Daphne’s

10 Units in Texas

$700,000

Confidential Information Memorandum

April 2019

Daphne’s California Greek

FranBizNetwork is happy to bring to the market 10 Daphne’s locations in the Texas area. These units are currently operating as Noon Mediterranean restaurants. They have been purchased by Daphne's California Greek and the franchisor will convert all locations to Daphne’s. Financials have been provided from the previous owner in the bankruptcy proceeding. CIM was derived from documents provided by Seller and were prepared by FranBizNetwork to help prospective Buyers complete a summary review. These materials should not replace the Buyer's review of actual books and records and a thorough due diligence process. Buyers should not rely on these materials as definitive, but should instead consult the actual due diligence documents.Any questions or requests for further information should be directed to Buyer’s FBN advisor. Under no circumstances should prospective buyers contact Seller directly.

Carter Asefi(925) 391-2724 phoneCarter@FranBizNetwork.com

Emily Burns(925) 391-2726 phone

Emily@FranBizNetwork.com

Overview of the sale process:

• Buyer reviews the CIM and visits the stores as a customer, taking care to be discreet and not alert employees or management to the sale

• Buyer works with FBN advisor to make an offer, contingent upon full due diligence review, franchisor approval, financing if required, and lease assignments.

• Buyer completes full review of the books and records of the business• Buyer is approved by franchisor and lender (if required)• Buyer attends franchisor training• Buyer and Seller complete walk-thrus of each restaurant making sure all equipment is in

good working condition.• Escrow closes and Buyer takes over the store

Package of 10 stores: $700,000Individual stores are available, see pricing below

YE 2018 Sales: $4,988,688

Daphne’s California Greek

Daphne’s is a fast casual Mediterranean concept in California. These restaurants are located in Austin, Dallas and Houston, and are currently being operated as Noon Mediterranean restaurants. Daphne's recently purchased the stores and will convert them all to Daphne's shortly. There are 10 franchisor-owned stores which can be sold all together, in smaller packages or individually. Seller financing possible.

Store Address YE 2018 Sales

Individual Store

Pricing

1 Guadalupe/Dean Keeton 2530 Guadalupe St., Austin, TX 78705 $862,554 $350,000

2 Mueller Market 1801 E. 51st St., Ste C-300, Austin, TX 78723 $463,081 $30,000

3 Parmer/McNeil 6301 W. Parmer Ln., Ste. 204, Austin, TX 78729 $476,578 $100,000

4 Riverside 1920 E. Riverside Dr. Ste. E-110, Austin, TX 78741 $643,462 $100,000

5 Techridge 500 Canyon Ridge, Ste. L400, Austin, TX 78753 $368,473 $30,000

6 West Anderson/Burnet 2438 W. Anderson Ln. Ste. A-1, Austin, TX 78757 $446,715 $100,000

7 Beltline/LBJ 8445 North Beltline Rd., Ste. 100, Irving, TX 75063 $421,927 $30,000

8 Walnut Hill/75 7949 Walnut Hill Ln., Ste. 120, Dallas, TX 75230 $381,698 $30,000

9 Spring 1600 Louetta Rd., Ste. B, Spring, TX 77388 $384,131 $30,000

10 Yale St./I10 107 Yale St., Ste. 600, Houston, TX 77007 $540,067 $30,000

TOTAL $4,988,688 $830,000

Daphne’s California Greek

▪ Price is $700,000 for the package; smaller packages are available; stores can also be bought individually.

▪ Stores are franchisor owned, franchise agreements will be assigned to buyer with new 10 year terms.

▪ Founded in 1991, Daphne’s Greek Café was a pioneer of Americanizing Greek food and there are now 22 franchise locations in Southern California.

▪ Price does not include approximately $8,000 per store in inventory.

▪ Royalties are 4%.

▪ The franchisor will be completing conversions of each store. The approximate cost of each conversion will be $100-150K. The stores will remain operational during the conversion so there will be no down time.

▪ Franchisor provides training for approximately 4-12 weeks in California or at store location.

▪ Franchisor requires sufficient net worth and liquidity to consummate transaction. Restaurant experience preferred but not required.

Overview

Daphne’s California Greek

Austin Area Stores

Texas minimum wage is currently $7.25/hr.

Austin’s population is 950,715, making it the 11th most populous city in the United States; the fourth most populous city in Texas.

The median age is 32 and the median household income is $66K.

Stores are within 30 minutes of each other.

Store YE 2018 Sales Price

1 Guadalupe/Dean Keeton $862,554 $350,000

2 Mueller Market $463,081 $30,000

3 Parmer/McNeil $476,578 $100,000

4 Riverside $643,462 $100,000

5 Techridge $368,473 $30,000

6 West Anderson/Burnet $446,715 $100,000

Daphne’s California Greek

2530 Guadalupe St, Austin, TX

Located on busy, vibrant Guadalupe Street. Many coffee shops, shopping and restaurants nearby. Across the street is Moody College of Communications building. Residence Hall and condominium buildings are in the near vicinity. Halal Bros. and CAVA are nearby competitors.

1801 E. 51st St., Austin, TX

Located on the corner of a shopping plaza near intersection of Berkman Dr. and E. 51st St. Bartholomew park district and pool are located across the street. Other shops in the plaza are include a UPS store, eye center and dermatology office. Restaurants include Xian Sushi and Noodle, Mod Pizza and Torchy’sTacos. Across the street is a large H-E-B grocery.

Daphne’s California Greek

6301 Parmer Ln., Austin, TX

Located on the corner of a strip mall near Parmer and McNeil Dr. Other shops nearby include Starbucks, Alpha Nails and two banks. Across the street is a large H-E-B grocery. Located near residential areas. Round Rock Performing Arts Center and McNeil High School are within a mile.

1920 E. Riverside Dr., Austin, TX

Located in a shopping plaza with Starbucks, Orange Leaf yogurt, a nail salon and Chipotle. Surrounded by apartment buildings and condominiums. Walgreens is located across the street, as is a bank and an AT&T store. The Ann and Roy Butler Hike and Bike trail is a half mile away along the Colorado River.

Daphne’s California Greek

500 Canyon Ridge, Austin, TX

2438 W. Anderson Ln., Austin, TXLocated in a large shopping plaza with an outdoor seating area. Other tenants include a Sprint store, Sally Beauty supply and Sun & Ski. Walgreens and Walmart are located across the street. Residential neighborhoods and apartment buildings surround the area. Tinos Greek Café is a nearby competitor.

Located right off Interstate 35 in a shopping area that also houses a cleaners, an eye doctor and a hair salon. Restaurant has an outdoor eating area. Four hotels are in close proximity. A large grocery store, urgent care center, bank and gas station are around the corner. Dell Computer company and General Motors have offices within 1.5 miles.

Daphne’s California Greek

Dallas Area Stores

Texas minimum wage is currently $7.25/hr.

Dallas’ population is 1.34M making it the 9th most populous city in the United States; the third most populous city in Texas.

The median age is 32 and the median household income is $47K.

Stores are within 30 minutes of each other.

Store YE 2018 Sales Price

7 Beltline/LBJ $421,927 $30,000

8 Walnut Hill/75 $381,698 $30,000

Daphne’s California Greek

8445 N. Beltline Rd., Irving, TX

7949 Walnut Hill Ln., Dallas, TX

Located off US Rt. 75 and Walnut Hill Ln. This location has an outdoor seating area. Surrounded by new apartment buildings. Traders Joe’s is located across the street. Other nearby tenants include Orangetheory Fitness, a dental clinic and a pediatric medical office. The nearest competitor is approximately 1 mile away.

Located right off Interstate 635 in a busy shopping area that also houses a Sprint store, medical clinic and other small restaurants. Dallas Fort Worth airport is approximately 5 miles away. A hotel is directly behind the restaurant; numerous other hotels are within 1.5 miles. Small businesses and industrial parks are also in the area, including Canon USA. Euro Oasis and Pita Pit are nearby competitors.

Daphne’s California Greek

Houston Area Stores

Texas minimum wage is currently $7.25/hr.

Houston’s population is 2.3M making it the most populous city in Texas and the 4th most populous city in the United States.

The median age is 33 and the median household income is $47K.

Stores are within 30 minutes of each other.

Store YE 2018 Sales Price

9 Spring $384,131 $30,000

10 Yale St./I10 $540,067 $30,000

Daphne’s California Greek

1600 Louetta Rd., Spring, TX

107 Yale St., Houston, TXLocated in a shopping plaza where Walmart is the anchor. Other tenants include a GNC vitamin store and a Massage Heights. Apartment buildings and condominium complexes surround the area. Sprouts Grocery store is down the street. Zoe’s Kitchen is a nearby competitor.

Located right off of Hwy 45 and Louetta Rd. in a small strip mall with a Chipotle and salad bar restaurant. Nearby is Spec’s liquor store, a nail salon and a State Farm office. An apartment complex is located across the street. Many car dealerships are also in the area. Walmart is approximately 1 mile away.

Proposed conversion photos*

Daphne’s California Greek

*These photos are renderings. Actual conversions may differ.

P&L Data from stores operating as Noon Mediterranean*

Daphne’s California Greek

Austin area stores

Guadalupe % Mueller % Parmer % Riverside % Techridge % West Anderson %

T12 Sales ending 7/2018 $1,128,836 100.0% $534,782 100.0% $572,212 100.0% $747,808 100.0% $428,407 100.0% $538,860 100.0%

COGS $320,148 28.4% $176,522 33.0% $189,311 33.1% $254,451 34.0% $155,754 36.4% $180,202 33.4%

Labor $295,242 26.2% $187,918 35.1% $196,164 34.3% $229,582 30.7% $182,716 42.7% $188,841 35.0%

Occupancy Costs $117,696 10.4% $129,054 24.1% $66,347 11.6% $99,717 13.3% $97,983 22.9% $77,537 14.4%

Royalties $45,153 4.0% $21,391 4.0% $22,888 4.0% $29,912 4.0% $17,136 4.0% $21,554 4.0%

Other Operating Costs $60,569 5.4% $37,900 7.1% $35,971 6.3% $38,307 5.1% $35,170 8.2% $37,755 7.0%

Net Profit $290,028 25.7% -$18,003 -3.4% $61,531 10.8% $95,839 12.8% -$60,352 -14.1% $32,971 6.1%

Executive Summary materials were derived from documents provided by Seller and were prepared by FranBizNetwork to help prospective Buyers complete a summary review. These materials should not replace the Buyer's

review of actual books and records and a thorough due diligence process. Buyers should not rely on these materials as definitive, but should instead consult the actual due diligence documents.

*Financials have been provided from the previous owner in the bankruptcy proceeding

P&L Data from stores operation as Noon Mediterranean*

Daphne’s California Greek

Dallas area stores

Beltline % Walnut Hill %

T12 Sales ending 7/2018 $542,199 100.0% $475,082 100.0%

COGS $187,197 34.5% $163,489 34.4%

Labor $195,712 36.1% $186,489 39.3%

Occupancy Costs $92,399 17.0% $109,225 23.0%

Royalties $21,688 4.0% $19,003 4.0%

Other Operating Costs $64,227 11.8% $34,755 7.3%

Net Profit -$19,024 -3.5% -$37,879 -8.0%Executive Summary materials were derived from documents provided by Seller and were prepared

by FranBizNetwork to help prospective Buyers complete a summary review. These materials should

not replace the Buyer's review of actual books and records and a thorough due diligence process.

Buyers should not rely on these materials as definitive, but should instead consult the actual due

diligence documents.

*Financials have been provided from the previous owner in the bankruptcy proceeding

P&L Data from stores operation as Noon Mediterranean*

Daphne’s California Greek

Houston area stores

Spring % Yale St. %

T12 Sales ending 7/2018 $429,085 100.0% $552,519 100.0%

COGS $146,496 34.1% $186,238 33.7%

Labor $180,985 42.2% $200,863 36.4%

Occupancy Costs $100,967 23.5% $140,316 25.4%

Royalties $17,163 4.0% $22,101 4.0%

Other Operating Costs $37,322 8.7% $50,056 9.1%

Net Profit -$53,848 -12.5% -$47,055 -8.5%Executive Summary materials were derived from documents provided by Seller and were prepared

by FranBizNetwork to help prospective Buyers complete a summary review. These materials should

not replace the Buyer's review of actual books and records and a thorough due diligence process.

Buyers should not rely on these materials as definitive, but should instead consult the actual due

diligence documents.

*Financials have been provided from the previous owner in the bankruptcy proceeding

Daphne’s California Greek

Lease Info

Store

Monthly

Rent

Monthly

CAM

Monthly

Prop Tax

Lease

Expiration Lease Options

Austin:

Guadalupe/Dean Keeton $5,360 $1,910 11/29/2019 3x5yr

Mueller Market $6,399 $1,477 $1,985 11/30/2023 2x5yr

Parmer/McNeil $2,975 $440 $1,017 1/31/2024 2x5yr

Riverside $7,554 2/28/2020 2x5yr

Techridge TBD TBD 11/30/2025 none

West Anderson/Burnet $4,321 $1,503 7/31/2022 1x5yr

Dallas:

Beltline/LBJ $6,417 $2,850 2025 2x5yr

Walnut Hill/75 $6,558 $1,201 $1,009 1/31/2025 1x5yr

Houston:

Spring $5,775 $902 $1,260 12/31/2024 2x5yr

Yale St./I10 $9,396 4/30/2024 2x5yrExecutive Summary materials were derived from documents provided by Seller and were prepared by FranBizNetwork to help

prospective Buyers complete a summary review. These materials should not replace the Buyer's review of actual books and records

and a thorough due diligence process. Buyers should not rely on these materials as definitive, but should instead consult the actual

due diligence documents.