Rami Elhakim Praise Lee Derek Tan Shang Wong “Bring families together in a wholesome environment for fun, games and kids.”

Rami Elhakim Praise Lee Derek Tan Shang Wong

“Bring families together in a wholesome environment for fun, games and kids.”

Why the investment?

• Saskatoon– Demographics– Discretionary income

• Opportunity

Why? Chuck E Cheese Who Success Competition Investors Financial Plan

What is Chuck E. Cheese?

• Chuck E. Cheese's Franchise

• Family Dining and Entertainment

• The Experience– Products


What is Chuck E. Cheese?


Who is our market?


Where?


Critical Success Factors

• Brand recognition• Atmosphere and mood

of the restaurant• Emotional connection• Return Visits


Who is our competition?


Who is behind Chuck E. Cheese’s?

• 4 investors – $180k invested each with $50k personal bank

guarantee– Bank loan of $580k secured by personal guarantees

and the future assets of the company

• General Manager: Rami Elhakim• Seeking two more investors


Financial Plan

• Dining and entertainment experience• Sell the Chuck E. Cheese experience• Capitalize on family and birthday packages• Revenues are 52/48 between dining and

entertainment


Financial Plan


RevenueYear 2010 2011 2012 2013 2014 2015Number of days open 180 360 360 360 360 360Average Number of people per day 450 473 496 521 547 574Average price per meal 52% 6.12 6.27 6.43 6.59 6.76 6.92Average Games per person 48% 5.88 6.03 6.18 6.33 6.49 6.65Food and beverage sales 495,720 1,067,037 1,148,399 1,235,964 1,330,207 1,431,635 Entertainment and merchandise sales 476,280 1,025,193 1,103,364 1,187,495 1,278,042 1,375,492 Total Revenues 972,000 2,092,230 2,251,763 2,423,459 2,608,248 2,807,127

Growth Rate 5%

Average Per guest 12.00$

Financial Plan

NPV - $203,206

IRR – 24%

Breakeven Analysis – 413 guests at $12 per person = under one capacity turn


Income Statement For the year ended 2010 2011 2012 2013 2014 2015Revenues Food and beverage sales 495,720 1,067,037 1,148,399 1,235,964 1,330,207 1,431,635 Entertainment and merchandise sales 476,280 1,025,193 1,103,364 1,187,495 1,278,042 1,375,492

972,000 2,092,230 2,251,763 2,423,459 2,608,248 2,807,127

Net Income before tax (164,176) (110,078) (5,477) 97,205 200,055 304,890 Income taxes - - - - 2,717 47,258 Net income (164,176) (110,078) (5,477) 97,205 197,338 257,632

Require Return on Equity Investment 20%Cash FlowsOperating Cash Flow 129,063 61,380 127,721 125,007 98,088 76,172 Dividends - - - 72,205 172,338 232,632 Redundant Extra Cash Dividend 517,431 Salvage Value 1,705,377 Total Cash flow (1,072,500) 129,063 61,380 127,721 197,211 270,426 2,531,612

Financial Plan


Sensitivity Analysis

Average Price per Person

Average People Served Per Day

Year 1 NPV IRR10.00$ 450 (1,112,768) N/A10.00$ 525 33,911 21%

12.00$ 375 (1,112,768) N/A12.00$ 450 203,206 24%12.00$ 525 1,248,003 42%12.00$ 600 2,087,438 55%

14.00$ 450 1,248,003 42%14.00$ 600 3,100,478 69%

Analysis based on base case of 35% Debt ratio.

Join Us


• Industry and Market Opportunity • Sound Business Model • Great Return potential

Any questions?

Financial Plan


Patron Number Support

Saskatoon Area Population Seniors Under 15 Other

100% 13% 18% 69%400,000 52,000 70,800 277,200

Our Market is the under 15 but will likely visit with a parent on a 2 to 1 basis1 parent 2 kid gives a potential market of 106,200.00

Market Share of 15% means a customer base of 15,930.00

Guests/Day Guests/ Year Visits/ YearBase Case 2010 450 162,000 10.17 Base Case 2015 574 206,640 12.97

So at a 15% market share we are expecting around one visit per month

We are not factoring in a potential market share and population Growth


Income Statement For the year ended 2010 2011 2012 2013 2014 2015Revenues Food and beverage sales 495,720 1,067,037 1,148,399 1,235,964 1,330,207 1,431,635 Entertainment and merchandise sales 476,280 1,025,193 1,103,364 1,187,495 1,278,042 1,375,492

972,000 2,092,230 2,251,763 2,423,459 2,608,248 2,807,127 COGS Cost of food and beverage 148,716 320,111 344,520 370,789 399,062 429,490 Cost of entertainment and merchandise 47,628 102,519 110,336 118,750 127,804 137,549

196,344 422,630 454,856 489,539 526,866 567,040 Gross Profit 775,656 1,669,600 1,796,907 1,933,921 2,081,382 2,240,087

Expenses Wages 319,460 670,866 704,409 739,630 776,611 815,442 Benefits 47,919 100,630 105,661 110,944 116,492 122,316 Rent 168,000 336,000 336,000 336,000 336,000 336,000 Royalties and advertising 67,068 144,364 155,372 167,219 179,969 193,692 Local advertising 29,160 62,767 67,553 72,704 78,247 84,214 Training 25,000 1,000 1,000 1,000 1,000 1,000 Utilities 36,000 36,900 37,823 38,768 39,737 40,731 Property Tax 18,000 18,450 18,911 19,384 19,869 20,365 CCA 146,750 271,428 231,681 199,853 174,362 153,943 Interest 28,875 27,537 26,132 24,657 23,107 21,481 Other costs 53,600 109,737 117,841 126,557 135,931 146,013 Total Expenses 939,832 1,779,678 1,802,383 1,836,716 1,881,327 1,935,197

Net Income before tax (164,176) (110,078) (5,477) 97,205 200,055 304,890 Income taxes - - - - 2,717 47,258 Net income (164,176) (110,078) (5,477) 97,205 197,338 257,632

Retained EarningsBeginning - (164,176) (274,254) (279,731) (254,731) (229,731) Net income (164,176) (110,078) (5,477) 97,205 197,338 257,632 Dividends - - - 72,205 172,338 232,632 Ending Retained earnings (164,176) (274,254) (279,731) (254,731) (229,731) (204,731)


Balance Sheet As at December 31 2010 2011 2012 2013 2014 2015 Cash 129,063 190,443 318,164 443,171 541,259 617,431 Inventories 5,454 5,870 6,317 6,799 7,318 7,876 Current Assets 134,517 196,313 324,482 449,970 548,576 625,306

Equipment (include Franchise fee) 1,500,000 1,570,500 1,641,000 1,711,500 1,782,000 1,852,500 Accumulated CCA (146,750) (418,178) (649,859) (849,712) (1,024,074) (1,178,017) Total Assets 1,487,767 1,348,636 1,315,623 1,311,758 1,306,502 1,299,789

Accounts payable 28,706 27,753 29,723 31,840 34,113 36,557 Current portion of LT debt 28,101 29,506 30,981 32,530 34,157 55,638 Current Liabilities 56,807 57,259 60,704 64,370 68,270 92,195

Long-Term Debt 522,637 493,131 462,150 429,619 395,463 339,825 Total Liabilities 579,443 550,390 522,854 493,989 463,733 432,020

Common Equity 1,072,500 1,072,500 1,072,500 1,072,500 1,072,500 1,072,500 Retained Earnings (164,176) (274,254) (279,731) (254,731) (229,731) (204,731) Total Equity 908,324 798,246 792,769 817,769 842,769 867,769 Total Liabilities + Equity 1,487,767 1,348,636 1,315,623 1,311,758 1,306,502 1,299,789

Financial Plan

Documents

Rami Elhakim Praise Lee Derek Tan Shang Wong “Bring families together in a wholesome environment for fun, games and kids.”