Table of contents

LETTER OF TRANSMITTAL…………………………………………………………ii

EXECUTIVE SUMMARY……………………………………………………………..vi

INTRODUCTION 1

Success 1 Mission Statement 1 Definition of Business 1

MARKET ANALYSIS 1

Demographics 1 Population 2 Income 2 Market Demand 2

COMPETITIVE ANALYSIS 2

Direct Competitors 2 Indirect Competitors 2 Strengths of Competitors 3 Weakness of Competitors 3 How IHOP’S Products Are Different 3 Why IHOP is Better Than the Competition 3

MARKETING STRATEGY 3

Overall Strategy 3 Target Markets 4 Primary Targets 4 Secondary Targets 4 Marketing Mix 4 Price 4 Promotion 4 Distribution 4 Product 5

MANAGEMENT PLAN 5

Operations Standards 5 Personnel Standards 5 S.W.O.T. Analysis 6 Strengths 6 Weaknesses 6 Opportunities 6 Threats 6

FINANCIAL ANALYSIS 7

Financial Future 7 Budget 7 Cash Collections 7 Cash Paid for Expenses 7 Net Cash Flow From Operations 7 Net Cash for Period 8

THE DEAL 8

40 / 60 8

Conclusion 9

Deal of a Lifetime 9

References 10

APPENDIX A 12

APPENDIX A 13

Market Analysis 13

APPENDIX B 31

APPENDIX B 32

Competition Analysis 32 UNION STREET CAFE 33 DEE’S DINER INTERVIEW 34 BOB EVANS INTERVIEW 35

APPENDIX C 36

APPENDIX C 37

Locations 37

LOCATIONS 38

APPENDIX D 40

APPENDIX D 41

Financial Spreadsheets 41

APPENDIX E APPENDIX E 53

APPENDIX E 54

Insurance 54 ULTRAFLEX PACKAGE POLICY 54

APPENDIX F 64

APPENDIX F 65

ORGANIZATIONAL FORMS 65

APPENDIX G 92

APPENDIX G 93

TAX FORMS 93

APPENDIX H 117

APPENDIX H 118

CORPORATE INFORMATION 118 HISTORY 118

APPENDIX I 119

APPENDIX I 120

FRANCHISE INFORMATION 121 FRANCHISE PROGRAMS 121

APPENDIX J 127

APPENDIX J 128

TECHNOLOGY 128

APPENDIX K 129

APPENDIX K 130

SURVEY 130

APPENDIX L 135

APPENDIX L 136

Business Plan Resources 136

INTRODUCTION

Success

This investment is sweeter than IHOP’s delicious pancakes! Athens All-Stars, L.L.C. is going to establish the best restaurant franchise in Athens. No restaurant around serves the type of food IHOP serves, 24 hours a day! This business will make money by launching customer centric service, bringing the customers, and their friends, back for more pancakes. The competition will not be able to compete.

Mission Statement

Athens All-Stars, L.L.C. mission is to provide a unique, family-dining experience, through a diverse menu of high quality, affordable meals and friendly service. IHOP will be the only restaurant on the east side of Athens City to serve food 24 hours a day. The owners, managers, and employees of IHOP will be dedicated to customer satisfaction. IHOP plans to turn a profit in the first few months of business. Ultimately, IHOP’s main concentration will be to keep the customers returning for the good food and friendly service.

Definition of Business

Athens All-Stars, L.L.C. is opening an International House of Pancakes (IHOP) franchise in Athens, Ohio. The company will be run as a limited liability corporation. IHOP is a national chain of restaurants with home corporate offices located in California. This particular franchise will be located on East State Street in the vicinity of SR 50 and Super 8 Motel (See Appendix D).

IHOP has a rather large menu, with meals ranging from breakfast food to lunch/dinner entrees. IHOP specializes in 24 hour a day breakfast service. The main product that IHOP serves is pancakes. IHOP currently offers 16 types of pancakes along with five different types of syrups. IHOP is unique when it comes to traditional breakfast food.

IHOP will be in business 24 hours a day, everyday, with the exceptions of Christmas, Easter, and Thanksgiving. The goal of the service staff is to provide great, friendly service every hour of the day. The individual goal of the cook staff is to provide good food, cooked to order and fresh.

MARKET ANALYSIS

Demographics

The demographics of a certain area are important to analyze when starting a new company. They are defined as easily identifiable statistics about individuals. The demographics also tell about the characteristics of the county.

Population

The population of Athens County in 2001 is 62,223 people according to the U.S. Census Bureau. There has been a steady population growth since 1970. The Department of Human and Community Resource Development at Ohio State University projected Athens population growth to increase through 2015. Forty-two percent of the population is between 25-64 years old, according the U.S. Census Bureau. There are 13,000 families in Athens County, 80 percent of which are married, and 40 percent have children. Aside from students, the largest population bracket is from 35-39 years of age (Welcome to the city of Athens, OH online, 2001).

Athens City is the most populated city in Athens County. Since the business will be located in the city limits of Athens, it will be near the largest concentration of population in the entire county. Furthermore, students, a secondary target, will be more likely to visit IHOP due to its close proximity to campus.

Income

The median income for Athens County is $26,000 a year. Also, a small portion of the population makes over $50,000 annually. These income statistics portray the large population of our target market in the low to middle income range (Athens Area Chamber of Commerce, 2001).

Market Demand

The demand for IHOP in Athens County is great. Families need an affordable place to dine. With a cheery atmosphere 24 hours a day, customers will be leaving their favorite local restaurants to dine at IHOP. The competition will not be able to compete with IHOP’s food, service, and atmosphere. Therefore, market demand in Athens County is ample, providing a vision of great sales possibilities.

COMPETITIVE ANALYSIS

Direct Competitors

Direct competitors to IHOP include Bob Evans, Union Street Café, McHappy’s Bake Shoppe, and Dee’s Diner. All of these restaurants are considered to be competitors because they are open 24 hours a day, with the exception of Bob Evans which has limited daily hours. Bob Evans is considered to be the largest competitor to IHOP because of similar menu items and large customer base. Bob Evans has been a widely known, steady business that has been in operation for decades.

Indirect Competitors

Indirect competitors to IHOP include Athens area fast food restaurants, and other dine-in restaurants, that could potentially take business away. East State Street is lined with fast food restaurants and a few dine-in restaurants. Although these restaurants are not direct competitors to IHOP, they do offer an alternative place for people to eat. Fast food restaurants particularly pose a threat because people on the go may not have the time to spend for a sit down meal at IHOP.

Strengths of Competitors

Bob Evans major strength is the recognition of their name. Bob Evans is a widely established franchise across the country, with a reputation for quality food. Bob Evans is located at the intersection of two main highways, and a busy city street. Dee’s Diner is located in Nelsonville, and may cause some Nelsonville residents stay closer to home, instead of driving to Athens.

Weakness of Competitors

The major weakness of Bob Evans is that it is not open 24 hours a day. Dee’s Diner is located in Nelsonville so Athens City residents would have a 15-20 minute drive to get there. Dee’s Diner does not offer a family environment. Union Street Café is located near uptown Athens, but offers no parking, and a relatively small menu in a non-family environment. Mchappy’s Bake Shoppe only offers dry baked goods such as donuts, bagels, and muffins.

How IHOP’S Products Are Different

Bob Evans offers a wide variety of products ranging from breakfast foods to steak dinner. IHOP offers these same types of foods but also specializes in pancakes. IHOP offers 16 different types of pancakes along with five different syrups available at no extra cost. McHappy’s Bake Shoppe differs in products because they only offer dry baked goods. Dee’s Diner offers 24 hour a day breakfast like IHOP, but the environment at Dee’s Diner is not a typical family restaurant like IHOP. Union Street Café is a small café atmosphere with a small menu. IHOP offers a large atmosphere with a large menu.

Why IHOP is Better Than the Competition

IHOP offers a unique family-oriented environment with a specialty in serving pancakes. IHOP is open 24 hours a day and offers a wide range of foods to choose from. Bob Evans, the largest competitor to IHOP, does not specialize in anything, and the restaurant is not open 24 hours a day. Dee’s Diner, Union Street Café, and McHappy’s Bake Shoppe cannot compete with IHOP because of their small sizes and unfavorable locations. IHOP is strategically located, with easy access from highways and roads, including ample car and truck parking. These facts reveal that the competition will have trouble competing with IHOP.

MARKETING STRATEGY

Overall Strategy

A marketing strategy involves selecting and analyzing a target market, then creating and maintaining a marketing mix that satisfies the target’s needs. The marketing mix consists of price, promotion, distribution, and product.

Target Markets

Primary Targets

A company’s target market is the specific group of people whose needs are to be satisfied by the company. The primary target market for Athens All-Stars L.L.C. is low to middle income families in Athens County, with little or no educational background beyond high school. This market is increasing in size because the population has increased over the past years. IHOP will serve the target market needs with affordable meals and a family oriented atmosphere.

Secondary Targets

The secondary target markets in Athens County include single adults, area employees, truck drivers and highway travelers in the same income range with similar educational background. With many businesses in the area, and new businesses arriving, more and more workers will be coming to the area to find jobs. In turn, this will create more business for restaurants in the area. For this target market, IHOP will offer inexpensive meals, a good selection of menu items, and a great location for highway traffic.

Other secondary target markets will include students of no particular income bracket, and municipal workers. These target markets will enjoy the 24 hour service, good food, and affordable meals.

Marketing Mix

Price

Corporate offices set standard prices that all IHOP franchises must follow. The prices are actually lower than the main competitor, Bob Evans, whose prices are also set by corporate management.

Promotion

As an international franchise, IHOP will provide advertising on a local and national level. IHOP Corporation charges each franchise one percent of the store sales for national advertising and two percent of the store sales for local advertising. Effective approaches for local advertising are newspapers, and highway billboards. Name recognition will also help provide additional advertising (see Appendix D).

Distribution

IHOP’s location on East State Street is crucial to the success of creating a well-rounded marketing mix. Located near two state highways, 32/50 and 33, IHOP will be able to better serve its target markets. The location is very accessible for the customer, easily spotted from the highway or street, and there will be ample parking for cars and large trucks. Furthermore, local businesses such as Super 8 Motel, Wal-Mart, and other complementary businesses will bring more customers to the area (see appendix C).

In reference to service, IHOP strives to provide fast friendly service to its customers. An adequate cook and service staff will be on hand to meet the common goal of satisfying the customers. Employees are properly trained in customer relations to insure that meals are served fast and with a smile. IHOP keeps its doors open 24 hours a day to satisfy all customers.

Product

IHOP offers many different types of food, from chocolate chip pancakes to herb-roasted chicken. The specialty product is definitely pancakes. Sixteen different types of pancakes are offered along with juicy hamburgers and T-bone steaks. IHOP also offers several desserts including Fruit Crepes and Ice Cream Sundaes. IHOP offers all of these various types of foods to satisfy all customer tastes and desires.

MANAGEMENT PLAN

Operations Standards

The Athens All-Stars will operate as a limited liability corporation being a franchisee of the International House of Pancakes Corporation. A limited liability corporation is an organizational structure that offers limited liability much like a corporation, while giving the tax benefits of a partnership and the firm’s members the ability to manage the corporation as they see fit in accordance with the franchise agreement.

The purpose for which this limited liability corporation is formed is to serve food and beverages, 24 hours a day, seven days week to the general public, and to engage in every activity for which limited liability corporations may be structured under Chapter 1705 of the Ohio Revised Code (See Appendix F).

Personnel Standards

The personnel structure of the Athens, Ohio IHOP location will be as follows: • General Manager – Jamie Plotner • Three Assistant Managers for three shifts that will cover the 24 hour business day • Four cooks • Five waiters / waitresses • Two busers that will work at various times throughout the day and night. The number of each will be determined by the time of the shift.

Shifts will be from: • 7 a.m. to 3 p.m. • 3 p.m. to 11 p.m. • 11 p.m. to 7 a.m.

** All shifts are seven days a week excluding Christmas, Easter and Thanksgiving
(See Appendix D).

S.W.O.T. Analysis

S.W.O.T. Analysis is a tool used by organizations to examine internal strengths and weaknesses and external opportunities and threats.

Strengths

The internal strengths of having an IHOP in Athens County are the ability to use the nationally known name of IHOP. Other strengths include high quality food and service that is set by the franchisor, and the cost advantage that is set by the suppliers. The fact that all members of our organization have been educated in the College of Business at Ohio University is another source of internal strength.

Weaknesses

One of the internal weaknesses that will affect the business is the fact that the IHOP name is not yet well known in the area. The Athens location will be the only IHOP restaurant in the state of Ohio. Another weakness is the lack of trained assistant managers and waiters / waitresses due to the county’s level of education in the public school system (See Demographics section of Appendix A).

Opportunities

Some of the external opportunities that the organization will be able to take advantage of will be the new Wal-Mart Supercenter located less than a mile from the store and the Nelsonville Rt. 33 bypass. The bypass will add traffic coming to and from the East State Street location. In addition, the Nelsonville bypass will make Dee’s Diner inaccessible without first exiting the main freeway; a major setback for their truck driver business.

Threats

The possibility that the economy may be slipping into a recession is a major threat to the organization. However, Ohio University’s location in Athens offers a unique shield from bad economic trends, by maintaining a constant source of fresh capital to grease the wheels of the local economy, keeping it moving even in face of a recession. Another external threat, unique to the industry, is the possibility of animal diseases, such as mad cow disease.

The final major threat to the Athens All-Stars IHOP franchise is the high level of employment in Athens County. This is a threat because unemployed people don’t usually dine out very often (See Demographics section of Appendix A).

FINANCIAL ANALYSIS

Financial Future

Money is the motive, and this proposal will show the investor, how both parties will make gainful returns. The financial world offers a variety of opportunities in which to invest money. No matter which opportunity is chosen to invest in, there is one universal truth; achieve the best gain possible. The recent terrorist attacks have caused a serious blow to a currently faltering economy, thus causing many investors to look for a safe place to invest their money. When the financial world is presented with a complex problem, it is time to search for simpler solutions that are known to succeed.

Budget

A business needs to not only have a budget to succeed, but also stick to it. In this business plan, a detailed, realistic financial outlook has been compiled (See Appendix D, Cash Flow Operating and Fixed Expenses). The biggest strength of this budget is realistic planning, or estimating overhead at a proper amount. This budget includes assigned money to almost any thinkable cost and even a reserve of funds for unthinkable costs. Following this budget will be easier for this company to execute than other companies because more preparation and thought has gone into it. There is no way to budget for everything, however this budget is very accurate. (See Appendix D).

Cash Collections

IHOP’s monetary collections are simple. All payments from customers are received when services are rendered, making collections simple and easy to follow. This can be seen by looking at sales in the pro forma cash flow statement (See Appendix D). IHOP limits the forms of payments accepted to cash and credit card, making sales dollars available for corporation use immediately after the exchange.

Cash Paid for Expenses

After the initial costs of setting up the restaurant, the expenses become very basic and minimal. The main continuing expenses come from labor, $137,043 for the first year, and cost of goods being sold, $561,361 for the first year. Other expenses of the business are general fees that are needed in order for anyone to maintain operation. These are shown in greater detail under expenses in the income statements (see Appendix D).

Net Cash Flow From Operations

A fourth area of financial concern pertains to the net cash flow from operations. As shown in the cash flow statement, this company will be able to pay off all the expenses with no trouble (See Appendix D). The cash flow of this corporation not only has a positive cash flow from the beginning, $217,000, but it remains positive throughout the projections. The retained earnings offers a substantial buffer against any possible future expenses that the company may incur without seeking financial assistance from some type of lender.

Net Cash for Period

The pro forma income statements show that the ROI will maintain a 40 percent return for every year, including the first. With in three years, the investors will gain back not only all of their original investment, but also a healthy profit. The profits do not stop here though, they continue through every year following with a consistent return. Over all, this corporation’s financial standing is solid, with positive cash flows for operations while maintaining a 40 percent return for its investors. This company shows thorough financial records of long and profitable futures for its investors.

THE DEAL

40 / 60

Athens All-Stars, L.L.C. is going to give you the investor a 40 percent share in the company. The investor will receive a check in mail every month for 40 percent of the dividends. On top of the monthly profit, the investor will receive money for loan payments, which include a five percent interest payment (see Income Statement, Appendix D). These monthly payments on dividends and the personal loan will prove to be highly profitable for the life of the investment.

At the end of five years, when the loan will be paid in full, the investor will have the option to sell any amount of the shares to Athens All-Stars, L.L.C. An appraiser of the investor’s choice will determine the value of the company. The company will pay for services rendered. If the current market value of the company is less than the original investment of $800,000, then the investor will receive the full investment instead of the current market value. This sell option is a way for the investor to exit the company and walk away with five years of healthy profits.

If the company fails to meet a 20 percent return on the investment of $800,000 after the first year, and every year thereafter, you will have the option to acquire control over the company’s management. Even though the company will have superior management, this option gives the investor a safeguard against unforeseen circumstances.

In return, Athens All-Stars, L.L.C. is asking for a loan of $1,200,000 and an investment of $800,000. The loan will give Athens All-Stars, L.L.C. 60 percent ownership in IHOP. The loan will be paid back over five years with an interest rate of five percent. Also, Athens All-Stars, L.L.C. will control and manage the IHOP.

Conclusion

Deal of a Lifetime

This investment is a very profitable opportunity for any venture capitalist. An IHOP restaurant in Athens will succeed. The company’s marketing mix will satisfy the customers, increasing repeat business, and establishing a great reputation. The management will be centered on serving the customer and meeting all of their needs. Thus, profits will be flowing in with this sound structure and marketing tactics. The market in Athens has a niche for an affordable family restaurant such as IHOP, supplying a high level of demand.

Join Athens All-Stars, L.L.C. in a venture to capitalize on great profits. Realize this opportunity and seize it! Become an owner of America’s favorite family restaurant, IHOP.
References

1. America’s Small Business Resource. (2001). Starting Your Business. Retrieved on September 26, 2001 from the World Wide Web: http://www.sba.gov 2. Athens Area Chamber of Commerce. (2001). 2001 Demographics & Profile. Athens, OH: U.S. Census Bureau
3. Carr Insurance Agency, Inc. (2001). Ultraflex Package Policy. Centerville, OH: Carr Insurance Agency, Inc.

4. Data Center. (1999). Athens County Profile. Retrieved on September 27, 2001 from the World Wide Web: http://www.ag.ohio-state.edu/~ohioline/ 5. Department of Treasury Internal Revenue Service. (2001). Forms and Publications. Retrieved on October 10, 2001 from the World Wide Web: http://www.irs.gov 6. IHOP. (2001). IHOP. Retrieved on October 10, 2001 from the World Wide Web: http://www.ihop.com 7. IHOP CORP. Franchise Department. (2001). Confidential Franchise Application and Financial Statement [Brochure]. Glendale, CA: IHOP CORP. 8. National Telecommunications and Information Administration. (2001). Starting a Business. Retrieved on October 7, 2001 from the World Wide Web: http://www.ntia.doc.gov/opadhome/mtdpweb/busplano.htm 9. Ohio Revised Code Chapter 3717. (1999). Retail Food Establishment & Food Service Operation (ODH 2231.32). Columbus, OH

10. Ohio Secretary of State. (2001). Corporate Filing Forms. Retrieved on October 10, 2001 from the World Wide Web: http://www.state.oh.us/sos/ 11. Pinson, Linda. (1996). Anatomy of a Business Plan (3rd ed.). Chicago, IL: Upstart Publishing Company. 12. Planning Your Business. (2001). Start a Business. Retrieved on October 7, 2001 from the World Wide Web: http://www.bplans.com/c/sp/d/index 13. Small Business Development Centers of Ohio. (2001). Financing Programs [Brochure]. Athens, OH: Small Business Development Centers of Ohio. 14. Welcome to the City of Athens, OH Online. (2001). Demographics. Retrieved on September 26, 2001 from the World Wide Web: http://www.ci.athens.oh.us/Demographics/demographics.html
APPENDIX A

APPENDIX A

Market Analysis

1. Athens County 2001 Demographics & Profile

2. City of Athens Website – Athens County General Profile

3. Athens County Profile March 1999
APPENDIX B

APPENDIX B

Competition Analysis

1. Union Street Café Interview

2. Dee’s Diner Interview

3. Bob Evans Interview

UNION STREET CAFE

(Interviewed Barbara Jackson - Waitress)

Q: What’s usually your busiest hour?

A: Breakfast / Lunch – 8 a.m. to 4 p.m.

Q: Who’s your biggest group of customers; college students or local residents?

A: Definitely college students.

Q: Do you offer breakfast 24 hours a day or just during certain hours?

A: Yes, except on Sundays because we’re not open 24 hours on Sundays.

Q: Who do you see as your biggest competitor?

A: Bob Evans

DEE’S DINER INTERVIEW

(Interviewed Shelly Thompson - Waitress)

Q: What type of customers comes in: a) Breakfast? b) Lunch? c) Dinner? d) Middle of the night?

A: a) Breakfast - truck drivers, intoxicated persons, hunters, retirees b) Lunch - truck drivers, hunters, retirees (very slow business during lunch hour) c) Dinner – same as breakfast crowd, only less intoxicated persons d) Middle of the night – truck drivers, intoxicated persons

Q: Who is your biggest customer?

A: Truck drivers and regulars (townies)

Q: What hour do you get the most sales?

A: Breakfast – 5 a.m. to 2 p.m.

Q: Do a lot of truck drivers stop? If so, every night or are there busier nights?

A: Yes, a lot of truck drivers stop. Mostly on weekdays because they have the weekends off, but Tuesdays are especially busy for some unknown reason.

Q: Do you offer breakfast 24 hours a day or just during certain hours?

A: Yes, breakfast is offered 24 hours a day.

Q: Who do you see as your biggest competitor?

A: Shelby’s Café (Logan, OH) and Busch’s Family Restaurant (Logan, OH)
BOB EVANS INTERVIEW

(Interviewed Travis Poling – Assistant General Manager)

Q: What type of customers comes in at: e) Breakfast? f) Lunch? g) Dinner?

A: a) Breakfast - regulars b) Lunch - townies e) Dinner – business persons

Q: Who is your biggest customer?

A: Townies and regulars.

Q: What hour do you get the most sales?

A: Sunday – 7 a.m. to 3 p.m.; Monday to Friday – 11 a.m. to 1 p.m. (lunch rush) 5 p.m. to 8 p.m. (dinner rush)

Q: Do you offer breakfast all hours opened or just during certain hours?

A: Yes, we offer breakfast all hours we’re open.

Q: Who do you see as your biggest competitor?

A: Damon’s.

Q: What is the average check amount?

A: Approximately $7.00.

Q: How many people does this restaurant seat?

A: 195 people.

Q: How many employees do you have on staff at one time?

A: 26 employees each shift - cooks, waiting and hosting staff, busers and managers

Q: What are the average sales per week for this Bob Evans?

A: We pull in about $50,000 in sales each week.
APPENDIX C

APPENDIX C

Locations

LOCATIONS

East State Street
Athens, Ohio 45701
(Our Location)

Price: $350,000

Owner: J. B. Hayes

Advantages: • High traffic area • Located close to future site of Wal-Mart • Complimentary businesses are nearby • Located near two major highways (32/50 and 33) • Easy access to restaurant site • Ample parking for both passenger cars and heavy duty trucks • Area is already zoned commercial • Existing sewer system is already present • Located near Super 8 Motel

Disadvantages: • Located on a flood plain • Competition (Bob Evans) is within two miles • High price of land

14333 US Rt. 33
Nelsonville, Ohio

Price: $1,000,000 +

Owner: Edwards Theaters, Inc.

Advantages: • Close to Movies 10 • Easily seen from SR 33 • Close to both Athens and Nelsonville (Two most populated areas in Athens County) • Highly traveled area • Close to Hocking College

Disadvantages: • Sewage system is not accessible without major reconstruction of land • Limited space for parking • No other businesses besides Movies 10 nearby to help draw customers to the area • Bad traffic intersection – no traffic light

999 East State Street
Athens, Ohio 45701

Price: $350,000

Owner: Richard McKinstry

Advantages: • High traffic area • Located close to future site of Wal-Mart • Complimentary businesses are nearby • Located near two major highways (32/50 and 33) • Easy access to restaurant site • Ample parking space • Area is already zoned commercial • Existing sewer system is already present • Located near Super 8 Motel

Disadvantages: • Located on a flood plain • Many competitors such as Damon’s, Ponderosa and Bob Evans • High price of land
APPENDIX D

APPENDIX D

Financial Spreadsheets

1. Small Business Development Center (SBDC) – Financing Programs

2. IHOP Franchisee Investor Program

3. Athens All-Stars, L.L.C. Five Year Financial Report

APPENDIX E

APPENDIX E

Insurance

ULTRAFLEX PACKAGE POLICY

1. Buildings

2. Business Personal Property and Personal Property of Others

3. Extensions of Coverage Included in the Policy Limit

4. Income Protection

5. Liability

6. Premium Payment Plans

Source: Carr Insurance Agency, Inc. (2001). Ultraflex Package Policy. Centerville, OH: Carr Insurance Agency, Inc.

APPENDIX F

APPENDIX F

ORGANIZATIONAL FORMS

1. Articles of Organization

2. Articles of Organization Application

3. Application for Registration of Foreign Limited Liability Company

4. Certificate of Amendment to Articles of Organizations of a Limited Liability Company

5. Certificate of Correction of Foreign Limited Liability Company Registration

6. Certificate of Restatement of Articles of Organization of a Limited Liability Company

7. Change of Address of Agent for Ohio Limited Liability Companies

8. Notice of Resignation of Agent

9. Subsequent Appointment of Agent

10. Certificate of Cancellation of Foreign Limited Liability Company Registration

11. Certificate of Dissolution for Limited Liability Company

12. Consent for Use of Similar Name

13. Report to Determine Liability

APPENDIX G

APPENDIX G

TAX FORMS

1. SS-4 (Application for Employer Identification Number)

2. 1065 (U.S. Return of Partnership Income)

3. 1065 – Schedule D (Capital Gains and Losses)

4. 1065 – Schedule K-1 (Partner’s Share of Income, Credits, Deductions, etc.)

5. 1065 – B (U.S. Return of Income for Electing Large Partnerships)

6. 1065 – B Schedule K-1 (Partner’s Share of Income (Loss) From and Electing Large Partnership)

APPENDIX H

APPENDIX H

CORPORATE INFORMATION

IHOP Corp. and its subsidiaries develop, operate and franchise International House of Pancakes restaurants, one of America's best-known, family restaurant chains. IHOP restaurants feature moderately priced, high-quality food and beverage items, and table service in an attractive and comfortable atmosphere. Although IHOP restaurants are best known for their award-winning pancakes, omelets and other breakfast specialties, IHOP restaurants are open throughout the day and evening hours and offer a broad array of lunch, dinner and snack items as well.

More than 90% of IHOP restaurants are operated by franchisees, who are independent business people.

Our management belief is that an equity-involved franchisee will be more responsive to the needs of the guest. There are over 900 IHOP restaurants located in 41 states and Canada.

HISTORY

IHOP Corp. traces its roots back to the opening of the first International House of Pancakes restaurant in 1958 in Toluca Lake, a suburb of Los Angeles. The American eating public and investors quickly took to the concept of a restaurant based on pancakes - one of America's favorite foods. Within four years the number of units had increased to more than 50.
The 1960s and 1970s were decades of continued expansion for the company as it entered new markets across the country, concluding with the appointment of Richard K. Herzer as president of IHOP Corp. in 1979. The 1980s would prove to have international flavor for IHOP, including brief ownership by a Swiss company and expansion into the Japanese market. The company reverted back to American ownership in 1987 when Herzer and other investors purchased the company.
In the 1990s, IHOP continued its successful strategy of expansion primarily through franchising increasing the number of restaurants from 490 to over 800. Awareness of the International House of Pancakes brand exceeds 80 percent, making IHOP one of the most popular family restaurant chains in America. In 1991, to accommodate future growth, the company moved its headquarters to Glendale, Calif. and became publicly traded on the NASDAQ Stock Market under the symbol "IHOP."
In 1998 IHOP system-wide retail sales surpassed one billion for the first time. In 1999 IHOP began trading on the New York Stock Exchange under the symbol "IHP".

Source: IHOP. (2001). IHOP. Retrieved on October 10, 2001 from the World Wide Web: http://www.ihop.com
APPENDIX I

APPENDIX I

1. General Information

2. Ohio Revised Code Chapter 3717 (Retail Food Establishment and Food Service Operation)

FRANCHISE INFORMATION

So fast, in fact we're expanding. IHOP has grown into a successful chain of over 900 restaurants, and right now we have immediate franchise opportunities nationwide.
With over 40 years of restaurant experience, we offer our franchisees many valuable services, including the following: • Comprehensive training programs and reference manuals • Prototype architectural plans and specifications for self-developing franchisees • Operational assistance upon opening • Continuing operational support • On-going product and menu development • Marketing and advertising support materials for television, radio, newspaper and in-store displays

FRANCHISE PROGRAMS

Here at IHOP, we offer a variety of different franchise programs designed to suit your specific needs:

Purchase Program - Under this program, the franchise owner takes over an IHOP developed, and in some instances operated, restaurant, which typically involves entering into both a sublease for the premises as well as an equipment lease. The franchise fee for the Purchase Program generally ranges between $50,000 and $600,000, depending on the particular facts and circumstances concerning the individual restaurant and its location.

Investor Program - The franchise owner locates a suitable site, acceptable to IHOP, and coordinates the acquisition and development of the restaurant location. The franchise owner arranges for the construction, equipping and furnishing of the restaurant (all in accordance with IHOP specifications) and does so at his or her sole cost and expense. The franchise fee under this program is $50,000.

Conversion Program - This program requires that the franchise owner locate a suitable site, acceptable to IHOP, and coordinate the acquisition and conversion of an existing building into an IHOP Restaurant. The franchise owner arranges for the remodeling and furnishing of the building (again, all in accordance with IHOP specifications) and does so at his or her sole cost and expense. The franchise fee for this program is $50,000.

The franchise fee for each of these programs requires a down payment, but IHOP will finance the balance.

Recurring costs for all IHOP franchise programs are as follows: • Royalty: 4.5% • National Advertising Fee: 1% • Local Advertising Fee: 2%

Source: IHOP. (2001). IHOP. Retrieved on October 10, 2001 from the World Wide Web: http://www.ihop.com

APPENDIX J

APPENDIX J

TECHNOLOGY

All IHOP franchise locations require a Point-of-Sale System costing $28,000. They also require each franchise location to have one personal computer to handle day to day business operations such as payroll, business memos and letters, e-mail to keep in contact with the corporate office and other daily functions.

APPENDIX K

APPENDIX K

SURVEY

1. Survey Questions

2. Survey Results Based on the Responses of 55 Athens County Residents
( Insert Survey Questions here)

|IHOP SURVEY DATA 55 People Surveyed |
| |
|SEX: | | |
| | | | | |
| | | | | | |
| |$9 | |1 | | |

| | | | | | | | | | | | | | | | |No. of People | | | | | | | |DEE'S DINER | |4 | | | | | | | | |UNION STREET CAFÉ | |10 | | | | | | | | |BOB EVANS | |37 | | | | | | | | |MCHAPPY'S | |8 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

APPENDIX L

APPENDIX L

Business Plan Resources

1. Small Business Administration (SBA) The Business Plan – Road Map to Success

2. Business and Marketing Plans

3. Starting a Business