PROVEN INDOOR ROLLER SKATING RINK CONCEPT AIMED FOR KIDS UNDER 12 AND THEIR FAMILIES The SkateZone concept is an indoor roller skating rink, serving families with children 12 and under. The rink includes a separated section for organizing Birthday parties, and a redemption counter/snacks area. This rink can be set up in either an existing shopping mall, or as a standalone building. This concept addresses an unmet need in the market for a safe and kid-friendly roller skating venue. Traditional skating rinks are huge, and usually packed with teenagers and adults. Such an environment is not very appealing to young children and their families. The SkateZone concept is for a smaller rink (about 3,500 sf) with floor made of a specially designed synthetic material that is softer on the feet and partially cushions the fall. The music and decor of the SkateZone rink is tailored towards young children. The party area is also decorated to be appealing towards young children. For children learning to skate, a simple wheeled trainer is offered. With the aid of such a trainer, usually children can learn to skate in 2 to 3 skating sessions. Families and kids get hooked for life, if they learn to skate in such an environment. For non-skaters, SkateZone offers a Roller Racer, a wheeled fun toy that kids can use to have fun. The concept also includes several ticket redemption video games. Once the kids are done skating, they enjoy playing redemption-oriented video games, and are able to redeem their tickets for fun prizes at the redemption counter. Financials Revenue Sources The rink attracts a steady number of individual skaters, who come specifically to skate. About 40 to 50% of skaters are repeat customers. Birthday parties are a big source of revenues. Multiple formats of birthday parties are offered, some include just skating, while others include skating and video gaming. Additional revenues come from the sale of snacks and plays on the video/ticket redemption games. Expenses The primary expenses are rent for the facility, utilities (if not included in the rent), employee costs, occasional maintenance costs, some marketing costs, redemption supplies, and insurance. Cash Flow Based on our 8 years of operations of SkateZone concept at the Great Mall of Great Plains in Olathe, KS, we are able to provide a very conservative estimate of owner benefits from this business. The details will be shared on signing an NDA. Competition The business is targeted towards families with children 12 and under. There is no other indoor roller skating rink targeting this segment in the greater Kansas City area. An overall increase in awareness for physical activity for children is attracting greater number of people towards activities like roller skating, which provides excellent athletic workout. For birthday parties, the primary competition is from other facilities offering birthday party packages, like Monkey Bizness and Chuck E Cheese. Opportunities for Further Growth 1. Addition of hot food offering to the facility 2. Directed marketing towards local elementary and middle schools to offer field program opportunities 3. Directed marketing towards daycare facilities, scouting troops, church youth groups, and various non-profit organizations serving children WhWhat is included in the offering? 1. All equipment required to set up the rink and party area (synthetic floor tiles, music systems, rink decor, posters, signage, furniture for the party area, party area decor, business signage, LED lightings, shoe racks, counter equipment, and about 125 pair of roller skates). This equipment is used but in great condition and currently being used at the existing SkateZone facility at the Great Mall of Olathe. 2. Advice for identification and preparation of facility & support in leasing negotiations 3. Supervision and arrangement for installation of the equipment at the facility and preparation of facility 4. SkateZone® and GameZone® business name 5. Business phone number and Website 6. All business tools (Liability waivers, party sheets, birthday party marketing literature, invitation cards) 7. Three months of dedicated business support to realize full potential of business t is What is not included in the offering? 1. Labor for installation of the equipment at the facility 2. Construction of wood wall to enclose the skating area (estimated cost $1,500) 3. Any facility preparation work (fire escape doors, floor preparation in the party area or rink area, painting of the walls, carpeting, fire extinguishers, building permits) 4. Legal advice 5. Video and Ticket redemption games (can be purchased used for about $20K) A
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