Three Floyds Brewery Business Plan

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 Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1.1 Investor Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1.2 Pub 3-D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 4 5 2.0 3.0 Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3.1 Beer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.2 Cuisine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.3 Floor Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Excellent Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 Dining in Northwest Indiana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2 Why "Not Normal" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2.1 Pub 3-D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 13 13 14 4.0 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 Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 6.1 Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 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 6.0 7.0 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 Three Floyds Brewpub 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 $400,000 $200,000 $0 2003 2004 2005 2006 2007 Gross Margin Net Profit 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 1. Three Floyds will create a distinctively unique brewpub environment.000 $2750 55% $275 55% Silver $500 Investment Page 3 . and see returns per shares of $20 in 2003. Finally. There will be a varying menu of the highest quality world-renowned ales and lagers. In addition. 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. modish but still traditional in a room framed by red wood cabinetry and a zinc bar. successfully developing this theme in beer brands and cuisine. Gold status members will see quick returns of $200(4%) in 2003.1 Company Ownership THREE FLOYDS LIMITED LIABILITY COMPANY Based on financial projections. 2. $2750 (55%) in 2008 with profit sharing continuing there after. Three Floyds Brewpub’s shares will be available to investors in two forms: Gold status and Silver status.000 $2.200 24% $120 24% $160. showing they are an accredited investor and entitled to one free pint a day. Frequently. 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.house root beers will appeal to those who want non-alcoholic refreshments. $760(15%) in 2004. $2200 (44%) in 2007. $1200(24%) in 2005. Three Floyds Brewpub will be a very profitable venture. 2.000 $200 4% $20 4% $76. It is our belief that by creating such a comfortable. superior teas. having regular movie nights. and in. Members will achieve Gold status if they purchase more than 10 shares. In contrast.000 $760 15% $76 15% $120. espresso.000 $1. menu choices will be prepared with the beers as critical culinary ingredients.000 $1. (Note that free pints do not accumulate) All members will be invited to all brewpub functions: parties. $1600(32%) in 2006.1 Investor Returns Brewpub Stock Holder Returns $Payed out to Stockholders Gold $5000 Investment 2003 2004 2005 2006 2007 2008 $20. 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.600 32% $160 32% $220.200 44% $220 44% $275.Three Floyds Brewpub it is situated in a former railroad stationhouse. $220 (44%) in 2007 and $275 (55%) in 2008 with profit sharing continuing thereafter. Three Floyds Brewpub will be distinct by providing couches for the weary.0 Company Summary 2." Three Floyds Brewpub ownership shares will be split 60% by Three Floyds Brewing. festivals and dinners—plus receive discounts on their own parties. Three Floyds Brewpub will have 2500 total ownership "shares or member units. Gold status members will have first right to future stock offerings and brewpub expansions. $120 (24%) in 2005. displaying art—including sculpture—for sale on consignment. unique environment we can ensure Three Floyds Brewpub will be a success for years to come. $160 (32%) in 2006. freshly pressed citrus juices. $76 (15%) in 2004. and a personal mug club. LLC (1500 Shares) and 40% by the third party investors (1000 Shares). cappuccino. Three Floyds Brewpub 2.2 Pub 3-D Textures & Colors are exaggerated for effect Page 4 .1. Three Floyds Brewpub 2.2 Start-up Summary MARCH-2003 APRIL-2003 MAY-2003 JUNE-2003 JULY-2003 AUGUST-1-16-2003 AUGUST-16-31-2003 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&amp.D on Food/Kitchen Grand Opening Weekend Raise Capital Raise Capital Parking lot Get Draft System Working All Limited Partner Party OCTOBER-2003 NOVEMBER-2003 DECEMBER2003 JANUARY-2004 Halloween Promotions Thanksgiving Promotions Holiday Parties Profit Sharing From 2003 Page 5 . 000 $0 $500.317 $0 $44.000 $250.000 $2.683) $44.317 $0 $44.480 $28.500 $3.100 $15.000 $6.500 $1.683 $44.200 $6.317 $44.300 $12.000 $60.Three Floyds Brewpub Table: Start-up Start-up Requirements Start-up Expenses Legal Stationery etc.000 $15.000 $30.100 $3.000 $0 $0 $0 $0 $0 $0 ($455.300 $30.000 $5.317 $500.000 $6.317 $5.500 $7.000 $2.900 $4.100 $3.000 $455.000 $17.970 $50.000 $2.000 $17.000 $110.600 $2.000 Page 6 .133 $5. 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 Funding Investment Gold Class Investors Silver Class Investors Other Total Investment Short-term Liabilities Accounts Payable Current Borrowing Other Short-term Liabilities Subtotal Short-term Liabilities Long-term Liabilities Total Liabilities Loss at Start-up Total Capital Total Capital and Liabilities $250.000 $3.000 $1. The term fusion may be passé to some jaded cosmopolitan palates. African and American flavors. porter and seafood/shellfish. roasted onion garlic soup. and not so superior.000 $0 Expenses Assets Investment Loans 3. Though not necessarily "hot.000 $400. will be offered in dishes extending the gastronomic experience with ales and beers.0 Products THREE FLOYDS CUISINE. but recipes that successfully meld classic old world sauces. and spices of the globe are enjoying sustained success in a growing number of superior. Page 7 . Dishes emerging from this movement offer the brewer as many challenges and opportunities as the chef de cuisine.000 $50. All of our beers have the heft to match a range of thin crust pizzas which will be permanent menu fixtures. among a range of ingredients. gumbo." combinations of unusual peppers and spices. are established in current dining fashions. DESIGN AND DECOR Cuisine In the realm of food. following a trend that has lasted a decade or more.000 $350. which fuse classic European. and fishes with the herbs. 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. cardamom and cumin. Asian. subtle and yet sturdy enough to retain their distinctive taste when combined with the habenero pepper. Indiana’s award winning micro cheeses will be featured as well perhaps inviting combination with our Behemoth Barley wine or Dark Lord Russian Stout. meats. beer bratwurst on a soft pretzel bun and a fragrant basmati rice with shrimp or chicken.Three Floyds Brewpub Start-up $500. multicultural menu choices. Classics of comfort food at Three Floyd’s Brewpub will include chili. restaurants. Three Floyds’ extra pale ale obtained national recognition a year ago in combination with shrimp. ferments.000 $150. 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.000 $250.000 $100.000 $300.These pairings are only some of more traditional.000 $200.000 $450. bock and veal sausage. surely a first for seafood and a English style session ale. 3. Three Floyds’ brewpub and the adjacent Three Floyds brewery are the ideal crucible for just this. Three Floyds’ vegetarian menu will include items like a sweet pepper pilaf. German and Belgian beers will be offered on tap. Three Floyds Brewing. wheat. seasonal and experimental beers. Once the brewpub is built. Currently. a plethora of styles and brands will evolve. In addition. more flavors and tastes are being rediscovered and developed offering the creative brewer and chef enormous opportunity to work together and prosper. innovative. caramelized onions. which is an all-grain system that produces 620 gallons per brew. bar and kitchen will be built out. They will be offered wall space to display their works in a type of informal gallery. Once a brewpub has been established. Walls will be demolished and a restaurant. a first in Northwest Indiana. Currently.Three Floyds Brewpub The vegetarian will be able to find a varied. an oversized kitchen refrigerator and keg cooler will be installed. LLC can produce over 4000 barrels (8000 kegs) per annum. Three Floyds Brewpub will have 20 tap beers available at all times including: 5-6 taps of products offered all year long. flavorful menu as well. This type of atmosphere would enable the high school artist to be displayed alongside the professional—making the pub walls truly "not normal. All fermenters in the brew house are clad in high polished stainless steel. building a sense of community. Decor Decor will be provided by the local working artists of the day. Three Floyds bar area will also have couches and a general lounge feel. and yeast. and slightly off-center space. Design The Three Floyds Brewpub will be built in what currently houses Three Floyds Brewing Co offices. Three Floyds kitchen will be built out with the best kitchen equipment including a Baker’s Pride wood pizza oven. 4-5 taps featuring American and European guest beers. 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. with a particular focus on those from the Chicago/Northwest Indiana area. These "objects d’art" will complement and enhance the dining experience. Three Floyds’ fermentation and secondary tank capacity is capable of 400 barrels (800 kegs) a month. It will comfortably accommodate both the Munster business diner and the Lansing softball team. Product availability will never be threatened and cannot be hostage to a distant brewery. and will be visible to patrons through a glass wall at the rear of the restaurant. Three Floyds beer is brewed on a 20-barrel (40 kegs) JVNW brew house. garlic and tomatoes. A veggie burger is not adequate for those who do not eat meat. In addition. At present. 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. lentils with cumin. which dwarfs most other brewpubs’ capacities." The entire concept is based on an amalgam of styles. approximately 2000 square feet. The emphasis is on creating a casual. that will take the quality food. beverage. comfortable.1 Beer QUALITY AND UNCOMPROMISING BEERS Three Floyds already offers a diverse range of beers from Russian Imperial Stout. barley. to a Belgian Saison. Three Floyds Brewpub bar section will be built out using old stainless steel open fermenters for a European zinc bar look. In addition. 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. The guest beers will be gathered from the best American microbreweries. Three Floyds will add smaller fermenters and conditioning tanks to make specialty beers available only at the brewpub. and service of the elegant bar/restaurant and meld it with Three Floyds’ "not normal" flair for style and atmosphere. Page 8 . 7-10 taps of rotated. and. and a satisfying caponetta. we will tap into the local demographic makeup. Customers will be encouraged to view our equipment---weekend brewery tours will continue to be available to patrons. Three Floyds Brewpub Three Floyds on tap house beers: Alpha King™ Pale Ale: Big American Pale Ale.5% abv-2002 Bronze Indiana State Fair Dark Lord™ Russian Imperial Stout: Gargantuan Russian stout brewed with Starbucks coffee. 5%abv Alpha Klaus™ X-mas Porter: Alpha King’s cousin and Three Floyds Christmas beer 7.Com Rabbid Rabbit™ Saison: Belgian-style farmhouse beer.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. 13% abv-2002 Bronze Medal Indiana State Fair-2003 Best Beer in the World RateBeer.5% abv-1999 Highly Recommended Beverage Testing Institute-2002 Silver Medal Indiana State Fair Calumet Queen™: German-style kölsch.squeals and hoppy appeals 10. 7. molasses. malty. 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. 4.5% 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. and honey. 9. 90 Shilling Scottish Ale.com Robert the Bruce™ Scottish Ale: Big.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 . caramel. 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. a hop lover’s cult beer and Three Floyds’ flagship beer 6. Three Floyds’ lightest beer modeled after the Cologne-style beer.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.Com Black Sun™ Stout: Irish-style stout. Three Floyds Brewpub 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. TEXAS CHILI -a hot steak. Californian. Café Venezia and Venezia Bar and Grill. since it has the lowest food cost and the best profit margin. but favorites will be kept year round. chipotle. and classic European-style foods in a truly great pub menu.Simon started as an assistant chef in 1990 and worked his way to sous chef. Cajun. Mexican.2 Cuisine NOT NORMAL MENU Three Floyds Brewpub kitchen consultant will be Simon Floyd. both as ingredients and to accompany meals. line cook and then head chef in 1999. At Three Floyds Brewpub. Indian. infused oils and enriched sauces. Three Floyds menu will be a moderate 20-30 item list at most. barley wine and onion stew Page 10 . Quality wood burning oven pizza will be a focus of the Three Floyds Brewpub menu. Café Venezia is known for its fine authentic Italian cuisine. 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. Many food items will be designed with Three Floyd’s world-renowned ales and lagers in mind. The following is just a sample menu of Three Floyds Brewpub menu—some items will change depending on the season. Simon has worked in two of Northwest Indiana’s finest restaurants. cumin. Simon was responsible for kitchen build out and design as well as the new menu and recipe formulations at Venezia Bar and Grill. These foods will feature fresh flavors of herbs. 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. Simon plans to combine hearty American Bistro with Caribbean. local Polish sausage from Hammond. coppa. 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.hot chicken.Three Floyds Brewpub VIDALIA ONION SOUP. 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. Scottish ale demi-glaze BRATWURST that FLATTENED MUNSTER-Massive beer bratwurst-Three Floyds signature soft pretzel bun. ham. 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 Smothered in Gruyere cheese HABENERO CHICKEN SOUP-hearty chicken broth made with Rabbid Rabbit Saison. fresh buffalo mozzarella and mixed greens on half moon sour dough NEW YORK-Pastrami hot or cold-soft pretzel bun. shallots. celery BELLE PAISE and ASIAGO DIP-Roasted garlic humus and artichoke. curry sauce and banana ketchup BREWERS’ OWN CHICKEN BREAST-Oven roasted stuffed chicken breast-spinach.A.double cut pork chop-grilled applewood bacon.mild .dip. onion and kölsch curry over basmati rice Page 11 .core black (Dave’s insanity sauce) with Indiana cheese blue sauce.proscuitto. sopressatta. sundried tomatoes and Farmhouse Ale sauce ALPHA KING’S CHOP. Tasso and basmati rice HOUSE GUMBO-alternating gumbo seasonally HOUSE SALAD CAESAR SALAD BELGIAN FRIES-European style fries served with Belgian mayonnaise.Thai curry . sauerkraut. caramelized onions and Düsseldorf mustard TURKEY FLATBREAD-Mesquite turkey flat bread sandwich-Monterey jack and avocado OL MUFALATA SANDWICH. Swiss PASTA OF THE DAY VEGETABLE ENTRÉE OF THE DAY INSAINE WINGS. Düsseldorf mustard.P. portwine cheddar dip and Calumet Queen jalapeno Swiss dip CHICKEN SATAY-Thai style chicken skewers LONDON PUB CURRY. three cheeses.Vidalia onions. 3 Floor Plan Page 12 .Three Floyds Brewpub ROBERT the BRUCE ICE CREAM-super malty. and experimental/guest beer prices ranging from $3.50 -$6.50 for "beer of the week. with a target beer price of $2.Brownie and Ice Cream Float FRESH FRUIT NOT NORMAL PRICES Fundamentally. The entrée prices will range from $6-$12 for dinner. Three Floyds believes prices should be competitive but not outrageous. $4-$7 for lunch." $3 for high gravity pints.malted house ice cream DARK LORD FLOAT-Dark Lord Russian Imperial Stout. 3. This range of food and beer pricing is extremely attractive taking into consideration the quality of the products. Indiana. from Orland to the west to Merrillville and Valparaiso in the east. could be enjoyed at their peak with pristine beer lines. fresh and unbruised by distribution. Page 13 . innovative pub cuisine. 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. was "not normal. intends the brewpub to be a definitively superior venue where our beers. 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. which will allow the brewpub a fixed cost advantage. "Not normal" became Three Floyds’ motto. is located in the northwest corner of the state. Three Floyds will provide an environment that is comfortable and enjoyable for all demographics. The beer. The location and other aspects of the business diverged from the "norm. I-90 and I-294.000 residents alone. lacks a variety of quality dining establishments. 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. 30 and U. electric and gas costs are 10%-15% lower than Commonwealth Edison in Chicago. malty.1 Dining in Northwest Indiana DINING IN NORTHWEST INDIANA The Northwest Indiana region. offering exciting. However. as opposed to the blander.S. The comfort and "not normal" atmosphere will be unique in comparison to establishments that typify the region.S. the principal emphasis will remain on the beer. I65. Indiana.S. The Northwest Indiana region is top heavy with fast food.Three Floyds Brewpub 4. Munster. 4. Indiana and the six communities surrounding it are home to over 200. Three Floyds’ motif will be substantially different from other chain restaurants. Three Floyds’ location will also benefit from lower taxes than surrounding states. Simon. Three Floyds Brewing Co.2 Why "Not Normal" WHY "NOT NORMAL"? Nick. This street will soon be extended to U. garage warehouse in Hammond. or dining chains such as Bennigans and Applebees. 30 bringing tens of thousands past Three Floyds Brewpub daily! 4. This leaves the region ripe for an independently owned brewpub. nearly two thirds of the United States’ population is within a day’s drive. 41. of course. with Munster residents having one of the higher disposable incomes per capita. This means Munster is centrally located to Three Floyds Brewpub’s targeted brewpub market. building costs are 22% lower than Chicago. Midwestern style traditions. From its inception." The Brewing vessels were "not normal"—four 10 barrel. Three Floyds’ funky. a mere 30 minute drive. by default. Salaries in Indiana average over $5000 less than the rest of the Chicagoland area.0 Excellent Location EXCELLENT LOCATION Three Floyds Brewpub is ideally situated just south of Interstate 80/94 and is only minutes from I-55. the town of Munster. Three Floyds Brewpub is located right off Calumet Avenue. and Mike Floyd established Three Floyds in 1996." due to its over-the-top hoppy West Coast style. Three Floyds’ base of operations. "not normal" brewpub menu will appeal to urban sophisticates. unlike Chicago. one of Northwest Indiana’s busiest thoroughfares. The facilities were located in a small. I-57. not to mention minutes from U. as well as the suburban community. everything relating to Three Floyds is "not normal"—a tradition and motto that will carry over to Three Floyds Brewpub.2. eye-catching graphic art that employs a truly original use of color all help to create the "not normal" theme.Three Floyds Brewpub Since the move to Munster.1 Pub 3-D Textures & Colors are exaggerated for effect Page 14 . Most of the graphics on our website include the major labels for the beers. Overall. Whether it is in the packaging. tap handles. Three Floyds has continued its "not normal" philosophies in other ways. Three Floyds stands out from the rest. or other paraphernalia. 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. 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. t-shirts. One prime example is in the unusual. 4. the Chicago Brew Pub Shoot Out. Nearing construction completion. Print advertisements will contain food specials. Marketing during this first year will be vastly important. both hooded and regular. offer another route for marketing. in other words. These events. Glasses and mugs will be sold as well as other items such as tap handles. a publicist will be placed on retainer in order to maximize media coverage. the new restaurant/ bar is rapidly becoming alternative to home dining. It is important to vary the time and channel the advertisements are shown in order as to maximize viewing by different groups of people. These establishments can deliver a comparable sense of intimacy. In Chicago. the Lafayette Strong Ale Fest. the Great British Beer Fest. The microbrew purchaser has an average income of $48. t-shirts. the Chicago Sun-Times. Three Floyds participates in numerous beer festivals. participation in beer festivals will aid publicity by expanding public awareness. People averaging such earnings dine out approximately two to three times a week (excluding fast food purchases). In addition to advertisements. Cable access advertisements are low in cost. and superior cuisine while sidestepping the hassle home dining often presents. Wearable products are the most popular items available at brewpubs.Three Floyds Brewpub 5. emphasizing the brewpub. the Great Lakes Brewing News. events and beer fests will provide opportunities to promote the anticipated brewpub.000). and may expand the brewpub’s customer base considerably without costand time-intensive marketing strategies.1 Marketing Strategy THE MARKETING PLAN Printed. typically male. Seating for a hundred or less affords a casual and comfortable atmosphere. Three Floyds will purchase advertisements in several print-publications: the Chicago Tribune. the smaller. the Times. usually advertised independently.000 people dine out every day. we will be offering hats. female interest in microbrewing is growing two-fold faster in comparison to the male. beer news. Three Floyds will use cable access advertisements for the first time for brewpub promotion. company. and the Great American Beer Festival.2 Sales Strategy THE PROSPECTIVE CLIENTELE The microbrew customer averages 23 to 55 years of age.000-400. the Real Ale Festival. or related graphics in all major sizes. A comprehensive line of accessory products will be added to existing Three Floyds products. the Reader. a "walking billboard" (free advertising). in various styles and sizes that depict beer. Currently. we will hold opening events to gain media attention.000 (home brewers averaging $55.0 Marketing 5. long sleeve shirts. along with offering a small but choice menu. However. televised. While construction is underway. 5. and sweatshirts. the South Town. This fact in mind. upcoming events. the Post-Tribune. The beneficial side effect will be the publicity gained from customers wearing the apparel. including the Great Taste of the Midwest. Increasingly. Additionally. Page 15 . and the Cream City Suds. bar towels. 300. and guerilla marketing will be an integral part of Three Floyds Brewpub’s publicity. and directions to the establishment. and golf-relate merchandise are all being considered once the brewpub has established itself. more intimate restaurant tends to be the preferred choice of contemporary consumers. brewpub. 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.139 customer count 2005 Projects further growth over 2004 at 28% growth with a 46778 customer count 2006 Projected growth continues as marketing. 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 bar area could. 5. We have assumed an average lunch check of $6.50 in the dining area and 30 plus in the bar area. bistro or trattoria. Customer count is based on the number of seats/tables available and the rate of the turnover of these tables. 2004: Three Floyds Brewpub First full year has projections seasonally increasing 25% over the previous year with a 34. This means if 3825 people patronize Three Floyds Brewpub in October of 2003. and experimentation with preparation. The intimacy of a small brewpub can be equally attractive to the mid-week diner and the power lunch executive.. The average price for a pint of beer will be $3 with national brewpub averages at one drink for lunch customers.2. these restaurants rarely include the sense of security and comfort essential for attracting a regular clientele. regular customer base. Three Floyds will capture this intimacy and cultivate a strong. hold up to 50 people elbow to elbow. August 2003 is Three Floyds Brewpub target date for opening its doors. bumping up maximum capacity to one hundred-plus patrons. The revenue projections for August are very conservative in anticipation of R&D being performed by the kitchen (taste testing.Three Floyds Brewpub Open seating found in large theme restaurants might still be a popular option for some diners. presentation. 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 . impersonal. busy. Three Floyd’s Brewpub will provide comfortable seating for 80 people . the very antithesis of the pub.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. Taking these projections into account. and $9 for an average bar check. the pub can expect to make $53550 gross revenue for that month alone. The second factor in developing projected revenues is the average food and drink check total by customer. two for dinner customers. Finally. Averaging all these factors gives us a mean count of $14 per person for food and drink. lending themselves to continuous but not repeat business. an average dinner check of $14. These large theme restaurants are noisy. Projected Growth 2003-2008 2003: First year projections show a 5 month steadily increasing customer count averaging just under 550 a week. however. and three for bar customers. and beer-food pairings). 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. the demand for Three Floyds products has created a secure following of home brewers and beer enthusiasts already. during peak hours. refinement of recipes. 682 $0 $176.633 2005 $654.000 $15.549 2006 2007 $812.546 $0 $26.549 $0 $114.104 $0 $142. aggressive marketing campaign.009.946 $0 $477.612 2005 $114.712 $0 $151.000 $5. of which Three Floyds Brewing is a founding member.682 Sales Monthly (Planned) $40. has lobbied tirelessly for an amendment that would allow Three Floyds to sell packaged beer to go on Sundays. IN (500.000 $25.000 $10. it would make Three Floyds THE ONLY LICENSE IN ALL OF LAKE COUNTY.000 $20. including a tremendous amount of word of mouth publicity. The Brewers’ Guild of Indiana.104 2007 $176. A significant increase early on could come from an early. 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. Once ratified.633 $0 $83.Three Floyds Brewpub We feel these numbers are very conservative with our vast microbrewery and brewpub knowledge and research.000 $35.012 $1. Three Floyds Brewpub will continue to advertise every month. Another factor that may arrive in time to raise expected revenues.946 2004 $83.000 $30.000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Food & Beer Sales Other Page 17 . endeavor to get critical reviews and propagate an effective marketing database that could easily bring larger customer counts than are projected. is an amendment to Indiana alcohol laws.009.612 $0 $654.546 2004 $477.012 $1.712 2003 $26.666 $0 $0 $812. Three Floyds Brewpub Sunday sales alone will help us to exceed our projections.666 2006 $142.000 people!). htm.2 100.461 2.2 (X) (X) 17. and H4.630 1.200.0 6. and definitions see http://factfinder.7 4.000 $0 2003 2004 2005 2006 2007 Food & Beer Sales Other 5.000.331 100.000 $600. no diploma High school graduate (includes equivalency) Some college.068 405 657 4. preschool Kindergarten Elementary school (grades 1-8) High school (grades 9-12) College or graduate school EDUCATIONAL ATTAINMENT Population 25 years and over Less than 9th grade 9th to 12th grade.4 27.8 44.7 4.6 21.gov/home/en/datanotes/expsf3.Three Floyds Brewpub Sales by Year (Planned) $1.4 4.census.000 $400.256 1.3 22.0 2.0 39.9 23. H3.000 $200. Indiana NOTE: Data based on a sample except in P3. nonsampling error.Sample Data Geographic Area: Munster town. no degree Associate degree Bachelor's degree Graduate or professional degree Percent high school graduate or higher Percent bachelor's degree or higher MARITAL STATUS Population 15 years and over 5. Subject Number Percent SCHOOL ENROLLMENT Population 3 years and over enrolled in school Nursery school.000 $800.2 Munster Demographics DP-2: Profile of Selected Social Characteristics: 2000 Data Set: Census 2000 Summary File 3 (SF 3) . For information on confidentiality protection.000 $1. P4.137 3.6 15.439 93.382 100.0 Page 18 .897 395 285 2.225 744 3.5 21.0 16.2. sampling error. 165 3.1 38.105 716 20.3 4. except separated Separated Widowed Female Divorced Female GRANDPARENTS AS CAREGIVERS Grandparent living in household with one or more own grandchildren under 18 years Grandparent responsible for grandchildren VETERAN STATUS Civilian population 18 years and over Civilian veterans DISABILITY STATUS OF THE CIVILIAN NONINSTITUTIONALIZED POPULATION Population 5 to 20 years With a disability Population 21 to 64 years With a disability Percent employed No disability Percent employed Population 65 years and over With a disability RESIDENCE IN 1995 Population 5 years and over Same house in 1995 Different house in the U.1 91.595 10.697 11.0 6.811 19.4 7.7 10.2 20.7 63.511 25.066 156 100.615 2.0 85.4 10.0 42.3 16.6 53.501 17.718 1.1 1.317 2.4 4.2 0. in 1995 Same county Different county Same state Different state Elsewhere in 1995 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 REGION OF BIRTH OF FOREIGN BORN Total (excluding born at sea) Europe Asia Africa Oceania Latin America Northern America LANGUAGE SPOKEN AT HOME Population 5 years and over English only Language other than English Speak English less than "very well" Spanish Speak English less than "very well" Other Indo-European languages Speak English less than "very well" Asian and Pacific Island languages Speak English less than "very well" ANCESTRY (single or multiple) Total population Total ancestries reported Arab 3.028 672 100.180 6.7 14.700 505 1.5 0.2 30.5 7.4 9.1 .691 1.8 3.9 8.9 8.0 33.0 0.0 36.1 309 103 100.3 4.5 45.5 (X) 100.4 2.0 120.330 1.789 290 11.6 20.Never married Now married.3 4.7 3.550 484 2.8 2.631 1.276 114 1.9 21.4 3.2 0.5 (X) 90.922 908 613 180 1.700 723 768 0 16 149 44 100.579 2.S.793 490 440 194 100.8 21.1 0.165 100.6 12.600 78.9 2.980 71 1.511 19.336 100.0 9.7 6.7 2.1 17.825 14 100.0 0.0 13.0 92.4 2.501 14.421 8.1 0.0 69.118 65.1 100. Matrices P18. PCT17. Census 2000 Summary File 3.8 19.1 0.1 2.799 3. Census Bureau.6 8. see http://factfinder.4 15.6 0.202 318 541 3.3 6. Subject Number Percent Total population SEX AND AGE Male Female 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 21.468 1.9 3. P42.0 1.8 (X) Not applicable.6 16.0 7.1 4.7 2. PCT16.460 1.4 1. French Canadian includes Acadian/Cajun.523 563 86 4.173 0 294 284 244 883 5 674 107 157 561 142 16 4.0 0. P37.htm. 1 The data represent a combination of two ancestries shown separately in Summary File 3.5 0.1 20.643 1.5 14.7 0.4 0. P39.9 52. Irish includes Celtic.0 1.0 0.0 3.6 6.1 4. P24. Czech includes Czechoslovakian.083 1. French includes Alsatian. and definitions.6 5. nonsampling error. P36. P21.1 8.2 Page 20 .056 1.5 1. P19.0 10.Three Floyds Brewpub 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 1.211 1. Ancestry Code List (PDF 35KB) Place of Birth Code List (PDF 74KB) Language Code List (PDF 17KB) Source: U.5 2.333 47.S.8 7.504 1. PCT8.300 11.488 768 1.9 6.024 1.354 3.gov/home/en/datanotes/expsf1u.3 1.6 0. and PCT19 DP-1: Profile of General Demographic Characteristics: 2000 Data Set: Census 2000 Summary File 1 (SF 1) 100-Percent Data Geographic Area: Munster town.1 0. Indiana NOTE: For information on confidentiality protection.4 19.511 100. P22.census.725 215 182 4. 2 0.4 0.6 24.5 (X) 75.646 2.7 0.098 100.7 0.692 15.292 19.7 35.7 11.050 10 331 93.3 4.6 18.9 1.9 2.050 814 94 17 125 20.851 222 13 965 487 121 146 25 113 8 65 4 2 0 0 2 237 219 99.461 19.4 37.0 0.2 3.8 21.176 8.3 0.716 4.145 2.0 20.0 0.1 21.9 0.0 1.303 2.640 4.594 8.0 9.9 16.6 0.9 3.5 2.286 7.494 531 42.071 2.511 21.0 0.1 0.2 65.2 23.0 75.0 0.0 4.4 73.0 92.1 88.303 6.0 0.091 6.8 1.053 246 55 1.0 21.6 1.0 1.389 5.0 98.8 7.2 1.1 0.0 0.4 0.9 33.5 21.5 28.1 0.991 697 194 369 168 335 311 24 100.Three Floyds Brewpub 60 to 64 years 65 to 74 years 75 to 84 years 85 years and over Median age (years) 18 years and over Male Female 21 years and over 62 years and over 65 years and over Male Female 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 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 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 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 HOUSEHOLDS BY TYPE Total households Family households (families) With own children under 18 years Married-couple family With own children under 18 years 1.010 1.511 1.6 95.6 Page 21 .690 5.035 1.1 4.310 100.1 1.3 40.3 0.7 31.8 0.695 4.5 0.3 6.091 5.3 1.1 8. 2 Other Pacific Islander alone. Census Bureau.9 0 6.0 97.820 2. H1.5 1.0 34.760 972 2. P33. P. P8. P18. sampling error.946 1.0 53. Matrices P1.1 10. and H12.606 10.209 882 2.7 24. H3.S. DP-3: Profile of Selected Economic Characteristics: 2000 Data Set: Census 2000 Summary File 3 (SF 3) . no husband present With own children under 18 years Nonfamily households Householder living alone Householder 65 years and over Households with individuals under 18 years Households with individuals 65 years and over Average household size Average family size HOUSING OCCUPANCY Total housing units Occupied housing units Vacant housing units For seasonal. P27. P20.gov/home/en/datanotes/expsf3. or occasional use Homeowner vacancy rate (percent) Rental vacancy rate (percent) HOUSING TENURE Occupied housing units Owner-occupied housing units Renter-occupied housing units Average household size of owner-occupied unit Average household size of renter-occupied unit 647 301 1. H11. P28. PCT11.422 9. recreational.62 3. Source: U.091 248 34 0. 3 In combination with one or more other races listed. P13. P12. H4. Subject Number Percent EMPLOYMENT STATUS Population 16 years and over In labor force Civilian labor force Employed Unemployed Percent of civilian labor force Armed Forces Not in labor force Females 16 years and over In labor force Civilian labor force Employed Own children under 6 years All parents in family in labor force 17.697 1.htm.9 (X) (X) (X) Not applicable 1 Other Asian alone.0 62.0 0.3 Page 22 .7 53.7 52.4 100.7 100.339 8.0 37. PCT5. Indiana NOTE: Data based on a sample except in P3.837 4.004 4.17.3 62. P19. H5. nonsampling error.028 10.Sample Data Geographic Area: Munster town.837 4. P23.136 480 100. H3.8 (X) 0. P3.673 2.9 33. P4. or two or more Asian categories.0 42. P4.0 89. or two or more Native Hawaiian and Other Pacific Islander categories.091 7. Census 2000 Summary File 1.07 8.4 (X) (X) 8. PCT8.99 100. and definitions see http://factfinder.606 10.Three Floyds Brewpub Female householder.0 3.69 1.296 310 2.census.3 60. For information on confidentiality protection. 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.0 (X) (X) 8.9 8. P9.8 12.2 100.0 3.1 21. and H4. PCT15. 000 to $199.9 7.728 13. and maintenance occupations Production.COMMUTING TO WORK Workers 16 years and over Car.drove alone Car.442 664 443 157 55 387 26.999 $75.3 6.8 (X) 100.296 4.4 7.999 $35. scientific. insurance.000 to $99.000 to $14.5 7.8 15.4 1.647 599 483 238 0. truck. or van -.0 4.999 $200.1 24.000 $10.carpooled Public transportation (including taxicab) Walked Other means Worked at home Mean travel time to work (minutes) Employed civilian population 16 years and over OCCUPATION Management.9 3. and waste management services Educational.7 (X) 100.3 9.0 1.000 to $74.5 0.148 8.999 $35.8 6. professional.0 5.0 46.000 to $24.3 12.3 7.186 6. administrative.999 $25.999 $15. and material moving occupations INDUSTRY Agriculture.500 144 6.2 11.4 8.000 $10.4 2.8 14.999 $150.8 4.8 25.3 8.999 10.0 83.999 $15.999 $50.206 1.999 $100.9 (X) 33.490 1.2 15.000 to $34. and rental and leasing Professional. real estate.5 1. management.689 1. forestry. fishing.000 to $49.8 (X) 1.999 $25.9 (X) 76.000 or more Median household income (dollars) 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) Families Less than $10.4 0. health and social services Arts.5 5.243 6. or van -.000 to $74.7 2.302 100. and mining Construction Manufacturing Wholesale trade Retail trade Transportation and warehousing.108 319 319 608 636 1. recreation.763 938 2.626 331 1.000 to $14.999 $50.8 3. accommodation and food services Other services (except public administration) Public administration CLASS OF WORKER Private wage and salary workers Government workers Self-employed workers in own not incorporated business Unpaid family workers INCOME IN 1999 Households Less than $10.011 2.883 1. extraction.231 1.3 .9 16.110 655 41 82. and forestry occupations Construction.000 to $49.300 401 399 63. and utilities Information Finance.6 (X) 1.2 10.308 100.5 3.000 to $149.000 to $24.189 551 242 724 1.0 3.000 to $34.5 4.510 30 753 1.9 4.1 6.170 95 59 330 376 945 1. fishing and hunting.5 10.6 14 641 1. truck.046 2. entertainment.7 5.0 9.2 20.4 0. and related occupations Service occupations Sales and office occupations Farming.762 18.790 115 2.235 81. transportation.4 (X) 21.1 15.2 6. They can be shown that the right attitudes and actions can lead to the company’s continued prosperity as well as their own. and make the operation run more smoothly.8 (X) 11. It is clear that a respected employee will treat the customer with the same respect and promote the establishment in a positive. the company. Positive reinforcement promotes customer satisfaction.2 (X) 11. and themselves.6 (X) 15.4 (X) 4.490 (X) (X) (X) (X) 174 (X) 123 (X) 34 (X) 54 (X) 39 (X) 10 (X) 912 (X) 647 (X) 107 (X) 265 (X) 239 (X) 266 (X) (X) 2. With the knowledge that they can make a difference.5 (X) Not applicable. year-round workers POVERTY STATUS IN 1999 (below poverty level) Families Percent below poverty level With related children under 18 years Percent below poverty level With related children under 5 years Percent below poverty level Families with female householder.2 (X) 5.Three Floyds Brewpub Median family income (dollars) Per capita income (dollars) Median earnings (dollars): Male full-time. boosts check averages. acting on any reasonable suggestion or complaint.0 Management Summary THREE FLOYDS MANAGEMENT PHILOSOPHY Three Floyds’ approach to management is designed to involve the employees in the success of the operation. Detailed Occupation Code List (PDF 42KB) Detailed Industry Code List (PDF 44KB) User note on employment status data 6.952 53. servers and bar staff to make suggestions to improve quality. Brief meetings will be held before each shift to allow the kitchen staff. Management will give them the credit due any intelligent person by listening and. This Page 24 .8 (X) 4.3 (X) 9. enhance the customer experience. professional manner. This will promote a creative atmosphere and reinforce the individuality of the employee.3 (X) 4. year-round workers Female full-time.0 (X) 2. and lower costs.9 (X) 5. if possible. It is the plan of management to work for a cooperative and collegial atmosphere where good work is rewarded.3 (X) 4. Brewpub employees will be treated with respect as individuals. no husband present Percent below poverty level With related children under 18 years Percent below poverty level With related children under 5 years Percent below poverty level Individuals Percent below poverty level 18 years and over Percent below poverty level 65 years and over Percent below poverty level Related children under 18 years Percent below poverty level Related children 5 to 17 years Percent below poverty level Unrelated individuals 15 years and over Percent below poverty level 74.387 34. employees will be encouraged to take charge of their positions and make decisions that benefit the customer.255 30. inventory. Hammond. Brands brewed: Drunk Monk. Buck Wheat Ale 7 Years. formulation. brewhouse operations. restaurant inventory 11years. bottling. EMT MortonGrove. Berwyn Pilsner.B. Nut Brown. brewery build outs • • JOHN MISH-Vice President. • • • • • • • 30 plus years. employees will be invited to beer festivals. waste water Page 25 • . IN-Involved in all aspects of Three Floyds operations branding. England. IL.S. America’s Choice. Comprehensive knowledge of these categories will reassure customers that Three Floyds is not simply another restaurant but a full service brewpub. Maple Stout. Polar Malta. The Florida Brewery Auburndale FL. sampling and evaluation. marketing. E. open fermentation. kegging Brands brewed: Golden Prairie Ale. Venezia Bar&Grill Schererville. IL & Berwyn. To ensure levels of expertise are being met. Three Floyds Brewpub employees will be educated. IL. Hatuey (Cuban). IN. ABC light. Berliner Wiesse. IN Degree in Marketing 6 Years. so that they can be an expert on the brewing process. and a great place to work as well.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. Brewer • • • Graduate Siebel Institute of Brewing Technology in Packaging and Brewing Science Indiana University Bloomington. Three Floyds Brewing Co. Café Venezia Merrillville IN Chef School of the Art Institute of Chicago NICK FLOYD-President. restaurant build out. Pride&Joy 4 Years. distribution. Head Brewer and Co-Founder of Three Floyds Brewing Company • • • Graduate of Siebel Institute of Brewing technology in Brewing Science. inventory. UK Northwestern University Chicago.Brewer brewed on a 3barrel and 15barrel system. Three Floyds Brewing Co. production. air testing.Brewer: brewed on a 300barrel brewhouse system making adjunct lager beer and malta brands brewed: Falstaff. IL-Water Treatment. restaurant sanitation. IN and Munster. Dusseldorfer Dopplebock. events. Malta Goya 2 years Weinkeller Breweries Westmont. Braun gold. Rabbid Rabbit. Hatuey Malta. and beer/food combinations. transportation. cellarmanship. Brewing Microbiology/Lab and Microbrewery Operations 1 Year. yeast handling-brands brewed: Aberdeen Amber.Head chef experienced in: restaurant and bar management. 2 years.Head Brewer: ran 2 brewpubs simultaneously 10 barrel system and 15 barrel system experienced in: beer filtration. Black Sun Stout. Jolly Olde Ale. IN-Brewer: Experienced in all aspects of production including small batch production. Golden Prairie Brewing Co. IL . AlphaKing. beer styles. 6. Bavarian Hefe-Wiesse. delivery. ABC malt liquor. Hammond. as well as being educated through giving tours. Medical profession. Rock n Roll beer. nephrologist founding partner -Nephrology Specialists.1 Personnel Plan GENERAL PARTNERS: MIKE FLOYD –Chairman and Co-Founder of Three Floyds Brewing Company. Robert the Bruce. kegging. IN and Munster. kegging. formulation. Munster IN University of Durham. and public relations.Three Floyds Brewpub philosophy will make Three Floyds Brewpub a great financial success. and brewmaster dinners. Chubby Brown. Chicago. B. Munster. Summertime.S. IL-experienced in all aspects large scale microbrewery production: formulation. IN-Brick&Masonry industry JAMES CIBAK-Brewmaster • • • Graduate of Siebel Institute of Brewing Technology in Brewing Science. IN -Head of Sales &Marketing Beer Sales and Marketing for Louis Glunz Beer Chicago. oatmeal stout 2 years. quality control. Hex Nut Brown.Head of Sales & Marketing • • • • • • • • • Founder of Freyer Marketing Chicago. I.IL 7 Years Three Floyds Brewing Co Munster. Three Floyds Brewing Co.Three Floyds Brewpub • testing 4 Years. Schwarzbier. Berwyn Pilsner.. Chicago. 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. filtration. Bavarian Hefe-Wiesse. IL Beer Sales and Distribution Union Liquors Chicago. bottling. yeast handling-brands brewed: Aberdeen Amber. IL-head brewer: ran 2 brewpubs simultaneously 10 barrel system and 15 barrel system experienced in: beer filtration. IL &Berwyn. Weinkeller Breweries Westmont. Brands Brewed: Honkers Ale. IN & Hammond. 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.A.P. IL General Manager Weinkeller Brewery Berwyn. St. IN Page 26 . IN-Brewmaster • • JOHN FREYER. kegging. IL Founder Joseph Geis Beer Co Chicago. 6 Years. brewhouse calculations. E. double brewing. IL Beer Sales and Marketing for Three Floyds Brewing Co Munster. Fullgraf Inc. yeast propagation&handling. brewhouse operations. John. formulation. IL Degree in Business Administration 1 Year. Dusseldorfer Dopplebock. MicroBrewing Operations and Quality Control Loyola University Chicago. cellaring. Goose Island Brewing Co. Baderbrau. Berliner Wiesse. Based on wages of a 40-hour workweek average we have the following monthly estimates. line cooks.600 $12. beer history and beer styles. This cost is in line with other brewpub competitors in the Chicago area.400 $145.1 Expenses EXPENSES Operating expenses can be broken down into three main groups: Food & Beer. a malt silo will be added.640 13 $21. Three Floyds Brewing Company buys malt in 1000-pound super sacks instead of individual 50-pound sacks.000 $59.000 $3.000 $63.132 2005 $30. High-end labor costs will near $13000 a month when the brewpub starts to get mature growth and large monthly customer counts.452 $126.000 $34.846 $167.636 7.400 $15.600 $46. Page 27 . Labor Three Floyds Brewpub will use its brewers as bartenders and managers in the pub.0 Financial Plan 7.840 $16.800 $14.950 $2. 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. Three Floyds Brewpub will buy kegged beer from Three Floyds Brewing Company at various prices depending on the brand $20-$40.840 $16.600 $15.150 7 $5.400 $146. Brewers will already be salaried by Three Floyds Brewing Co and have extensive knowledge of Three Floyds Beers.800 $14.840 $16.996 $168.906 2006 $35. bus help.466 $156. and Fixed Overhead Food & Beer We have projected our food cost at 25%.400 $136.600 $109. Labor. Eventually a head chef or kitchen manager will be employed full time in 2004. The remaining labor cost include servers.800 $13.123 $39.486 2007 $36.800 $14.680 10 $16.600 $15.273 2004 $24. We have assumed an overall bar cost at 10% which is lower than most brewpubs and bars because our economies of scale are greater. Brewpub food costs range from 12% pizza heavy menu up to 35% menu featuring steak and lobster.640 13 $21.200 $7.080 $12.440 12 $20.Three Floyds Brewpub Table: Personnel (Planned) Personnel Plan Bartender/Manager Line Cooks servers Dishwasher bus Total Payroll Total People Payroll Burden Total Payroll Expenditures 2003 $10.000 $63. and to further reduce costs. dishwashers and extra bartenders which will be hourly.000 $11. 000 $2.054 $0 $47.000 $3. insurance. 7.682 $669.452 $0 $2. Maintenance fees will run $550 a month.166 82.50% $6.800 $18.946 $83.581 $0 $0 $11.466 $0 $2.400 -----------$243.600 $6.680 $16.000 -----------$74.063 82.86% 2005 $654.726 38.732 $197. maintenance and marketing.987 54.996 $0 $2.000 $3.000 $18.400 $18.000 $2.549 $540.000 $2.009.600 $6.400 $18.104 $176.500 $2.357 $0 $0 $18.600 $6. Fixed costs include lease payments.561 $0 $290.2 Fixed Costs Fixed Costs Fixed costs include a number of overhead expense items that must be paid monthly.400 $18.104 $176. taxes.840 31.48% $6.600 $18.000 $18.612 $114.313 82.123 $0 $1.012 $1.645 $0 $401.600 $109.908 $832.984 82.440 $20.500 $1.000 $7.486 $427.600 $146.400 -----------$230.500 $5.400 -----------$242.682 $0 $0 ----------------------$142.796 44.894 $0 $0 $3.855 $0 $185.50% $6.400 $18. Advertising and marketing will be $2000 a month early on for the marketing blitz then scaled back to $500 once the brewpub is established. A monthly rent payment of $1500 will be due.633 $0 -----------$83.50% $9. Utilities are projected at $1200$1500 a month depending on the season.846 $0 $2.777 49.633 $394.42% 2006 2007 $812.400 -----------$196.000 $3.361 $0 $553.636 $589.546 $125.Three Floyds Brewpub 7.000 $2.150 $5.000 $18.640 $21.87% Page 28 .000 $3. Three Floyds Brewpub has the benefit of sharing phone.348 $0 $0 $35.50% 82.53% 2004 $477.600 $136.50% $6.000 $18.000 $13.500 $34. office.600 $145.712 $26.666 $142.000 $7.000 $1.706 $309.273 $50.3 Projected Profit and Loss Table: Profit and Loss (Planned) Pro Forma Profit and Loss Sales Direct Cost of 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. accounting and insurance costs with Three Floyds Brewing Co.422 $0 $0 $25.640 $21.546 $0 -----------$26.549 $0 -----------$114.600 $6. utilities.000 $16. 000 $300.000 $0 2003 2004 2005 2006 2007 Page 29 .Three Floyds Brewpub Profit Monthly (Planned) $16.000 $400.000 $4.000 $2.000 $500.000 $12.000 $14.000 $8.000 $100.000 $6.000 $10.000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Profit Yearly (Planned) $600.000 $200. 000 $300.000 $20.000 $400.000 $15.Three Floyds Brewpub Gross Margin Monthly (Planned) $35.000 $30.000 $200.000 $0 2003 2004 2005 2006 2007 Page 30 .000 $500.000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Gross Margin Yearly (Planned) $900.000 $25.000 $800.000 $5.000 $600.000 $10.000 $100.000 $700. 469 $0 $0 $0 $0 $0 $0 $0 $0 $151.460 $39.946 $0 $477.362 $607. 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 2003 2004 2005 2006 2007 $151. Payment of Accounts Payable Subtotal Spent on Operations Additional Cash Spent Sales Tax. Payroll Taxes.668 $273.012 Expenditures Expenditures from Operations: Cash Spent on Costs and Expenses Wages.712 $0 $151.653 $356.469 $562.131 $0 $0 $0 $0 $0 $0 $0 $0 $273.250 2006 $24.273 $46.486 $211.66 6 $0 $0 $0 $0 $0 $0 $0 $0 $1.128 $447.577.636 $250.45 0 $0 $0 $0 $0 $0 $0 $0 $0 $447.000 in 2006.612 $0 $0 $0 $0 $0 $0 $0 $0 $812.612 $0 $654.031 $0 $0 $0 $0 $0 $0 $0 $0 $403.538 $308.275 $167.000 in 2007.015.691 $156.009.66 6 $0 $1.000 in 2005.946 $0 $0 $0 $0 $0 $0 $0 $0 $654.000 in year 2008.009.66 6 2007 $28.609 $126. $186.000 in 2004. Salaries.592 $408.898 2004 $16.Three Floyds Brewpub 7. etc.704 $168. 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 2003 $6. VAT. and $679.420 $1.197 $1. $290.612 $812.408 2005 $20.946 $654.712 $477. $550. 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.898 $59. Three Floyds Brewpub generates positive cash flow in its first month! $47.712 $0 $0 $0 $0 $0 $0 $0 $0 $477.000 in the last few months of 2003.012 $0 $812.012 $1.009.408 $204.4 Projected Cash Flow CASH FLOW Given the assumptions detailed above.250 $298.132 $130.814 $104.166 $91.669 $0 $0 $0 $0 $0 $0 $0 $0 $356.831 $403. $400. VAT.64 8 Page 31 .592 $0 $0 $0 $0 $0 $0 $0 $0 $91.906 $178. 352 $0 $0 $38.995 $0 $44.995 $0 $0 $44.455 $290.840 $92.000 ($455.450 $1.000 $100.648 $500.205 $0 $53.000 ($222.352 2006 $44.5 Projected Balance Sheet Table: Balance Sheet (Planned) Pro Forma Balance Sheet Assets Short-term Assets Cash Other Short-term Assets Total Short-term Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Accounts Payable Current Borrowing Other Short-term Liabilities Subtotal Short-term Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth 2003 $11.785 $500.524.031 $1.577.683) $47.796 $401.000 $500.205 2003 $104.455 $1.679 $970.785 $0 $30.974 $0 $11.000 $500.679 $470.450 $1.843) $185.442 Page 32 .577.648 $568.015.000 $20.031 $1.015.679 $970.000 $80.883 2005 $38.031 $1.131 $0 $0 $0 $104.000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Net Cash Flow Cash Balance 7.883 $308.000 $40.450 $1.669 2005 2006 2007 $607.Three Floyds Brewpub Cash (Planned) $120.117) $68.669 $277.785 $0 $0 $30.031 $1.974 $0 $0 $11.648 $0 $0 $0 $607.669 $0 $308.524.131 2004 $308.000 $60.648 $0 $0 $0 $0 $0 $0 $0 $0 $0 $607.669 $0 $0 $0 $308.157 2004 $30.352 $0 $38.577.450 $1.015.205 $0 $0 $53.131 $92.577.995 2007 $53.157 $104.974 $500.015.131 $0 $104.987 $568.000 ($407.442 $607.455 $1.726 $277.777 $553. Who May Invest Page 33 . Subscribers are urged to retain independent counsel to protect their interests with respect to the Operating Agreement.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. 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. Each person who agrees to purchase Shares in this Offering must execute a Subscription Agreement and an Operating Agreement. The Minimum Investment and Maximum Investment limitations may be waived or modified by the Company in its sole and absolute discretion.Three Floyds Brewpub 7.000. 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.3a4-1(a) of the rules and regulations of the SEC as promulgated under the Securities Exchange Act of 1934. in its sole and absolute discretion.5. 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. 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. and subject to acceptance or rejection in whole or in part by the Company. In this Offering. 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. 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. the Minimum Investment is one (1) Shares or $500. All investors will be required to execute an Operating Agreement. upon Closing. 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. and the Maximum Investment is 400 Shares or $200. The Company has not employed securities dealer or underwriter in connection with this Offering. may reject subscriptions. The Company.Three Floyds Brewpub 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. As a result of the Company’s formation as a limited liability company. The Company will require each investor to complete an Investor Questionnaire. in its sole and absolute discretion. without regard to the order of receipt of subscription funds or whether the Offering is oversubscribed.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. or allot to a particular investor fewer than the number of Shares of subscribed for by such investor. rules or regulations or otherwise. corporation. 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. Each investor will be required to execute an Operating Agreement governing the rights and obligations of all members of the Company. LLC or any type of trust may become a member of the 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. or (2) exempted under state law permitting general solicitation and advertising so long as sales are made only to accredited investors. 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. the investor should deliver the following to the Company: Page 34 . partnership. a non-resident alien. either alone or together with a purchaser representative. (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. there is no restriction on who may be a member. How To Subscribe If a qualified investor desires to subscribe for Shares. As such. in whole or in part. 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. Investors should obtain independent legal and/or accounting advice with respect to the tax implications of becoming a member in a limited liability company.000. 500. Expiration Date for Subscriptions The expiration date for subscriptions will beDecember 24. 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. or $199. 9701 Indianapolis Boulevard. or $500. LLC. to the extent accepted. The appropriate subscription documents should be returned to the Company in accordance with the instructions set forth therein. all subscriptions will be filled. local time on the Expiration Date. At Closing.000. are received in response to this Offering. IN 46322. 9750 Indiana Parkway. Local time on the Expiration Date or (b) deposited in the United States mail. in its sole and absolute discretion. funds received from subscribers as payment for properly-submitted subscriptions will be placed in an account (the "Escrow Account") established by the Company. The subscription documents are contained separately and provided with this Memorandum. 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. The Company will maintain such funds in an escrow account in its name at Centier Bank. The Company may not disburse funds from the Escrow Account and issue Shares until the Closing of the Offering. addressed to the address Page 35 .m. Such issuance of certificates will occur on a reasonable date after the Closing of this Offering. Subscriptions will not be accepted unless received before 5:00 p. Additional copies of the subscription booklet are available from the Company by contacting Nick Floyd. notwithstanding such waiver. 2003 ("Expiration Date"). may elect to accelerate the Expiration Date. In the event subscriptions for fewer than 299 Shares. Escrow Arrangements Commencing on the date of this Offering Memorandum. • A certified or cashier’s check payable to "Three Floyds Brewpub LLC Escrow Account" in the amount of $500 per Share. Highland. In the event subscriptions for more than One Thousand (1000) Shares are received in response to this Offering. The Minimum Investment per investor is $500 unless otherwise waived by Company. the Company.Three Floyds Brewpub • A properly executed: Subscription Agreement and Operating Agreement. in its sole and absolute discretion. Subscriptions In the event subscriptions for fewer than One Thousand (1000) Shares. postage prepaid. IN 46321. are received. (219) 922-3565. by issuance of certificates representing the Shares. the Company. Three Floyds Brewing. Munster. may elect to waive the Maximum Investment limitation. A subscriber will not have any right.Three Floyds Brewpub provided in the Subscription Materials. for any reason. These expenses will be paid by the Company. exercisable in its sole and absolute discretion. in whole or in part. The Company has no obligation to give notice of any such termination to any party. local time on the Expiration Date. AS AMENDED (THE "SECURITIES ACT"). SOLD OR OTHERWISE DISPOSED OF IN THE ABSENCE OF REGISTRATION THEREUNDER OR PURSUANT TO AN AVAILABLE Page 36 . 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. The Company reserves the right. 2003. In the event the Offering is thus terminated. 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. however. to reject any subscription hereunder. in time for delivery thereof prior to 5:00 p. The Company may also. 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. none of the expenses related to the Offering will be paid out of subscribers’ funds or the income therefrom. to revoke or withdraw any subscription. Termination of the Offering The Company shall terminate this Offering if Closing shall not have occurred by December 31. If the Offering is fully subscribed before the Expiration Date.m. the Company may act to accelerate expiration of the subscription period. thereby accelerating the Expiration Date. 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. act to extend the subscription period. exercisable in its sole and absolute discretion. 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. the Company will issue to each subscriber one or more certificates representing the subscriber’s Shares. in its sole and absolute discretion. As soon as practicable following the Closing. OR ANY UNITED STATES OR STATE SECURITIES LAWS AND MAY NOT BE TRANSFERRED. In either event. In addition. the Company shall not be required to give notice of the acceleration or extension to any party. without the prior consent of the Company. No interest will be paid on any subscription funds returned to subscribers. 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. or disposition of individual assets. The Manager is also a newly-formed entity without an operating history. as a new entity. PROVISIONS AND CONDITIONS OF A CERTAIN OPERATING AGREEMENT DATED AS OF MARCH 24. IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE UNITED STATE AND STATE SECURITIES LAWS. 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. a prospective purchaser of shares should consider the following factors. As a newly-formed entity. the Company has not identified or made any investments. HYPOTHECATED. which will be empowered and act pursuant to a Management Agreement. Page 37 . AND ALL OF THE MEMBERS OF THE COMPANY. and certificates evidencing the Shares will also contain the following legend: "THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE ARE HELD UNDER. THE COMPANY IS ADVISED BY AN EXTERNAL MANAGER. The Company is newly formed and. or any decisions regarding investment strategy. Changes to Company strategies and policies may be proposed by the Manager and will not require Advisory Board or Shareholder assent. The Company will be heavily dependent on the abilities of the Manager. the Company initially will have no employees and is completely reliant on the Manager." 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. AND THE SAME MUST ONLY BE PLEDGED. which will have significant discretion in implementing the strategies set forth by the Company. AND THE RIGHTS OF THE HOLDER HEREOF ARE SUBJECT TO ALL THE TERMS. 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. As such. LLC. PROVISIONS AND CONDITIONS OF SAID OPERATING AGREEMENT." Transferability of the Shares will be subject to the terms of a Operating Agreement.Three Floyds Brewpub EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. SOLD OR OTHERWISE DISPOSED OF OR ASSIGNED OR TRANSFERRED ON THE BOOKS OF THE COMPANY EXCEPT IN ACCORDANCE WITH THE TERMS. has no operating history. In addition to general investment risks and those factors set forth elsewhere in this document. No assurances can be given that the Company will be profitable or that any particular return will be achieved. new acquisition. ENTERED INTO BY AND AMONG THREE FLOYDS BREWPUB. 2003. General Investment Risks THE COMPANY IS A NEWLY-FORMED ENTITIY. S. state and local tax effects of investing in the Company. regulations and administrative rulings which among other things. including. state and local income tax considerations which will differ for each Shareholder. Therefore. 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. 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. THE SERVING OF FOOD AND ALCOHOL The operations of the Company. 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. Page 38 . Both tax-exempt entities and other persons should consult with their own tax advisors regarding any other U. in its sole and absolute discretion. Additionally. authorities. and the penalties for violation of these laws and regulations.Three Floyds Brewpub 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. please the attached management bios or resumes. 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. which. LLC) has extensive experience in the operation of a brewery for the manufacture and distribution of craft beer on a wholesale basis. the Company’s ability to serve beer. An investment in the Company involves complex Federal. Furthermore. For further information concerning the individual experience of each individual. the liquor license that grants the authority of the Company to serve alcohol on the premises. in good standing. will be subject to Federal and state laws. the Manager will be authorized to utilize a portion of the capital raised through this document for the expansion of Three Floyds Brewing. inherent in the service of alcohol is the "Dram Shop" and other exposure created as a result of the operation of the business. LIMITED TRACK RECORD OF THE MANAGER Although Three Floyds Brewing. The Company will enter into a Management Agreement with the Manager outlining areas of responsibility and authority. subject to the powers. LLC. As such. any such liability resulting from the Company’s service of alcohol may impact the Member’s investment in the Company. The operation of the Company is dependant upon maintaining. TAX CONSIDERATIONS. 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. Federal. and limitations set forth in the Management Agreement. establish standards for the operation of a bar and restaurant. but not limited to the serving of food and alcohol. THE POTENTIAL EXISTS FOR CONFLICTS OF INTEREST BETWEEN THE MANAGER AND THE COMPANY. and. the Management Agreement provides that the Company will indemnify the Manager and its affiliates. 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. including in connection with the enforcement of any arrangements or agreements regarding any such services Page 39 . Such indemnification obligations could materially affect the returns to Members. As a result. 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 Management Agreement limits the circumstances under which the Manager or its affiliates will be held liable to the Company. judicial or administrative changes. 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. partners and employees for certain claims. to the detriment of the Members. no assurance can be given that the currently anticipated income tax treatment of an investment in Company will not be modified by legislative. resulting in revisions of resolutions and revised interpretations of established concepts as well as statutory changes. possibly with retroactive effect. damages. 2) certain officers and directors of the Company are expected to also be officers of the Manager. In addition. Members may have a more limited right of action in certain cases than they would have in the absence of this provision. Therefore. Conflicts of interest could arise in connection with the foregoing affiliate transactions. 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.Three Floyds Brewpub Risks Related to Investment Terms LIMITATION OF RECOURSE AND IDEMNIFICATION OF THE MANAGER. and expenses arising out of their activities on behalf of the Company. losses. 1. 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. that the prospective Investor in the Company’s stock (the "Securities"). and other documents delivered by you to the Company. Please provide information for all subscribers. 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 . An Indiana Limited Liability Company Confidential Investor Questionnaire The primary purpose of this Confidential Investor Questionnaire is to assure Three Floyds Brewpub. and (iii) the Company may present this Confidential Investor Questionnaire. Except as set forth herein. please so state. If the answer to any question is "No" or "Not Applicable". or both. By signing this Confidential Investor Questionnaire. Please print or type your answers. using separate questionnaires if necessary. 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.1 Investor Questionnaire THREE FLOYDS BREWPUB. LLC. except that of your spouse. Please do not combine or consolidate financial information of co-subscribers.Three Floyds Brewpub 7. may be found I violation of federal or state securities laws. you or the Company. an Indiana Limited Liability Company (the "Company"). THREE FLOYDS BREWPUB. however. LLC. An Indiana Limited Liability Company Confidential Investor Questionnaire 1. your answers will at all times be kept strictly confidential. LLC. General Information Name of Investor:___________________________________________________ If ownership of the Securities will be held in the name of two or more individuals.5. The entire Confidential Investor Questionnaire must be completed by all investors. (ii) if your representations or responses are not accurate. truthful and complete. you understand and agree that (i) the Company is relying on the accuracy. will be eligible to invest in the Securities. including a complete loss of your investment? 1. Financial Information 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. Educational Background COLLEGE OR UNIVERSITY MAJOR (Area of Study) DEGREE(S) __________ _______________ _________________ __________ __________ _______________ _________________ __________ __________ _______________ _________________ __________ Page 41 . Yes _____ No _____ 4.Three Floyds Brewpub ______________________________________________________________________________ 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. Ability to Make Investment Decisions 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 _____ 2.000 in each of those years and has a reasonable expectation of reaching the same income level in the current year. is currently over $1. warrants and agrees to the following: 1.Three Floyds Brewpub 5. 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 .e. please state the name of the purchaser representative: ________________________________________________________________________ 7. 8. Accredited or Unaccredited Investor The undersigned is an "Accredited Investor" inasmuch as the undersigned is: _____ A director. _____ A natural person who had an individual income in excess of $200. _____ A natural person whose individual net worth. or _____ A broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934. Agreements The undersigned hereby understands. 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. Yes _____ No _____ If "Yes.000 in each of the tow most recent years or joint income with your spouse was in excess of $300. executive officer or general partner of the Company.000. or joint net worth with spouse.. Business Experience Please provide details of any professional licenses. registrations or other training or experience (including courses or seminars attended) in financial. 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? 1.000. an "Unaccredited Investor"). business or tax matters: ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 6. represents. or _____ None of the above (i. If the answer to (a) is No. 2003. being in violation of applicable law including federal and state securities laws. the undersigned is agreeing to indemnify the Company and others from damages arising from those statements or from other matters. (b) The undersigned understands that any information contained in this confidential Investor Questionnaire that is untrue. (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. 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. (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. and (f) The undersigned knows of no pending or threatened litigation the outcome of which could adversely affect the answer to any questions hereunder. _________________________ _________________________ 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 . may have claims against the undersigned for damages. IN WITNESS WHEROF.Three Floyds Brewpub and state securities laws. the undersigned has completed the foregoing statements and executed this Confidential Investor Questionnaire this ________ of _________________. incomplete or inaccurate may result in the undersigned or the Company. (c) The undersigned understands that a false statement or representation may constitute a violation of law. The undersigned shall furnish this additional information promptly if the undersigned desires to have the undersigned’s subscription considered further. or both. and that any person who suffers damage as a result of a false statement or representation. Three Floyds Brewpub Page 44 . 504 Oct $31.125 Dec $37.240 Oct $5.892 $0 $3.558 $0 $6.740 Sep $4.492 $0 $37.740 $0 $25.492 Dec $6.558 Page 1 .467 Nov $35.467 $0 $5.240 $0 $22.000 Nov $6.240 Aug $3.000 $0 $35.125 $0 $6.892 Sep $25.504 $0 $4.240 $0 $31.Appendix Appendix 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 Jan $0 $0 $0 Jan $0 $0 $0 Feb $0 $0 $0 Feb $0 $0 $0 Mar $0 $0 $0 Mar $0 $0 $0 Apr $0 $0 $0 Apr $0 $0 $0 May $0 $0 $0 May $0 $0 $0 Jun $0 $0 $0 Jun $0 $0 $0 Jul $0 $0 $0 Jul $0 $0 $0 Aug $22. 000 $1.400 $600 $6.940 7 $1.940 7 $1.000 $2.500 $440 $1.400 $600 $6.981 Page 2 .041 $7.400 $600 $6.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 0 $0 $0 Feb $0 $0 $0 $0 $0 $0 0 $0 $0 Mar $0 $0 $0 $0 $0 $0 0 $0 $0 Apr $0 $0 $0 $0 $0 $0 0 $0 $0 May $0 $0 $0 $0 $0 $0 0 $0 $0 Jun $0 $0 $0 $0 $0 $0 0 $0 $0 Jul $0 $0 $0 $0 $0 $0 0 $0 $0 Aug $2.000 $2.000 $2.500 $440 $1.400 $600 $6.500 $440 $1.349 Sep $2.940 7 $1.390 6 $959 $7.981 Nov $2.400 $600 $6.981 Dec $2.041 $7.940 7 $1.041 $7.500 $440 $1.950 $440 $1.981 Oct $2.000 $2.041 $7. 572 16.000 $6.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 -----------$0 $0 $0 $0 $0 $0 $0 0.Appendix Appendix Table: Profit and Loss (Planned) Pro Forma Profit and Loss Sales Direct Cost of 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 0.87% Nov $35.005 $0 $15.00% Page 3 .00% May $0 $0 $0 -----------$0 $0 0.500 $1.240 $3.500 $200 -----------$15.592 $0 $0 $636 $0 $9.956 31.549 $3.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 -----------$0 $0 $0 $0 $0 $0 $0 0.181 $13.50% $2.000 $300 $500 $6.041 $0 $200 $1.000 $1.50% $2.748 42.500 $200 -----------$14.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 -----------$0 $0 $0 $0 $0 $0 $0 0.694 $0 $0 $822 $0 $12.041 $0 $200 $1.000 $300 $500 $6.892 $18.125 $28.000 $1.740 $4.000 $300 $500 $6.492 $6.06% Sep $25.000 $1.181 $10.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 -----------$0 $0 $0 $0 $0 $0 $0 0.500 $200 -----------$15.500 $1.872 36.934 82.000 $300 $500 $6.773 82.753 $0 $0 $1.00% Apr $0 $0 $0 -----------$0 $0 0.875 82.692 22.390 $959 $0 $200 $1.11% Oct $31.892 $0 -----------$3.500 $1.055 $0 $0 $363 $0 $5.50% $2.940 $1.500 $200 -----------$14.00% Feb $0 $0 $0 -----------$0 $0 0.558 $0 -----------$6.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 -----------$0 $0 $0 $0 $0 $0 $0 0.236 82.940 $1.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 -----------$0 $0 $0 $0 $0 $0 $0 0.50% $2.467 $0 -----------$5.500 $200 -----------$15.181 $16.00% Aug $22.940 $1.500 $1.000 $300 $500 $6.558 $30.000 $1.467 $25.00% Jun $0 $0 $0 -----------$0 $0 0.041 $0 $200 $1.504 $0 -----------$4.500 $1.78% Dec $37.940 $1.181 $6.125 $0 -----------$6.800 $0 $0 $228 $0 $3.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 -----------$0 $0 $0 $0 $0 $0 $0 0.00% Mar $0 $0 $0 -----------$0 $0 0.041 $0 $200 $1.00% Jul $0 $0 $0 -----------$0 $0 0.504 $21.51% $1.348 82.000 $1.240 $5. 079 $0 $0 $0 $0 $0 $0 $0 $0 $20.398 $6.240 Aug $1.393 $13. 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 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. etc.349 $340 $8.317 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $44.317 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $44.820 $13.317 $0 $0 $0 $0 $0 $0 $0 $0 $8.317 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $44.414 $104.492 0.740 $31. Salaries.398 $0 $0 $0 $0 $0 $0 $0 $0 $31.981 $10.898 $20.210 $19.981 $12.209 $11.240 $0 $31.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 Jan $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Feb $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Mar $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Apr $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 May $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Jun $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Jul $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $22.740 Sep $1.330 $7.376 $7.000 Nov $1.207 $7.317 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $44.393 $0 $0 $0 $0 $0 $0 $0 $0 $37.415 $7.737 $0 $0 $0 $0 $0 $0 $0 $0 $19.240 Oct $1. 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.132 $7.031 $75.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.998 $21.420 $57.209 $0 $0 $0 $0 $0 $0 $0 $0 $35.078 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $44.317 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $44.240 $25.342 $64.720 $22.607 $88.131 Page 4 .110 $0 $0 $0 $0 $0 $0 $0 $0 $21.981 $11.000 $37.717 $0 $0 $0 $0 $0 $0 $0 $0 $22. Payment of Accounts Payable Subtotal Spent on Operations Additional Cash Spent Sales Tax.820 $0 $0 $0 $0 $0 $0 $0 $0 $25.317 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $44.492 $0 $37.078 $15. Payroll Taxes.492 Dec $1.240 $35.740 $0 $25.000 $0 $35. VAT.240 $0 $22.981 $10. 683) $47.079 Oct $75.848 $500.131 $0 $104.683) $0 $44.092 $76.000 ($455.317 $44.131 Page 5 .000 ($455.317 $0 $44.317 Feb $0 $0 $0 $0 $0 $0 $500.573 $0 $0 $11.974 $500.157 $104.848 $0 $9.737 Sep $64.317 $44.000 ($455.317 Jul $0 $0 $0 $0 $0 $0 $500.079 $0 $0 $0 $64.079 $53.000 ($455.317 $44.317 $0 $0 $0 $44.317 May $44.317 Aug $9.000 ($455.317 $0 $0 $0 $44.974 $0 $0 $11.317 $44.Appendix Appendix Table: Balance Sheet (Planned) Pro Forma Balance Sheet Assets Short-term Assets Cash Other Short-term Assets Total Short-term Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Accounts Payable Current Borrowing Other Short-term Liabilities Subtotal Short-term Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $0 $0 $0 $0 $0 $0 $500.580 Oct $11.737 $47.683) $0 $44.317 Apr $44.317 $44.000 ($455.000 ($455.974 $0 $11.157 Starting Balances $44.317 Jul $44.683) $32.110 $0 $0 $0 $75.317 $44.499 $500.683) $0 $44.499 $0 $10.317 $0 $44.317 Jan $44.317 $0 $44.317 $44.317 $44.220 $63.717 $0 $88.110 Nov $88.317 Feb $44.683) $9.683) $0 $44.308 $0 $12.317 $0 $0 $0 $44.000 ($455.317 $0 $0 $0 $44.499 $0 $0 $10.683) $3.317 $0 $44.409 Dec $11.317 $44.717 $76.537 Nov $12.131 $92.317 $44.683) $0 $44.717 $0 $0 $0 $88.000 ($455.317 Jun $0 $0 $0 $0 $0 $0 $500.110 $63.000 ($455.409 $88.317 $0 $44.317 $44.317 Jun $44.317 $0 $44.848 $0 $0 $9.889 $57.317 Apr $0 $0 $0 $0 $0 $0 $500.110 $0 $75.317 May $0 $0 $0 $0 $0 $0 $500.317 $0 $0 $0 $44.000 ($455.840 $92.580 $64.263 $53.308 $0 $0 $12.317 $44.683) $0 $44.317 $0 $44.317 Mar $44.317 Jan $0 $0 $0 $0 $0 $0 $500.000 ($455.889 Sep $10.317 $0 $0 $0 $44.317 Mar $0 $0 $0 $0 $0 $0 $500.573 $0 $11.537 $75.317 $44.308 $500.317 $44.317 $44.573 $500.683) $19.737 $0 $0 $0 $57.317 $0 $44.079 $0 $64.317 $0 $0 $0 $44.683) $0 $44.317 Aug $57.737 $0 $57.572 $47.317 $0 $0 $0 $44.131 $0 $0 $0 $104.683) $0 $44.717 Dec $104.000 ($455.317 $44.