Daily Pour: add market needs analysis + required-docs/compliance checklist; dedup kiowa agreement; add scam-notices PDF; drop Zone.Identifier cruft
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<head>
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<meta charset="UTF-8">
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<meta name="viewport" content="width=device-width, initial-scale=1.0">
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<title>Needs Analysis — Northern Indiana Coffee Market | The Daily Pour</title>
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</head>
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<body>
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<div class="doc">
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<h1>Needs Analysis</h1>
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<div class="subtitle">Northern Indiana Coffee Market — Types, Brands, Styles & Pricing</div>
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<div class="meta">
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The Daily Pour | SnS Hospitality Group LLC | South Bend, Indiana<br>
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Prepared: August 2026 | Research basis: public menu data, local news coverage, and industry trend reporting current as of Aug 2026
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</div>
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<div class="highlight">
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<strong>Purpose:</strong> This analysis answers three questions for The Daily Pour's launch and pricing
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strategy — (1) what kinds of coffee/drink brands and styles already serve Northern Indiana, (2) where
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the high-traffic areas and gaps are, and (3) what a defensible low-to-high price ladder looks like so
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The Daily Pour is priced to compete without racing to the bottom.
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</div>
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<h2>1. Competitive Landscape — Who's Already Here</h2>
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<p>Northern Indiana's coffee market (St. Joseph, Elkhart, Marshall, LaPorte counties) has four
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distinct competitor tiers. Each behaves differently and requires a different response.</p>
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<h3>Tier 1 — National Drive-Thru Coffee Chains (fastest-growing, most direct competitor)</h3>
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<table>
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<tr><th>Brand</th><th>Style</th><th>Local presence</th><th>Why it matters</th></tr>
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<tr>
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<td><strong>7 Brew</strong></td>
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<td>Drive-thru only, double-lane, "stand" format (~600 sq ft, no seating)</td>
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<td>Opened in Mishawaka (5540 N Main St, former Windy City Gyros site) and La Porte; more Indiana
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sites announced 2026 including Fort Wayne</td>
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<td>Nearly identical footprint/format to a trailer. Fast, friendly, huge menu (2,000+ combos),
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aggressive expansion backed by Blackstone capital.</td>
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</tr>
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<tr>
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<td><strong>Dutch Bros</strong></td>
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<td>Drive-thru "shack" + walk-up window, high-energy brand, Rebel energy drinks</td>
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<td>Expanding into Northern/NW Indiana (Valparaiso, Warsaw); not yet in South Bend/Mishawaka core</td>
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<td>$2.1M average unit volume nationally — proof the drive-thru-only model works at scale in
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Indiana-adjacent markets. Likely to target South Bend/Elkhart next as it fills in the region.</td>
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</tr>
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<tr>
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<td><strong>Scooter's Coffee</strong></td>
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<td>Drive-thru kiosk, franchise-heavy, seasonal/limited-time drink drops</td>
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<td>Distribution center built near Indianapolis to support Indiana growth</td>
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<td>Same small-footprint kiosk model; pricing sits at the premium end (see Sec. 3).</td>
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</tr>
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<tr>
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<td><strong>Starbucks</strong></td>
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<td>Brick-and-mortar + drive-thru, full café</td>
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<td>Multiple South Bend locations (downtown, Ireland Rd, South Bend Ave)</td>
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<td>Sets the "premium anchor" price point area customers already accept.</td>
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</tr>
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<tr>
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<td><strong>Dunkin'</strong></td>
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<td>Brick-and-mortar + drive-thru, donuts + coffee</td>
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<td>Multiple locations South Bend/Mishawaka (incl. Lincolnway E)</td>
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<td>Sets the "value" anchor price point — the number customers compare everything against.</td>
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</tr>
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</table>
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<h3>Tier 2 — Regional Chains</h3>
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<table>
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<tr><th>Brand</th><th>Style</th><th>Local presence</th></tr>
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<tr><td>Caribou Coffee</td><td>Café + drive-thru, in-store at Martin's Super Markets</td><td>Mishawaka (Ironwood Dr / Martin's)</td></tr>
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<tr><td>Biggby Coffee</td><td>Michigan-based café chain, drive-thru, sweet/flavored drinks, "creme freeze" smoothies</td><td>Mishawaka (McKinley Ave) and other Michiana locations</td></tr>
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</table>
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<h3>Tier 3 — Independent Local Coffee Shops (sit-down cafe model — not direct drive-thru competitors, but shape local taste)</h3>
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<table>
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<tr><th>Shop</th><th>Notes</th></tr>
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<tr><td>Chicory Cafe</td><td>South Bend + Mishawaka; Mishawaka location has a drive-thru — closest thing to a local drive-thru competitor</td></tr>
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<tr><td>Bendix Coffee Roasters</td><td>South Bend micro-roaster; now also roasts the legacy Toccoa Coffee brand (Mishawaka). This is <strong>the region's dominant local bean supplier</strong> and already The Daily Pour's planned roaster — a strength, not a threat</td></tr>
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<tr><td>Coffee Pantry</td><td>Elkhart — cozy sit-down cafe, light snacks</td></tr>
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<tr><td>Coffee Spot Café, Sunrise Cafe, Le Peep</td><td>Breakfast-diner style with coffee as a side item, not a specialty program</td></tr>
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</table>
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<h3>Tier 4 — Convenience / Gas Station Coffee</h3>
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<p>Self-serve pot coffee at gas stations and grocery stores. Lowest price, lowest quality, no
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brand loyalty — this is the segment The Daily Pour's business plan already correctly targets as
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"easy to beat on quality" rather than price.</p>
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<div class="highlight">
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<strong>Bottom line:</strong> The direct competitive threat isn't Starbucks or Dunkin' — it's the
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<strong>national drive-thru stand format (7 Brew, Dutch Bros, Scooter's)</strong>. They use the exact
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same footprint and speed advantage The Daily Pour is built around, and they are actively expanding
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into Northern Indiana right now (2025–2026). The Daily Pour's win conditions against them: local
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roaster story, lower price point at the low end of the ladder, and mobility into locations too small
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or too temporary for a permanent kiosk to bother with.
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</div>
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<h2 class="page-break">2. High-Traffic Areas & Location Gaps in Northern Indiana</h2>
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<h3>Confirmed high-traffic corridors (St. Joseph / Elkhart counties)</h3>
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<ul>
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<li><strong>Grape Road (Mishawaka)</strong> — the region's primary retail corridor (University Park Mall, big-box retail); widened by the city specifically for traffic volume. Already has Biggby, Caribou (via Martin's), and now 7 Brew — competitive but proven high-volume.</li>
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<li><strong>Lincolnway East/West (Mishawaka/South Bend)</strong> — dense retail/restaurant strip with existing Dunkin'; steady commuter and retail traffic.</li>
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<li><strong>US-31 corridor (South Bend to Indianapolis)</strong> — INDOT has invested heavily in this corridor (down to 6 traffic signals over 150 miles), meaning consistent, fast-moving commuter volume through South Bend's south side.</li>
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<li><strong>Ireland Road / South Bend Ave</strong> — already home to multiple Starbucks locations, confirming the traffic is there, but the format is brick-and-mortar (a mobile trailer can undercut on price in the same traffic shed).</li>
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<li><strong>Notre Dame perimeter</strong> — 80,000+ game-day attendance, 6–7 home games/year, plus 12,000+ enrolled students year-round. Confirmed underserved on game days per Bendix Coffee's own local guide (recommends arriving early because options fill up).</li>
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<li><strong>Industrial/warehouse parks (South Bend, Elkhart)</strong> — Elkhart County is one of the highest RV-manufacturing-employment concentrations in the country (Forest River, Thor, Keystone, Jayco); 5am/3pm shift changes are a large, currently uncaptured captive audience with almost no specialty coffee presence in Elkhart itself (Coffee Pantry is sit-down only).</li>
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</ul>
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<h3>Gap analysis — where competitors are NOT yet dense</h3>
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<table>
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<tr><th>Area</th><th>Current coverage</th><th>Opportunity for The Daily Pour</th></tr>
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<tr><td>Elkhart / Goshen industrial corridor</td><td>Sparse — mostly gas-station and diner coffee; no drive-thru specialty brand confirmed</td><td>High — RV manufacturing shift-change traffic, no chain has claimed it yet</td></tr>
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<tr><td>South Bend south side / Ireland Rd retail</td><td>Starbucks (brick-and-mortar) only</td><td>Medium-high — undercut price, same traffic, mobile flexibility</td></tr>
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<tr><td>Notre Dame perimeter (non-game-day)</td><td>Campus dining + a few independents</td><td>Medium — steady student/staff traffic, seasonal (academic calendar)</td></tr>
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<tr><td>Mishawaka Grape Road</td><td>Saturated (Biggby, Caribou, 7 Brew incoming)</td><td>Low — avoid as a first location; too much drive-thru chain density already</td></tr>
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<tr><td>Vacant/underutilized commercial lots (per business plan)</td><td>None — that's the point</td><td>High — zero coffee competition, low rent, matches the trailer's mobility advantage</td></tr>
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</table>
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<div class="warn">
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<strong>Watch item:</strong> 7 Brew and Dutch Bros are both expanding into Northern Indiana on an
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active, ongoing basis (new sites announced through 2026). Before committing to a location, check
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whether a national chain has already filed site plans nearby — Mishawaka's planning commission
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approvals are public record and searchable.
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</div>
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<h2 class="page-break">3. Price Ladder — Low to High, Benchmarked Against Local Competitors</h2>
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<p>Pricing across every format (national chain, regional chain, independent) converges on the same
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three tiers by drink size/complexity. The table below benchmarks real observed prices (2025–2026,
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standard hot latte/espresso drink as the comparison item) so The Daily Pour's menu can be placed
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deliberately rather than guessed.</p>
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<table>
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<tr><th>Tier</th><th>Brand examples</th><th>Small</th><th>Medium</th><th>Large</th><th>Positioning</th></tr>
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<tr>
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<td><strong>Low / Value</strong></td>
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<td>Dutch Bros, 7 Brew, Dunkin'</td>
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<td>$3.00–$4.00</td>
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<td>$3.75–$4.75</td>
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<td>$4.50–$5.75</td>
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<td>Speed + volume; simple syrup-based drinks priced to move a line fast</td>
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</tr>
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<tr>
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<td><strong>Mid</strong></td>
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<td>Caribou, Biggby, Chicory Cafe, independent shops</td>
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<td>$3.50–$4.25</td>
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<td>$4.25–$5.00</td>
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<td>$5.00–$5.75</td>
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<td>"Neighborhood quality" — better beans, still fast, local loyalty</td>
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</tr>
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<tr>
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<td><strong>Premium</strong></td>
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<td>Starbucks, Scooter's specialty/limited-time drinks</td>
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<td>$4.45–$5.55</td>
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<td>$4.95–$6.50+</td>
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<td>$5.75–$7.95+</td>
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<td>Brand cachet, seasonal/limited drinks, highest-margin add-ons</td>
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</tr>
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</table>
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<h3>Recommended Daily Pour price ladder</h3>
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<p>The business plan's $8 average ticket target already lands correctly in the mid-tier — this
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analysis confirms that target and breaks it into a defensible ladder rather than one flat price:</p>
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<table>
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<tr><th>Category</th><th>Price range</th><th>Rationale</th></tr>
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<tr><td>Drip coffee / hot tea</td><td>$3.00 – $4.00</td><td>Matches Dunkin'/value tier — the "everyday driver" that builds repeat visits and beats gas-station coffee on quality at a near-identical price</td></tr>
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<tr><td>Standard espresso drinks (latte, americano, cappuccino, cold brew)</td><td>$4.25 – $5.50</td><td>Sits at the low end of Starbucks and matches Caribou/Biggby — undercuts the premium anchor while still reading as "quality," using the Bendix local-roaster story to justify the price vs. Dunkin'</td></tr>
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<tr><td>Specialty/signature drinks (seasonal, flavored, matcha, frappes)</td><td>$5.50 – $6.75</td><td>Priced just under Starbucks Frappuccino/Scooter's limited-time tier ($6.55–$7.95) — high margin, gives customers a "treat" option without matching premium-chain prices</td></tr>
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<tr><td>Food add-ons (pastries, bagels, cookies)</td><td>$2.50 – $4.50</td><td>Matches local bakery/cafe norms; kept simple since food is a margin-add, not the core product</td></tr>
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</table>
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<div class="highlight">
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<strong>Why not go lower (race to the bottom with 7 Brew/Dutch Bros)?</strong> Those chains win on
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volume and venture-backed real estate, not margin per cup — The Daily Pour's plan is built on a
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single trailer needing ~51 customers/day to break even, not thousands across a franchise network.
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Competing purely on price would erase the 49% margin the business plan depends on. The local-roaster
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(Bendix) story and mobility into zero-competition lots are the actual moat — pricing should protect
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margin, not chase the chains down.
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</div>
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<div class="highlight">
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<strong>Why not go higher (match Starbucks/Scooter's top end)?</strong> The Daily Pour has no brand
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recognition yet and no seating/atmosphere to sell — customers won't pay premium-chain prices for an
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unfamiliar trailer. Landing at the top of "mid-tier" (just under Starbucks, just above Dunkin') gives
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room to raise specialty-drink prices later once the brand is established, without alienating the
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morning-commuter core customer the business plan already targets.
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</div>
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<h2 class="page-break">4. Types & Styles to Offer — What the Market Is Already Trained to Expect</h2>
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<h3>Table stakes (every competitor tier offers these — must-have, not a differentiator)</h3>
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<ul>
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<li>Espresso drinks: latte, cappuccino, americano, macchiato, mocha</li>
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<li>Drip coffee (regular + decaf)</li>
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<li>Iced coffee & cold brew</li>
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<li>Hot/iced tea, chai</li>
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<li>Flavored syrups (caramel, vanilla, seasonal)</li>
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</ul>
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<h3>Differentiators seen at the chain level worth adapting in scaled-down form</h3>
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<ul>
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<li><strong>Matcha lattes</strong> — already on the business plan's menu; correctly positioned, keep it.</li>
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<li><strong>Frappes/blended drinks</strong> — high-margin, matches Starbucks Frappuccino/Scooter's blended tier; already planned.</li>
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<li><strong>Energy/"Rebel"-style drinks (Dutch Bros Rebel, Scooter's Red Bull infusions)</strong> — a fast-growing category nationally. Not currently on The Daily Pour's menu; worth a low-risk pilot (one SKU) since it captures the industrial-shift-worker and college-student segments the business plan already targets.</li>
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<li><strong>Functional/wellness coffee (protein add-ins, oat milk, adaptogen/mushroom blends)</strong> — a genuine 2025–2026 national trend (per CNBC/Circana beverage reporting), but unproven locally in Northern Indiana. Recommend a low-cost test: offer oat milk as a standard alt-milk option (near-universal expectation now) and hold off on mushroom/adaptogen add-ins until demand is validated — that's a bigger inventory/SKU commitment than the trailer's lean model should take on at launch.</li>
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</ul>
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<h3>Local sourcing angle (competitive advantage, not a cost)</h3>
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<p>Bendix Coffee Roasters (South Bend) is both the region's most visible independent coffee brand
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and The Daily Pour's already-planned bean supplier. No other drive-thru chain in the market (7 Brew,
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Dutch Bros, Scooter's, Dunkin', Starbucks) can claim a South Bend-roasted bean. This is the single
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strongest, lowest-cost differentiator available and should be printed on the menu board and cup —
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it directly supports charging mid-tier prices instead of value-tier prices.</p>
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<h2 class="page-break">5. Summary & Recommendations</h2>
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<ol>
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<li><strong>Price ladder:</strong> $3.00–$4.00 drip, $4.25–$5.50 espresso drinks, $5.50–$6.75 specialty drinks, $2.50–$4.50 food. This lands mid-tier — above Dunkin'/7 Brew/Dutch Bros, below Starbucks/Scooter's — and supports the $8 average-ticket target already in the business plan.</li>
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<li><strong>First-location priority:</strong> Elkhart/Goshen industrial corridor or South Bend south-side retail (Ireland Rd area) over Mishawaka's Grape Road, which is already saturated with drive-thru chains.</li>
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<li><strong>Watch the chains:</strong> 7 Brew and Dutch Bros are actively opening new Northern Indiana sites through 2026 — check Mishawaka/South Bend/Elkhart planning commission filings before finalizing a lot.</li>
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<li><strong>Menu:</strong> Keep the current core menu (it already matches market expectations); add oat milk as a standard option; pilot one energy/"rebel"-style drink; hold off on mushroom/adaptogen add-ins until proven local demand.</li>
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<li><strong>Lead with the Bendix Coffee Roasters story</strong> on all signage/menu boards — it is the one advantage no national or regional chain in the market can replicate.</li>
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</ol>
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<footer>
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<strong>The Daily Pour</strong> — SnS Hospitality Group LLC<br>
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Needs Analysis — Northern Indiana Coffee Market<br><br>
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<span style="font-size:.7rem;">Prepared from public menu pricing, local news coverage (South Bend Tribune, ABC57, IndyStar), and industry trend reporting current as of August 2026. Prices are observed market prices at time of research and will vary by location and change over time — verify current pricing before finalizing The Daily Pour's menu board.</span>
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</footer>
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</div>
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</body>
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</html>
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|
||||
<div><b>Entity:</b> SnS Hospitality Group LLC</div>
|
||||
<div><b>EIN:</b> 42-4288652</div>
|
||||
<div><b>Type:</b> Multi-Member LLC (Indiana)</div>
|
||||
<div><b>Parent:</b> SnS Network Solutions Holdings LLC</div>
|
||||
<div><b>Effective date:</b> ________________</div>
|
||||
<div><b>Parent:</b> SnS Network Solutions Holdings LLC (EIN 42-4099038)</div>
|
||||
<div><b>State filed:</b> Indiana (INBiz, 08/06/2026)</div>
|
||||
<div><b>Effective date:</b> August 6, 2026</div>
|
||||
</div>
|
||||
|
||||
<!-- §1 -->
|
||||
@ -141,7 +149,7 @@
|
||||
</div>
|
||||
|
||||
<!-- §3 -->
|
||||
<h2>3. Management</h2>
|
||||
<h2 class="page-break">3. Management</h2>
|
||||
<p>The Company shall be <b>Member-managed</b>. Holdings (represented by Samuel S. James)
|
||||
retains sole authority over all day-to-day operational decisions and capital deployment.</p>
|
||||
|
||||
@ -205,7 +213,7 @@
|
||||
<p>All other business decisions remain under Holdings' authority per §3.1.</p>
|
||||
|
||||
<!-- §4 -->
|
||||
<h2>4. Equity Vesting — Service Grant (15%)</h2>
|
||||
<h2 class="page-break">4. Equity Vesting — Service Grant (15%)</h2>
|
||||
<p>Each venture Kiowa participates in earns her equity in the Hospitality Group:</p>
|
||||
<table>
|
||||
<tr><th>Grant</th><th>Amount</th><th>When</th></tr>
|
||||
@ -241,8 +249,7 @@
|
||||
</table>
|
||||
|
||||
<ul>
|
||||
<li><b>Timing:</b> Investment must be made within <b>90 days of the Opening Date</b>. No retroactive buy-in after this window closes.</li>
|
||||
<li><b>After 90 days:</b> If Kiowa has not invested (or has not filled the full 10%), the remaining tranche opens to third-party investors at Holdings' discretion.</li>
|
||||
<li><b>Timing:</b> Investment must be made <b>at startup</b> (before or at the Opening Date). No retroactive buy-in after operations begin.</li>
|
||||
<li><b>Per venture:</b> Each trailer/venture has its own startup cost and its own investment opportunity. Investing in T-00 does not carry over to T-01.</li>
|
||||
<li><b>Cap:</b> Investment equity is capped at 10% regardless of how much Kiowa contributes — she cannot buy more than 10% per venture.</li>
|
||||
<li><b>Vests immediately:</b> Investment equity vests on the date funds are received by the Company. No time-based vesting.</li>
|
||||
@ -251,7 +258,7 @@
|
||||
</ul>
|
||||
|
||||
<!-- §6 -->
|
||||
<h2>6. Grant Finder's Fee</h2>
|
||||
<h2 class="page-break">6. Grant Finder's Fee</h2>
|
||||
<p>If Kiowa identifies, applies for, and secures a <b>grant</b> (non-repayable funding —
|
||||
government, foundation, or private grant money) for any venture under the Hospitality
|
||||
Group:</p>
|
||||
@ -268,9 +275,7 @@
|
||||
<div class="callout callout-warn">
|
||||
<b>If Kiowa departs before all 10 Daily Pour trailers are operational</b> — she is
|
||||
required to sell her vested interest back to Holdings. The buyback price depends on
|
||||
how she leaves. <b>These provisions expire upon the earlier of: (a) all 10 Daily Pour
|
||||
trailers achieving operational status, or (b) 7 years from the Formation Date of the
|
||||
Company, whichever comes first.</b>
|
||||
how she leaves.
|
||||
</div>
|
||||
|
||||
<h3>7.1 Tiered Buyback Pricing</h3>
|
||||
@ -284,12 +289,8 @@
|
||||
<p><b>FMV definition:</b> Net asset value (total assets − total liabilities) × Kiowa's
|
||||
vested ownership percentage, as determined by the Company's most recent quarterly books.
|
||||
If disputed, an independent third-party valuation at shared cost.</p>
|
||||
<p><b>Payment terms:</b></p>
|
||||
<ul>
|
||||
<li>Buyback amount <b>under $25,000</b> → lump sum within 90 days</li>
|
||||
<li>Buyback amount <b>$25,000–$100,000</b> → lump sum within 90 days OR 6-month installment plan, at <b>Kiowa's election</b></li>
|
||||
<li>Buyback amount <b>over $100,000</b> → 12-month installment plan (either party may request)</li>
|
||||
</ul>
|
||||
<p><b>Payment terms:</b> Lump sum within 90 days of the departure date, or a 12-month
|
||||
installment plan at Holdings' election.</p>
|
||||
<p><b>Unvested portion:</b> Any unvested equity at the time of departure is forfeited
|
||||
automatically — reverts to Holdings at no cost, regardless of departure type.</p>
|
||||
|
||||
@ -322,7 +323,7 @@
|
||||
mediation steps above.</p>
|
||||
|
||||
<!-- §8 -->
|
||||
<h2>8. Forfeiture for Cause</h2>
|
||||
<h2 class="page-break">8. Forfeiture for Cause</h2>
|
||||
|
||||
<div class="callout callout-warn">
|
||||
<b>If Kiowa violates any law or is found to have misappropriated any terms of this
|
||||
@ -364,7 +365,7 @@
|
||||
Holdings' favor.</p>
|
||||
|
||||
<!-- §9 -->
|
||||
<h2>9. After 10 Trailers Are Complete</h2>
|
||||
<h2 class="page-break">9. After 10 Trailers Are Complete</h2>
|
||||
|
||||
<div class="callout callout-success">
|
||||
<b>The mandatory buyback (§7) expires.</b> The fleet is built. The deal is honored.
|
||||
@ -392,7 +393,7 @@
|
||||
<tr><td>Price (good standing, all ventures excelling)</td><td><b>100% of FMV</b> — Holdings matches fair market value when all businesses are performing and the departure is amicable</td></tr>
|
||||
<tr><td>Price (if any venture is declining)</td><td><b>85% of FMV</b> — reduced to reflect transition risk when performance is mixed</td></tr>
|
||||
<tr><td>Decision window</td><td>60 days from written notice</td></tr>
|
||||
<tr><td>If Holdings passes</td><td>Kiowa may sell to a third party — but the buyer must be <b>approved by Holdings</b>. Approval may not be unreasonably withheld. No sale to any party Holdings does not consent to.</td></tr>
|
||||
<tr><td>If Holdings passes</td><td>Kiowa may sell to a third party — but the buyer must be <b>approved by Holdings</b>. No sale to any party Holdings does not consent to.</td></tr>
|
||||
<tr><td>Third-party price floor</td><td>Kiowa cannot sell to a third party at a price lower than what Holdings was offered</td></tr>
|
||||
<tr><td>Partial sales</td><td>Same terms apply — Holdings' ROFR covers partial sales too</td></tr>
|
||||
</table>
|
||||
@ -410,7 +411,7 @@
|
||||
</ul>
|
||||
|
||||
<!-- §11 -->
|
||||
<h2>11. Capital Contributions</h2>
|
||||
<h2 class="page-break">11. Capital Contributions</h2>
|
||||
<ul>
|
||||
<li><b>Holdings:</b> Provides all capital required for trailer acquisition, buildout,
|
||||
equipment, and initial operating expenses (~$35,000 per unit). Capital calls are
|
||||
@ -478,7 +479,7 @@
|
||||
law.</p>
|
||||
|
||||
<!-- §18 -->
|
||||
<h2>18. Exit Scenarios — Summary</h2>
|
||||
<h2 class="page-break">18. Exit Scenarios — Summary</h2>
|
||||
<table>
|
||||
<tr><th>Scenario</th><th>Outcome</th></tr>
|
||||
<tr><td>Leaves before 10 trailers — <b>good standing + 90-day transition</b></td><td>Buyback at <b>100% of FMV</b>. Unvested forfeited.</td></tr>
|
||||
@ -506,7 +507,7 @@
|
||||
</table>
|
||||
|
||||
<!-- EXECUTION -->
|
||||
<div class="sig-block">
|
||||
<div class="sig-block page-break">
|
||||
<h2 style="margin-top:0">Execution</h2>
|
||||
<p>The undersigned, being all of the Members of SnS Hospitality Group LLC, adopt and
|
||||
agree to this Operating Agreement as of the Effective Date first written above.</p>
|
||||
@ -531,7 +532,7 @@
|
||||
|
||||
<footer>
|
||||
Draft — Review with an Indiana-licensed attorney before signing.<br>
|
||||
SnS Network Solutions Holdings LLC • 759 Boxwood Drive, South Bend, IN 46641
|
||||
SnS Network Solutions Holdings LLC • 759 Boxwood Drive, South Bend, IN 46614
|
||||
</footer>
|
||||
|
||||
</body>
|
||||
|
||||
@ -0,0 +1,112 @@
|
||||
# SnS Hospitality Group LLC / The Daily Pour — Required Documents & Compliance Checklist
|
||||
|
||||
**Entity:** SnS Hospitality Group LLC (DBA "The Daily Pour")
|
||||
**Parent:** SnS Network Solutions Holdings LLC (EIN 42-4099038)
|
||||
**State:** Indiana (St. Joseph County)
|
||||
**EIN:** 42-4288652
|
||||
**Formation date:** August 6, 2026
|
||||
**INBiz filing number:** 202608062026556
|
||||
**Principal office:** 759 Boxwood Dr, South Bend, IN 46614
|
||||
|
||||
> This is the master list of documents/registrations needed to legally operate The Daily Pour,
|
||||
> plus recurring compliance obligations. This is a working checklist, not legal advice —
|
||||
> confirm specifics with the county health department, your CPA, and an attorney.
|
||||
|
||||
---
|
||||
|
||||
## Formation & Identity (one-time)
|
||||
|
||||
| Item | Status | Source / Cost | Notes |
|
||||
|------|--------|---------------|-------|
|
||||
| Articles of Organization (INBiz) | ✅ Filed 08/06/2026 | INBiz — done | Save PDF to Drive → Legal/ |
|
||||
| EIN (Federal Tax ID) | ✅ 42-4288652 | IRS — free | Already obtained |
|
||||
| Operating Agreement (signed) | ⏳ Pending Kiowa's signature | Internal | See `docs/kiowa-partnership-agreement.html` |
|
||||
| DBA "The Daily Pour" | ⏳ TODO | St. Joseph County | File assumed business name |
|
||||
|
||||
---
|
||||
|
||||
## Certificate of Good Standing (order directly from the state — NOT from a solicitor)
|
||||
|
||||
| Field | Detail |
|
||||
|-------|--------|
|
||||
| **What** | Indiana Certificate of Existence / Good Standing |
|
||||
| **Issued by** | Indiana Secretary of State (via INBiz) — the ONLY official source |
|
||||
| **Cost** | ~$26 online through INBiz (a mailed solicitation quoted $92.25 — do not use) |
|
||||
| **When needed** | Opening a business bank account, applying for loans/credit, registering as a foreign entity in another state (e.g. Southern Michigan expansion) |
|
||||
| **How** | Log into [INBiz](https://inbiz.in.gov) → your entity → Online Services → "Certificate of Existence" → pay by card → download |
|
||||
|
||||
> ⚠️ **Scam note (Aug 2026):** Mail from "Business Document Center," "Business Poster Compliance,"
|
||||
> and "National Business Services" solicited $92–$98 fees for Good Standing / posters / EIN.
|
||||
> None are government agencies. Order Good Standing from INBiz, get the EIN from the IRS,
|
||||
> and download posters free (below). See `indiana-scam-notices.pdf` (this folder) for the flagged notices.
|
||||
|
||||
---
|
||||
|
||||
## Employer / Labor Law Requirements (before hiring the first employee)
|
||||
|
||||
### Labor Law Posters — REQUIRED once you have ≥1 employee
|
||||
|
||||
| Field | Detail |
|
||||
|-------|--------|
|
||||
| **What** | Federal + Indiana state labor law posters displayed in a conspicuous workplace spot (breakroom / staff area of the trailer or commissary) |
|
||||
| **Covers** | Minimum wage, OSHA workplace safety, anti-discrimination (EEOC), workers' comp, unemployment insurance, FMLA (if applicable), Indiana-specific wage/leave notices |
|
||||
| **When required** | As soon as the Daily Pour employs anyone (the Location Manager / baristas) |
|
||||
| **Cost** | **FREE** — download and print |
|
||||
| **Official free sources** | Federal: [dol.gov/general/topics/posters](https://www.dol.gov/general/topics/posters) · Indiana: [in.gov/dol/employment-posters](https://www.in.gov/dol) (Indiana Dept. of Labor "required posters") |
|
||||
| **Do NOT** | Pay a private "poster compliance" company (solicited $97.58) — the posters are free from DOL |
|
||||
|
||||
**Action:** Before the first hire — download the current federal + Indiana poster sets, print, and
|
||||
post them where staff can read them. Re-check annually (minimum wage / notices update).
|
||||
|
||||
### Other employer registrations (trigger: first hire)
|
||||
|
||||
| Item | Status | Where |
|
||||
|------|--------|-------|
|
||||
| Indiana withholding tax registration | ⏳ TODO at first hire | INBiz / INTIME |
|
||||
| Unemployment insurance (SUTA) | ⏳ TODO at first hire | Indiana DWD (Uplink Employer) |
|
||||
| Workers' compensation insurance | ⏳ TODO at first hire | Via GL insurer (budgeted in business plan) |
|
||||
| New-hire reporting | ⏳ per hire | Indiana New Hire Reporting Center |
|
||||
|
||||
---
|
||||
|
||||
## Mobile Food Vendor / Operating Permits (before serving the public)
|
||||
|
||||
| Item | Status | Issuer | Notes |
|
||||
|------|--------|--------|-------|
|
||||
| Mobile food establishment permit | ⏳ TODO | St. Joseph County Health Dept | Trailer plan review + inspection |
|
||||
| Commissary agreement | ⏳ TODO | Licensed commissary | Water fill / gray-water disposal, food storage |
|
||||
| Food handler / ServSafe manager cert | ⏳ TODO | ServSafe | At least one certified manager |
|
||||
| General liability insurance | ⏳ TODO | Insurer | Budgeted; required by most lot leases |
|
||||
| Commercial auto insurance | ⏳ TODO | Insurer | For towing the trailer |
|
||||
| Lot lease agreement(s) | ⏳ per location | Property owner | Kiowa negotiates ($500–750/mo) |
|
||||
| Fire / propane inspection | ⏳ TODO | Local fire marshal | If using propane |
|
||||
|
||||
---
|
||||
|
||||
## Recurring Obligations
|
||||
|
||||
| Obligation | Frequency | Cost | Notes |
|
||||
|------------|-----------|------|-------|
|
||||
| Indiana Business Entity Report (BER) | Every 2 years, formation month (**August**) — first due **Aug 2028** | $32 | INBiz. Missing it = admin dissolution. Set reminder June 2028. |
|
||||
| Health department permit renewal | Annual (confirm w/ county) | TBD | Kiowa owns renewals |
|
||||
| Labor poster refresh | Annual / when notices change | Free | Re-download from DOL |
|
||||
| Insurance renewals (GL, auto, workers' comp) | Annual | Budgeted | |
|
||||
| Business licenses / lot leases | Per terms | Varies | Kiowa tracks lapses |
|
||||
| Federal/state tax filing | Annual (flows to returns) | CPA | Keep entity books separate |
|
||||
|
||||
---
|
||||
|
||||
## Where Things Live
|
||||
|
||||
| What | Where |
|
||||
|------|-------|
|
||||
| Legal docs (Articles, EIN letter, signed OA, Good Standing) | Google Drive → Hospitality/Legal/ |
|
||||
| Permits & health dept records | Google Drive → Hospitality/Compliance/ |
|
||||
| Labor law posters (printed set + PDFs) | Drive → Hospitality/Compliance/Posters/ + physically posted in trailer |
|
||||
| This repo (working docs, drafts) | `businesses/sns-hospitality-group/` |
|
||||
| Passwords/secrets | Bitwarden |
|
||||
|
||||
---
|
||||
|
||||
*Maintenance checklist, not legal advice. Confirm deadlines and requirements with the St. Joseph
|
||||
County Health Department, the Indiana DOL/DWD, your CPA, and an attorney.*
|
||||
@ -1,539 +0,0 @@
|
||||
<!DOCTYPE html>
|
||||
<html lang="en">
|
||||
<head>
|
||||
<meta charset="UTF-8">
|
||||
<meta name="viewport" content="width=device-width, initial-scale=1.0">
|
||||
<title>Operating Agreement — SnS Hospitality Group LLC</title>
|
||||
<style>
|
||||
:root{
|
||||
--navy:#0A1628;
|
||||
--cyan:#10C8D8;
|
||||
--amber:#f59e0b;
|
||||
--ink:#1a1f27;
|
||||
--paper:#ffffff;
|
||||
--muted:#5b6472;
|
||||
--rule:#e2e6ec;
|
||||
--warn-bg:#fef2f2;
|
||||
--warn-border:#dc2626;
|
||||
--info-bg:#fffbeb;
|
||||
--info-border:#f59e0b;
|
||||
--success-bg:#f0fdf4;
|
||||
--success-border:#16a34a;
|
||||
}
|
||||
*{box-sizing:border-box}
|
||||
body{
|
||||
margin:0;
|
||||
background:#f2f4f7;
|
||||
font-family:"IBM Plex Sans",Inter,system-ui,Arial,sans-serif;
|
||||
color:var(--ink);
|
||||
line-height:1.7;
|
||||
font-size:15px;
|
||||
}
|
||||
.doc{
|
||||
max-width:820px;
|
||||
margin:0 auto;
|
||||
background:var(--paper);
|
||||
padding:48px 64px 72px;
|
||||
box-shadow:0 2px 24px rgba(10,22,40,.12);
|
||||
}
|
||||
.header{
|
||||
border-bottom:3px solid var(--amber);
|
||||
padding-bottom:20px;
|
||||
margin-bottom:32px;
|
||||
}
|
||||
.header h1{
|
||||
font-family:Oxanium,Sora,system-ui,sans-serif;
|
||||
font-size:1.6rem;
|
||||
color:var(--navy);
|
||||
margin:0 0 6px;
|
||||
letter-spacing:.5px;
|
||||
}
|
||||
.header .subtitle{
|
||||
color:var(--amber);
|
||||
font-weight:600;
|
||||
font-size:1.05rem;
|
||||
}
|
||||
.meta{
|
||||
display:flex;
|
||||
flex-wrap:wrap;
|
||||
gap:24px;
|
||||
font-size:.88rem;
|
||||
color:var(--muted);
|
||||
margin-bottom:28px;
|
||||
}
|
||||
.meta b{color:var(--ink)}
|
||||
h2{
|
||||
font-family:Oxanium,Sora,system-ui,sans-serif;
|
||||
font-size:1.1rem;
|
||||
color:var(--navy);
|
||||
border-bottom:2px solid var(--amber);
|
||||
padding-bottom:6px;
|
||||
margin:36px 0 14px;
|
||||
}
|
||||
.page-break{page-break-before:always; margin-top:0;}
|
||||
h3{font-size:.95rem;color:var(--navy);margin:24px 0 10px}
|
||||
p,li{margin-bottom:8px}
|
||||
ul,ol{padding-left:22px}
|
||||
table{width:100%;border-collapse:collapse;margin:14px 0;font-size:.92rem}
|
||||
th{text-align:left;padding:8px 10px;background:var(--navy);color:#fff;font-weight:600}
|
||||
td{padding:8px 10px;border-bottom:1px solid var(--rule)}
|
||||
.callout{border-radius:8px;padding:16px 20px;margin:20px 0;font-size:.92rem}
|
||||
.callout-warn{background:var(--warn-bg);border:1px solid var(--warn-border)}
|
||||
.callout-info{background:var(--info-bg);border:1px solid var(--info-border)}
|
||||
.callout-success{background:var(--success-bg);border:1px solid var(--success-border)}
|
||||
.callout b{color:var(--ink)}
|
||||
.sig-block{margin-top:48px;padding-top:24px;border-top:2px solid var(--navy)}
|
||||
.sig-line{margin:24px 0 4px;border-bottom:1px solid var(--ink);width:65%;height:24px}
|
||||
.sig-label{font-size:.82rem;color:var(--muted);margin-bottom:18px}
|
||||
footer{text-align:center;color:var(--muted);font-size:.78rem;padding:28px 24px 48px}
|
||||
@media print{
|
||||
body{background:#fff}
|
||||
.doc{box-shadow:none;padding:24px 48px}
|
||||
footer{display:none}
|
||||
h2{page-break-before:auto; page-break-after:avoid}
|
||||
h3{page-break-after:avoid}
|
||||
.card, .callout, table, .sig-block{page-break-inside:avoid}
|
||||
p, li{orphans:3; widows:3}
|
||||
tr{page-break-inside:avoid}
|
||||
}
|
||||
</style>
|
||||
</head>
|
||||
<body>
|
||||
|
||||
<div class="doc">
|
||||
|
||||
<div class="header">
|
||||
<h1>OPERATING AGREEMENT</h1>
|
||||
<div class="subtitle">SnS Hospitality Group LLC</div>
|
||||
</div>
|
||||
|
||||
<div class="meta">
|
||||
<div><b>Entity:</b> SnS Hospitality Group LLC</div>
|
||||
<div><b>EIN:</b> 42-4288652</div>
|
||||
<div><b>Type:</b> Multi-Member LLC (Indiana)</div>
|
||||
<div><b>Parent:</b> SnS Network Solutions Holdings LLC (EIN 42-4099038)</div>
|
||||
<div><b>State filed:</b> Indiana (INBiz, 08/06/2026)</div>
|
||||
<div><b>Effective date:</b> August 6, 2026</div>
|
||||
</div>
|
||||
|
||||
<!-- §1 -->
|
||||
<h2>1. Formation and Purpose</h2>
|
||||
<p>This Operating Agreement (the "Agreement") is entered into by the undersigned Members
|
||||
to govern the operations of <b>SnS Hospitality Group LLC</b> (the "Company"), a limited
|
||||
liability company organized under the Indiana Business Flexibility Act (Indiana Code
|
||||
§ 23-18).</p>
|
||||
<p>The Company is formed to own, operate, and manage <b>mobile and trailer-based food and
|
||||
beverage ventures</b> across Northwest Indiana and Southern Michigan. The first venture
|
||||
is <b>"The Daily Pour"</b> — a fleet of drive-through coffee trailers deployed to
|
||||
high-traffic locations.</p>
|
||||
<p>The Members acknowledge that the Company's success depends on both <b>capital
|
||||
investment</b> (provided by Holdings) and <b>operational excellence, systems development,
|
||||
compliance management, and growth leadership</b> (provided by Kiowa). This Agreement is
|
||||
designed to fairly recognize and protect both forms of contribution.</p>
|
||||
|
||||
<!-- §2 -->
|
||||
<h2>2. Members and Ownership</h2>
|
||||
<table>
|
||||
<tr><th>Member</th><th>Interest</th><th>Type</th></tr>
|
||||
<tr><td>SnS Network Solutions Holdings LLC ("Holdings")</td><td>75% minimum</td><td>Capital + control</td></tr>
|
||||
<tr><td>Kiowa Scott ("Kiowa") — service</td><td>Up to 15% (guaranteed, earned over time)</td><td>Vested through operational work</td></tr>
|
||||
<tr><td>Kiowa Scott ("Kiowa") — investment</td><td>Up to 10% (proportional to startup capital contributed)</td><td>Must invest at startup per venture. Formula: (contribution ÷ startup cost) × 100, capped at 10%.</td></tr>
|
||||
</table>
|
||||
|
||||
<div class="callout callout-info">
|
||||
<b>Holdings never drops below 75%.</b> Kiowa's guaranteed path is 15% through service.
|
||||
An additional up to 10% is earned proportionally by investing working capital at
|
||||
startup — the more she contributes toward a venture's startup cost, the more
|
||||
investment equity she earns (capped at 10%). If she doesn't invest, the tranche may
|
||||
be offered to another investor at Holdings' discretion.
|
||||
</div>
|
||||
|
||||
<!-- §3 -->
|
||||
<h2 class="page-break">3. Management</h2>
|
||||
<p>The Company shall be <b>Member-managed</b>. Holdings (represented by Samuel S. James)
|
||||
retains sole authority over all day-to-day operational decisions and capital deployment.</p>
|
||||
|
||||
<h3>3.1 Holdings' Authority (Samuel S. James)</h3>
|
||||
<ul>
|
||||
<li>Capital expenditures and investment decisions</li>
|
||||
<li>Forming, acquiring, or dissolving ventures</li>
|
||||
<li>Opening and controlling bank accounts</li>
|
||||
<li>Approving new locations and expansion timing</li>
|
||||
<li>Hiring and removing the General Manager</li>
|
||||
</ul>
|
||||
|
||||
<h3>3.2 Kiowa's Role — Operations Director</h3>
|
||||
<p>Kiowa serves as <b>Operations Director</b> — a strategic and administrative leadership
|
||||
role. Her responsibilities:</p>
|
||||
<ul>
|
||||
<li>Compliance — permits, licenses, health department filings, renewals</li>
|
||||
<li>Site selection — finding and securing high-traffic lot locations</li>
|
||||
<li>SOPs — building standard operating procedures and systems for scale</li>
|
||||
<li>Grant sourcing — identifying, applying for, and securing grants/funding</li>
|
||||
<li>Growth planning — expansion strategy, new market evaluation</li>
|
||||
<li>Legal/admin — formation paperwork, regulatory filings, insurance coordination</li>
|
||||
<li>Recruiting Location Managers — finding the right people to run each trailer</li>
|
||||
</ul>
|
||||
|
||||
<h3>3.3 Location Manager (Per Trailer)</h3>
|
||||
<p>Each trailer is run by a <b>Location Manager</b> — the lead barista/operator who is
|
||||
empowered to handle day-to-day operations independently:</p>
|
||||
<ul>
|
||||
<li>Opening/closing the trailer</li>
|
||||
<li>Scheduling and managing their own support staff</li>
|
||||
<li>Vendor relationships and supply ordering</li>
|
||||
<li>Customer service and quality control</li>
|
||||
<li>Hiring part-time support for their location</li>
|
||||
</ul>
|
||||
<p>The Location Manager runs their trailer. They are NOT managed by a General Manager —
|
||||
they report directly to Sam and Kiowa as co-founders.</p>
|
||||
|
||||
<h3>3.4 Shared Founder Responsibility — Escalations</h3>
|
||||
<p>Sam and Kiowa <b>share responsibility</b> for issues the Location Manager cannot
|
||||
resolve on their own, including:</p>
|
||||
<ul>
|
||||
<li>Equipment failure (generator, espresso machine, refrigeration)</li>
|
||||
<li>Infrastructure issues (power outage, leaks, internet/network down)</li>
|
||||
<li>Lease/landlord disputes</li>
|
||||
<li>Major staffing issues (Location Manager quits, needs to be replaced)</li>
|
||||
<li>Any situation requiring capital expenditure or legal action</li>
|
||||
</ul>
|
||||
<p>Either founder may handle an escalation. Neither founder is solely responsible for
|
||||
day-to-day store operations — that is the Location Manager's job.</p>
|
||||
|
||||
<h3>3.5 Major Decisions Requiring Mutual Consent</h3>
|
||||
<p>The following decisions require the <b>written consent of both Members</b> (Holdings
|
||||
AND Kiowa), regardless of ownership percentage:</p>
|
||||
<ul>
|
||||
<li>Selling or merging the Company (or any material portion of its assets)</li>
|
||||
<li>Dissolving the Company</li>
|
||||
<li>Issuing new equity that would dilute any Member's <b>vested</b> interest</li>
|
||||
<li>Amending this Operating Agreement</li>
|
||||
</ul>
|
||||
<p>All other business decisions remain under Holdings' authority per §3.1.</p>
|
||||
|
||||
<!-- §4 -->
|
||||
<h2 class="page-break">4. Equity Vesting — Service Grant (15%)</h2>
|
||||
<p>Each venture Kiowa participates in earns her equity in the Hospitality Group:</p>
|
||||
<table>
|
||||
<tr><th>Grant</th><th>Amount</th><th>When</th></tr>
|
||||
<tr><td>Formation grant</td><td>5%</td><td>Vests immediately upon venture formation (Articles filed)</td></tr>
|
||||
<tr><td>Service grant (Q1)</td><td>2.5%</td><td>3 months from Opening Date</td></tr>
|
||||
<tr><td>Service grant (Q2)</td><td>2.5%</td><td>6 months from Opening Date</td></tr>
|
||||
<tr><td>Service grant (Q3)</td><td>2.5%</td><td>9 months from Opening Date</td></tr>
|
||||
<tr><td>Service grant (Q4)</td><td>2.5%</td><td>12 months from Opening Date</td></tr>
|
||||
<tr><td><b>Total</b></td><td><b>15%</b></td><td>Fully vested after 12 months of active service</td></tr>
|
||||
</table>
|
||||
<ul>
|
||||
<li><b>Opening Date</b> = first day of revenue-generating operations</li>
|
||||
<li>Each venture has its own independent vesting schedule</li>
|
||||
<li>Total cumulative service equity is <b>capped at 15%</b></li>
|
||||
</ul>
|
||||
|
||||
<!-- §5 -->
|
||||
<h2>5. Investment Equity (Up to 10%, Proportional)</h2>
|
||||
<p>For each venture, Kiowa may earn up to an <b>additional 10% Membership Interest</b> by
|
||||
contributing working capital at startup. The investment equity is <b>proportional</b> to
|
||||
her contribution relative to the venture's total startup cost:</p>
|
||||
|
||||
<div class="callout callout-info">
|
||||
<b>Formula:</b> Investment Equity % = (Kiowa's capital contribution ÷ total venture startup cost) × 100, <b>capped at 10%.</b>
|
||||
</div>
|
||||
|
||||
<table>
|
||||
<tr><th>Venture Startup Cost</th><th>Kiowa Invests</th><th>% of Startup</th><th>Investment Equity</th><th>+ Service (12 mo)</th><th>Her Total</th></tr>
|
||||
<tr><td>$50,000</td><td>$5,000</td><td>10%</td><td>10%</td><td>15%</td><td><b>25%</b></td></tr>
|
||||
<tr><td>$50,000</td><td>$2,500</td><td>5%</td><td>5%</td><td>15%</td><td><b>20%</b></td></tr>
|
||||
<tr><td>$50,000</td><td>$1,000</td><td>2%</td><td>2%</td><td>15%</td><td><b>17%</b></td></tr>
|
||||
<tr><td>$50,000</td><td>$0</td><td>0%</td><td>0%</td><td>15%</td><td><b>15%</b></td></tr>
|
||||
</table>
|
||||
|
||||
<ul>
|
||||
<li><b>Timing:</b> Investment must be made <b>at startup</b> (before or at the Opening Date). No retroactive buy-in after operations begin.</li>
|
||||
<li><b>Per venture:</b> Each trailer/venture has its own startup cost and its own investment opportunity. Investing in T-00 does not carry over to T-01.</li>
|
||||
<li><b>Cap:</b> Investment equity is capped at 10% regardless of how much Kiowa contributes — she cannot buy more than 10% per venture.</li>
|
||||
<li><b>Vests immediately:</b> Investment equity vests on the date funds are received by the Company. No time-based vesting.</li>
|
||||
<li><b>Holdings minimum preserved:</b> Holdings never drops below 75%.</li>
|
||||
<li><b>If Kiowa does not invest:</b> the investment tranche remains available to a third-party investor under the same proportional formula, at Holdings' discretion.</li>
|
||||
</ul>
|
||||
|
||||
<!-- §6 -->
|
||||
<h2 class="page-break">6. Grant Finder's Fee</h2>
|
||||
<p>If Kiowa identifies, applies for, and secures a <b>grant</b> (non-repayable funding —
|
||||
government, foundation, or private grant money) for any venture under the Hospitality
|
||||
Group:</p>
|
||||
<ul>
|
||||
<li>Kiowa receives <b>7.5% of the total grant amount</b> as a one-time lump sum</li>
|
||||
<li>Payment is due within <b>14 days</b> of the grant funds hitting the Company's bank account</li>
|
||||
<li>This fee is in addition to (not instead of) her equity and distributions</li>
|
||||
<li>"Grant" means money the Company does not have to repay — loans, lines of credit, and investor capital do not qualify</li>
|
||||
</ul>
|
||||
|
||||
<!-- §7 -->
|
||||
<h2>7. Departure Buyback (Before 10 Trailers)</h2>
|
||||
|
||||
<div class="callout callout-warn">
|
||||
<b>If Kiowa departs before all 10 Daily Pour trailers are operational</b> — she is
|
||||
required to sell her vested interest back to Holdings. The buyback price depends on
|
||||
how she leaves.
|
||||
</div>
|
||||
|
||||
<h3>7.1 Tiered Buyback Pricing</h3>
|
||||
<table>
|
||||
<tr><th>Departure Type</th><th>Buyback Price</th></tr>
|
||||
<tr><td><b>Good standing + 90-day transition</b> (helps onboard replacement, documents systems, hands off cleanly)</td><td><b>100% of FMV</b></td></tr>
|
||||
<tr><td><b>Good standing, immediate departure</b> (no transition, but no misconduct)</td><td><b>75% of FMV</b></td></tr>
|
||||
<tr><td><b>Abandonment</b> (no notice, 30+ days unresponsive, no communication)</td><td><b>50% of FMV</b></td></tr>
|
||||
<tr><td><b>For Cause</b> (fraud, theft, intentional misconduct — see §8)</td><td><b>$0 — full forfeiture</b></td></tr>
|
||||
</table>
|
||||
<p><b>FMV definition:</b> Net asset value (total assets − total liabilities) × Kiowa's
|
||||
vested ownership percentage, as determined by the Company's most recent quarterly books.
|
||||
If disputed, an independent third-party valuation at shared cost.</p>
|
||||
<p><b>Payment terms:</b> Lump sum within 90 days of the departure date, or a 12-month
|
||||
installment plan at Holdings' election.</p>
|
||||
<p><b>Unvested portion:</b> Any unvested equity at the time of departure is forfeited
|
||||
automatically — reverts to Holdings at no cost, regardless of departure type.</p>
|
||||
|
||||
<h3>7.2 Trigger Events</h3>
|
||||
<ul>
|
||||
<li>Voluntary resignation from operational role</li>
|
||||
<li>Failure to fulfill responsibilities (per §7.3) after notice and cure period</li>
|
||||
<li>Removal for cause (see §8 — Forfeiture for Cause)</li>
|
||||
<li>Mutual written agreement to part ways</li>
|
||||
</ul>
|
||||
|
||||
<h3>7.3 Performance Standards (Outcome-Based)</h3>
|
||||
<p>Instead of hourly commitments, Kiowa's performance is measured by outcomes:</p>
|
||||
<ul>
|
||||
<li>All permits and licenses are current (no lapses)</li>
|
||||
<li>All operational locations are staffed and open per schedule</li>
|
||||
<li>Quarterly financial reports delivered within 30 days of quarter-end</li>
|
||||
<li>Expansion milestones progressing per the agreed growth plan</li>
|
||||
<li>SOPs documented and maintained for each venture</li>
|
||||
</ul>
|
||||
<p>If Kiowa is not meeting these outcomes, the following process applies:</p>
|
||||
<ol>
|
||||
<li><b>Written notice</b> from Holdings specifying the deficiency</li>
|
||||
<li><b>30-day cure period</b> for Kiowa to resolve the issue (where the issue is curable)</li>
|
||||
<li>If not resolved → <b>30-day mediation</b> (both parties select a neutral mediator)</li>
|
||||
<li>If mediation fails → <b>binding arbitration</b> in St. Joseph County, Indiana</li>
|
||||
</ol>
|
||||
<p>Only after this process is exhausted may Holdings invoke the buyback. No buyback may
|
||||
be triggered on the basis of a performance issue without completing the notice + cure +
|
||||
mediation steps above.</p>
|
||||
|
||||
<!-- §8 -->
|
||||
<h2 class="page-break">8. Forfeiture for Cause</h2>
|
||||
|
||||
<div class="callout callout-warn">
|
||||
<b>If Kiowa violates any law or is found to have misappropriated any terms of this
|
||||
Agreement, she forfeits ALL rights — including all vested and unvested equity — in
|
||||
the Company.</b>
|
||||
</div>
|
||||
|
||||
<h3>8.1 Triggering Violations (Serious Misconduct Only)</h3>
|
||||
<p>Forfeiture for Cause is triggered <b>only</b> by intentional, serious misconduct:</p>
|
||||
<ul>
|
||||
<li><b>Fraud or theft</b> — any act of fraud, embezzlement, or theft against the Company, its Members, employees, customers, or vendors</li>
|
||||
<li><b>Misuse of company funds</b> — unauthorized withdrawals, personal use of business accounts, falsified expenses, or deliberate diversion of revenue</li>
|
||||
<li><b>Misuse of company assets</b> — unauthorized sale or encumbrance of company property, equipment, or intellectual property</li>
|
||||
<li><b>Intentional disclosure of private data</b> — deliberate unauthorized sharing of Social Security Numbers, EIN information, financial account details, trade secrets, or any information protected under the NDA</li>
|
||||
<li><b>Criminal conduct</b> — conviction of or plea to any felony, or any misdemeanor involving dishonesty or fraud, in connection with her role</li>
|
||||
<li><b>Intentional material breach</b> of this Agreement or the NDA</li>
|
||||
</ul>
|
||||
<p><b>What does NOT trigger forfeiture:</b> Performance issues, honest mistakes,
|
||||
negligence, circumstances outside Kiowa's control, or disagreements between Members.
|
||||
These are handled through the notice/cure/mediation process in §7.3, potentially
|
||||
leading to a buyback — not forfeiture.</p>
|
||||
|
||||
<h3>8.2 Consequences of Forfeiture for Cause</h3>
|
||||
<ul>
|
||||
<li><b>All equity forfeited</b> — both vested and unvested Membership Interest reverts to Holdings immediately, at no cost to Holdings</li>
|
||||
<li><b>Distributions cease</b> — Kiowa receives only distributions already earned and unpaid through the current quarter at the time of forfeiture. No future distributions.</li>
|
||||
<li><b>Permanent removal</b> — Kiowa is permanently removed from the Company and all ventures under the Hospitality Group. No reinstatement.</li>
|
||||
<li><b>No buyback payment</b> — unlike the §7 departure buyback, forfeiture for cause results in zero compensation for the forfeited equity</li>
|
||||
<li><b>Additional remedies preserved</b> — forfeiture does not limit Holdings' right to pursue legal action for damages, injunctive relief, or criminal referral as applicable</li>
|
||||
</ul>
|
||||
|
||||
<h3>8.3 Determination Process</h3>
|
||||
<p>Holdings shall provide Kiowa <b>written notice</b> of the alleged violation, specifying
|
||||
the conduct at issue and the evidence supporting the claim. Kiowa has <b>15 calendar
|
||||
days</b> to respond in writing. If the parties cannot resolve the matter within 15 days
|
||||
of Kiowa's response, either party may submit the dispute to <b>binding arbitration</b>
|
||||
in St. Joseph County, Indiana, under Indiana law. Forfeiture does not take effect until
|
||||
either (a) Kiowa acknowledges the violation in writing, or (b) an arbitrator rules in
|
||||
Holdings' favor.</p>
|
||||
|
||||
<!-- §9 -->
|
||||
<h2 class="page-break">9. After 10 Trailers Are Complete</h2>
|
||||
|
||||
<div class="callout callout-success">
|
||||
<b>The mandatory buyback (§7) expires.</b> The fleet is built. The deal is honored.
|
||||
</div>
|
||||
|
||||
<h3>9.1 If She Keeps Working</h3>
|
||||
<p>Full equity, full distributions, full management authority. Business as usual.</p>
|
||||
|
||||
<h3>9.2 If She Stops Working</h3>
|
||||
<ul>
|
||||
<li><b>Retains all vested equity</b> as a passive member (economic rights only)</li>
|
||||
<li><b>Loses management authority</b> — no decisions, no signing power, no operational role</li>
|
||||
<li><b>Dilution:</b> Holdings will hire a W-2 operations manager to replace her role.
|
||||
That salary is a company expense reducing distributable profit. Holdings may also
|
||||
issue new equity from its 75%+ position to incentivize the replacement, diluting
|
||||
Kiowa's percentage over time. She accepts this dilution as a consequence of stepping back.</li>
|
||||
<li><b>No forced buyback</b> — she keeps what she earned</li>
|
||||
</ul>
|
||||
|
||||
<h3>9.3 Right of First Refusal — Post-Completion Sale</h3>
|
||||
<p>If Kiowa decides to <b>sell</b> her vested interest after the 10 trailers are complete:</p>
|
||||
<table>
|
||||
<tr><th>Term</th><th>Detail</th></tr>
|
||||
<tr><td>Who buys first?</td><td>Holdings gets <b>first right to purchase</b></td></tr>
|
||||
<tr><td>Price (good standing, all ventures excelling)</td><td><b>100% of FMV</b> — Holdings matches fair market value when all businesses are performing and the departure is amicable</td></tr>
|
||||
<tr><td>Price (if any venture is declining)</td><td><b>85% of FMV</b> — reduced to reflect transition risk when performance is mixed</td></tr>
|
||||
<tr><td>Decision window</td><td>60 days from written notice</td></tr>
|
||||
<tr><td>If Holdings passes</td><td>Kiowa may sell to a third party — but the buyer must be <b>approved by Holdings</b>. No sale to any party Holdings does not consent to.</td></tr>
|
||||
<tr><td>Third-party price floor</td><td>Kiowa cannot sell to a third party at a price lower than what Holdings was offered</td></tr>
|
||||
<tr><td>Partial sales</td><td>Same terms apply — Holdings' ROFR covers partial sales too</td></tr>
|
||||
</table>
|
||||
|
||||
<!-- §10 -->
|
||||
<h2>10. Distributions</h2>
|
||||
<ul>
|
||||
<li>Distributions of available profit are made to Members <b>pro rata</b> in proportion
|
||||
to their vested Membership Interest</li>
|
||||
<li>The <b>formation grant (5%)</b> earns distributions from the Formation Date forward</li>
|
||||
<li><b>Service tranches</b> earn distributions only once vested — unvested tranches do not participate</li>
|
||||
<li>Timing and amounts are determined by Holdings, subject to the Company's financial
|
||||
obligations and applicable law</li>
|
||||
<li>The Company may not make a distribution that would render it unable to pay its debts as they come due</li>
|
||||
</ul>
|
||||
|
||||
<!-- §11 -->
|
||||
<h2 class="page-break">11. Capital Contributions</h2>
|
||||
<ul>
|
||||
<li><b>Holdings:</b> Provides all capital required for trailer acquisition, buildout,
|
||||
equipment, and initial operating expenses (~$35,000 per unit). Capital calls are
|
||||
at Holdings' sole discretion.</li>
|
||||
<li><b>Kiowa (service equity):</b> No capital contribution required. Her 15% is
|
||||
earned through operational work.</li>
|
||||
<li><b>Kiowa (investment equity):</b> Up to 10% of the venture's total startup cost,
|
||||
contributed at startup. Earns proportional investment equity per §5.</li>
|
||||
</ul>
|
||||
|
||||
<!-- §12 -->
|
||||
<h2>12. Bank Accounts, Books, and Records</h2>
|
||||
<ul>
|
||||
<li>The Company shall maintain <b>its own bank account(s)</b>, separate from Holdings'
|
||||
accounts, any Member's personal accounts, and any individual venture's accounts</li>
|
||||
<li>Accurate books and records shall be maintained and made available to all Members</li>
|
||||
<li>Quarterly financial reports (revenue, expenses, net profit, distributions) shall
|
||||
be provided to all Members within 30 days of quarter-end</li>
|
||||
</ul>
|
||||
|
||||
<!-- §13 -->
|
||||
<h2>13. Tax Treatment</h2>
|
||||
<p>As a multi-member LLC, the Company is treated as a <b>partnership</b> for U.S. federal
|
||||
income tax purposes. Each Member reports their proportionate share of income/expense on
|
||||
their individual return via Schedule K-1. The Company will file Form 1065 annually.</p>
|
||||
<ul>
|
||||
<li><b>Kiowa's service equity</b> is intended to qualify as a <b>profits interest</b>
|
||||
under Rev. Proc. 93-27 / 2001-43 (no taxable income on grant)</li>
|
||||
<li><b>Section 83(b) election:</b> Kiowa should file within 30 days of each grant date.
|
||||
This is a hard IRS deadline with no extensions.</li>
|
||||
<li><b>Fiscal year:</b> Calendar year (January 1 – December 31)</li>
|
||||
</ul>
|
||||
|
||||
<!-- §14 -->
|
||||
<h2>14. Confidentiality</h2>
|
||||
<p>Kiowa's access to personal information, business data, trade secrets, and proprietary
|
||||
information is governed by a separate <b>Non-Disclosure Agreement</b>. The NDA applies
|
||||
regardless of Kiowa's membership status and survives termination of this Agreement.
|
||||
Violation of the NDA constitutes grounds for Forfeiture for Cause under §8.</p>
|
||||
|
||||
<!-- §15 -->
|
||||
<h2>15. Amendments</h2>
|
||||
<p>This Agreement may be amended only by a <b>written instrument signed by all Members</b>.
|
||||
Amendments are effective on the date stated in the amendment.</p>
|
||||
|
||||
<!-- §16 -->
|
||||
<h2>16. Dissolution</h2>
|
||||
<p>The Company shall continue in perpetuity unless dissolved by:</p>
|
||||
<ul>
|
||||
<li>The written consent of <b>both Members</b> (per §3.3); or</li>
|
||||
<li>Operation of Indiana law.</li>
|
||||
</ul>
|
||||
<p><b>Notice:</b> Holdings shall provide Kiowa a minimum of <b>90 days written notice</b>
|
||||
before any dissolution. Kiowa continues earning distributions through the notice period.</p>
|
||||
<p>Upon dissolution, the Company's assets shall be applied first to creditors (including
|
||||
any Member, if owed), then distributed to the Members pro rata in proportion to their
|
||||
vested Membership Interests, after which Articles of Dissolution shall be filed with
|
||||
the Indiana Secretary of State.</p>
|
||||
|
||||
<!-- §17 -->
|
||||
<h2>17. Governing Law and Disputes</h2>
|
||||
<p>This Agreement is governed by the laws of the <b>State of Indiana</b>. Any dispute
|
||||
arising under this Agreement that cannot be resolved by the Members within 30 days
|
||||
shall be submitted to binding arbitration in St. Joseph County, Indiana, under Indiana
|
||||
law.</p>
|
||||
|
||||
<!-- §18 -->
|
||||
<h2 class="page-break">18. Exit Scenarios — Summary</h2>
|
||||
<table>
|
||||
<tr><th>Scenario</th><th>Outcome</th></tr>
|
||||
<tr><td>Leaves before 10 trailers — <b>good standing + 90-day transition</b></td><td>Buyback at <b>100% of FMV</b>. Unvested forfeited.</td></tr>
|
||||
<tr><td>Leaves before 10 trailers — <b>good standing, no transition</b></td><td>Buyback at <b>75% of FMV</b>. Unvested forfeited.</td></tr>
|
||||
<tr><td>Leaves before 10 trailers — <b>abandonment</b></td><td>Buyback at <b>50% of FMV</b>. Unvested forfeited.</td></tr>
|
||||
<tr><td><b>Forfeiture for Cause</b> (fraud/theft/intentional misconduct)</td><td>ALL equity forfeited. $0. Permanent removal.</td></tr>
|
||||
<tr><td>Stays through 10 trailers, <b>keeps working</b></td><td>Full equity, full distributions, full authority.</td></tr>
|
||||
<tr><td>Stays through 10 trailers, <b>stops working</b></td><td>Keeps equity (passive), loses authority, accepts dilution.</td></tr>
|
||||
<tr><td>Stays through 10 trailers, <b>wants to sell (all ventures excelling)</b></td><td>Holdings buys at <b>100% FMV</b>. Must approve any third-party buyer.</td></tr>
|
||||
<tr><td>Stays through 10 trailers, <b>wants to sell (any venture declining)</b></td><td>Holdings buys at <b>85% FMV</b>. Must approve any third-party buyer.</td></tr>
|
||||
</table>
|
||||
|
||||
<!-- §19 -->
|
||||
<h2>19. Definitions</h2>
|
||||
<table>
|
||||
<tr><th>Term</th><th>Meaning</th></tr>
|
||||
<tr><td>"Company"</td><td>SnS Hospitality Group LLC</td></tr>
|
||||
<tr><td>"Holdings"</td><td>SnS Network Solutions Holdings LLC (sole member represented by Samuel S. James)</td></tr>
|
||||
<tr><td>"Kiowa"</td><td>Kiowa Scott</td></tr>
|
||||
<tr><td>"Formation Date"</td><td>Date Articles of Organization filed with Indiana Secretary of State</td></tr>
|
||||
<tr><td>"Opening Date"</td><td>Date the venture begins revenue-generating operations</td></tr>
|
||||
<tr><td>"FMV" (Fair Market Value)</td><td>Net asset value (total assets − total liabilities) × Member's ownership percentage</td></tr>
|
||||
<tr><td>"Grant"</td><td>Non-repayable funding (government, foundation, or private grant). Loans and investor capital do not qualify.</td></tr>
|
||||
<tr><td>"For Cause"</td><td>Any triggering violation listed in §8.1</td></tr>
|
||||
</table>
|
||||
|
||||
<!-- EXECUTION -->
|
||||
<div class="sig-block page-break">
|
||||
<h2 style="margin-top:0">Execution</h2>
|
||||
<p>The undersigned, being all of the Members of SnS Hospitality Group LLC, adopt and
|
||||
agree to this Operating Agreement as of the Effective Date first written above.</p>
|
||||
|
||||
<p style="margin-top:28px;font-weight:700;color:var(--navy)">MEMBER — SnS Network Solutions Holdings LLC (75%+)</p>
|
||||
<div class="sig-line"></div>
|
||||
<div class="sig-label">Signature</div>
|
||||
<p><b>Printed name:</b> Samuel S. James</p>
|
||||
<p><b>Title:</b> Sole Member, SnS Network Solutions Holdings LLC</p>
|
||||
<div class="sig-line" style="width:35%"></div>
|
||||
<div class="sig-label">Date</div>
|
||||
|
||||
<p style="margin-top:28px;font-weight:700;color:var(--navy)">MEMBER — Kiowa Scott (up to 25%)</p>
|
||||
<div class="sig-line"></div>
|
||||
<div class="sig-label">Signature</div>
|
||||
<p><b>Printed name:</b> Kiowa Scott</p>
|
||||
<div class="sig-line" style="width:35%"></div>
|
||||
<div class="sig-label">Date</div>
|
||||
</div>
|
||||
|
||||
</div>
|
||||
|
||||
<footer>
|
||||
Draft — Review with an Indiana-licensed attorney before signing.<br>
|
||||
SnS Network Solutions Holdings LLC • 759 Boxwood Drive, South Bend, IN 46614
|
||||
</footer>
|
||||
|
||||
</body>
|
||||
</html>
|
||||
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Reference in New Issue
Block a user