‘OHANA BROS.

Business Summary

Brief

INTRODUCTION

‘Ohana Bros. Island Style Chips & Popcorn is a unique mall

impulse snack retail concept that features freshly made potato

chips, gourmet popcorn, “island” fries and authentic Hawaiian

shave ice – all handmade from scratch, right in front of the

customer using 100% all natural ingredients.

Q: Why hasn’t anyone innovated, combined and packaged the

most popular snack food items; popcorn, chips and fries together

under an exciting mall retail brand?

Q: Why is, or should, the “savory snack” marketplace be

primarily dominated by two soft pretzel players (Auntie Anne’s /

Wetzels Pretzels) to the tune of a combined $548 million per year

in sales?

Fact: Over 1,100 shopping malls in the U.S. alone present a

“First-To-Market” opportunity for Ohana Bros.

Fact: Each ‘Ohana Bros. retail store is projected to generate a

30% profitability margin on annual sales of $500,000.

Capitalization for each unit averages $300,000.

Fact: This is the best tasting popcorn, chips, fries and Hawaiian

shave ice you will ever taste!

Q: Are you in? Then read on.

THE BUSINESS OPPORTUNITY

THE “Impulse Snack” MARKETPLACE

High Growth in “Impulse Snack” Category:

o Auntie Anne’s Soft Pretzels - $441 million in sales 2012 with over 1,200 locations

o Wetzels Pretzels - $107 million in sales in 2012 with over 250 stores

o New York Fries - $65 million in sales with over 190 locations

o Doc Popcorn - $7.2 million in sales with over 77 retail outlet locations, started just 3 years ago in

2009 with $1 million in sales.

Revenue Generation: Annual gross revenue figures for “Impulse Snack” category retailers’ can

average anywhere from $250,000 to $750,000. One Auntie Anne’s Pretzel location in Hayward, CA

averages $950,000 per year in sales.

Franchiseable: The highly scalable ‘Ohana Bros. business model meets or is positioned to meet the key “franchisability” criteria established by the IFranchise Group:

o Credibility

o Differentiation

o Transferability of Knowledge

o Adaptability

o Refined and successful prototype operations -

o Documented Systems

o Affordability

o Return on Investment

o Market trends and conditions

o Capital

o Commitment to relationships

o Strength of management

CONSUMER DEMAND / TRENDS

Who doesn’t like popcorn, potato chips or fries? According to Snack Foods: A Global Business Report, from Global Industry Analysts, the worldwide demand for snack foods is likely to hit US $334 billion by

2015, with a sales volume of almost 50,000 thousand tons.1

Potato chips are the top pick in salty snacks among all age groups and remain the largest segment with

$6.8 billion in sales in 2010.

Popcorn was the fifth highest “salty snack” with $3.2 billion in sales in 2010.

The most preferred foods by men, women, college kids, and children less than seven years old2:

o Men: Hamburger, French Fries, Pizza

o Women: French Fries, Hamburger, Pizza

o Students: French Fries, Hamburger, Pizza

o Kids: French Fries, Pizza, Hamburger

French Fries are the food jewel in the more than 31,000 McDonalds restaurants

“I just got have it!” (or Why Humans Love Popcorn and Chips)

o Taste Hedonics (salt, sugar, and umami)

o Dynamic Contrast (food arousal and surprise)

o Evoked Qualities (when food sensory properties evoke past memories)

o Food Pleasure Equation (Food Pleasure = sensation + macronutrients)

o Caloric Density (humans like food with a CD of about 5.0)

o Emulsion Theory (taste buds love foods in emulsified forms)

One of the latest emerging movements in gourmet and specialty foods in the U.S. is currently found in the increased demand for more “artisanal” food items which are often high-quality, wholesome, often

natural, created by hand, in small production environments. Consumers are more conscious of what

goes into their foods as well as how it’s made.

1 THE WORLD OF FOOD INGREDIENTS DECEMBER 2011 Article: A Snacking Snapshot by Rachel Zemser

2 Dr. Liz Sloan, Sloan Trends

OPPORTUNITIES

Shopping Malls: There are currently over 1,100 shopping malls3 in the U.S., more than 100 in

California alone. The current consensus amongst mall ownership groups is that there is a “void” in new

and exciting retail concepts, especially in the “impulse savory snack” category. ‘Ohana Bros. Mgmt.

Group has been courted (already!) by major mall ownership groups such as Westfield Shopping

Centers, General Growth Properties (GGP), Taubman and Rouse Properties to be in their malls.

First-Mover Advantage: Despite the fact that fries, chips and popcorn remain the most popular snack

food items, there are currently no QSR concepts that have either “innovated” or combined all three of

these snack items together under one retail brand. ‘Ohana Bros. has the opportunity to be a “First-

Mover” in this category to combine all three snack items. Additionally, Hawaiian shave ice has not

been by and large introduced to the mainland yet.

Merge Snack Offerings. Comparative “single-item offering” business models; New York Fries (NYF), Doc Popcorn, Wetzels Pretzels, Auntie Anne’s Pretzels, Bahama Bucs Hawaiian Shave Ice, and

Spudniks Potato Chips have proven that there is a high demand for “impulse snack” offerings as these

retailers are prominent in malls and retail shopping centers. ‘Ohana Bros. has merged four highly

successful snack business models under one great brand:

3 Shopping Centers defined as malls with greater than 400,000 gross leasable square footage.

SHAVE ICE: Ulelani’s

Bahama Bucs

Lanis

Kukuis

POPCORN: Doc Popcorn

Garretts

Cornology

Kettlepop

Cornucopia

CHIPS: Billy Goat

Gourmet Chip Co.

Spudniks

Maui Chips

FRIES: New York Fries

Heavenly Fries

Boise Fry Company

Potato Corner

Pommes Frites

Fragmented “impulse snack” Marketplace: Generally, aside from the snack food category “soft pretzels” retailers, the “impulse snack” marketplace is highly fragmented with only the popcorn retailer

Doc Popcorn starting to establish a market presence in malls.

Secondary Retail Channels: This highly scalable business model is perfectly positioned to expand to

these possible retail distribution channels:

Sports Venues

Airports

Popular tourists locations: Bourbon Street, LA, Pier 39 SF, Old Towne, S.D. , etc.

Amusement Parks and Attractions

Mobile Carts: o State and County Fairs

o Corporate Events

o Farmers Markets

FINANCIAL

The ‘Ohana Bros. business model is highly profitable – average 25-30% profitability on projected average annual sales of $500,000, 15-20% COGS.

Highly Scalable for Franchising and or company expansion

ROI – Each ‘Ohana Bros. Island Style Chips& Popcorn retail unit can be capitalized for as little as $300,000.

Low Break-Even Point ($736 Average Sales Per Day)

Minimal waste as products are made to order

Impulse “savory snack” items which at the average price point of $5-8 is not affected by the economy or falls into “discretionary” spending categories for the consumers.

Retail stores can be operated by two to three individuals with minimal skill sets.

FACT SHEET

Business Type:

Retail food serving impulse “savory snacks items; freshly prepared seasoned chips and “island fries” with

choice of delicious dipping sauces, freshly popped seasoned and candied popcorn and Hawaiian-style shave ice

with over a dozen natural, homemade flavors to top.

Average In-Line Store Size: 850 – 1,200 square feet +/- In-Line

Average Unit Capitalization: $300,000 - $355,000

Projected Annual Sales: $450,000 to $500,000 per year

Sales Break Even: $23,184 per month ($736 per day) Note: Does not include Corporate

Overhead and Debt Service

Profitability: Target 30% on EBITDA projection of $150,000

Performa: Gross Revenues: $500,000

COGS (217,000)

Gross Profit $282,920

Operating Expenses (132,624)

Net Operating Income $150,296 *

*Does not include overhead or debt service

BUSINESS OVERVIEW

Under Phase I of a 5-year strategic growth plan, ‘Ohana Bros. Management Group,

LLC will construct, develop and operate its prototype in-line retail store at the

Sunvalley Mall which is located in the city of Concord in the San Francisco Bay Area

commencing September 2013. The goal is once proven concept has been established its

primary growth platform will include both company-owned units and a franchising

development program

Each in-line retail unit will be consists of approximately 850-1,000 +/- square feet.

Each ‘Ohana Bros. retail unit will be themed under the brand name which represents a

fusion of California and Hawaiian culture; relaxed, casual, home-styled and crafted flavorings. Customers will

be attracted to not only the great variety of snacks but the whole "'Ohana Bros.” brand which is based on four

founding pillars; quality products, exuding the “aloha” spirit, having a hell of a lot of fun with each other and

the customers, and finally on the ‘Ohana Bros., the two alter egos of the founders who are surfing globe trotters,

searching the world over for the perfect spices and taste combinations to flavor their snacks.

Revenue will be generated primarily from the sales of on-site, freshly prepared and seasoned chips fresh cut

“island fries,” freshly popped seasoned and candied popcorn, and Hawaiian-style shave ice. Sales are

anticipated to be approximately $450,000- $500,000 per retail store stabilized per year and to increase at an

average annual rate of 5% per year in the first five years of operation. Secondary revenue will be generated

through e-commerce of Ohana Bros. potato chips, popcorn, and Ohana Bros. branded merchandise.

Our primary customers will be drawn from the center’s primary trade area population (see trade areas per each

mall location in Business section of business plan). Customers shopping each mall location will purchase

‘Ohana Bros. chips, popcorn, island fries, shave ice and other products on an impulse basis during their

shopping trip, or as a dessert treat upon completing a meal at one of many eatery options within the mall.

Ownership also anticipates that many patrons will make the retail unit a favored destination due to name

recognition and product quality.

The ‘Ohana Bros. retail brand is truly a “first mover advantage” concept with no direct competition which

combines all three “snack and treat” categories; chips, island fries, popcorn, and shave ice. Similar “savory

snack” alternatives such as soft pretzel retailers Auntie’s Pretzels, Wetzels Pretzels, Potato Corner, Bahama

Bucs (shave ice) and popcorn retailer, Doc Popcorn, do vie for market share, however, these types of savory

snacks lack the overall taste appeal and “addictive” affects ‘Ohana Bros. snack items offer. Competition for

Hawaiian-style shave ice are limited as well as there are no direct food retailers selling these specific types of

dessert items.

Each retail store project costs are projected to be approximately $300,000 - $350,000 which includes tenant

improvements, site prep, equipment, lease deposits, starting inventory, supplies, and working capital.

Based on a preliminary timetable it is anticipated that from submission of prospective tenant improvement

application to real estate ownership, it takes approximately 120 days before a store’s grand opening.

THE ‘OHANA BROS. DIFFERENCE

Reason #1: Fresh Made

We assure freshness by utilizing artisan techniques making every item fresh from scratch by hand right in front

of the customer. Popcorn is popped hourly, potatoes washed, soaked, sliced, cut and fried to order and our

shave ice is hand shaved, shaped, drizzled and topped right in front of your eyes. How can you get fresher than

that? Bags of potatoes, jars of popcorn and blocks of ice are just waiting to be turned into awesome munchies.

Reason #2: Quality Ingredients

‘Ohana Bros. uses only the finest ingredients. We work directly with trusted family farms, vendors and

suppliers assuring only the highest quality ingredients.

All our toppings, drizzles, dips and sauces are prepared on-site

Our seasonings do not contain MSG, artificial flavoring

Our potatoes are the highest quality Russet potato

Our popcorn is non-GMO

Our seasonings do not contain any MSG, chemical additives or preservatives

Our shave ice is made from 100% purified water

Our shave ice syrups are made of pure cane sugar, natural concentrates, extracts, fruit purees with no artificial flavorings or colorings (which also turn your tongue strange colors)

Reason #3: Custom Crafted Orders

Although we have great “recommended” combinations that are tried and true customers can choose from three

snack options; popcorn, potato chips and fries then have the option of a variety of 6 seasonings plus numerous

toppings and drizzles – making their own special treat. Nothing is pre-packaged or waiting under heat lamps

other than our fresh and seasoned potato chips.

Reason #4: Value

Gram for gram we pride ourselves in giving our customers the highest possible value by keeping our prices as

low as possible while offering generous portions. We don’t fill up chip bags with gasses or nitrogen which

makes people feel ripped off nor do we charge exorbitant prices for “just popcorn” or “just ice.” Just the

superior taste of our munchies alone makes people feel they received a great value.

Reason #5: Better for You

Ok, we realize that anything is excess is “not good for you,” but when you are going to treat yourself to life’s

indulgences, at ‘Ohana Bros. you can be assured that we do our best to make sure your body will not be

bombarded by “bad stuff” - artificial colorings, flavoring or additives. We use only use Rice Bran Oil for frying

our chips and fries which contains no trans-fats and is hypoallergenic.

Across the Board:

Gluten Free

No HFCS

No Trans Fats

No Artificial additives, colorings or flavorings

No MSG

Reason #6: Innovation

Our true innovation has everything to do with transforming these ordinary snack items into amazing

“munchies” creations. We do this with our incredible seasonings, mouth -watering drizzles, toppings, and

dipping sauces – allowing the customer to experience a variety of unique “taste” combinations.

Before ‘Ohana Bros.: After ‘Ohana Bros.:

Reason #7: The Retail Experience

For our retail guest experience we created what we call “Island Style” hospitality which combines food-

theatre, cool décor, music and customer engagement by our employees who embrace an “aloha” style vibe

which is fun, loving and sincere.

Figure 1 - Hand sliced potato chips

‘OHANA BROS. “MUNCHIES” OFFERINGS

Rocky Road To Hana Topped Popcorn

Mango Chile Lime Chips

Loaded Baked Potato Island Fries

Combination Popcorn Tin

Rio Habanero Seasoned Popcorn

Caramel and Candied Popcorn

Hawaiian Shave Ice

Hawaiian Shave Ice

Thai Topped Chips

Homemade Artisan Shaved Ice Syrups

Ohana Bros. “Travels” Cone Liner

Natural Sodas

‘Ohana Bros. Island Style Chips & Popcorn Brand Packaging

’OHANA BROS. RETAIL STORE RENDERINGS – SUNVALLEY Mall, Concord California

SALES COMPARABLES – Mall Snack Retailers

Gross revenue sales figures for similar “savory snack” or dessert

types of offerings are usually not published and available. The sales

figures below were obtained through extensive interviews with

franchise representatives, leasing agents and any available data

researched through Google searches over the internet. The main

direct and indirect industry food retailers are listed below along with

the estimated annual sales figures:

Retailer Annual $ Monthly

$

Daily $

‘Ohana Bros.(Pro forma) $500,000 $41,697 $1,300

Auntie Annes’s Pretzels

(National average)

$516,409 $43,034 $1,415

Auntie Annes’s Pretzels

(Westfield)

$650,000 $54,166 $1,805

Auntie Annes’s Pretzels

Sunvalley Mall

$550,000 $45,833 $1,527

Wetzels Pretzels (Kiosk)

Sunvalley Mall

$296,000 $24,666 $822

Wetzels Pretzels (In-Line)

Sunvalley Mall

$525,000 $43,750 $1,458

Doc Popcorn (store avge) $350,000 $29,166 $959

Popcornopolis (Roseville) $500,000 $41,666 $1,388

Cinnabon – Sunvalley Mall $470,000 $39,166 $1,305

Mrs. Fields Cookies

(Sunvalley Mall)

$425,000 $35,417 $1,180

Bahama Bucs (Shave Ice)

National store averages

$357,611 $29,800 $993

Rocky Mtn. Chocolate

(SVM)

$300,000 $25,000 $833

Haagan Dazs Ice Cream $600,000 $50,000 $1,644

THE INDUSTRY

Savory Snacks

The “salty snack” industry includes potato chips, corn chips, tortilla

chips, ready-to-eat-popcorn (except candy-coated), pork rinds, and

potato sticks. According to Snack Foods: A Global Business Report,

from Global Industry Analysts, the worldwide demand for snack foods

is likely to hit US $334 billion by 2015, with a sales volume of almost

50,000 thousand tons.4

The dietary trend in the 2000’s toward healthier eating did not affect

the snack category of foods as much as anticipated, as approximately

one-third of the population regularly ate snacks in place of a meal.

Single-serve and other “on the go” packaging was lifting sales by

catering to the demands of a faster-paced lifestyle.

Key Industry Points:

Sales of salty snacks are at an all-time high, having actually

peaked during the recession. Sales slowed in 2010 as the

national focus shifted to health and nutrition, but the category is

expected to pick up throughout 2011-2015.

Potato chips remain the largest segment with $6.8 billion in sales in 2010; this segment shows the most willingness to

develop new flavors to impress the young market.

Popcorn was the fifth highest “salty snack” with $3.2 billion in sales in 2010.

Potato chips are the top pick in salty snacks among all age

groups. Plantain chips are picking up, with popularity among

the 18-34 age group and low-income homes.

Asian and Hispanic populations have been buying more salty snacks in the past year; this bodes well for the category, as

these are some of the fastest growing ethnic populations,

according to the U.S. Census Bureau.

4 THE WORLD OF FOOD INGREDIENTS DECEMBER 2011 Article: A Snacking Snapshot by Rachel Zemser

The “’Ohana Brothers” COMPANY FOUNDERS AND FUND MANAGERS

Cary E. Riter – Business Development / Accounting & Finance

Co-Founder – ‘Ohana Bros. Island Style Chips & Popcorn

Founder / CEO – City Beach, Inc. 1992-2011

A high-energy, visionary and goal-driven entrepreneur, Cary has spent the past ten years as the Chief Executive Officer and

Chief Financial Officer of City Beach, Inc. as well as serving as Chairperson on the Board of Directors

Cary holds a Bachelors of Business Administration (B.B.A.) degree from Loyola Marymount University, Los Angeles,

California. He received an athletic scholarship to Loyola Marymount University as a member of the Division I Men’s

Volleyball team and was chosen team captain during his playing years.

An important aspect of his life is family – his wife and two daughters who keep him on his toes. When time allows, Cary

enjoys golfing, SUP (Stand-Up-Paddling) and an occasional game of beach volleyball.

Michael S. Riter – Operations / Product R&D

Co-Founder – ‘Ohana Bros. Island Style Chips & Popcorn

Michael Riter is a 15-year veteran of the event and hospitality industry. His passion for service, operations, and leadership

has served him in his pursuit and career of creating and operating unique group entertainment and recreation venues.

As Chief Operations Officer at City Beach Inc., Michael co-developed, organized, and successfully managed a multi-faceted

business model which included; a full-service restaurant and catering operation; an event, team building, and birthday

program division, sales and marketing team, a rock climbing gym, and a sports programming division.

Prior to his work with City Beach, Michael worked in the field of behavioral development serving adults with developmental

and psychological disabilities.

Michael is a family man as well with two girls and a boy and a psycho cat “Taz”

SOURCES & USES - SCHEDULE

Phase I - 3 Sites Site #1 Site #2 Site #3 Total

Sunvalley Mall TBD TBD Phase I

Total

Sources

Equity / Crowdfunding 360,000.00$ 200,000$ 200,000$ 760,000$

Debt 100,000.00$ 150,000$ 150,000$ 400,000$

Total Sources: 460,000.00$ 350,000$ 350,000$ 1,160,000$

Site Capital Uses:

Fabrication / Improvements 195,000$ 195,000$ 195,000$ 585,000$

Site Survey 1,500$ 1,500$ 1,500$ 4,500$

Engineering 4,250$ 4,250$ 4,250$ 12,750$

Architectural 14,000$ 14,000$ 14,000$ 42,000$

Special Inspections 1,000$ 1,000$ 1,000$ 3,000$

Permits & Fees 6,000$ 6,000$ 6,000$ 18,000$

Opening / Training 2,500$ 2,500$ 2,500$ 7,500$

Professional Fees (Legal / Acctg) 3,500$ 3,500$ 3,500$ 10,500$

Registrations (Trademarks, State, etc.) 500$ 500$ 500$ 1,500$

Pre-Paid Expenses (Insurance, Phone) 1,300$ 1,300$ 1,300$ 3,900$

Equipment 70,000$ 70,000$ 70,000$ 210,000$

Licenses - Business, health, etc. 150$ 150$ 150$ 450$

Working Capital 40,000$ 40,000$ 40,000$ 120,000$

Inventory - Starting Food / Packaging 5,800$ 5,800$ 5,800$ 17,400$

Mktg / Branding 4,500$ 4,500$ 4,500$ 13,500$

Total Site Capitalization 350,000$ 350,000$ 350,000$ 1,050,000$

Start-Up / Overhead

Salaries:

Managing Members 85,000$ -$ -$ 85,000$

Supervisor 4,000$ -$ -$ 4,000$

G&A - (software, supplies, printing, gas) 1,500$ -$ -$ 1,500$

Travel / Meals 2,000$ -$ -$ 2,000$

State Taxes (LLC) 800$ -$ -$ 800$

R&D 6,700$ -$ -$ 6,700$

Rent 10,000$ -$ -$ 10,000$

Total Start-Up / Overhead 110,000$ -$ -$ 110,000$

Projected Total Uses 460,000$ 350,000$ 350,000$ 1,160,000$

'Ohana Bros. "Island Style Chips & Popcorn"

Site: Prototype Total Yr 1 Total Yr 2 Total Yr 3 Year 4 Year 5

Annual Annual Annual Annual Annual

Gross Revenue:

Chips:

Seasoned - 1 dip 37,234$ 39,096$ 41,051$ 43,103$ 45,258$

Seasoned - 2 dips 52,475$ 55,098$ 57,853$ 60,746$ 63,783$

Popcorn: -$ -$ -$ -$ -$

1 lb 36,413$ 38,233$ 40,145$ 42,152$ 44,260$

2 lb 73,008$ 76,658$ 80,491$ 84,516$ 88,742$

5 lb 76,658$ 80,491$ 84,516$ 88,742$ 93,179$

Island Fries -$ -$ -$ -$ -$

Large 45,995$ 48,295$ 50,710$ 53,245$ 55,907$

Shave Ice: -$ -$ -$ -$ -$

16 oz. 31,028$ 32,580$ 34,209$ 35,919$ 37,715$

Drinks: -$ -$ -$ -$ -$

Slurry 16,062$ 16,865$ 17,708$ 18,593$ 19,523$

Soft Drink - Med 18,069$ 18,973$ 19,922$ 20,918$ 21,964$

Soft Drink - Lg 29,203$ 30,663$ 32,197$ 33,806$ 35,497$

H2O refills 2,190$ 2,300$ 2,415$ -$ -$

Island Style: -$ -$ -$ -$ -$

Chips 27,378$ 28,747$ 30,184$ 31,693$ 33,278$

Popcorn 27,378$ 28,747$ 30,184$ 31,693$ 33,278$

Island Fries 27,378$ 28,747$ 30,184$ 31,693$ 33,278$

Dips: -$ -$ -$ -$ -$

Cold -$ -$ -$ -$ -$

Hot -$ -$ -$ -$ -$

Miscellaneous: -$ -$ -$ -$ -$

Sports Bottle -$ -$ -$ -$ -$

Aloha Bracelets -$ -$ -$ -$ -$

Total Revenue 500,470$ 525,493$ 551,768$ 576,821$ 605,662$

COGS 41,706$ 43,791$ -$ -$ -$

F&B Chips:

Seasoned 5,169$ 5,427$ 5,699$ 5,984$ 6,283$

Seasoned 9,491$ 9,966$ 10,464$ 10,987$ 11,536$

Popcorn: -$ -$ -$ -$ -$

1 lb 5,289$ 5,554$ 5,832$ 5,540$ 5,817$

2 lb 10,495$ -$ -$ -$ -$

5 lb 10,075$ 10,579$ 11,108$ 11,663$ 12,246$

Island Fries -$ -$ -$ -$ -$

Large 7,009$ 7,359$ 7,727$ 8,114$ 8,519$

Shave Ice: -$ -$ -$ -$ -$

16 oz. 4,125$ 4,331$ 4,548$ 4,775$ 5,014$

Drinks: -$ -$ -$ -$ -$

Slurry 2,475$ 2,599$ 2,729$ 2,772$ 2,911$

Soft Drink - Med 2,694$ 2,829$ 2,970$ 3,119$ 3,275$

Soft Drink - Lg 4,307$ 4,523$ 4,749$ 4,986$ 5,236$

Island Style: -$ -$ -$ -$ -$

Chips 5,388$ 5,657$ 5,940$ 6,237$ 6,549$

Popcorn 5,388$ 5,657$ 5,940$ 6,237$ -$

Island Fries 5,388$ 5,657$ 5,940$ 6,237$ 6,549$

Dips: -$ -$ -$ -$ -$

Cold -$ -$ -$ -$ -$

Hot -$ -$ -$ -$ -$

Miscellaneous: -$ -$ -$ -$ -$

Sampling 5,516$ 5,792$ 6,081$ 6,385$ 6,704$

Waste 5,516$ 5,792$ 6,081$ 6,385$ 6,704$

O'hana Bros Merchandise -$ -$ -$ -$ -$

Total F&B 88,325$ 81,722$ 85,808$ 89,422$ 87,344$

Credit Card Fees 8,758$ 9,196$ 9,656$ 10,094$ 10,599$

Paper Supplies 5,005$ 5,255$ 5,518$ 5,768$ 6,057$

Payroll: 99,450$ 102,434$ 105,507$ 108,672$ 111,932$

Payroll Taxes 10,940$ 11,268$ 11,606$ 12,186$ 12,795$

Workers Comp 4,609$ 4,609$ 4,609$ 4,609$ 4,609$

Benefits -$ -$ -$ -$ -$

Total Payroll 114,998$ 118,310$ 121,721$ 125,467$ 129,336$

-$ -$ -$ -$ -$

Total COGS 217,086$ 214,483$ 222,703$ 230,751$ 233,336$

Gross Profit 283,383$ 311,010$ 329,065$ 346,070$ 372,326$

Gross Margin 57% 59% 60% 60% 61%

Operating Expenses

Rent (includes electricity of $8.01/sq.ft./yr) 60,661$ 61,369$ 62,596$ 63,848$ 65,125$

CAM 30,745$ 32,282$ 33,896$ 35,591$ 37,370$

RE Taxes 3,906$ 3,984$ 4,064$ 4,145$ 4,228$

Promotional Charge / year 4,936$ 5,183$ 5,442$ 5,714$ 6,000$

Water / Sewer -$ -$ -$ -$ -$

Insurance 4,018$ 4,018$ 4,018$ 4,018$ 4,018$

-$ -$ -$ -$ -$

Storage

Repairs & Maintenance (includes cleaning supplies) 3,000$ 3,090$ 3,183$ 3,278$ 3,377$

Liability Insurance 545$ 561$ 548$ 564$ 581$

Personal Property Insurance 300$ 309$ 318$ 328$ 338$

Supplemental Mgr 15,600$ 16,068$ 16,550$ 17,047$ 17,558$

Payroll Load 15% 2,340$ 2,410$ 2,483$ 2,483$ 2,483$

Utilities - Gas 4,800$ 4,944$ 5,092$ 5,245$ 5,402$

Telephone AT&T - POS 600$ 618$ 637$ 656$ 675$

Licenses & permits Health, Business, etc. 300$ 306$ 312$ 318$ 325$

Equipment Leases POS 828$ 828$ 828$ 828$ 828$

Uniforms 1,200$ 1,203$ 1,203$ 1,239$ 1,276$

Total Expenses 133,778$ 137,173$ 141,169$ 145,301$ 149,583$

Net Operating Income 149,605$ 173,838$ 187,897$ 200,769$ 222,743$

30% 33% 34% 35% 37%

'Ohana Bros. "Island Style Chips and Popcorn"

Fund I - Combined Total Yr 1 Total Yr 2 Year 3 Total Yr 4 Year 5 Year 6

Annual Annual Annual Annual Annual Annual

Gross Revenue:

Site #1 500,470$ 520,489$ 541,308$ 562,961$ 585,479$ 608,898$

Site #2 250,235$ 520,489$ 541,308$ 562,961$ 585,479$ 608,898$

Site #3 -$ 520,489$ 541,308$ 562,961$ 585,479$ 608,898$

Site #4 -$ 346,992$ 541,308$ 562,961$ 585,479$ 608,898$

Site #5 -$ 173,496$ 541,308$ 562,961$ 585,479$ 608,898$

Site #6 -$ -$ 541,308$ 562,961$ 585,479$ 608,898$

Site #7 -$ -$ 360,872$ 562,961$ 585,479$ 608,898$

Site #8 -$ -$ 180,436$ 562,961$ 585,479$ 608,898$

Site #9 -$ -$ -$ 562,961$ 585,479$ 608,898$

Site #10 -$ -$ -$ 375,307$ 585,479$ 608,898$

Site #11 -$ -$ -$ 187,654$ 585,479$ 608,898$

Site #12 -$ -$ -$ -$ 585,479$ 608,898$

Site #13 -$ -$ -$ -$ 390,319$ 608,898$

Site #14 -$ -$ -$ -$ 195,160$ 608,898$

Site #15 -$ -$ -$ -$ 195,160$ 608,898$

Total Gross Revenue: 750,705$ 2,081,955$ 3,789,157$ 5,629,605$ 7,611,226$ 8,524,573$

Cost of Goods:

Site #1 (217,086)$ (225,770)$ (234,801)$ (244,193)$ (253,960)$ (264,119)$

Site #2 (108,543)$ (225,770)$ (234,801)$ (244,193)$ (253,960)$ (264,119)$

Site #3 -$ (225,770)$ (234,801)$ (244,193)$ (253,960)$ (264,119)$

Site #4 -$ (150,513)$ (234,801)$ (244,193)$ (253,960)$ (264,119)$

Site #5 -$ (75,257)$ (234,801)$ (244,193)$ (253,960)$ (264,119)$

Site #6 -$ -$ (234,801)$ (244,193)$ (253,960)$ (264,119)$

Site #7 -$ -$ (156,534)$ (244,193)$ (253,960)$ (264,119)$

Site #8 -$ -$ (78,267)$ (244,193)$ (253,960)$ (264,119)$

Site #9 -$ -$ -$ (244,193)$ (253,960)$ (264,119)$

Site #10 -$ -$ -$ (162,795)$ (253,960)$ (264,119)$

Site #11 -$ -$ -$ (81,398)$ (253,960)$ (264,119)$

Site #12 -$ -$ -$ -$ (253,960)$ (264,119)$

Site #13 -$ -$ -$ -$ (169,307)$ (264,119)$

Site #14 -$ -$ -$ -$ (84,653)$ (264,119)$

Site #15 -$ -$ -$ -$ (84,653)$ (264,119)$

Total COGS (325,630)$ (903,080)$ (1,643,605)$ (2,441,927)$ (3,301,486)$ (3,697,664)$

Gross Profit

Site #1 283,383$ 746,259$ 306,507$ 318,768$ 331,518$ 344,779$

Site #2 141,692$ 746,259$ 306,507$ 318,768$ 331,518$ 344,779$

Site #3 -$ 746,259$ 306,507$ 318,768$ 331,518$ 344,779$

Site #4 -$ 497,506$ 306,507$ 318,768$ 331,518$ 344,779$

Site #5 -$ 248,753$ 306,507$ 318,768$ 331,518$ 344,779$

Site #6 -$ -$ 306,507$ 318,768$ 331,518$ 344,779$

Site #7 -$ -$ 204,338$ 318,768$ 331,518$ 344,779$

Site #8 -$ -$ 102,169$ 318,768$ 331,518$ 344,779$

Site #9 -$ -$ -$ 318,768$ 331,518$ 344,779$

Site #10 -$ -$ -$ 212,512$ 331,518$ 344,779$

Site #11 -$ -$ -$ 106,256$ 331,518$ 344,779$

Site #12 -$ -$ -$ -$ 331,518$ 344,779$

Site #13 -$ -$ -$ -$ 221,012$ 344,779$

Site #14 -$ -$ -$ -$ 110,506$ 344,779$

Site #15 -$ -$ -$ -$ 110,506$ 344,779$

Total Gross Profit 425,075$ 2,985,034$ 2,145,552$ 3,187,678$ 4,309,740$ 4,826,909$

Operating Expenses

Site #1 (132,627)$ (137,933)$ (143,450)$ (149,188)$ (155,155)$ (161,362)$

Site #2 (66,314)$ (137,933)$ (143,450)$ (149,188)$ (155,155)$ (161,362)$

Site #3 -$ (137,933)$ (143,450)$ (149,188)$ (155,155)$ (161,362)$

Site #4 -$ (91,955)$ (143,450)$ (149,188)$ (155,155)$ (161,362)$

Site #5 -$ (45,978)$ (143,450)$ (149,188)$ (155,155)$ (161,362)$

Site #6 -$ -$ (143,450)$ (149,188)$ (155,155)$ (161,362)$

Site #7 -$ -$ (95,633)$ (149,188)$ (155,155)$ (161,362)$

Site #8 -$ -$ (47,817)$ (149,188)$ (155,155)$ (161,362)$

Site #9 -$ -$ -$ (149,188)$ (155,155)$ (161,362)$

Site #10 -$ -$ -$ (99,459)$ (155,155)$ (161,362)$

Site #11 -$ -$ -$ (49,729)$ (155,155)$ (161,362)$

Site #12 -$ -$ -$ -$ (155,155)$ (161,362)$

Site #13 -$ -$ -$ -$ (103,437)$ (161,362)$

Site #14 -$ -$ -$ -$ (51,718)$ (161,362)$

Site #15 -$ -$ -$ -$ (51,718)$ (161,362)$

Total Operating Expenses (198,941)$ (551,730)$ (1,004,149)$ (1,491,879)$ (2,017,020)$ (2,259,063)$

Net Operating Income

Site #1 150,756$ 156,786$ 163,058$ 169,580$ 176,363$ 183,418$

Site #2 75,378$ 156,786$ 163,058$ 169,580$ 176,363$ 183,418$

Site #3 -$ 156,786$ 163,058$ 169,580$ 176,363$ 183,418$

Site #4 -$ 104,524$ 163,058$ 169,580$ 176,363$ 183,418$

Site #5 -$ 52,262$ 163,058$ 169,580$ 176,363$ 183,418$

Site #6 -$ -$ 163,058$ 169,580$ 176,363$ 183,418$

Site #7 -$ -$ 108,705$ 169,580$ 176,363$ 183,418$

Site #8 -$ -$ 54,353$ 169,580$ 176,363$ 183,418$

Site #9 -$ -$ -$ 169,580$ 176,363$ 183,418$

Site #10 -$ -$ -$ 113,053$ 176,363$ 183,418$

Site #11 -$ -$ -$ 56,527$ 176,363$ 183,418$

Site #12 -$ -$ -$ -$ 176,363$ 183,418$

Site #13 -$ -$ -$ -$ 117,575$ 183,418$

Site #14 -$ -$ -$ -$ 58,788$ 183,418$

Site #15 -$ -$ -$ -$ 58,788$ 183,418$

Total Net Operating Income 226,134$ 627,145$ 1,141,403$ 1,695,799$ 2,351,508$ 2,751,264$

FUND TERMS - ‘OHANA BROS. FUND I, LLC

Phase I Funding Round

Sunvalley Mall, Concord, CA

Investment $360,000

Fund Vehicle Limited Liability Company with Manager-Managed Operating Agreement

Investment Period 5-Years for Preferred Return terms

Management Fee Asset Management Fee shall be 4% of gross revenues per annum commencing

year three.

Return Investment Members: Investment Members will contribute $360,000 to

capitalization. Prior to any distributions to any Operating Members,

Investment Members will receive 100% of cash distributions5 until such

time that the investor member receives two (2X) times their original

investment. Afterwards, the cash distribution percentage will be allocated

according to each member’s percentage in this LLC.

Operating Members: Once Investment Members received 2X their

original investment, the cash distributions will be allocated to members

according to each member’s percentage interest in this LLC.

Participation Investments are made through our subscription and operating agreements

Individual investors minimum commitment is $10,000

5 Cash distributions are defined as cash remaining after debt service and reserves.