Richard Alamia

edinburg, TX (USA)
Role(s):
Other

Alamo Draft House

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Location: edinburg
Industry: Entertainment
Year Founded: 1979
Number Employees: 50-100 people
Description: A recent article came out in my local newspaper: Looking for investors and maybe we all can make money. Looking for investors, this came out in my local newspaper and maybe we all can make some money: "No completion in sight for Alamo Drafthouse" EDINBURG — A McAllen attorney who placed a bid on the multimillion-dollar Alamo Drafthouse last year said he likely will not purchase the building. Alamo Drafthouse, a shell of a building in the Trenton Crossroads commercial center at the intersection of Trenton and Jackson roads, has been in limbo since its original developer ran out of money during construction in 2007. Mario Rodriguez has been in discussions with the current owner, New York-based TenRock Capital Fund LP, since early last year, but Rodriguez said he probably won’t pursue the development project. “It doesn’t look like it’s a deal that’s going to work out for me,” Rodriguez said. “It’s a great, great project — a real moneymaker. It’s just not amenable for me today.” Recently there have been no other serious commitments to purchase the building and TenRock has not expressed interest in developing the business, said Pedro Salazar, president of the Edinburg Economic Development Corp. “It’s been a while, but we want to support it as best we can,” Salazar said. “But we don’t know about (the city) buying it for development.” David Katz, president and chief executive officer of TenRock, did not return messages last week seeking comment. Brandon Arceneaux, co-owner of the Austin-based theater and restaurant chain, said he could not provide details on the potential sale of the building because he is not directly involved in the negotiations. “We hear that progress is being made on the development end and, as future tenants, we remain hopeful that progress will allow things to move forward soon,” Arceneaux said via e-mail. “We … know it will be a big hit in the community.” When McAllen-based developer Paul Garza announced the project in 2006, the business was to become the chain’s first location south of San Antonio, offering six screens and a full-service restaurant that would serve beer and liquor. Overwhelmed with deadlines, Garza, president of One Orion Properties LLC, borrowed too much money as contractors filed more than a dozen liens. When TenRock, a private lender specializing in short-term financing, foreclosed on Garza in November 2008, he had borrowed more than $10.2 million against the property. Development around the Drafthouse has continued — most recently, a new CVS/pharmacy opened inside the plaza. Salazar said a several people may be forming an investment group to buy the Drafthouse, though they have not yet made offers to TenRock. “There have been a lot of people claiming that they’re going to buy the property,” Salazar said. “But nobody’s stepping up.” So what is an Alamo Draft House? Since 1997, The Alamo Drafthouse Cinemas has provided a unique combination of theatre and restaurant, showing first-run and independent films while offering in-theatre food and beverage service that includes an extensive menu of freshly prepared appetizers, sandwiches, pizzas and salads as well as a wide selection of hand-crafted beers and great wines. We are the only concept in the growing cinema-eatery category that is franchising. The typical Alamo Drafthouse Cinema has four to eight screens that resemble traditional movie theatres except rows of seats alternate with bench-style tables. Individual theatre seating ranges from 75 to 320 seats. First-come, first-serve seating begins approximately 45 minutes prior to show time. Customers are encouraged to arrive early to enjoy the pre-show entertainment. Instead of a barrage of advertising, a variety of short films are shown that change on a regular basis, some with tie-ins to the feature film. Once seated, customers order from the menu and the friendly wait staff brings the food to their seats. Customers can continue to order throughout the movie by writing their requests using the paper and pencils on their table and placing it on the clips attached to the table. Waiters quietly collect and deliver those orders without distracting from the movie. All tabs are closed before the film ends. FRANCHISE FACTS: Investment Requirements: The estimated initial investment for a single Alamo Drafthouse Cinema is between $1,425,000 and $7,750,000, including a $75,000 franchise fee. Area developers pay a development fee of $10,000 for each venue that is credited to the franchise fee due for each additional venue. Royalties: Royalties are five percent (5%) of gross sales. The Cooperative Ad Fund contribution is 0.5% (half a percent) of gross sales. Earnings Claims: Our Franchise Disclosure Document ("FDD") contains financial performance representations as well as a complete Earnings Claim section. Revenue information is also provided. The FDD will be provided to those applicants meeting our application requirements. Please begin the application process by clicking here. Average Unit Sales Volume: $5.8 million was the 2009 Average Gross Sales of Venues opened at least 24 months. Revenue Streams: Ticket Sales, Food and Beverage Sales, Special Event Sales, Private Event Rental, Merchandise Sales. Who are we looking for? Because of its unique niche as a cinema-eatery, the Alamo Drafthouse concept is particularly well-suited for individuals or investment groups who have prior or current experience owning/operating multi-unit franchise concepts, real estate development companies as well as those with prior or current theatre experience. The Alamo concept can be a retrofit of existing theatres, build-out of a retail shell or be built from the ground-up. Locations: Alamo Drafthouse Cinemas currently has nine locations operating and two under development. There are four theatres in Austin, Texas (three of which are franchise-owned); one franchise theatre in Houston and also in nearby Katy, two franchise theatres in San Antonio and a franchise theatre in Winchester, VA. State Registration: We are currently offering franchises in all of the states in the U.S., except Alaska, Hawaii, South Dakota and North Dakota. Exclusive Territories: All franchise agreements provide for exclusive territories. Two Investor Profiles: We're offering the Alamo Drafthouse franchise opportunity to two investor profiles: Unit Franchisees and Area Developers. Whether your goal is to own one unit or to build a dining and Entertainment Empire, we'll work with you to craft the investment that meets your goals. REAL ESTATE INQUIRIES A typical Alamo Drafthouse venue has 4 to 8 screens and requires 22,000 to 33,000 square feet. Alamo Drafthouse Cinemas are typically located in commercially zoned shopping or entertainment areas in major metropolitan markets and college towns. The Alamo Drafthouse Cinema concept is viewed as an entertainment destination for life-style center real estate developers. The 22,000 to 33,000 square foot size is attractive to developers because it is smaller than the traditional 20 screen multiplex. In addition, our off-peak parking times are attractive to adjacent shopping tenants. Alamo prototypes include new-build or refurbishment of existing big-box space. Current models include both sloped-floors and state-of-the-art stadium seating. You can choose to either own or lease the real estate. Theatres are designed so they are not considered "special-use". Let us show you how. If you know of a location that would be ideal for an Alamo location, be it a new-build or retrofit, please contact us by clicking the link below. Real Estate Inquiries SPOTLIGHT ON SUPPORT When you become part of the Alamo Drafthouse Cinemas franchise family, you'll benefit from a well-planned lineup of support services. Comprehensive Training: Training will cover the areas of administrative procedures, unit operations and maintenance, product ordering, suggested pricing guidelines, sales/marketing, promotions and much more. You or your management team will take part in on-the-job training which will give you hands-on familiarity with operating an Alamo Drafthouse franchise. An experienced field manager from Alamo Drafthouse Cinemas will be on hand to provide on-site assistance both before and after your grand opening, Film Booking: We'll provide turn-key film booking support to keep you in the pipeline of the most up-to-date Hollywood releases specifically tailored to your market. Site Selection: We'll provide you with guidelines and advice for choosing an appropriate location for your franchise. Pre-Show: The Alamo Media Department will send you our unique pre-show reel that is a hallmark of the Alamo brand. Each pre-show reel is tailored to the specific film your showing. The pre-show will entertain your guests before the show and highlight your special event programming and other promotions. No obnoxious outside advertisements or stale slide shows at the Alamo. Special Event and Film Festival Support: Special events and film festivals have made the Alamo famous. We will provide special event and film festival consulting to help you create and produce your own special events. We will facilitate the sharing of best practices and revenue-generating ideas among the members of the Alamo Drafthouse franchise system. Purchasing: You will receive the benefit of any volume pricing options we negotiate for the benefit of all members of the Alamo Drafthouse franchise system. Operations Manual: You'll receive an in-depth operations manual that's packed with information on operating an Alamo Drafthouse Cinemas franchise. This detailed "script" is well-organized to provide you with a quick reference to procedures, policies and much more. Marketing Assistance: We're adept at marketing the Alamo Drafthouse Cinemas concept and will share our expertise with you. All members of our franchise system will have access to professionally produced advertising materials for use on the local level. Ongoing Operational Support: You'll benefit from ongoing training and support in operations and marketing. If you ever have questions or need assistance, we're only a phone call or an email away. Plus, a trained regional field manager will visit your location to provide any help you may require.