<<

Business Plan June/July 2011

Presented by David Fishof | 126 S Poinsettia Place Los Angeles, CA 90046 | 888.762.2263 Preliminary Considerations

• This document has been prepared by RRFC Enterprises, LLC and is being given to you solely for your preliminary information on a confidential basis and neither it nor its contents may be reproduced, redistributed, passed on or disclosed in whole or in part to any other person without the express written consent of RRFC Enterprises, LLC.

• Neither RRFC Enterprises, LLC nor any of its affiliates makes any representation or warranty, express or implied, regarding the information contained in this presentation and makes no representation, guaranty or warranty about the rates of return, if an, that an investment in RRFC Enterprises, LLC will generate. Without limiting the generality of the foregoing, we particularly note that we make no representation or warranty as to the attainability of the projections included herewith and that the actual historical financial performance of RRFC Enterprises, LLC has been substantially less favorable than the performance anticipated in such projections. Moreover, in the past the company’s financial performance has been substantially less favorable than it was projected to be. Copies of the historical financial statements of RRFC Enterprises, LLC will be provided to you upon request and both the company and its independent accountants will be pleased to discuss with you any questions or comments you may have with respect to such financial statements, this business plan or anything else related to the company, its business or future prospects or your possible investment in the company. Further, it is assumed that prior to making any investment in RRFC Enterprises, LLC, you will obtain the input and advice of your own independent advisers and consultants, including but not limited to investment, tax, legal and accounting advisors.

• U.S. Internal Revenue Service (IRS) Circular 230 Notice: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the U.S. Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

Private & Confidential Page 2 The Company (RRFC Enterprises) is looking to raise $1,500,000 in exchange for a 6% equity interest in the Company in order to implement a strategy that we believe can take the Rock ‘n Roll Fantasy Camp (RRFC) business to the next level in terms of revenue potential, profitability, and brand value. In addition to the equity interest received for an investment in RRFC, investors shall receive annual Rock ‘n Roll Fantasy Camp “credits” valued at up to 10% of invested capital for a period of 5 years.

RRFC has developed a growth strategy that will leverage recent momentum and success along with the opportunity to create a permanent location ideally situated in Los Angeles. With the proposed infusion of capital, RRFC will open and operate a flagship property in Los Angeles that will facilitate the growth of its successful core business activities, generate profitable new business opportunities, and serve as its corporate headquarters.

RRFC understands that the realization of this next phase of business growth will require the addition of key internal personnel and plans to address these anticipated needs accordingly. RRFC’s initial priority will be the addition of marketing and sales executives. These individuals will be carefully selected to assure that they possess the appropriate vision and experience to realize the corporate growth strategy envisioned by RRFC CEO David Fishof.

We believe the timing is ripe for the implementation of RRFC’s growth strategy: 1) current RRFC brand momentum is strong – filming of the 2nd season of the hit reality TV show produced by Mark Burnett was recently completed and will air Fall 2011; 2) RRFC is currently featured in major national television ad campaign with Citi cards, and has had a recent string of press including Nightline, the New York Times, and the Wall Street Journal; and 3) RRFC’s core business has reached an inflexion point – steady growth in Camp popularity justifies the opening of Rock ‘n’ Roll Fantasy Camp Schools that are affordable and more accessible to a broader customer base.

Based on this business plan, RRFC expects to be well positioned for an exit event within the next 5 years.

Private & Confidential Page 3 Executive Summary:

RRFC Overview

In its 14th year of existence, RRFC Enterprises, Inc. (“RRFC Enterprises” or the “Company”) is a profitable and growing, unique live entertainment and media company that was organized as the parent company of Rock ‘n’ Roll Fantasy Camp (“RRFC” or the “Camp”).

The RRFC Enterprises mission is to deliver a powerful, unique interactive music experience where real people play and bond with rock & roll legends and change people’s lives in the process.

The Company achieves its mission through its two operating divisions: the Live Division and the Content Division.

The Live Division currently offers three, four and five day Camps (“Full Camp”), a one- day “Touring Camp,” and a one-day or two-day corporate camp program for off-sites, corporate development, corporate parties, sales incentives/bonuses and customer appreciation (“Corporate Camp”). The Camps are the Company’s high-end, flagship products. Campers of all types get an opportunity to become rock stars during Camp by jamming in a rock ‘n’ roll music environment while playing with famous rock legends. Camp counselors are rock stars that train the campers. Rock stars that participate in RRFC have achieved success in the Music Industry through hit records, worldwide tours, and hit television series. The Camps include guest appearances by rock legends and industry leaders. Each Full Camp culminates in a recording session and live performance with rock legends in a major concert venue.

Over 200 Rock legends have participated in RRFC including: • Roger Daltrey of • Bret Michaels of Poison • Steven Tyler of Aerosmith • Sammy Hagar of Van Halen • Tommy Lee of Motley Crue • of Guns N’ Roses and Velvet Revolver • Paul Stanley of KISS • of The Eagles • of The Beach Boys • Bill Wyman of • Jack Bruce of Cream • Dickey Betts of The Allman Brothers Band • Meatloaf

Private & Confidential Page 4

The Content Division includes TV series and specials, online community, film, merchandise, digital revenue, training and educational materials, DVDs, CDs, photos and memorabilia.

Rock ‘n’ Roll Fantasy Camp TV Reality Series on VH1 Classic. The hit reality television series that focuses on the Rock ‘n’ Roll Fantasy Camp experience debuted on VH1 Classic (100 million households) in October 2010 and filming of Season 2, featuring Sammy Hagar and Paul Stanley, recently completed filming and is set to air in September 2011. Rock ‘n’ Roll Fantasy Camp Season 1 on VH1 Classic was the highest rated original series in VH1 Classic history. The series is produced by the Emmy award winning television producer Mark Burnett (Survivor, The Celebrity Apprentice, The Contender, The Voice, Shark Tank, etc.). Season 1 featured Poison’s Bret Michaels and other rock stars including Michael Anthony and Ace Frehley. The show’s format places 15 people in three bands to compete for the best band of the week. Viacom is considering moving the show from VH1 Classic to its larger VH1 network.

RRFC Origins

RRFC was first introduced in 1997 by David Fishof, an internationally recognized entertainment producer who among other notable achievements was responsible for reuniting the ‘Monkees’ and introducing them to a new generation of MTV fans with a global tour in 1986. Fishof also conceived, created and produced ’s All Starr Band tours, Dirty Dancing Live Tour, American Gladiator Live Arena Tour, ’s American Bandstand Tour and was a sports agent representing major athletes from the NFL and MLB. Fishof developed RRFC while he was on tour with Ringo Starr and The All Starr Band and wanted to share this opportunity with other rock music aficionados.

RRFC has received significant media coverage, including multiple features on all three U.S. broadcast network morning shows. The impact of media coverage, reaching millions of people within RRFC’s target demographic, has been a large source of business opportunities and marketing alliances, and has helped RRFC establish its brand in the marketplace.

RRFC intends to promote its brand promise in all marketing messages: Entertainment, Education, Interactivity and Inspiration.

Private & Confidential Page 5

RRFC Business Plan:

RRFC Growth Strategy – Establishment of Flagship Permanent Location

A permanent Rock ‘n’ Roll Fantasy Camp in Los Angeles, California will provide a home and destination for rock n’ roll fans from around the world. RRFC has attracted participants from all around the United States, Canada, and the world. As the TV show airs in new markets, RRFC can expect to become a worldwide destination. In addition to the US market, the series currently airs in Canada and will expand globally to Japan, Germany, Italy and other countries.

The draw of RRFC in Los Angeles is the actual fantasy camp where ordinary people learn, jam, record and perform with rock stars. RRFC’s permanent location in Los Angeles builds on the successful RRFC model launched by David Fishof in 1997.

RRFC’s proposed flagship property will be located near LAX and Burbank airports and the homes of many rock stars. The weather is perfect to attract campers from around the world.

A central driver of RRFC’s growth strategy will be a focus on operating one Fantasy Camp per month at the new flagship property. The Los Angeles based permanent location will increase operating margins by greatly reducing key costs. Additionally, by managing its own facilities RRFC will achieve higher profitability through increased revenues from the expansion of core business as well as capturing new business opportunities (music schools, and corporate events).

Major music companies supply RRFC with gear to insure that our customer base will utilize their brand. RRFC currently owns 12 complete studio/rehearsal rooms of gear. Companies like GIBSON GUITAR, MARSHALL AMPS, YAMAHA KEYS, DW DRUMS and ZILDJIAN CYMBALS are sponsors/suppliers.

Based on this success, we will look to create other facilities in major cities around the United States. RRFC’s expansion strategy consists of a plan to open one additional location per year for the next five years across the US (e.g. New York, Chicago, Austin, Orlando). The addition of these locations is projected to occur during years 3 – 5 of the implementation of the proposed growth strategy. The focus of these locations will be brand driven around RRFC Music Schools and Corporate Camps. Fantasy Camps will be less of the sales focus at these locations, but a certain number of Camps will be held in order to promote/maintain the RRFC brand at each location.

RRFC Growth Strategy – Sales & Marketing

Private & Confidential Page 6

RRFC currently engages the top public relations companies in the industry and this has garnered extensive coverage for RRFC to date. RRFC regularly invites media to attend and experience the Camp. As a result, many journalists from TV, radio and print have generated feature stories on the rock stars and individuals who attend camp. RRFC continually receives coverage from major US and international outlets such as:

• Nightline • TLC 2-hour RRFC Documentary • VH1 Classic RRFC TV Special • VH1 and VH1 Classic • BBC-TV • Good Morning America • CBS Morning Show • CNN • Simpsons (Homer goes to RRFC with Mick Jagger & Keith Richards) • Ellen Show • New York Times • Wall Street Journal • magazine • Sunday Times of London magazine • and many more

RRFC will use the monies raised to complement its proven PR strategy with the addition of critical sales and marketing resources. To continue to drive both brand and revenue growth RRFC will engage a seasoned marketing/advertising agency and expand its internal sales team.

RRFC Growth Strategy – Core Business Growth

Fantasy Camp Business – Los Angeles Flagship Permanent Location

RRFC’s permanent location will be suited to house camps, music schools and corporate events. The property will provide an ideal setting for RRFC’s core Camp business due to Los Angeles’ reputation as a destination city as well as being home to countless musicians and entertainment personalities, who are an integral part of the Fantasy Camp experience.

Fantasy Camps – RRFC plans to produce:

• 6 Classic Rock Fantasy Camps per year • 4 Heavy Metal Fantasy Camps per year

These Camps will run as 3-day or 5-day sessions. RRFC currently runs 6 Camps per year

Private & Confidential Page 7 including weekend packages. The next two scheduled Camps will take place at Woodstock in August and the Playboy Mansion in November.

Corporate Fantasy Camp Business – Los Angeles & Traveling

Corporate Program - RRFC provides entertainment for companies and is an excellent team-building program bringing together employees, VIP's and clients. The flagship location is ideal for RRFC’s Corporate Program to tie in with companies attending Southern California conventions and is ten minutes from Universal Studios and hotels that host many conventions. Most recently, RRFC traveled to Las Vegas to host an event for Elite Meetings Alliance, which we have been told was of one the most successful events they have participated in. For a testimonial, click here. The Corporate Camp business it expected to be a major source of sales growth over the next five years.

Corporate Fantasy Camps – RRFC plans to produce (1 day camps):

• 10 Corporate Fantasy Camps in Los Angeles next year • 15 Traveling Corporate Fantasy Camps (across the US) next year

RRFC Growth Strategy – New Business Development

The permanent location will allow RRFC to generate significant new revenue through the growth of accessible new lines of business.

RRFC will open the brand to a larger customer base:

• Customers with limited funds • Customers with limited time • Customers who are unable to travel • Experienced youth who need supplemental programming after school

RRFC Music Schools

RRFC Music Schools will be held on a quarterly basis and each session will last 10 weeks. Class will be held once a week for 2 hours. Seasoned music professionals will be school instructors; customers will be able to write, record, perform live and be mentored by rock stars.

RRFC Clients – Premium Product Customers

RRFC has established an impressive customer base of over 5,000 past participants.

Private & Confidential Page 8 RRFC’s premium clientele come from all parts of the world with many attendees working in leadership positions at major corporations; CEO’s and other top executives regularly attend, as well as doctors, lawyers, dentists, investment bankers and other professionals.

RRFC permanent location will include the following programs offering different price points and packages for attendees:

• Five-Day Camp – multiple rock stars host the five-day RRFC. Campers rehearse, record and perform with their camp band along with writing & recording their own song. RRFC sells recording packages at every camp, which includes 2 full days in our onsite recording studio.

• Weekend RRFC – The popular three-day Rock ‘n’ Roll Weekend Camp happens Friday-Saturday-Sunday and is another package that we sell during the camp. Campers will record and perform with their camp band as well as writing their own song. This is the Five-Day camp condensed.

• RRFC Corporate Programs - Corporate RRFC provides entertainment for companies and is an excellent team-building program bringing together employees, VIP's and clients. The Permanent location is ideal for RRFC’s Corporate Program to tie with companies attending Southern California conventions and is ten minutes from Universal Studios and hotels that host many conventions.

• Rock ‘n’ Roll Fantasy Camp Music School – As part of RRFC there will be a music school open to the public. For both adult and teen bands – RRFC music school will place all students with musicians who match their skill level and music interest. Rock star camp counselors will do a brief walk through of the music school saying hello to students and bands practicing. RRFC Music School Bands will participate in 10-week sessions. Similar to music schools across the country, 30 and 60-minute lessons will be provided for guitar, bass, drums, and keyboard.

Private & Confidential Page 9 Rock Stars at Fantasy Camp

RRFC is the ultimate music school for adults as campers practice, record and perform live with rock stars that are their musical directors. It works because our counselors and mentors believe in the program.

• “I feel quite passionate that anything that encourages people in music, just to see people with enthusiasm having fun even though they’re all different abilities...rise to the occasion, it’s fantastic!” Roger Daltrey – The Who

• “Rock ‘n’ Roll Fantasy Camp is about wanting to do something and not caring if you get it wrong. ...Singing like you do when nobody’s looking!” Steven Tyler – Aerosmith

• “It's a great thing, it's a way for me to say thank you to a lot of people, but, nobody should think that this is just a joy for those people, and that they're getting the thrill. For me to get up and play with people who have that exuberance and energy, it's really a gift to me as much as to anybody else." Paul Stanley – KISS

RRFC is also a life changing experience for most camp attendees.

• RRFC attendee Alan D said, “Was the Camp worth it? To say "ABSOLUTELY" would be an understatement. It was the best investment I have ever made.”

• After attending RRFC, Bob Fishman, a guitarist who works for CBS Sports commented, “You have changed my life in a way I could not have imagined.”

• Scott Hamilton, former Olympic medal winner and camp drummer, said after attending RRFC, “You have created something amazing! Changing people's lives for the better is something we would all like to do. You have done it in a unique and bigger than life way.”

Private & Confidential Page 10