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Published byArlene Henry Modified over 9 years ago
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The Opportunity PSGFIF provides investors access to the franchise sector by removing the traditional barriers of entry such as, Ability to locate and evaluate the franchise opportunities Required Industry knowledge and contacts Large amounts of capital Operational know how and responsibility
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Franchise Industry Facts Franchise businesses account for $802 billion in direct US sales Franchise businesses generate $2.1 trillion dollars to the GDP and 9% of the all private sector economic output 40.9% of all retail sales are derived from franchise businesses 97% of franchise companies were still in business after 5 years of operations $17.4 million People are employed from business related to franchisees
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Rosenberg Center Franchise 50 Index
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The Offering Issuer- Playbook Solutions Group Franchise Income Fund, LLC Manager- Playbook Solutions Group Advisors, LLC Reg D Private Placement Offering Minimum/Maximum $1 Million/$50 Million Investor return: 7.5% preferred annualized return paid monthly 50% of the net profit realized from PSGFIF Venture Capital Investments Accredited investors only Minimum subscription of one unit in the principal amount of $100,000 IRA and Retirement account suitable
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Fund Objectives The primary purpose of PSGFIF is to purchase existing, operating franchised businesses subject to long-term franchise agreements with nationally-recognized franchisors that generate sustained and current positive cash flow ("Income Portfolio Investments"). The Company also will seek, as part of its investment strategy, to invest a portion of its capital to develop and expand business concepts with the potential for franchising ("Venture Capital Portfolio Investments“).
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Targeted Franchise Services Consumer Necessity Franchises that provide consumers with products or services that are integrated into their everyday life, such as: Restaurants Fast Food/ Quick Service Restaurant Fast Casual Full Service Mail and Business/Document service centers Elder care Cellular Phone Fitness and Health Hotels and Motels
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Sample Target Acquisitions
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Example Subway Franchise Unit P&L Economic Summary Gross Sales$489,403Percentage of Gross Sales Less Total Cost of Goods Sold$159,79732.70% Gross Profit$329,60667.30% Less Total Operating Expenses$257,11752.50% Net Operating Income$72,48914.80% The following is an example of a Subway Franchise unit profit and loss statement. This is intended merely as an example of one specific type of franchise that the Company may target for investment. Actual results of the company may vary materially from this example. Complete Profit and Loss Statement see Exhibit B of Subscription Agreement
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Example Subway Franchise Unit P&L Economic Summary (continued) Franchise Unit Value (5X NOI)$362,445 Total Purchase Price (Including Closing Costs) $380,000 (approx.) Net Operating Income$72,489 First Year Return19.1%
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Investor Benefits SECURITY: Ownership of the Franchise as well as the Franchise Agreement with the Franchisor will be held in the name of PSGFIF. Each operating Franchise will also have tangible assets which will be owned by PSGFIF as well. CURRENT INCOME: PSGFIF will be primarily purchasing existing operating franchises with sustained as well as current positive cash flow. Investors will receive a Preferred 7.50% annualized return distributed monthly. POTENTIAL CAPITAL APPRECIATION: The PSGFIF will invest a portion of its capital to develop and expand new franchise concepts on an equity ownership basis. Investors will receive a 7.50% Preferred Return plus a 50% Return of any profits from the aforementioned. PORTFOLIO DIVERSIFICATION: Owning operating established Franchises may diversify your investment portfolio, as they have demonstrated a long term low correlation with traditional asset classes such as stock and bonds.
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Management Team Overview Over 30 years’ experience in the restaurant industry in executive leadership roles for some of the country’s leading restaurant brands. Graduate of United States Military Academy at West Point Rick’s career highlights in leading restaurant companies from 350 to 900 plus locations include: President and CEO of Boston Market Corporation (Sun Capital Partners) President and CEO of Shoney’s Restaurants President and COO of Cracker Barrel Old Country Store President and Chief Operating Officer of Perkins Restaurants. Jim has been in the franchising world for over 40 years and brings the unique perspectives from both the franchisor and franchisee sides of the business. 38 years with Subway, the worlds largest franchisor. CEO of the Subway franchisee advertising association. Where he oversaw an annual budget of over 500 million dollars. Franchise owner of both Subway and Seniors Helping Seniors. RICK ARRAS JIM HANSEN
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Management Team Overview 43 years of successfully launching, building, and revitalizing national and regional brands has positioned him as a business and marketing leader in industries that include restaurant, financial, health, entertainment, and retailing. Some of Ron’s strategic consulting and sales generating experiences includes franchisor /franchises systems like: McDonald’s, Pizza Hut, Perkin’s Family Restaurants, Huddle House, UPS, Boston Market Corporate positions including Yum Brands (Pizza Hut). Bob brings 27 years of extensive business, real estate, franchising, and retail operations experience. He has work/consulted for some of the world’s most recognizable brands like: Director of Growth & Development Sports Authority (14 Yrs) T-Mobile SUBWAY Burger King Church’s Chicken Pizza Hut (Yum Brands) RON WEINSTOCK BOB SIMPSON
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Management Team Overview Susan is a certified public accountant. Over 30 years of experience providing financial and consulting services to small and midsized companies. Acting Chief financial officer and controller: Bank Atlantic Bancorp Levitt Homes Ryan Beck Securities Coach Industries CU Business Capital SUSAN WEISMAN, CFO STEVE LEVENSON, FOUNDER Steve has 37 years diversified business experience focusing on real estate, investments, and finance. He has raised over $500 Million in investment capital.
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Reasons to Consider Investing Franchise sector is a unique asset class not readily available to investors Portfolio Diversification Investments/Acquisitions in some or the most recognizable brands in the world Investors receive both: 7.5% preferred annualized return paid monthly 50% of the net profit realized from PSGFIF Venture Capital Investments Experienced management team with “Skin in the game”
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CALL OUR OFFICE (561) 693-0810 OR REGISTER AT www.PSGFIF.com Playbook Solutions Group Franchise Income Fund, LLC 205 Worth Avenue Suite 111 Palm Beach, FL 33480 Additional Information Schedule a Personal Strategy Session
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Disclaimer This Offering contains forward-looking statements. Such forward-looking statements are generally accompanied by words such as “intends”, “projects”, strategies”, “believes”, “anticipates", "plans”, and similar terms that convey the uncertainty of future events or outcomes. The forward-looking statements contain herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, dependence on the services of the current officers and directors of the company, the competitiveness of the industry, the regulatory client of the industry, the possibility that the Company may need additional funding precipitating dilution of ownership, no assurance that the Company services will be competitive, and the general economic climate may affect future results of the Company. Readers are cautioned not to place undue reliance on these forward- looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Accredited Investors must read the Subscription Agreement and associated Exhibits, including Risk Factors and Conflicts of Interest. Prospective investors should carefully consider the risks involved and consult with independent qualified sources of investment and tax advice. This investment is intended only for persons who can afford to lose all of their investment. Potential risks include but are not limited to the partial or complete loss of investment, long term illiquid investment, and non transferable, development stage fund with no operating history.
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