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frequently asked questions
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1- What are my returns on investment if I am a Barnote holder?
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Our financial projections indicate a discounted Return on Investment (ROI) of just over 270% over 5 years. More detailed cash flow projections for each level of Barnote ownership may be viewed on the mybar website.
http://www.mybar.me/financials.php
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2- What do I get when I become an owner?
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Upon receipt of funds, investors will receive a confirmation e-mail along with a certificate and proof of Barnote ownership. Investors will also receive an owner’s pack in the mail with their membership card and an original share certificate.
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3- Will Barnote owners have priority in investing in future projects the mybar Board of Directors (BOD) may decide undertake?
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The BOD has a long term strategic plan and mybar is the first of several future potential projects. By becoming a part of this innovative and exciting approach to bar ownership, Barnote owners will be rewarded by having first right of access to future investment opportunities.
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4- Where’s the location of mybar?
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mybar will be located in the Berytus Park building in Park Avenue, in the heart of downtown Beirut. Berytus park is a flagship building in Beirut’s luxurious Park Avenue – surrounded by shopping boutiques, soon to be completed hotels (including The Four Seasons, and The Grand Hyatt), and just meters away from the waterfront. The building is perfect for mybar; very high ceilings, huge windows, spectacular views and a very strategically placed location that offers easy and convenient access
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5- What is the concept or theme of mybar?
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The Barnote owners of mybar will vote on a selection of concepts that the BOD has prepared. Example concepts include a New York Lounge, Las Vegas Club, or Gemayzeh pub. A simple majority of votes will decide the concept.
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6- What kind of music will be played?
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The music will ultimately depend on the concept that is voted upon. Professional DJ’s will be hired.
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7- Will food be served at mybar?
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Yes, a selection of food dishes and appetizers will be served at mybar.
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8- How does the voting process work?
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Each thousand dollars invested will count as one vote. For example a platinum owner investing $20,000 will have twenty votes and a regular owner investing $2,000 will have 2 votes. This is the most equitable option.
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9- I’ve heard that a lot of bars fail in meeting their financial projections, how will mybar be different?
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It’s true that many bars do fail short in delivering forecasted returns , but the beauty of mybar is that the business model is different to all other bars. Because mybar will likely have over 100-150 different investors, these owners can ensure the success of mybar by visiting the bar and encouraging their friends to visit as well,. Furthermore, the BOD will ensure that mybar is designed, managed and staffed to the highest level of standards in order to maximize our chances of success.
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10- What happens if mybar fails in delivering the projected returns on investments?
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As with all investments, there is a risk that the returns generated will not meet expectations. However, the BOD believes the assumptions used in our financial forecasts are reasonable and are in line with our knowledge of the market . The BOD is also owners in mybar and are therefore financially motivated to ensure the best return possible. Detailed financials will be provided to all prospective owners of mybar.
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11- What happens if mybar is forced to close down because of unforeseen external events such as a war?
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Given the recent political climate in Lebanon, there is a risk that mybar have to close down for a period of time during, for example, war or political turmoil. The ultimate decision on whether to close mybar, and for how long, will be at the discretion of the BOD. The BOD will act in the best interests of the owners, staff and customers.
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12- When will fund raising close?
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We plan on raising the one million dollars by the end of summer 2009.
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13- What happens if one million dollars is not raised?
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In the event that the one million dollars is not raised by September 2009, existing owners will vote on whether to have a smaller scale mybar or have their Barnotes refunded.
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14- Can I sell my Barnote or transfer it to someone else?
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Barnotes cannot be traded, nor are they transferable. In the event that you no longer wish to be a Barnote owner, you can request to sell your Barnote back to the BOD for its initial face value.
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15- Will I always be guaranteed a place within mybar if I’m a Barnote owner?
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You are always guaranteed priority reservations, however should mybar reach its capacity and you do not have a prior reservation, there may be a wait if you are a Silver Owner or Owner. Gold and Platinum Owners are always guaranteed instant entrance. Owners will obviously be given priority entrance at the door over non-owners. (However, if the place is, full, you can be assured that even if you aren’t inside, you are making more money!)
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16- Can you please explain how the 6% upfront fee on my investment works?
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The 6% fee the BOD is charging investors will generate a total of $60,000 (i.e. 6% of one million dollars). The $60,000 will go towards the following fees and expenses:
$8,000 legal fees
$22,000 marketing expenses
$5,000 banking fees
$17,000 pre-operating expenses
$8,000 auditors
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17- What happens if the set up costs end up being less than $1M USD?
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The mybar Board of Directors will always make decisions in the best interests of the owners. All costs will be closely monitored and scrutinized and made available on the mybar website. Furthermore, all major build categories will go out to tender to ensure the most competitive costs are negotiated. Should the total set up costs come in under budget then those funds will be returned to shareholders on a proportionate basis. This will occur at the same time as when the first year dividends are distributed.
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