" in the amount of $500 per Share. The Minimum Investment per
investor is $500 unless otherwise waived by Company.
The subscription documents are contained separately and provided with this
Memorandum. The appropriate subscription documents should be returned to the
Company in accordance with the instructions set forth therein. Additional copies of the
subscription booklet are available from the Company by contacting Nick Floyd, Three
Floyds Brewing, LLC, 9750 Indiana Parkway, Munster, IN 46321, (219) 922-3565.
At Closing, all subscriptions will be filled, to the extent accepted, by issuance of
certificates representing the Shares. Such issuance of certificates will occur on a
reasonable date after the Closing of this Offering.
Subscriptions
In the event subscriptions for fewer than One Thousand (1000) Shares, or $500,000,
are received in response to this Offering, the Company, in its sole and absolute
discretion, may elect to waive the Maximum Investment limitation. In the event
subscriptions for fewer than 299 Shares, or $199,500, are received, notwithstanding
such waiver, the Offering will be terminated and subscription payments will be returned
to subscribers. No interest will be paid on any subscription funds returned to
subscribers.
In the event subscriptions for more than One Thousand (1000) Shares are received in
response to this Offering, the Company, in its sole and absolute discretion, may elect
to accelerate the Expiration Date.
Escrow Arrangements
Commencing on the date of this Offering Memorandum, funds received from
subscribers as payment for properly-submitted subscriptions will be placed in an
account (the "Escrow Account") established by the Company. The Company will
maintain such funds in an escrow account in its name at Centier Bank, 9701
Indianapolis Boulevard, Highland, IN 46322. The Company may not disburse funds
from the Escrow Account and issue Shares until the Closing of the Offering.
Expiration Date for Subscriptions
The expiration date for subscriptions will beDecember 24, 2003 ("Expiration Date").
Subscriptions will not be accepted unless received before 5:00 p.m. local time on the
Expiration Date. Subscriptions are not eligible for acceptance unless properly
completed subscription documents together with the total purchase price for all Shares
for which subscription is made is either (a) physically delivered to the address provided
in the Subscription Materials on or before 5:00 pm. Local time on the Expiration Date
or (b) deposited in the United States mail, postage prepaid, addressed to the address
Page 35
provided in the Subscription Materials, in time for delivery thereof prior to 5:00 p.m.
local time on the Expiration Date. If the Offering is fully subscribed before the
Expiration Date, the Company may act to accelerate expiration of the subscription
period, thereby accelerating the Expiration Date. The Company may also, in its sole
and absolute discretion, act to extend the subscription period. In either event, the
Company shall not be required to give notice of the acceleration or extension to any
party.
Termination of the Offering
The Company shall terminate this Offering if Closing shall not have occurred by
December 31, 2003. In addition, the Company may in its sole and absolute discretion
and for any reason whatsoever terminate this Offering prior to the issuance of
certificates representing the Shares. The Company has no obligation to give notice of
any such termination to any party, although the Company will be responsible for
returning subscription amounts in full to subscribers within a reasonable period of time
in the event of such a termination. No interest will be paid on any subscription funds
returned to subscribers. In the event the Offering is thus terminated, none of the
expenses related to the Offering will be paid out of subscribers’ funds or the income
therefrom. These expenses will be paid by the Company.
Closing
The Closing of the Offering shall occur following the Expiration Date or any
acceleration or extension thereof upon the timely receipt of subscriptions for the
Shares portion of the Shares and acceptance by the Company thereof. As soon as
practicable following the Closing, the Company will issue to each subscriber one or
more certificates representing the subscriber’s Shares.
The Company reserves the right, however, exercisable in its sole and absolute
discretion, to reject any subscription hereunder, in whole or in part, for any
reason, to allot to a particular subscriber fewer than the number of Shares
subscribed for and/or to withdraw or cancel this Offering without notice or to
modify the terms thereof. A subscriber will not have any right, without the prior
consent of the Company, exercisable in its sole and absolute discretion, to
revoke or withdraw any subscription.
Notice to Investors
The Shares have not been registered under the Securities Act and may not be offered
or sold in the absence of registration thereunder or pursuant to an available exemption
therefrom. Each subscriber of Shares understands that each certificate evidencing the
Shares will contain the following legend:
" THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), OR ANY UNITED STATES OR STATE SECURITIES LAWS
AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF REGISTRATION THEREUNDER OR PURSUANT TO AN AVAILABLE
Page 36
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT, IN EACH
CASE IN ACCORDANCE WITH ANY APPLICABLE UNITED STATE AND STATE
SECURITIES LAWS."
Transferability of the Shares will be subject to the terms of a Operating Agreement,
and certificates evidencing the Shares will also contain the following legend:
"THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE ARE HELD
UNDER, AND THE RIGHTS OF THE HOLDER HEREOF ARE SUBJECT TO ALL THE
TERMS, PROVISIONS AND CONDITIONS OF A CERTAIN OPERATING
AGREEMENT DATED AS OF MARCH 24, 2003, ENTERED INTO BY AND AMONG
THREE FLOYDS BREWPUB, LLC. AND ALL OF THE MEMBERS OF THE
COMPANY, AND THE SAME MUST ONLY BE PLEDGED, HYPOTHECATED, SOLD
OR OTHERWISE DISPOSED OF OR ASSIGNED OR TRANSFERRED ON THE
BOOKS OF THE COMPANY EXCEPT IN ACCORDANCE WITH THE TERMS,
PROVISIONS AND CONDITIONS OF SAID OPERATING AGREEMENT."
RISK FACTORS
The purchase of shares offered within this document entails certain risks which
members should consider before making a decision to invest in the company. There
can be no assurance that any rate of return or other investment objectives will be
realized or that there will be any return of capital. In addition to general investment
risks and those factors set forth elsewhere in this document, a prospective purchaser
of shares should consider the following factors.
General Investment Risks
THE COMPANY IS A NEWLY-FORMED ENTITIY.
The Company is newly formed and, as a new entity, has no operating history. Changes
to Company strategies and policies may be proposed by the Manager and will not
require Advisory Board or Shareholder assent. As a newly-formed entity, the Company
has not identified or made any investments. Members will not have the opportunity to
evaluate the merits of any future investment made by the Company nor will they be
entitled to participate in the day-to-day operation of the Company, or any decisions
regarding investment strategy, new acquisition, or disposition of individual assets. No
assurances can be given that the Company will be profitable or that any particular
return will be achieved.
THE COMPANY IS ADVISED BY AN EXTERNAL MANAGER.
The Manager is also a newly-formed entity without an operating history. The Company
will be heavily dependent on the abilities of the Manager, which will be empowered and
act pursuant to a Management Agreement. As such, the Company initially will have no
employees and is completely reliant on the Manager, which will have significant
discretion in implementing the strategies set forth by the Company.
Page 37
The Manager in turn will be dependent upon the efforts of those officers and
employees of the Manager who will be actively involved in the Company’s business.
The Company will enter into a Management Agreement with the Manager outlining
areas of responsibility and authority. The Management Agreement does not require the
Manager to devote its full time and efforts to the Company and the Manager may
devote energies to other parties, subject to the powers, authorities, and limitations set
forth in the Management Agreement. Furthermore, the Manager will be authorized to
utilize a portion of the capital raised through this document for the expansion of Three
Floyds Brewing, LLC, which, in its sole and absolute discretion, is necessary in order to
meet the increased demands upon Three Floyds Brewing, LLC generated by the
restaurant and brewpub and any additional exposure and demand created through the
restaurant and brewpub.
TAX CONSIDERATIONS.
An investment in the Company involves complex Federal, state and local income tax
considerations which will differ for each Shareholder. Prospective Members that are
tax-exempt entities should consult with their own advisors prior to any investment in the
Company as to the potential unrelated business taxable income and other tax
consequences that may apply to their particular situations. Both tax-exempt entities
and other persons should consult with their own tax advisors regarding any other U.S.
Federal, state and local tax effects of investing in the Company.
LIMITED TRACK RECORD OF THE MANAGER
Although Three Floyds Brewing, LLC) has extensive experience in the operation of a
brewery for the manufacture and distribution of craft beer on a wholesale basis, it has
not operated a restaurant and brewpub in the course of its operations and cannot
provide a historical resume of its experience in this specific field. For further
information concerning the individual experience of each individual, please the
attached management bios or resumes.
THE SERVING OF FOOD AND ALCOHOL
The operations of the Company, including, but not limited to the serving of food and
alcohol, will be subject to Federal and state laws, regulations and administrative rulings
which among other things, establish standards for the operation of a bar and
restaurant, and the penalties for violation of these laws and regulations. The operation
of the Company is dependant upon maintaining, in good standing, the liquor license
that grants the authority of the Company to serve alcohol on the premises. Therefore,
the Company’s ability to serve beer, wine and alcohol may be impacted by a change in
the current laws and regulations that govern these activities or if a violation on any law
or regulation is cited by any governing authorities. Additionally, inherent in the service
of alcohol is the "Dram Shop" and other exposure created as a result of the operation
of the business. As such, any such liability resulting from the Company’s service of
alcohol may impact the Member’s investment in the Company.
Page 38
Risks Related to Investment Terms
LIMITATION OF RECOURSE AND IDEMNIFICATION OF THE MANAGER.
The Management Agreement limits the circumstances under which the Manager or its
affiliates will be held liable to the Company. As a result, Members may have a more
limited right of action in certain cases than they would have in the absence of this
provision. In addition, the Management Agreement provides that the Company will
indemnify the Manager and its affiliates, partners and employees for certain claims,
losses, damages, and expenses arising out of their activities on behalf of the
Company. Such indemnification obligations could materially affect the returns to
Members.
THE COMPANY MAY BE ADVESELY AFFECTED BY LEGISLTIVE OR
REGULATORY DEVELOPMENT
All statements contained in this Memorandum concerning the Federal income tax
consequences of an investment in the Company are based upon existing law and the
interpretations thereof. The rules dealing with Federal income taxation are constantly
under review by persons involved in the legislative process and by the Internal
Revenue Service and the Treasury Department, resulting in revisions of resolutions
and revised interpretations of established concepts as well as statutory changes.
Therefore, no assurance can be given that the currently anticipated income tax
treatment of an investment in Company will not be modified by legislative, judicial or
administrative changes, possibly with retroactive effect, to the detriment of the
Members.
THE POTENTIAL EXISTS FOR CONFLICTS OF INTEREST BETWEEN THE
MANAGER AND THE COMPANY.
The Company is subject to the potential for conflicts of interest involving the Manager
as: 1) the Manager and its affiliates may advise other entities and devote time and
energy to pursuits of those entities and such entities may have investment objectives
and policies comparable to those of the Company and may be in competition with the
Company; and, 2) certain officers and directors of the Company are expected to also
be officers of the Manager.
Affiliates of the Manager may be retained by the Company from time-to-time on a nonexclusive basis and on commercially competitive terms to provide various professional
services in connection with the Company’s business that would otherwise be
performed by third parties. Conflicts of interest could arise in connection with the
foregoing affiliate transactions, including in connection with the enforcement of any
arrangements or agreements regarding any such services
Page 39
7.5.1.1 Investor Questionnaire
THREE FLOYDS BREWPUB, LLC.
An Indiana Limited Liability Company
Confidential Investor Questionnaire
The primary purpose of this Confidential Investor Questionnaire is to assure Three Floyds Brewpub, LLC., an Indiana
Limited Liability Company (the "Company"), that the prospective Investor in the Company’s stock (the "Securities"),
will be eligible to invest in the Securities.
Please print or type your answers. If the answer to any question is "No" or "Not Applicable", please so state. Please
provide information for all subscribers, using separate questionnaires if necessary. Please do not combine or
consolidate financial information of co-subscribers, except that of your spouse.
Except as set forth herein, your answers will at all times be kept strictly confidential. By signing this Confidential
Investor Questionnaire, however, you understand and agree that (i) the Company is relying on the accuracy, truth and
completeness of your representations and statements set forth in your response in this Confidential Investor
Questionnaire, the Subscription Agreement and any other document delivered by you to the Company in determining
whether the offer and sale of the Securities comply with applicable law including federal and state securities law, (ii) if
your representations or responses are not accurate, truthful and complete, you or the Company, or both, may be found I
violation of federal or state securities laws, and (iii) the Company may present this Confidential Investor
Questionnaire, and other documents delivered by you to the Company, to the appropriate parties if the Company is
called upon to establish the availability of exemptions from registration and other compliance with federal and state
securities laws and for other appropriate purposes.
The entire Confidential Investor Questionnaire must be completed by all investors.
THREE FLOYDS BREWPUB, LLC.
An Indiana Limited Liability Company
Confidential Investor Questionnaire
1. General Information
Name of Investor:___________________________________________________
If ownership of the Securities will be held in the name of two or more individuals, complete the following information
for each of the other co-owners:
Name:________________________________________________________________________
Home Address:_________________________________________________________________
Mailing Address (Complete if different from home address above):
______________________________________________________________________________
Page 40
______________________________________________________________________________
Relationship to subscriber: _____Spouse _____ Parent
_____ Child Other Blood Relative _____
_____ Other (please specify)
__________________________________________
Age: _________________________________________________________________________
Citizenship: ___________________________________________________________________
State in which Investor Votes: ____________________________________________________
State in which Investor holds a valid driver’s license: __________________________________
2. Employment and Business Information
Occupation or Profession: __________________________________________________
Name of Current Employer: ________________________________________________
Business Address: ________________________________________________________
________________________________________________________________________
Business Telephone: ______________________________________________________
Current Position or Title:___________________________________________________
Principal Responsibilities:__________________________________________________
_______________________________________________________________________
Period Employed by Current Employer:_______________________________________
3. Financial Information
1.
Do you have adequate means of providing for your current needs and personal contingencies and no
need for liquidity for this investment?
Yes _____ No _____
2.
Are you able to bear the economic risk of an investment in the Company of the size contemplated,
including a complete loss of your investment?
Yes _____ No _____
4. Educational Background
COLLEGE OR UNIVERSITY MAJOR (Area of Study) DEGREE(S)
__________ _______________ _________________ __________
__________ _______________ _________________ __________
__________ _______________ _________________ __________
Page 41
5. Business Experience
Please provide details of any professional licenses, registrations or other training or experience (including courses or
seminars attended) in financial, business or tax matters:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
6. Ability to Make Investment Decisions
1.
Do you have such knowledge and experience in financial matters that you are capable of evaluating
the merits and risks of your prospective investment in the Company?
Yes _____ No _____
2.
If the answer to (a) is No, do you intend to use a purchaser representative together with whom you
would be capable of evaluation the merits and risks of your prospective investment in the Company?
Yes _____ No _____
If "Yes, please state the name of the purchaser representative:
________________________________________________________________________
7. Accredited or Unaccredited Investor
The undersigned is an "Accredited Investor" inasmuch as the undersigned is:
_____ A director, executive officer or general partner of the Company;
_____ A natural person whose individual net worth, or joint net worth with spouse, is currently over $1,000,000;
_____ A natural person who had an individual income in excess of $200,000 in each of the tow most recent years or
joint income with your spouse was in excess of $300,000 in each of those years and has a reasonable expectation of
reaching the same income level in the current year; or
_____ A broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934; or
_____ None of the above (i.e., an "Unaccredited Investor").
8. Prior Investments
Have you previously purchased securities in a private placement?
Yes _____ No _____
Have you previously purchased securities in a private placement?
Yes _____ No _____
9. Agreements
The undersigned hereby understands, represents, warrants and agrees to the following:
1.
The information contained in this Confidential Investor Questionnaire is true complete and accurate
and may be relied upon by the Company in determining the suitability as a purchaser of the
Securities of the Company and establishing compliance with all applicable law including federal
Page 42
and state securities laws;
(b) The undersigned understands that any information contained in this confidential Investor Questionnaire that is
untrue, incomplete or inaccurate may result in the undersigned or the Company, or both, being in violation of
applicable law including federal and state securities laws, and that by subscribing to purchase the Securities of the
Company and executing this Confidential Investor Questionnaire and the Subscription Agreement to be delivered to
the undersigned, the undersigned is agreeing to indemnify the Company and others from damages arising from those
statements or from other matters;
(c) The undersigned understands that a false statement or representation may
constitute a violation of law, and that any person who suffers damage as a result of a false statement or representation,
may have claims against the undersigned for damages;
(d) The undersigned will notify the Company immediately of ay material change in any of such information occurring
prior to the acceptance of the undersigned’s subscription;
(e) The undersigned understands that the Company may request further information in order to determine the
suitability of the undersigned’s subscription and in establishing compliance with federal and state securities laws. The
undersigned shall furnish this additional information promptly if the undersigned desires to have the undersigned’s
subscription considered further; and
(f) The undersigned knows of no pending or threatened litigation the outcome of which could adversely affect the
answer to any questions hereunder.
IN WITNESS WHEROF, the undersigned has completed the foregoing statements and executed this Confidential
Investor Questionnaire this ________ of _________________, 2003.
_________________________ _________________________
Signature of Investor Printed name of Investor
_________________________ _________________________
Signature of co-owner (if interest Print name of co-owner (if interest
to be purchased in joint name or to be purchased in joint name or
as community property) as community property)
Page 43
Page 44
Appendix
Appendix Table: Sales Forecast (Planned)
Sales Forecast
Sales
Food & Beer Sales
Other
Total Sales
Jan
$0
$0
$0
Feb
$0
$0
$0
Mar
$0
$0
$0
Apr
$0
$0
$0
May
$0
$0
$0
Jun
$0
$0
$0
Jul
$0
$0
$0
Aug
$22,240
$0
$22,240
Sep
$25,740
$0
$25,740
Oct
$31,240
$0
$31,240
Nov
$35,000
$0
$35,000
Dec
$37,492
$0
$37,492
Food & Beer Sales
Other
Subtotal Direct Cost of Sales
Jan
$0
$0
$0
Feb
$0
$0
$0
Mar
$0
$0
$0
Apr
$0
$0
$0
May
$0
$0
$0
Jun
$0
$0
$0
Jul
$0
$0
$0
Aug
$3,892
$0
$3,892
Sep
$4,504
$0
$4,504
Oct
$5,467
$0
$5,467
Nov
$6,125
$0
$6,125
Dec
$6,558
$0
$6,558
Page 1
Appendix
Appendix Table: Personnel (Planned)
Personnel Plan
Bartender/Manager
Line Cooks
servers
Dishwasher
bus
Total Payroll
Total People
Payroll Burden
Total Payroll Expenditures
Jan
$0
$0
$0
$0
$0
$0
Feb
$0
$0
$0
$0
$0
$0
Mar
$0
$0
$0
$0
$0
$0
Apr
$0
$0
$0
$0
$0
$0
May
$0
$0
$0
$0
$0
$0
Jun
$0
$0
$0
$0
$0
$0
Jul
$0
$0
$0
$0
$0
$0
Aug
$2,000
$1,950
$440
$1,400
$600
$6,390
Sep
$2,000
$2,500
$440
$1,400
$600
$6,940
Oct
$2,000
$2,500
$440
$1,400
$600
$6,940
Nov
$2,000
$2,500
$440
$1,400
$600
$6,940
Dec
$2,000
$2,500
$440
$1,400
$600
$6,940
0
$0
$0
0
$0
$0
0
$0
$0
0
$0
$0
0
$0
$0
0
$0
$0
0
$0
$0
6
$959
$7,349
7
$1,041
$7,981
7
$1,041
$7,981
7
$1,041
$7,981
7
$1,041
$7,981
Page 2
Appendix
Appendix Table: Profit and Loss (Planned)
Pro Forma Profit and Loss
Sales
Other Production Expenses
Total Cost of Sales
Gross Margin
Gross Margin %
Operating Expenses:
Advertising/Promotion
Accnt/Leg
Miscellaneous
Payroll Expense
Payroll Burden
Depreciation
office
Utilities
Insurance
Rent
Phone
Total Operating Expenses
Profit Before Interest and Taxes
Interest Expense Short-term
Interest Expense Long-term
Taxes Incurred
Extraordinary Items
Net Profit
Net Profit/Sales
Jan
$0
$0
$0
-----------$0
$0
0.00%
Feb
$0
$0
$0
-----------$0
$0
0.00%
Mar
$0
$0
$0
-----------$0
$0
0.00%
Apr
$0
$0
$0
-----------$0
$0
0.00%
May
$0
$0
$0
-----------$0
$0
0.00%
Jun
$0
$0
$0
-----------$0
$0
0.00%
Jul
$0
$0
$0
-----------$0
$0
0.00%
Aug
$22,240
$3,892
$0
-----------$3,892
$18,348
82.50%
Sep
$25,740
$4,504
$0
-----------$4,504
$21,236
82.50%
Oct
$31,240
$5,467
$0
-----------$5,467
$25,773
82.50%
Nov
$35,000
$6,125
$0
-----------$6,125
$28,875
82.50%
Dec
$37,492
$6,558
$0
-----------$6,558
$30,934
82.51%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
-----------$0
$0
$0
$0
$0
$0
$0
0.00%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
-----------$0
$0
$0
$0
$0
$0
$0
0.00%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
-----------$0
$0
$0
$0
$0
$0
$0
0.00%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
-----------$0
$0
$0
$0
$0
$0
$0
0.00%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
-----------$0
$0
$0
$0
$0
$0
$0
0.00%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
-----------$0
$0
$0
$0
$0
$0
$0
0.00%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
-----------$0
$0
$0
$0
$0
$0
$0
0.00%
$2,000
$300
$500
$6,390
$959
$0
$200
$1,500
$1,000
$1,500
$200
-----------$14,549
$3,800
$0
$0
$228
$0
$3,572
16.06%
$2,000
$300
$500
$6,940
$1,041
$0
$200
$1,500
$1,000
$1,500
$200
-----------$15,181
$6,055
$0
$0
$363
$0
$5,692
22.11%
$2,000
$300
$500
$6,940
$1,041
$0
$200
$1,500
$1,000
$1,500
$200
-----------$15,181
$10,592
$0
$0
$636
$0
$9,956
31.87%
$2,000
$300
$500
$6,940
$1,041
$0
$200
$1,500
$1,000
$1,500
$200
-----------$15,181
$13,694
$0
$0
$822
$0
$12,872
36.78%
$1,000
$300
$500
$6,940
$1,041
$0
$200
$1,500
$1,000
$1,500
$200
-----------$14,181
$16,753
$0
$0
$1,005
$0
$15,748
42.00%
Page 3
Appendix
Appendix Table: Cash Flow (Planned)
Pro Forma Cash Flow
Cash Received
Cash from Operations:
Cash Sales
From Receivables
Subtotal Cash from Operations
Additional Cash Received
Extraordinary Items
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of other Short-term Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations:
Cash Spent on Costs and Expenses
Wages, Salaries, Payroll Taxes, etc.
Payment of Accounts Payable
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Short-term Assets
Purchase Long-term Assets
Dividends
Adjustment for Assets Purchased on Credit
Subtotal Cash Spent
Net Cash Flow
Cash Balance
0.00%
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$22,240
$0
$22,240
$25,740
$0
$25,740
$31,240
$0
$31,240
$35,000
$0
$35,000
$37,492
$0
$37,492
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$22,240
$0
$0
$0
$0
$0
$0
$0
$0
$25,740
$0
$0
$0
$0
$0
$0
$0
$0
$31,240
$0
$0
$0
$0
$0
$0
$0
$0
$35,000
$0
$0
$0
$0
$0
$0
$0
$0
$37,492
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,132
$7,349
$340
$8,820
$1,207
$7,981
$10,210
$19,398
$1,330
$7,981
$10,898
$20,209
$1,415
$7,981
$11,998
$21,393
$1,376
$7,981
$12,720
$22,078
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$8,820
$0
$0
$0
$0
$0
$0
$0
$0
$19,398
$0
$0
$0
$0
$0
$0
$0
$0
$20,209
$0
$0
$0
$0
$0
$0
$0
$0
$21,393
$0
$0
$0
$0
$0
$0
$0
$0
$22,078
$0
$44,317
$0
$44,317
$0
$44,317
$0
$44,317
$0
$44,317
$0
$44,317
$0
$44,317
$13,420
$57,737
$6,342
$64,079
$11,031
$75,110
$13,607
$88,717
$15,414
$104,131
Page 4
Appendix
Appendix Table: Balance Sheet (Planned)
Pro Forma Balance Sheet
Assets
Short-term Assets
Cash
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Starting Balances
$44,317
$0
$44,317
Jan
$44,317
$0
$44,317
Feb
$44,317
$0
$44,317
Mar
$44,317
$0
$44,317
Apr
$44,317
$0
$44,317
May
$44,317
$0
$44,317
Jun
$44,317
$0
$44,317
Jul
$44,317
$0
$44,317
Aug
$57,737
$0
$57,737
Sep
$64,079
$0
$64,079
Oct
$75,110
$0
$75,110
Nov
$88,717
$0
$88,717
Dec
$104,131
$0
$104,131
$0
$0
$0
$44,317
$0
$0
$0
$44,317
$0
$0
$0
$44,317
$0
$0
$0
$44,317
$0
$0
$0
$44,317
$0
$0
$0
$44,317
$0
$0
$0
$44,317
$0
$0
$0
$44,317
$0
$0
$0
$57,737
$0
$0
$0
$64,079
$0
$0
$0
$75,110
$0
$0
$0
$88,717
$0
$0
$0
$104,131
Accounts Payable
Current Borrowing
$0
$0
$0
$0
Jan
$0
$0
$0
$0
Feb
$0
$0
$0
$0
Mar
$0
$0
$0
$0
Apr
$0
$0
$0
$0
May
$0
$0
$0
$0
Jun
$0
$0
$0
$0
Jul
$0
$0
$0
$0
Aug
$9,848
$0
$0
$9,848
Sep
$10,499
$0
$0
$10,499
Oct
$11,573
$0
$0
$11,573
Nov
$12,308
$0
$0
$12,308
Dec
$11,974
$0
$0
$11,974
Total Liabilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$9,848
$0
$10,499
$0
$11,573
$0
$12,308
$0
$11,974
$500,000
($455,683)
$0
$44,317
$44,317
$44,317
$500,000
($455,683)
$0
$44,317
$44,317
$44,317
$500,000
($455,683)
$0
$44,317
$44,317
$44,317
$500,000
($455,683)
$0
$44,317
$44,317
$44,317
$500,000
($455,683)
$0
$44,317
$44,317
$44,317
$500,000
($455,683)
$0
$44,317
$44,317
$44,317
$500,000
($455,683)
$0
$44,317
$44,317
$44,317
$500,000
($455,683)
$0
$44,317
$44,317
$44,317
$500,000
($455,683)
$3,572
$47,889
$57,737
$47,889
$500,000
($455,683)
$9,263
$53,580
$64,079
$53,580
$500,000
($455,683)
$19,220
$63,537
$75,110
$63,537
$500,000
($455,683)
$32,092
$76,409
$88,717
$76,409
$500,000
($455,683)
$47,840
$92,157
$104,131
$92,157
Liabilities and Capital
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
Page 5

9750 Indiana Parkway Suite2 Munster Indiana 46321

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