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Wasatch Family Fun Center
Company Summary
The company anticipates that its first FEC will be located in Weber County, Utah facing the Majestic Wasatch Front Mountains. The company’s FEC will be the most modern in the Northern Wasatch area.
Initially named the Wasatch Family Fun Center, the company anticipates that its facility will have a positive impact on the local environment and economy.
Mr. Bill Rameson, CEO of Palace Entertainment, the largest FEC chain in the world, has observed, “With most family entertainment centers having a 15 to 20 mile reach and in today’s climate, you’ve got to understand what you’re trying to accomplish. You’ve got to understand your market. You’ve got to understand construction. The attractions have to be both interactive and competitive.”
I&B Investments proposes to choose its locations after thoughtful and detailed research and demographic profiling.
2.1 Company Ownership
- Managing Partner – Mark D. Bergman
Limited Partners:
- Acting C.F.O.- Val R. Iverson
- Operations Manager & Public Relations – Senator Joseph L. Hull
- Retail Space Leasing Agent Gift Shop Manager.- Laura Strebel
- Director of Sales and Marketing – Roger Smout
- Manager of Treasury and General Accounting – Rod Schaffer
- Manager of Promotions & Customer Service – Darren Strebel
Consultants / Non-Partners (retained):
- General Entertainment Manager / Consultant – Harold Skripsky
- Redevelopment (RDA) Specialist – Randy Sant
2.2 Start-up Summary
For Phase 1 the Start-up table reflects the cost of the center, activities and 8.5 +/- acres.
All Construction cost are included in the gross loan, but not detailed in the “Start-up Cost table” because these costs happen before the projected pro forma begins.
In the Start-Up Funding table there are two forms/types of investors listed:
The Seed Investors/Partners that come under #1-11, are considered the seed funding group and company management team. Their investment is not secure and carries a greater risk of loss. Therefore, the percentage of the company that this group receives for their investment equals a much greater company ownership than the secure partners do for their investment (these partners are also earning sweat equity shares for their involvement/efforts rather than wages during development).
The Start-up Investors/Secure Partners that come under #1 -4, are considered the start-up funding partners. They may or may not be part of the company’s management team but are the voting and percentage controlling partners. Their investment will be escrowed and secure until the company has secured funding for the entire project. There is no risk of loss that is associated with these investors.
The Use of Funds table details many of the Start-up Expenses.
| Start-up Funding | |
| Start-up Expenses to Fund | $229,575 |
| Start-up Assets to Fund | $5,277,925 |
| Total Funding Required | $5,507,500 |
| Assets | |
| Non-cash Assets from Start-up | $5,077,925 |
| Cash Requirements from Start-up | $200,000 |
| Additional Cash Raised | $0 |
| Cash Balance on Starting Date | $200,000 |
| Total Assets | $5,277,925 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | $890,000 |
| Long-term Liabilities | $3,652,500 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| Total Liabilities | $4,542,500 |
| Capital | |
| Planned Investment | |
| Seed Investor/Partner #1 | $5,000 |
| Seed Investor/Partner #2 | $5,000 |
| Seed Investor/Partner #3 | $2,500 |
| Seed Investor/Partner #4 | $2,500 |
| Seed Investor/Partner #5 | $2,500 |
| Seed Investor/Partner #6 | $2,500 |
| Seed Investor/Partner #7 | $5,000 |
| Seed Investor/Partner #8 | $12,500 |
| Seed Investor/Partner #9 | $12,500 |
| Seed Investor/Partner #10 | $12,500 |
| Seed Investor/Partner #11 | $12,500 |
| Start-up Investor/Secure Partner #1 | $222,500 |
| Start-up Investor/Secure Partner #2 | $222,500 |
| Start-up Investor/Secure Partner #3 | $222,500 |
| Start-up Investor/Secure Partner #4 | $222,500 |
| Additional Investment Requirement | $0 |
| Total Planned Investment | $965,000 |
| Loss at Start-up (Start-up Expenses) | ($229,575) |
| Total Capital | $735,425 |
| Total Capital and Liabilities | $5,277,925 |
| Total Funding | $5,507,500 |
| Start-up | |
| Requirements | |
| Start-up Expenses | |
| Seed/Development Stage Cost | $35,000 |
| Professional Fees | $60,000 |
| Commercial Loan/Mortgage Points Cost | $109,575 |
| Sweat Equity Cost | $25,000 |
| Total Start-up Expenses | $229,575 |
| Start-up Assets | |
| Cash Required | $200,000 |
| Other Current Assets | $0 |
| Long-term Assets | $5,077,925 |
| Total Assets | $5,277,925 |
| Total Requirements | $5,507,500 |
| Use of Funds | |
| Use | Amount |
| Phase 1 Construction Cost Breakdown | $0 |
| Total Sq.Ft. Building (±) | $15,000 |
| Direct Construction Cost | $150,000 |
| Table Top Games/FoosBall | $50,000 |
| Redemption Games/Inventory | $50,000 |
| Bumper Boats | $175,000 |
| Batting Cage and Pitching Device | $140,000 |
| Miniature Golf Course | $225,000 |
| Street Construction | $800,000 |
| Storm Water and Infiltration Program | $217,000 |
| Building Permit/Subdivide/Connection | $35,000 |
| Parking Lot | $167,000 |
| Construction Insurance Cost | $4,000 |
| Property Cost 8.6 ± Acres | $688,000 |
| Drafting/Renderings | $90,000 |
| Site and Building Engineering | $45,000 |
| Computers/Desks Office Supplies | $14,000 |
| Signs | $20,000 |
| Go-carts and Tracks | $500,000 |
| First Year Operations Captial | $200,000 |
| Gross Cost of Equipment & Improvements | $3,570,000 |
| Construction Cost of Building | $1,000,000 |
| Construction Loan Cost | $300,000 |
| Cost + Building | $4,870,000 |
| 25% Loan (LT) Buy Down Cost | $1,217,500 |
| RDA Write Down | $0 |
| Retail Pads Sales | $0 |
| Net (LT) Loan | $3,652,500 |
| Loan Points Cost | $109,575 |
| Gross Cost | $1,327,075 |
| Loan + Points Cost/Gross Investment | $4,979,575 |
| Total | $24,611,225 |
2.3 Company Locations and Facilities
The first proposed site / property has two different aspects to it:
- We purchase a 10 acre parcel on the site and construct our center.
- We incorporate a Government Redevelopment Agency (RDA). Which can provide our company with a government grant (funds) that can help us purchase the entire 44.6 acres. This involves more risk but offers higher profits because we will need to resell 20 acres +/- once they are developed.
Therefore, within this business plan we will present a primary look at both possibilities, including the basic business structure, the start-up cost, the company’s projected growth, the market, the local demographics, the economic impact, the industry trends, the construction costs, the development of the land, the oversight of operations during the development of the infrastructure and the companies future management and marketing team.
Our proposed site is the 44.6 +/- acres running along the west side of the Interstate, with three planned future (roads) accesses/easements.
The entire property is zoned commercial and the owner has stated that he supports our project and will carry a contract. Phase 1 would place our FEC just north of the other existing commercial establishments.
The latest traffic figures report an average daily traffic count of 30,685 cars exiting and entering the interstate at this junction and the interstate (north and south bound) carries an average daily traffic count of 56,490 cars. Source: Utah Department of Transportation.