FSXR1

 What’s FSXR1?

FSXR1 is a fund created by FSX Management for qualified investors to establish modern Ethiopian restaurants across the United States. FSX Management's ambitious goal is to open over 20 restaurants within 10 years and exceed 50 restaurants within 20 years, both domestically and globally. The inaugural restaurant is slated to open in Alexandria, Virginia. Our detailed strategy for establishing multiple restaurants in major cities will be elucidated further.

Currently, FSXR1 is a $2,000,000 fund with a minimum investment requirement of $10,000, equivalent to one share. The fund will issue a maximum of 230 shares, including those held by FSX Management. Investors are not required to make upfront payments to secure shares but are expected to purchase shares in two installments: the first upon securing the initial location and the second 30 days after the restaurant commences operations.

 Why Invest in FSXR1?

Investing in FSXR1 presents a compelling opportunity backed by a robust business plan and effective marketing strategies poised for success. With considerable growth potential, our venture promises a lucrative return on investment. Moreover, by investing, you become part of a groundbreaking endeavor shaping the future of business. We firmly believe in the surging popularity of Ethiopian cuisine among Americans and are committed to making it a culinary mainstay.

 Profit Distribution Mechanisms

 As with any investment, FSXR1 investors are entitled to a share of profits. Annually, investors will receive dividends ranging from 75% to 85% of the restaurant's profits. These dividends will be disbursed via direct deposits or mailed checks. Importantly, profits are distributed based on the overall performance of all restaurants, rather than on individual restaurant investments.

 Board Members

FSXR1's board comprises seven members, with one permanent seat reserved for FSX Management. Board membership prioritization is determined by investment amount and Class B shareholder status. Once a location is secured, investors will convene to elect board members, who must hold investor status and serve three-year terms. Board members are elected through online or text voting processes and are subject to third-party criminal background checks. Removal of a board member requires a 70% vote in favor by other board members.

 Purpose of Board Members and Their Responsibilities

Board members play a crucial role in providing oversight, guidance, and leadership to ensure the effective operation and strategic direction of FSXR1. Their responsibilities include establishing and upholding the organization's vision, overseeing financial health, ensuring compliance, and serving as ambassadors for the organization.

 

Voting Structures

FSXR1 shareholders exercise voting rights on business decisions affecting their investments. Proposals are subject to board approval before shareholder voting. Shareholders will be notified of significant decisions, such as expansion or share issuance, and will have the opportunity to vote via phone, call, or text.

 Voting Power

FSXR1 offers Class A and Class B shares, with Class B shares granting ten voting powers per share, compared to one voting power per Class share. FSX Management holds 30 Class B shares.

 Switching Your Shares to Dorobay

Shareholders' names are listed on state corporation certificates as part owners of the restaurant. However, shareholders may opt to retain ownership through FSX Management if they prefer anonymity. Shares in FSXR1 will be converted to restaurant shares upon the restaurant's opening for business.

 Quarterly and Annual Earning Report

Shareholders will receive detailed quarterly and annual reports via email or traditional mail, providing insights into financial health, operational milestones, and strategic endeavors. These reports foster transparency and invite shareholder feedback.

 Independent Auditing Company

Independent accounting firms conduct quarterly and annual reports to verify accuracy, providing shareholders with peace of mind and access to findings.

 Tax Responsibilities for Investors

Investors are responsible for paying taxes on investment income. FSX Management reports dividends to the IRS and verifies investor identities to comply with regulatory requirements.

The Fund's Goal

 FSXR1 aims to create a successful business with substantial value growth potential. FSX Management anticipates a valuation between $50,000,000 and $100,000,000 within twenty years, driven by restaurant expansions and increased fund value.

 FSX Management Roles

FSX Management oversees various aspects, including hiring, marketing, supply chain management, payroll, and expansion, to ensure the restaurant's success and growth.

 

FSX Management Fees

FSX Management charges a 15% upfront fee and holds a 15% stake in the fund. Additionally, management fees amount to $3,000 per month per restaurant, with incremental increases for additional managed restaurants. FSX Management is ineligible for-profit sharing if investor dividends do not exceed 10% of their initial investment.

 

The Road to 38 Stores

Our strategy for expanding to 38 stores in the coming years involves targeting cities where Ethiopian restaurants are already well-established. This approach will make it easier to market our stores, manage the supply chain, and recruit employees. Our goal is to open restaurants in cities that have at least five existing Ethiopian restaurants. Based on our estimates, there are more than 30 cities in the United States that meet this criterion.

 Store Architecture

The design and architecture of each store are critical to our success. After studying the layouts of many popular casual restaurants, we’ve decided that yellow and black will be the core theme for our locations. This color combination is inviting and aims to attract more people to try our food.

 Restaurant Equipment Procurement

We will be purchasing several key kitchen supplies, including cooking equipment, utensils, and other necessary items. We've developed a system to streamline the procurement process, ensuring that we have everything in place before each restaurant opening. This system will also simplify the process when we expand and open additional locations in the future.

 Food Supply Chain Management

Managing the food supply chain is crucial to the success of the business. It’s essential to ensure that we have all the ingredients and supplies required for our menu. To address this, we have developed a system that ensures we maintain an adequate stock of all necessary items. This system will allow us to place orders based on expected customer volume. For example, if we anticipate serving 700 customers in a week, the system will calculate the quantities of meat, chicken, and cooking oil needed.

 Menu

Our menu has been finalized based on what we believe our target customers will enjoy. However, as we approach the opening date, the layout may evolve, and we are likely to add more options to the menu.

 Analyzing the Business

Once the restaurant is open for business, we will continuously gather data to help us manage the operations more effectively. This data will range from optimizing supply purchases and employee management to enhancing our menu offerings to attract more customers. The insights we gather will also guide our marketing strategies, helping us bring more people to our restaurant.

 How to Buy Shares

When you decide to invest in FSXR1, you can purchase shares directly through our website. The good news is that no payment is required until the location for the restaurant is secured. We will notify you as soon as we find the perfect spot The second payment will be due 30 days after the restaurant opens for business. We will notify you two weeks in advance before the payment is due.

 There are two ways to purchase shares: through FSXR1 Commitment or FSXR1 Option.

 

  • FSXR1 Commitment is a final contract to buy shares, and you are not required to sign additional documents before making payments. Those who choose FSXR1 Commitment are given priority for board membership and receive an additional vote for each share they purchase, giving them two voting powers per share.

 

  • FSXR1 Option is a pledge to invest, where the final contract must be signed before making the payment. Investors who choose FSXR1 Option receive one voting power per share.

 

Payment Deadline: Investors, whether through FSXR1 Commitment or Option, must make payments on the due date. If an investor fails to make a payment on time, FSX Management reserves the right to void their contracts and shares without refunding the initial investment.

 

Investor Payment Procedures: Investors can make the first and final payments via wire transfer, mail certified checks to our office, or drop them off at our location.

 Future Stock Issuance Plans

As we expand, we may issue more stocks to future investors and employees. While this may reduce the percentage of your ownership in the company, we will work diligently to minimize the dilution of your ownership. The issuance of additional shares is unlikely to affect the dividends you will receive.

 Long-Term Objectives

Our long-term goal is to build a successful business that adds value for our investors. We firmly believe that we have the skills, capacity, and determination to grow the business. While the journey may not be easy, we are committed to making it succeed by any means necessary.

 Expanding Beyond Restaurants

By investing in FSXR1, you will also have the opportunity to be among the first to learn about other projects we are working on. We will keep you informed about additional investments that may benefit you. We have several exciting projects in development that will soon be available for investors like you.