25572 Via Del Rey
San Juan Capistrano, CA 92675
May 19, 1997
Dear Potential Investors,
I am currently seeking investors for my company. Based on your interest in the fast paced family entertainment industry, I believe the business plan for RTEC may be of interest to you.
RTEC is being designed as the leader in the family entertainment industry. Our mission is to provide a premier facility focussing on customer service and programs the customers are looking for. We have targeted the preschool aged through adults for our product because of the tremendous demand for our services. Where we differ from our competitors are the design of our facility offering the comforts that the families are requiring for our type of youth recreation and family entertainment center and the programs that they are looking to participate in. We also have a design for a strong management team and Board of Directors led under the management experience of George Babineau.
We are seeking a total investment of $200 Thousand in return a short term with a total cash buyout at the current prime or 8 3/4 per cent, whichever is less, within one year. The funds will be used for design and development of a youth sports and family entertainment center located within a 20 thousand square foot facility in Baldwinsville, NY
Thank you for your consideration and interest in RTEC. I will be in contact with you, and will be available by telephone or e-mail to answer any questions and provide additional information if needed. If you complete your review and would like to discuss matters sooner, please contact me at your convenience.
RTEC Management Plan
Disclaimer Statement Notice
The services and information to be rendered by RTEC are on a best effort basis. RTEC does not represent or guarantee that the business will be profitable or will achieve any particular level of performance. Budgets, estimates and other projections made by RTEC are based on information derived from data sources which are believed reliable and/or facilities that are believed to be reasonably comparable to this facility and the market in which the arena is located.
The information is subject to change and is not intended to be comprehensive. Statements contained herein which involve matters of opinion, whether or not identified as such, are intended as opinion only and not as representations of fact. All descriptions, including dimensions, are intended as estimates only. The information contained herein is subject to review and verification by all parties relying on it.
Based on the information gathered on the market, competition and the need for a family recreation complex, the following is presented:
In our opinion, there exists the potential to realize a reasonable return on investment by building an indoor youth sports and family entertainment center in Baldwinsville, NY. This facility has the potential to be a profitable venture
The information, data and drawings embodied in this management plan are strictly confidential and are supplied with the understanding that they will be held confidential and are not disclosed to third parties with out prior written consent of RTEC, Rollersports and their agents for the proposed facility.
The undersigned acknowledges that RTEC has furnished to the undersigned potential Investor ("Investor") certain proprietary data ("Confidential Information") relating to the business affairs and operations of RTEC for study and evaluation by Investor for possibly investing in RTEC.
It is acknowledged by Investor that the information provided by RTEC is confidential; therefore, Investor agrees not to disclose it and not to disclose that any discussions or contracts with RTEC have occurred or are intended, other than as provided for in the following paragraph.
It is acknowledged by Investor that information to be furnished 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 Investor, except as provided in this agreement, may cause serious harm or damage to RTEC, and its owners and officers. Therefore, Investor agrees that Investor will not use the information furnished for any purpose other than as stated above, and agrees that Investor will not either directly or indirectly by agent, employee, or representative, disclose this information, either in whole or in part, to any third party; provided, however that (a) information furnished may be disclosed only to those directors, officers and employees of Investor and to Investor's advisors of their representatives who need such information for the purpose of evaluating any possible transaction (it being understood that those directors, officers, employees, advisors and representatives shall be informed by Investor of the confidential nature of such information and shall be directed by Investor to treat such information confidentially), and (b) any disclosure of information may be made to which RTEC consents in writing. At the close of negotiations, Investor will return to RTEC all records, reports, documents, and memoranda furnished and will not make or retain any copy thereof.
It is assumed that you will not release this business plan information unless it is for the best interests of the RTEC group
This Business Plan Released Via The Internet, Please Return This Form By June 1, 1997
This is a business plan. It does not imply an offering of securities.
Vision / Mission
In 1997, RTEC was formed to design, construct and build a 20 Thousand Sq. Ft. youth sports and family entertainment center in Baldwinsville, NY.
Overall, our company can be characterized as a qualified development and management team in the youth recreation and family entertainment center industry with the experience to create a profit with a unique cooperation with the community.
For many years people have roller skated and roller bladed. In just the past few years roller hockey and competitive roller sports have grown from a small youth activity to one of the highest participated and fastest growing sports in the country. Roller hockey has grown to create a new professional roller hockey league called Roller Hockey International. Artistic and Speed skating have gained Olympic attention and are a part of the Pan-American games, World Championships and Olympic Sports Festival events.
The "state of the art" condition of the industry today is such that for years all that was available to the market was small mom and pop family entertainment center/roller rinks cashing in on the booming market. These programs lacked future vision and outgrew the expectations of the athletes involved. These businesses could not offer a quality competitive program, or improvements in their existing facilities. Although a profitable venture, these mom and pop rinks failed to re-invest a portion of their revenue into the upkeep of their venue, and quality of their educational program, and lost out to the "other guys" program with roller sports athletes wanting to participate with no venue for a home facility. Thus, resulting in a market of youth roller sports enthusiasts and families searching out the better product to no avail.
We have just started the design and development of a Twenty thousand square foot indoor youth recreation and family entertainment center with a solid management and marketing plan designed to incorporate profit and customer service within a unique cooperation with local businesses as well as national suppliers.
Based on the information gathered on the market, competition, and the need for a quality indoor competitive and recreational environment, there exists the potential to realize a reasonable return on investment by building an indoor youth sports and family entertainment center in Baldwinsville, NY. This facility has the potential to be a profitable venture.
To this end, the following information will hopefully substantiate the interest and desire to build this youth sports and family entertainment center.
Quality family time together is limited. With little quality time to spend together, families within our target market look for something affordable and fun, even unique to share their time together. The demand for a state of the art, or at least above the accepted norm, has been on the increasing rise with families today. Children and families are looking for more than a sidewalk to roller blade, and in the winter months a safe, clean and fun environment to socialize with their friends. Our focus is to provide a unique, wholesome, interactive family activity to enjoy together, at an affordable rate. Providing a better quality facility as well as well-trained management and staff will benefit our organization, as well as the community at large.
The legal form of RTEC is a Limited Liability Company located in Onondaga County, in the State of New York. This was chosen to protect the owners, investors and management company for legal and taxation purposes and the ease of corporate structure within a family orientated business-like atmosphere
By FY1998-Q4 our operation will produce $800 Thousand in gross sales and will operate at a profit within the third year of operation. Expenses projected for fiscal year 1998 including initial funding is expected to be $1 Million. Annual growth is projected to be 34.5% per year through 2007.
Now, RTEC is at a point where we are soliciting investors to become excited about our design, management and marketing plans, and commit to a short term loan to the company at a very reasonable rate with an excellent return on investment. This is not an offering of securities. RTEC is soliciting private venture capitalists, investing with private loans and signature lines of credit, in exchange for partial ownership in the company with the agreement of a cash buyout at the maturity of the loan (1 year). Our place in the industry will rise above other design-build plans currently on the market based not on the need or demand, but based on the management and facility features making this facility a cut above the rest of the industry.
The corporate name shall be RTEC (RollerSports Total Entertainment Center), a New York Limited Liability Company. Our corporation will be in business to create, design, build and manage youth sports and family entertainment facilities, with plans to expand as the market grows. Our plan is to design, build and manage a twenty thousand square foot recreation complex in Baldwinsville, NY. RTEC will provide a much needed complex for the city of Baldwinsville and surrounding communities. The operating business name is as yet undetermined.
The location for the RTEC venture has been selected to be developed within a twenty thousand square foot building located conveniently off the I-690 at the River Mall Plaza Baldwinsville, specified to be zoned commercial, with a Conditional Occupancy Permit as zoned recreation. This plaza features excellent visibility and access.
RTEC will focus on creating a comprehensive youth roller sports organization and unique family entertainment facility. Our competitive membership would include national sanctioning with the Roller Skating Associations and United States Amateur Confederation of Roller Skating. We will feature a roller sports school with enrollment on a quarterly basis featuring a learn to skate program, a recreation roller skating school, focussing on fun and skills development, with competitive roller sports leagues from the beginning player to the advanced competitor.
Additionally we would feature some of the most challenging series of speed skating competitions attracting competitive players from the state and region.
Recreation roller skating sessions will be the primary avenue of revenue and a major part of the daily schedule. In-session birthday parties and staff pros will be available for semi-private instruction during some of these times. Cooperative sponsorships and cross promotions will be negotiated with local and national businesses to enhance the public image of their product while the customer gains the benefit of their product as prizes. Providing a unique status will be some of the fast paced, fun games designed to create an opportunity for the customer to be a part of the session by being a part of the interactive game.
The complex will feature a full-size 170’ X 70’ hardwood maple roller floor complete with a safe, carpeted concrete barrier. RTEC would operate a full service restaurant, offering more than just popcorn and soda. The opportunity to create fresh pizza, pretzels, nachos with cheese, soft serve ice cream and Icees, cotton candy, Otis Spunkmeyer cookies and other great products. A full service Stick’N’Skate shop will be available as an in-house operation focussing on product inventory and availability and customer service providing for quality repairs encouraging repeat business. A vast video arcade featuring today’s most sophisticated video and multi-player interactive games. Multi-purpose rooms available for birthday parties and other community meetings complete with adequate seating, and audio visual support. RTEC will feature recreational birthday parties, private parties, school incentive programs, cooperative sponsorship arrangements with local area libraries, doctors, dentists, and other businesses, with a focus on community DARE and PRIDE programs and a multitude of other marketing concepts where the community benefits.
RTEC would maintain a "Members Only" facility to prevent an unwanted outside gang element from discouraging the philosophies of family recreation. We would provide a clean, safe and fun place for families to enjoy the quality time they have together which will encourage repeat business by attending well supervised, affordable activities in an environment that the community can feel safe. "Kidcheck" and other safety programs will be implemented for public recreation times to ensure the security of the members-only facility.
This opportunity to offer such a program is also unique, while it looks like discrimination, and could cause problems, it actually is recommended by our insurance company. This building will not have Liability Insurance, in order to avoid Insurance rates that would prevent the opportunity for profit, RTEC will offer a membership card to the community at the annual rate of $25.00 per person. This will be a Laminated Photo ID card. Lost Photo ID cards, while on our database, and within expiration will cost $5.00 to replace.
Friday and Saturday Nights will be members only nights, as well as special events like All Night Skates and School Holiday All Day Skates.
The Normal Rate of admission with a membership card will be $5.00 for a two and a half hour recreation session. Non-Members may also participate in all recreation roller skating sessions. These Non-Members will pay an additional "Day Pass" fee of $2.50 which covers a basic insurance endorsement. A "Day Pass" form is required to be completed and signed by a parent in the presence of our reception desk attendant.
We will offer each session a member rate and a non-member rate. The purpose is to track our guests attendance, which limits the companies liability. Each card would feature the members photo, name and expiration date. A Membership database will be accessible complete with the members name, mailing address, for special events, date of birth, for the mailing of a birthday pass, school and grade level, home phone number, in case of emergency or other needs and parents names and work numbers.
The ability to track attendance by means of bar code readers will be added as revenue permits, as well as how often the child attends, what programs the child attends, creating an excellent insurance resource as well as an accurate financial forcasting feature. The cost for adding the bar code reader is nominal, but is not intended to be purchased immediately.
Properly managed this will be encouraged as a key to safety, it will eliminate unwanted guests and provide a feeling of security to the parents of those attending. Should a parent be unhappy with the local measure, he or she can be referred to the nearest skating facility, or complete the day pass form and pay the additional $2.50 day pass fee.
In-session birthday parties, being the only obstacle would include a FREE membership card to the birthday child (factored into the price) and day pass fees for each child. Again, we would offer a member price and a non-member price for each recreation event.
Skating School members are required to participate in an additional annual membership program, called American Roller Sports for $25.00 annually which offers a secondary insurance benefit to those participating. This is unlike the Facility membership card. This covers them in case they have an accident in the facility, or travelling to a supervised competitive event. This is not a competitive Junior Olympic or USAC/RS Card, Those are for competitive Sanctioned events and are $25.00 Each Available from the competitive skating school.
According to the opportunities and requirements for RTEC described in this business plan, and based on what we feel are sound business assumptions, our total capital requirements are for $200 Thousand by July 1, 1997 with an undetermined amount needed for business operating capital as cash reserves and internal operating expenses. According to current budget financials (attached) it is unlikely that we will be forced to raise additional funds.
To accomplish this goal we have developed a comprehensive plan to intensify and accelerate our marketing and sales activities, cooperative sponsorship and cross promotion, services expansion, direct marketing, networking and customer service. To implement our plans we require a investment totaling $200 Thousand for the following purpose:
Acquire the lease and options for Twenty thousand square foot building located at the River Mall Plaza, specified to be zoned commercial, with a conditional occupancy permit zoned recreation. With excellent visibility and access, Located in the direction of growth with 3 newly approved housing developments and excellent trade area demographics. A net lease is offered at 50,000 dollars per year, holding three months in escrow in exchange for landlord improvements consisting of negotiations of the installation of two 50 ton air-conditioning units, conversion of electric heat to forced hot air gas and substantial roof repairs, and a three month free rent in consideration for tenant improvements. Should the facility engineers warrant the investment, and time is not a factor, RTEC may solicit additional funds as a short term loan to retro-fit the facility by removing the three poles in the middle of the roller floor by adding new support beams to create a free span roller floor. This additional (unknown amount) investment would create an additional revenue source of over $500 Thousand, the first year by adding a competitive youth roller hockey program.
Design and build-out the twenty thousand square foot facility to exceed the consumer demands and expectations.
Purchase the internal capital assets described to ensure the proper operation of the facility.
Hire and train staff to operate the many positions required to maintain the facility and ensure growth and stability.
Purchase/Lease marketing equipment required to present a cut above image
Purchase/Lease operating equipment required to maintain a professional operation
We do not anticipate additional investment requirements at the development or operational level that would prevent us from increasing operation capacities to meet market demand at this time.
Click here to continue