Page 4

Famous Uncle Al’s Hot Dogs & Grille, Inc.

Text Box: age some of the many partnerships the Kolaj family has built over decades of work in the food service industry.
We also view the Famous Famiglia chain of pizza restaurants as a prime example of the type of growth Famous Uncle Al’s may experience as it moves forward with its national campaign. The pizza business was founded in 1986 as a family-run, local New York operation. Since

Text Box: then, it has reached an excess of 60 locations, of which more than 35 are franchises. Annually, the business drives sales that surpass the $20 million threshold.
Famous Famiglia franchises are now found in airports, malls, baseball stadiums, and other arenas throughout the country and in select regions across the globe. Over 50 of its sixty-plus locations were built since 2001 (when it began an

that continues to escalate.

Despite the increasing prevalence of the franchise as a means of business expansion, to date there is not a single company that has taken the hot dog chain to a national level. This presents a sizeable opportunity for Famous Uncle Al’s Hot Dogs & Grille, Inc. to take a known ‘winner’ and address a subset of the market that is virtually untouched.

It is imperative to highlight that the Company’s franchise offering is uniquely positioned to compete in the market that Quizno’s and Subway have dominated with well over 25,000 restaurants combined. Famous Uncle Al’s offers an exciting alternative to the typical sub and sandwich franchise offerings.

We are confident that the development of a more sophisticated turnkey

Huge, high-growth franchise industry offers immediate value

The franchise food industry is part of an enormous market and accounts for more than 40% of all retail sales in the U.S., or $1.5 trillion of combined economic output.

Most importantly, rapid growth within the space is demonstrative of how quickly and efficiently a concept like Famous Uncle Al’s can achieve scale and extend its brand.

According to the Redstone Group, a new franchise business opens every 8 minutes of every business day, and there are approximately 750,000 franchise business in the nation under the umbrella of an estimated 1,500 franchise opportunities. This implies that one out of every 12 businesses in the U.S. is a franchise, a concentration of the business landscape

approach, combined with increases in marketing spend, will dramatically accelerate historical growth rates and can make the Company competitive with some of America’s most lucrative franchises.

A stable model that provides one-time and recurring cash flows

Another key consideration for prospective shareholders is the quick serv industry’s resilience to economic downturns and cyclicality. Regardless of the state of the economy, this particular segment consistently performs. This indicates a positive long-term outlook for the investment community as it pertains to the franchise market.

Additionally, operation as a franchise allows Famous Uncle Al’s Hot Dogs & Grille, Inc. to earn meaningful one-time franchise fee revenues as well as a

Text Box: aggressive franchise plan), which shows how quickly the business can accelerate with a solid franchise program.
Consequently, we consider the advisory services of the Kolaj brothers as more than a source of financial and commercial value. It is a relationship deeply rooted in shared backgrounds and a common interests and goals and one that represents a wealth of possibilities for Famous Uncle Al’s.

growing stream of cash flows from royalty fees from each operating location.

At $17,500 for individual franchisees and $50,000 for Area Developers, one-time fees alone can quickly add to the top line. Factor in 7% of net sales from even a handful of high-volume locations, and the business can easily generate millions of dollars through its franchise program.

We believe that Famous Uncle Al’s has distinctly positioned itself as a franchise option because of its superior suite of services, its focus on a under-addressed market, lower start-up and operating costs, and its dedication to the quality of its products and brand.

As such, the Company is poised to be a ‘first choice’ opportunity for franchisees. In our view, this warrants special consideration.