Joes presentation new design

37
Florida Restaurant Franchise Group Group V, LP

Transcript of Joes presentation new design

Page 1: Joes presentation new design

Florida Restaurant Franchise Group Group V, LP

Page 2: Joes presentation new design

• The Palm Beach Regional Center presents an opportunity to consider investment in a variety of different projects.

• These projects are carefully reviewed and selected upon the basis of their ability to meet stringent criteria while meeting EB-5 standards in creating jobs.

• PBRC’s Managing Members, Alfred Zucaro and Louis Haddad, have extensive experience in Immigration and Nationality law and in the public and private sectors.

Palm Beach Regional Center

Page 3: Joes presentation new design

Background of The Palm Beach Regional Center

PBRC is approved by USCIS to operate in the Miami Metro Area, which is the largest and most popular area of the State of Florida consisting of the Miami-Dade, Broward and Palm Beach counties. • With a population of 5,564,635

inhabitants per the 2010 Census,• the Miami metropolitan area is the

most populous in Florida and in the Southeastern United States[9]

• and the eighth-most populous in the United States.

• It is part of the South Florida region and is partially synonymous with the Gold Coast.

Its target economic industry clusters includes:

• Restaurants• Solar Panel Manufacturing• Office Buildings• Hotels• Film & Television Production• Renewable Energy

Technologies• Health Care Facilities

Page 4: Joes presentation new design

PALM BEACH REGIONAL CENTER PAST SUCCESS

Sonic Restaurants• Established 1955 • More than 3,400 locations• 4 Phases in EB-5• Raised USD$12,000,000 • 100% I-526 approval for Phases 1-

3

VooDoo BBQ & Grill Restaurants

• Established 2002• More than 52 locations• 3 Phases in EB-5• Raised USD$15,000,000• 100% approvals on submitted I-526• Phase 2 recently released

Page 5: Joes presentation new design

The EB-5 Visa Program The Fastest way to Immigrate to the

United States

Page 6: Joes presentation new design

Why do so many people want to emigrate to the U.S.A.?

• Access to the world’s best universities, medical care, and social program at the same cost paid by U.S. citizens

• Lower cost of living compared to many other countries

• Freedom to establish your own business

Page 7: Joes presentation new design

World University Rankings 20107 of the top 11 Universities in the world are located in the

United States

1. Harvard University (USA) 2. University of Cambridge (UK)3. Yale University (USA) 4. University College London (UK)5. Princeton University (USA) 6. Imperial College London (UK)7. University of Oxford (UK)8. University of Chicago (USA) 9. Massachusetts Institute of Tech (USA) 10. California Institute of Tech(USA) 11. Stanford University (USA)

Page 8: Joes presentation new design

What is the EB-5 Visa Program?

The fifth employment based visa preference category (EB-

5), created by Congress in 1990, is available to

immigrants seeking to obtain their permanent US residency

by investing in a new commercial enterprise that will

benefit the US economy and create at least 10 full-time jobs.

•Type of Employment Based Visa

•10,000 EB-5 Green Cards available per year

•3,000 Green Cards are set aside for the Regional Center Program

•Green Cards (“conditional”) are issued in months rather than years. Permanent Green Card is issued 2 years after approval of Investor’s petition.

•$1 million dollar investment unless the business is located in a specially designated high employment area or rural area called a Targeted Employment Area (“TEA”) and then the investment is $500,000

•Investment is fully at risk

Page 9: Joes presentation new design

Selection Criteria for the EB-5 Visa Program/Requirements

1. Minimum required Investment is $1,000,000* or $500,000 if located in a TEA

2. The investment must create 10 full-time direct jobs

3. The applicant must prove lawful source of investment funds

4. 6-18 months* to obtain a conditional visa, 2 years later apply to remove the condition for permanent residency

5. Permanent Visa; no time restrictions; no education requirements, not required to speak English.

Page 10: Joes presentation new design

USCIS Statistics on I-526 and I-829 approvals

U.S. Citizenship and Immigration ServicesImmigrant Petition by Alien Entrepreneur (I-526) and Petition by Entrepreneur

to Remove Conditions (I-829)Fiscal Year(s): 2005-2012 (Third Quarter)

Fiscal Year

I-526 I-829

Receipts

Approvals

Denials

Approval %

Receipts

Approvals

Denials

Approval %

2005 332 179 156 53% 37 184 112 62%

2006 486 336 124 73% 89 106 108 50%

2007 776 473 148 76% 194 111 49 69%

2008 1,257 640 120 84% 390 159 68 70%

2009 1,028 1,262 207 86% 437 347 56 86%

2010 1,955 1,369 165 89% 768 274 56 83%

2011 3,805 1,563 371 81% 2,345 1,067 46 96%

2012 4,156 3,002 775 79% 546 639 42 94%

Grand Total

13,795

8,824 2,066 81% 4,806 2,887 537 84%

Data: Based on June Preliminary 2012 Data

Page 11: Joes presentation new design

Project I-526 Approvals

Page 12: Joes presentation new design

Upcoming EB-5 quota for Chinese Nationals

• Not currently in effect• Expected to be adopted some time during FY

2013• When implemented, will negatively impact the

total time of EB-5  petitions, especially for Chinese Nationals

Page 13: Joes presentation new design

Florida Restaurant Franchise Group 5

-Background

Page 14: Joes presentation new design

VooDoo BBQ & Grill Overview

• VooDoo BBQ & Grill opened its first store on St. Charles Avenue in New Orleans in 2002

• There are currently a total of 54 (combined) active and licensed locations

• Experienced and successful development and operations team with over 10 years of success in various national franchise operations and proven track record of success.

Page 15: Joes presentation new design

VooDoo BBQ & Grill54 active and licensed locations

 Louisiana – 14 storesTexas – 5 storesMississippi - 1 storeSouth Carolina – 7 storesNorth Carolina – 1 storeFlorida – 26 stores (1 currently open) Future expansion of store locations scheduled in Georgia, Alabama, Washington D.C., Virginia, Nebraska and Maryland in 2012-2013.

Page 16: Joes presentation new design

VooDoo BBQ & Grill – New Florida Stores

All Located in a TEAPembroke Pines 151 N Hiatus Rd. Pembroke Pines, FL

VooDoo BBQ Kendall 8268 Mills Dr.Kendall, FL

VooDoo BBQ & Grill 3201 N. Miami Ave.Miami, FL.

Page 17: Joes presentation new design

VooDoo BBQ & Grill – New Florida Stores

All Located in a TEAFt. Lauderdale6300 Andrews AveFt. Lauderdale, FL

Delray Beach640 E. Atlantic AveDelray, FL

Las Olas901 Las Olas Blvd.Ft. Lauderdale, FL.

Page 18: Joes presentation new design

VooDoo BBQ & Grill – New Florida Stores

All Located in a TEAPalm Beach1951 N. Military TrailW. Palm Beach, FL.

Miami11327 S. Dixie HwyMiami, FL.

Page 19: Joes presentation new design

Jack Flechner – President of BBQ Boyz, LLCThe President and Director of Operations, Jack Flechner, is an attorney who graduated from the University of Maryland, School of Law in 1998 and from the Smith School of Business at the University of Maryland, College Park in 1994 with a BS in Marketing. He has been a successful operator of many varied businesses in the mortgage, title and real estate fields, and oversaw the growth and operations of his real estate businesses to include operations in over ten states, with more than 15 offices and annual revenue of over $50,000,000. Most recently Mr. Flechner developed and operated the fast food concept of Five Guys Burgers and Fries in the greater Miami area. Five Guys Burger & Fries has been one of the fastest growing restaurant chains in the United States over the last ten years, and currently has approximately 900 stores in the United States and Canada. Mr. Flechner’s Five Guys Burger restaurants were consistently recognized as some of the highest grossing and best run locations in the entire system. Many Five Guys corporate people as well as other franchisees frequently visited his stores to learn how to run successful high-grossing stores in a challenging environment. In fact, his store located in Miami Beach, Florida was in the top 5 highest-grossing stores in the country. Recently, Mr. Flechner sold his interest in the Five Guys franchise so he could devote his full time and attention to the development of VooDoo restaurants in the State of Florida.

Tony Avila – Chief Executive Officer, VooDoo BBQ & GrillAntonio Avila has served as Chief Executive Officer of VooDoo BBQ Franchising, LLC since its inception. After getting his CPA from Louisiana State University Mr. Avila served as Supervising Senior Tax Specialist for KPMG, LLC in Baton Rouge, Louisiana from August 1997 to April 2002. He then served as chief Financial Officer of VooDoo BBQ, LLC in New Orleans, Louisiana until January 2004. Mr. Avila then served for two years as Chief Operating Officer of Delta Administrative Services, LLC in Metairie, Louisiana; and in 2004 he became Chief Executive Officer of VOODOO BBQ & GRILL LLC d/b/a VooDoo BBQ & Grill in Baton Rouge, Louisiana. Since Mr. Avila became CEO in 2004, he has overseen the growth of VooDoo from just two locations to more than 53 locations currently operating or under development throughout Louisiana, South Carolina, North Carolina, Florida, and Texas, with additional locations to be developed in Washington D.C., Virginia and Maryland in 2012-2013.

Background VooDoo BBQ & Grill Restaurants

Page 20: Joes presentation new design

Project Introduction

Page 21: Joes presentation new design

Main Advantage to EB-5 Investor – The Project

Page 22: Joes presentation new design

Project Offering

Current Project Valuation $39,000,000 USD Total EB-5 Capital $30,000,000 USD Developer Contribution $9,000,000 USD EB-5 Investment Requirement $ 500,000 USD (State verified TEA)

Regional Center Administrative Fee $55,000 USD (including I-526 immigration paperwork)

Number of EB5 Investors 60 (10 per phase) Total Jobs Required 600 Total Jobs Total Jobs Created 1,050 (verified by a noted economist) Annual Interest Rate Paid to EB-5 Investors

2 % (per year distributed every 6 months)

EB-5 Cap-ital

Devel-oper Contribu-tion

Page 23: Joes presentation new design

About the Regional Center : The Palm Beach Regional Center (“PBRC” ) has been fully approved as an EB-5 Regional Center, and was federally designated by the United States Citizens & Immigration Service (“USCIS”) in September 2008. The Palm Beach Regional Center has a current track record of 100% success rate on all previous EB-5 I-526 applications and has successfully offered four (4) previous Restaurant offerings.

About the Business: The VooDoo BBQ franchise has been nationally recognized with multiple food awards and is poised to become one of the largest national BBQ Restaurant franchises in the United States with fifty four (54) operating and licensed locations and development sites in Louisiana, Texas, Mississippi, North Carolina, South Carolina, and Florida with additional plans to expand into Georgia, Alabama and Washington, D.C.

Investment Summary

Page 24: Joes presentation new design

About the Borrower: These twenty four (24) Voodoo BBQ & Grill Restaurants will be owned and operated by the BBQ Boyz, LLC development group which currently holds the exclusive development rights of current and future Voodoo BBQ Restaurants in the State of Florida. The BBQ Boyz is a team of experienced and successful Restaurant Operators who have successfully owned and operated multiple national fast food franchise locations in the South Florida markets with more than $18,000,000 in annual sales.

Escrow of Funds: All investment funds and the Administrative Fee are held in a third party escrow account and are fully refundable if the I-526 petition is denied by USCIS.

Collateral for EB-5 investors: In the current offerings, an undefined total of 20 (twenty) to 24(twenty-four) restaurant locations that are being partially funded through EB-5 participation are free and clear of any mortgages or debt. The business, operations, inventory and all furniture, fixtures and equipment (FF&E) are owned by the operators. The EB-5 Participants are provided a fully executed mortgage or lien on all assets of the business which entitles them to full security through all cash flow and assets of the business.

Investment Summary

Page 25: Joes presentation new design

Operational SummaryThe VooDoo BBQ & Grill project will be administered through the Palm Beach Regional Center (“PBRC”) – a USCIS approved and federally designated Regional Center, which was approved in September 2008 and has a geographic territory which includes Palm Beach, Broward Miami-Dade, Martin, St. Lucie, Indian River, Okeechobee and Hendry Counties, Florida, USA.

Investment into LP

Loan from LP to LLC

Operated by Franchisee

Page 26: Joes presentation new design

Restaurant Sales Growth

Type of Restaurant

• Casual Dining• Chili’s, Olive Garden, Red

Lobster

• Fast Casual• Panera, Chipotle, Lime, VooDoo

BBQ & Grill

• Quick Service / Fast Food• McDonalds

2008 - 2012 Growth

2008 2009 2010 2011 2012145,000

150,000

155,000

160,000

165,000

170,000

175,000

180,000

157,591159,010

162,985

168,527

173,751

Fast-Casual

Fast-Casual

US

$ M

illi

on

National Restaurant Assoc.

Page 27: Joes presentation new design
Page 28: Joes presentation new design

Florida Tourism

Facts: International visitors (4%) spend more per traveler than U.S.domestic travelers,

representing 19 % of total travel-related spending and 17% of all food and beverage spending.

VISIT FLORIDA Research

2010 2011 201278

80

82

84

86

88

90

92

82.3

87.3

90.5

Visitors p...

Vis

itors

(M

illion

s)

Page 29: Joes presentation new design

U.S. Restaurant Sales Growth

(by State)

Top 8 States

• North Dakota• Texas• Florida• Wyoming• Maryland• South Carolina• Utah• Alaska

Growth

• 4.1%• 4.1%• 3.9%• 3.7%• 3.7%• 3.6%• 3.6%• 3.5%

Page 30: Joes presentation new design

About our Location

Florida Restaurant Franchise Group will be developing from 20 to 24 stores in the largest economic centers of Florida, with locations in areas such as Miami, Broward and Palm Beach counties.

Florida is known for its strong tourism and trade industries, Florida attractions such as Disney World, Universal Studios, South Beach, West Palm Beach and Miami, are among the most sought-after locations for both international and domestic travelers. Florida is the 4th most populous of the 50 states in the United States of America.

Florida is the 4th largest economy in the United States, with a GDP of 748 billion in 2010, and as of 2010, Florida became the 4th largest exporter of trade goods.

Aside from its great weather and extensive coastline, the State of Florida attracts wealthy individuals as it is one of the seven states that do not impose state taxes. The state capital is Tallahassee, its largest city is Jacksonville, and the Miami metropolitan area is the largest metropolitan area in the southeastern United States. 

Page 31: Joes presentation new design

About our Location

VooDoo BBQ & Grill will be developing restaurant locations in the four major metropolitan areas of Florida - Miami/Ft. Lauderdale, Orlando, Tampa & Jacksonville.  Due to its tremendous tourism, many people from Europe and South America come to Florida simply to shop for several days and then go back to their native country. Obviously eating goes hand in hand with such shopping excursions. Also young adults favor attending one of the many reputable colleges and universities in the state and most of them are located in the major metro areas, increasing our potential to attract young crowds.

Within the last decade, there has been tremendous growth and building of new and attractive retail centers. Due to the general economic hard times, VooDoo BBQ & Grill was able to secure tremendous A+ locations and enter into long term leases, not feasible a few years ago.

Page 32: Joes presentation new design

Recent Press for our Stores

Page 33: Joes presentation new design

Recent Press

Page 34: Joes presentation new design

Recent Press

Page 35: Joes presentation new design
Page 36: Joes presentation new design
Page 37: Joes presentation new design

For more information on the EB-5 Program or this investment opportunity please email at: [email protected] or call 954-218-5517.