8a5d8e6ee2
- ROFR: buyer approval 'may not be unreasonably withheld' - Investment window: 90 days from Opening Date (was 'at startup') - Payment terms: objective tiers based on amount (not Holdings' discretion) Under 25k=lump, 25k-100k=Kiowa's choice, over 100k=12mo installments - 7-year sunset: mandatory buyback expires at earlier of 10 trailers operational OR 7 years from formation date - Overview updated to match all OA changes
378 lines
17 KiB
HTML
378 lines
17 KiB
HTML
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<body>
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<div class="doc">
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<div class="header">
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<h1>SnS Hospitality Group LLC</h1>
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<div class="subtitle">Partnership & Growth Plan</div>
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</div>
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<div class="meta">
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<div><b>Parent:</b> SnS Network Solutions Holdings LLC</div>
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<div><b>Focus:</b> Mobile/trailer-based food & beverage</div>
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<div><b>Territory:</b> NW Indiana + Southern Michigan</div>
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<div><b>First Venture:</b> The Daily Pour (coffee trailer)</div>
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</div>
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<!-- MEMBERSHIP -->
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<h2>Membership</h2>
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<table>
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<tr><th>Member</th><th>Interest</th><th>Type</th></tr>
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<tr><td>SnS Network Solutions Holdings LLC</td><td>75% (minimum)</td><td>Capital + control</td></tr>
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<tr><td>Kiowa Scott — service equity</td><td>Up to 15% (guaranteed, earned over time)</td><td>Vested through operational work</td></tr>
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<tr><td>Kiowa Scott — investment equity (proportional)</td><td>Up to 10% per venture</td><td>Proportional to startup capital contributed. Formula: (investment ÷ startup cost) × 100, capped at 10%.</td></tr>
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</table>
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<!-- ROLES -->
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<h2>Kiowa's Role</h2>
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<ul>
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<li>Finding and securing high-traffic parking spots / locations</li>
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<li>Managing legal compliance, permits, renewals across all locations</li>
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<li><b>Recruiting, hiring, and managing staff</b> — Kiowa finds the best people for the job; she does not work the trailer herself</li>
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<li>Overseeing day-to-day operations (scheduling, vendor relationships, staff accountability)</li>
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<li>Ensuring profitability of the mobile fleet</li>
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</ul>
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<!-- EQUITY TERMS -->
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<h2>Equity Terms</h2>
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<div class="callout callout-info">
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<b>Sam retains minimum 75% of the Hospitality Group.</b> Maximum 25% is available — 15% guaranteed to Kiowa through service, 10% available through capital investment.
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</div>
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<h3>Equity Breakdown</h3>
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<table>
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<tr><th>Allocation</th><th>Amount</th><th>How It's Earned</th></tr>
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<tr><td>Kiowa — Service Equity (guaranteed)</td><td>15%</td><td>Earned through operational work, vested over time per venture (see below)</td></tr>
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<tr><td>Kiowa — Investment Equity (proportional)</td><td>Up to 10%</td><td>Earned by contributing working capital at startup. Formula: (Kiowa's investment ÷ venture startup cost) × 100, capped at 10%.</td></tr>
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<tr><td>Other Investor (if applicable)</td><td>Up to 10%</td><td>Same proportional formula. Available only if Kiowa does not fill the full 10% at startup.</td></tr>
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<tr><td>Holdings (Sam) — minimum</td><td>75%</td><td>Capital + control. Never drops below 75%.</td></tr>
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</table>
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<div class="callout callout-warn">
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<b>Kiowa's guaranteed path:</b> 15% through service equity (no capital required).<br>
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<b>Her optional upside:</b> Up to 10% additional — earned proportionally by investing working capital per venture. The more she puts in toward startup costs, the more she earns (capped at 10%). Must invest within 90 days of the Opening Date — after that, the tranche opens to other investors.
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</div>
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<h3>Investment Equity Example (per venture)</h3>
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<table>
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<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>
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<tr><td>$50,000</td><td>$5,000</td><td>10%</td><td>10%</td><td>15%</td><td><b>25%</b></td></tr>
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<tr><td>$50,000</td><td>$2,500</td><td>5%</td><td>5%</td><td>15%</td><td><b>20%</b></td></tr>
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<tr><td>$50,000</td><td>$1,000</td><td>2%</td><td>2%</td><td>15%</td><td><b>17%</b></td></tr>
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<tr><td>$50,000</td><td>$0</td><td>0%</td><td>0%</td><td>15%</td><td><b>15%</b></td></tr>
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</table>
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<h3>Per-Venture Vesting (Service Equity — the guaranteed 15%)</h3>
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<p>Each venture (trailer) Kiowa participates in earns her equity in the Hospitality Group:</p>
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<table>
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<tr><th>Grant</th><th>Amount</th><th>When</th></tr>
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<tr><td>Formation grant</td><td>5%</td><td>Vests immediately upon venture formation</td></tr>
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<tr><td>Service grant</td><td>10%</td><td>Vests quarterly (2.5% per quarter) over 12 months from Opening Date</td></tr>
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<tr><td><b>Total per venture</b></td><td><b>15%</b></td><td>Fully vested after 12 months of active service</td></tr>
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</table>
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<ul>
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<li>Vesting clock starts on the <b>Opening Date</b> (first day of revenue-generating operations)</li>
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<li>Each venture has its own independent vesting schedule</li>
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<li>Total cumulative <b>service equity</b> is <b>capped at 15%</b></li>
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<li>Additional up to 10% per venture through capital investment (proportional — see Equity Breakdown above)</li>
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</ul>
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<!-- MANDATORY BUYBACK -->
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<h2>Mandatory Buyback — Departure Before Completion</h2>
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<div class="callout callout-warn">
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<b>If Kiowa departs before all 10 Daily Pour trailers are operational</b> — she is
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required to sell her vested interest back to Holdings. The buyback price depends on
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how she leaves. <b>These provisions expire upon the earlier of: (a) all 10 Daily Pour
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trailers achieving operational status, or (b) 7 years from the Formation Date of the
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Company, whichever comes first.</b>
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</div>
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<table>
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<tr><th>Departure Type</th><th>Buyback Price</th></tr>
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<tr><td><b>Good standing + 90-day transition</b></td><td><b>100% of FMV</b></td></tr>
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<tr><td><b>Good standing, immediate departure</b></td><td><b>75% of FMV</b></td></tr>
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<tr><td><b>Abandonment</b> (30+ days unresponsive)</td><td><b>50% of FMV</b></td></tr>
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<tr><td><b>For Cause</b> (fraud/theft/intentional misconduct)</td><td><b>$0 — full forfeiture</b></td></tr>
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</table>
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<p><b>FMV definition:</b> Net asset value (assets − liabilities) × Kiowa's vested ownership %. Per most recent quarterly books, or independent valuation if disputed.</p>
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<p><b>Payment terms (objective, based on amount):</b></p>
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<ul>
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<li>Under $25,000 → lump sum within 90 days</li>
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<li>$25,000–$100,000 → lump sum within 90 days OR 6-month installments, at Kiowa's election</li>
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<li>Over $100,000 → 12-month installment plan (either party may request)</li>
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</ul>
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<p><b>Unvested portion:</b> Forfeited automatically — reverts to Holdings at no cost.</p>
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<h3>Trigger Events</h3>
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<ul>
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<li>Voluntary resignation from operational role</li>
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<li>Failure to fulfill outcome-based responsibilities after written notice + 30-day cure period</li>
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<li>Removal for cause (fraud, theft, intentional misconduct — see Forfeiture)</li>
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<li>Mutual written agreement to part ways</li>
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</ul>
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<h3>Performance Standards (Outcome-Based, No Hourly Tracking)</h3>
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<ul>
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<li>All permits and licenses are current (no lapses)</li>
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<li>All operational locations are staffed and open per schedule</li>
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<li>Quarterly financial reports delivered within 30 days of quarter-end</li>
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<li>Expansion milestones progressing per the agreed growth plan</li>
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<li>SOPs documented and maintained for each venture</li>
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</ul>
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<p><b>Process if not meeting outcomes:</b> Written notice → 30-day cure → mediation → binding arbitration. No buyback without completing this process.</p>
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<!-- POST-COMPLETION -->
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<h2>After 10 Trailers Are Complete</h2>
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<div class="callout callout-success">
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<b>The mandatory buyback expires</b> upon the earlier of: (a) all 10 trailers operational, or (b) 7 years from Formation Date. The fleet is built (or the time has passed). The deal is honored.
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</div>
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<h3>If She Keeps Working</h3>
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<p>Full equity, full distributions, full management authority. Business as usual.</p>
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<h3>If She Stops Working</h3>
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<ul>
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<li><b>Retains all vested equity</b> as a passive member (economic rights only)</li>
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<li><b>Loses management authority</b> — no decisions, no signing power, no operational role</li>
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<li><b>Dilution:</b> Holdings will hire a W-2 operations manager to replace her role. That salary is a company expense (reduces 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>
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<li><b>No forced buyback</b> — she keeps what she earned</li>
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</ul>
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<h3>If She Wants to Sell (Right of First Refusal)</h3>
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<table>
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<tr><th>Term</th><th>Detail</th></tr>
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<tr><td>Who buys first?</td><td>Sam / Holdings gets <b>first right to purchase</b></td></tr>
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<tr><td>Price</td><td><b>80% of current FMV</b> (not projected — net asset value at time of offer)</td></tr>
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<tr><td>Decision window</td><td>60 days from written notice</td></tr>
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<tr><td>If Sam passes</td><td>Kiowa may sell to a third party — but not at a lower price than offered to Sam</td></tr>
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<tr><td>Buyer approval</td><td>Any third-party buyer must be approved by Holdings and execute a joinder</td></tr>
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<tr><td>Partial sales</td><td>Same terms apply — Holdings' ROFR covers partial sales too</td></tr>
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</table>
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<!-- EXIT SUMMARY -->
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<h2>Exit Scenarios — Summary</h2>
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<table>
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<tr><th>Scenario</th><th>Outcome</th></tr>
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<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>
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<tr><td>Leaves before 10 trailers — <b>good standing, immediate</b></td><td>Buyback at <b>75% of FMV</b>. Unvested forfeited.</td></tr>
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<tr><td>Leaves before 10 trailers — <b>abandonment</b></td><td>Buyback at <b>50% of FMV</b>. Unvested forfeited.</td></tr>
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<tr><td><b>Forfeiture for Cause</b> (fraud/theft/intentional misconduct)</td><td>ALL equity forfeited. $0. Permanent removal.</td></tr>
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<tr><td>Stays through 10 trailers, <b>keeps working</b></td><td>Full equity, full distributions, full management authority.</td></tr>
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<tr><td>Stays through 10 trailers, <b>stops working</b></td><td>Keeps equity (passive), loses management authority, accepts dilution from replacement hire.</td></tr>
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<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 (may not be unreasonably withheld).</td></tr>
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<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 (may not be unreasonably withheld).</td></tr>
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</table>
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<!-- GROWTH PLAN -->
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<h2>5-Year Growth Plan — "The Daily Pour"</h2>
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<div class="meta">
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<div><b>Brand:</b> The Daily Pour</div>
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<div><b>Target:</b> 10 trailers over 5 years</div>
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<div><b>Investment/unit:</b> ~$25,000</div>
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<div><b>Revenue target/unit:</b> 100 customers/day × $8 avg × 6 days/wk</div>
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</div>
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<table>
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<tr><th>Year</th><th>Trailers</th><th>Cumulative</th><th>Milestone</th></tr>
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<tr><td>Year 1 (mo 1–12)</td><td>1</td><td>1</td><td>Build, learn, automate, reduce costs. 9-month operating period to prove the model.</td></tr>
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<tr><td>Year 2 (mo 13–24)</td><td>2–3</td><td>3</td><td>6-month cadence begins. Apply Year 1 lessons. First shift leads hired.</td></tr>
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<tr><td>Year 3 (mo 25–36)</td><td>4–5</td><td>5</td><td>Systems mature, staffing bench built, costs optimized.</td></tr>
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<tr><td>Year 4 (mo 37–48)</td><td>6–8</td><td>8</td><td>Pace accelerates if ops support it. Southern Michigan expansion.</td></tr>
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<tr><td>Year 5 (mo 49–60)</td><td>9–10</td><td>10</td><td>Full fleet. Kiowa oversees all. Sam = capital + strategy only.</td></tr>
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</table>
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<div class="callout callout-info">
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<b>Year 1 philosophy:</b> Build → Learn → Automate → Reduce cost → Then scale.<br>
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<b>Launch cadence:</b> 1 trailer every 6 months (after Year 1). No new trailer until the previous one is profitable.
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</div>
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<!-- ROLES -->
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<h2>Roles in the Growth Plan</h2>
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<table>
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<tr><th>Role</th><th>Sam</th><th>Kiowa</th></tr>
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<tr><td>Capital</td><td>All investment</td><td>—</td></tr>
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<tr><td>Location scouting</td><td>—</td><td>Find + secure lots</td></tr>
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<tr><td>Permits & compliance</td><td>—</td><td>All filings, health dept, renewals</td></tr>
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<tr><td>Buildout & equipment</td><td>Fund + approve</td><td>Coordinate</td></tr>
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<tr><td>Hiring & staffing</td><td>—</td><td>Recruit, hire, and manage the best people for the job</td></tr>
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<tr><td>Day-to-day operations</td><td>—</td><td>Oversee all locations (does NOT work the trailer herself)</td></tr>
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<tr><td>Strategic decisions</td><td>Final authority</td><td>Input</td></tr>
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<tr><td>Financial oversight</td><td>P&L review, distributions</td><td>Reports to Sam</td></tr>
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</table>
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<!-- GROWTH RULES -->
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<h2>Growth Rules</h2>
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<ul>
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<li><b>No new trailer until the previous one is profitable</b> — growth is earned, not scheduled</li>
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<li><b>Each trailer must hit break-even within 90 days</b> or operations are paused and diagnosed</li>
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<li><b>Staffing scales with trailers</b> — Kiowa hires shift leads; she doesn't work every window forever</li>
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<li><b>Capital calls are Sam's decision</b> — Kiowa proposes expansion, Sam approves the spend</li>
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</ul>
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<!-- FUTURE VENTURES -->
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<h2>Future Ventures</h2>
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<p><b>"The Daily Pour" is the brand — every trailer is a Daily Pour location.</b> The fleet will be deployed across NW Indiana (and eventually Southern Michigan). Each trailer is identified by its unit number:</p>
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<div class="callout callout-info">
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<b>Naming convention:</b> T-[NUMBER] — e.g., <b>T-00</b> (first trailer), <b>T-01</b> (second), <b>T-02</b> (third), through <b>T-09</b> (tenth).
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</div>
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<table>
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<tr><th>Unit</th><th>Status</th><th>Location</th></tr>
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<tr><td>T-00</td><td>Planning</td><td>TBD — NW Indiana</td></tr>
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<tr><td>T-01</td><td>Future (Year 2)</td><td>TBD</td></tr>
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<tr><td>T-02</td><td>Future (Year 2)</td><td>TBD</td></tr>
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<tr><td>T-03 – T-09</td><td>Future (Years 3–5)</td><td>TBD</td></tr>
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</table>
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<p>Other mobile ventures (Indian food truck, smoothie trailer, BBQ, etc.) are separate concepts under the Hospitality Group — not Daily Pour units. Each follows the same equity framework independently.</p>
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<footer>
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SnS Hospitality Group LLC — Internal planning document. Not a legal agreement.<br>
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Review with an Indiana-licensed attorney before formalizing into an Operating Agreement.
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</footer>
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