Discovery Day Presentation ABOUT US HISTORY 1970 Dick Naugle opens first Naugles location 1979 Harold Butler purchases 3 Naugles locations and grows to 225 locations 1986 Collins Foods International purchases Naugles brand and locations 1988 Anwar Soliman merges Collins Foods International with Del Taco 1989 Del Taco announces plans to convert 171 Naugles locations 1990 Anwar Soliman sells Del Taco to Del Taco’s management team 1994 Del Taco converts remaining Naugles locations to Del Taco 2006 Christian Ziebarth starts Naugles rememberance blog 2015 Christian wins judgement for Naugles trademark 2015 2 Naugles locations open in Huntington Beach and Fountain Valley FRANCHISE FACTS SEGMENT FOOTPRINT Fast Food/QSR Interior: 450-2,800 SF Pad w/ Drive-Thru: 22,000-33,000 SF SUB SEGMENTS Mexican/American LOCATIONS Huntington Beach DAYPARTS 21351 Pacific Coast Highway Breakfast/Lunch/Dinner/Snacks Huntington Beach, CA 92648 REVENUE STREAMS Fountain Valley Corporate Kitchen Dine-In 18471 Mt. Langley Street Carry Out Fountain Valley, CA 92708 Delivery Catering Merchandise Differentiation • Nostalgic and loyal fan-base following • Great food, low prices, and modern look • Locally-sourced quality ingredients • Quick ordering and customer service • Streamlined menu and production methods • Fresh, bold, and spicy menu flavors • 24-hour revenue opportunities POSITIONING • Flavorful items that appeal to all demographics • Affordably-priced niche market • Brand awareness through press and media coverage • Comfort food that flourishes in any economy • Use of the locally-sourced fresh ingredients • Quick and efficient customer service LABOR MODEL We hire friendly individuals and train for the technical skills needed. Our recipes are designed to utilize basic preparation techniques and employees are cross trained to assist with multiple roles. Staffing is dependent upon the size of the operation. Typical staffing levels include: • 1 Unit Manager/Supervisor • 1-2 Cashiers • 2-3 Line Cooks FRANCHISE SUPPORT • Real estate/Site selection • Store build-out/Construction • Training systems • Operational support • Recipe and menu development • Marketing and brand building • Vendor and equipment selection • Point of sale systems • Pre-opening/Grand opening support • Business consulting SPACE OPTIONS Conversion A proven development strategy, saving time and money. Freestanding New structures provide maximum potential. Drive-Thru Located near shopping centers or strip malls for high visibility. In-Line High visibility in malls, strip malls, and plazas. End-Cap Located at the end of commercial property. Non-Traditional High visibility locations with lots of traffic. FOUNDERS JOSHUA MAXWELL Chief Executive Officer Josh brings an entrepreneurial spirit and the desire to make a positive impact to Naugles. Prior to joining the Naugles team, Josh worked for five years at Netminded Technologies before starting his own company, CacheIT Solutions. Josh’s insight and ability to anticipate customer needs helped him to provide small-to-medium businesses with the IT resources they need to succeed. Josh has been instrumental in assisting his clients with marketing by deploying email, web, and social media strategies. Always seeking creative solutions that challenge convention, coupled with his keen business acumen and middle-market experience, Josh is the driving force of our company’s overall business strategy and expansion plan. FOUNDERS CHRISTIAN ZIEBARTH President With his background as a seasoned web developer and social media expert, Christian created a blog in 2005 dedicated to reviewing Mexican restaurants in Orange County, California. This popular blog was a pioneer in the OC food-blogging scene and Christian’s work has been profiled by many publications including The Orange County Register and OC Weekly. By analyzing his blog traffic, Christian noticed a significant and hard-to-ignore loyalty people have toward Naugles. Through his blogging endeavors Christian has formed many contacts with local restaurants, which prompted him to revive the iconic Naugles brand. After years of researching and developing the original Naugles menu flavors, Christian’s commitment to delivering high- quality food has brought in both nostalgic guests and new ones alike. FOUNDERS DANIEL DVORAK Chief Marketing Officer Dan contributes more than 10 years of brand development creativity and experience. As a talented conceptual designer by trade, his portfolio of clients include Apple, Wal-Mart, Target, and Amtrak. Dan uses his experience in 3D CAD rendering and his discerning eye for graphic design to create exciting, dynamic, and successful marketing campaigns. He has the know-how to deploy products and services directly into our strategies by utilizing both traditional and non-traditional advertising methods. With the real-world experience, knowledge, and skills required to successfully launch a food concept, in today’s tech-savvy market, Dan leads our marketing efforts with our mobile app, online publishing, print, radio, and television marketing channels. THE MENU MENU Evolution • Housemade sauces and cheese dips • Fresh and local vegetarian options • High quality menu production • Minimal kitchen and prep space needed • Simple and fast preparation • Quick ordering and customer service INDUSTRY TRENDS REVIEWS press September 21, 2016 Reborn Fast Food Icon Naugles Promises 1,000 New Locations May 27, 2016 Naugles Opening 1st Public Location in Huntington Beach May 26, 2016 Naugles to Make a Triumphant Return After 24 Years! July 29, 2015 Nostalgic Naugles is back and so are the crowds for the bean and cheese burrito— and the wild and crazy memories January 5, 2015 Naugles Fast-Food Chain Making Comeback NEXT STEPS THE PROCESS • Headquarter meeting and all parties decide to move forward • Letter of Intent (LOI) is signed by franchisee and franchisor outlining deal terms • Draft executable contracts sent to prospects • Franchisees fully execute agreements and send with franchise fees • Franchisor executes and sends copies back to franchisee • Access to resources, assistance with business plans and funding • Real estate process begins – local brokers, market, and site analysis FDD INFORMATION • Company history • Management experience • Litigation • Trademarks and patents • Financial statements • List of franchisees and restaurants • Fees and initial investment • Franchisor and franchisee obligations • Forms of franchise and development agreements • Item 19 Notice Regarding Franchise Offers and Sales This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. There are approximately 14 countries and 15 US states that regulate the offer and sale of franchises. The countries are Australia, Brazil, Belgium, Canada (provinces of Ontario, Alberta, Prince Edward Island, New Brunswick and Manitoba), China, France, Indonesia, Italy, Japan, Malaysia, Mexico, Russia, South Korea, Spain, and the United States of America. The US states are California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of one of these states or countries, are receiving this message in one of these states or countries, or intend to operate a franchise in any of these states or countries, we will not offer you a franchise unless and until we have complied with any applicable pre-sale registration and/or disclosure requirements in the applicable jurisdiction. This offering is not an offering of a franchise. In New York (USA), an offering of a franchise can only be made by a prospectus that has been previously filed and registered with the Department of Law of the State of New York. The application for registration of an offering prospectus or the acceptance and filing thereof by the Department of Law as required by the New York law does not constitute approval of the offering or the sale of such franchise by the Department of Law or the attorney general of New York. THANK YOU.