Black Fireflies OpCo · Confidential
— wholesale investors only · s708 —
— enter access key —
Pitch Black Industries
BLACK FIREFLIES · OPCO
Investor Pitch · v0.2
26 · V · MMXXVI
Sydney's First Operator-Led Licensed Entertainment Franchise

BLACK FIREFLIES

— Black Garter as the anchor venue · five sites by 2029 · operator-co-invest · zero third-party leakage —
$2M ASK·20% OPCO·5 SITES·$8M ARR Y5
— I —

The Thesis

Licensed sex services in NSW generates approximately $500M annual revenue across ~600 venues. Every single one is operator-owned, single-location, unbranded. No franchise. No portfolio operator. No institutional capital. No HR layer. No marketing standardisation. No tech.

Black Fireflies builds the operator layer that doesn't exist: standardised brand · shared HR pipeline (Black Rose Agency) · shared property sourcing (Black Garter Holdings) · shared compliance ops · shared marketing tech (Black Box Intelligence + visual.garter.app). Operator-franchisees keep majority equity in their site, pay 8% royalty + 4% national marketing levy, and receive the entire stack.

The first credible national-brand operator wins permanently. Regulation only tightens. New licences are near-impossible. Existing licences become more valuable. Operators who can't scale solo will sell or franchise. We are the natural acquirer.

— II —

Anchor · Black Garter Rockdale

Rooms · Spas
22 + 7
multifunction · spa rooms
Active Roster
100+
15 in residence · 86 wider book
Operator Tenure
10 yr
continuous operation
Connectivity
2.2 Gbps
fibre · 24/7 reception

17–19 The Seven Ways, Rockdale NSW 2216 · Bayside LEP 2021 · LEC Consent Order 30 April 1997 · 27-year established use right · ~100 m to Rockdale Station T4 · E1 zoning · TOD precinct · 34 m height · no FSR maximum. Renovations 2018–20 and 2025–26. Black Rose Agency handles recruitment pipeline.

— Founder quote —
"Black Garter is the prototype site. Once V1 unit economics are validated through one calendar year, we franchise." — Rio · Founder · MMXXVI
— III —

Unit Economics · Per Site

LineYear 1 (stab.)Year 2+ (stab.)Notes
Gross room revenue$3.60M$5.40M22 rooms × 50% Y1 / 75% Y2 occupancy
Bar & ancillary$280k$420kbalcony bar · spa upsell
Gross revenue$3.88M$5.82M
Less operator share (50%)($1.94M)($2.91M)industry standard
Less staff (14–16 FTE)($560k)($620k)reception · security · bar · housekeeping
Less site rent → PropCo($480k)($530k)triple-net to Black Garter Holdings
Less utilities · compliance · insurance · marketing($240k)($260k)
Less OpCo royalty (8%) + levy (4%)($466k)($699k)payable to Black Fireflies HQ
Operator EBITDA$194k$801k13.8% margin Y2 · pre-tax to franchisee
— IV —

OpCo Revenue Stack · Per Site

OpCo monetises five layers per site. At stabilised Year 2, total OpCo revenue per site is ~$790k. At 5 sites: $3.95M ARR. At 10 sites: $7.9M ARR.

— 01 —
Initial Franchise Fee
$200k
at signing · brand licence · audit · build spec · 90-day onboarding
— 02 —
Royalty
8%
gross revenue · monthly · ~$466k/site Y2
— 03 —
Marketing Levy
4%
~$233k/site · visual.garter.app · SEM · brand
— 04 —
Procurement Rebate
~$80k
per site annually · linen · security · IT · insurance
— 05 —
Tech Licence
$899/mo
BBI + Visual Studio + operator dashboard · ~$80/mo cost
— V —

Roadmap · 2026–29

YearMilestoneDetail
2026Black Garter RockdaleAnchor site · renovation complete Q3 · V1 unit economics validated across calendar year
2027Site 2 — Sydney metroExisting operator acquisition + rebrand · Eastern Suburbs or North Shore · off-market warm-intro
2028Sites 3 + 4One Sydney · one Melbourne (VIC licensing reform-eligible) · franchise mode · operator-co-invest
2029Site 5 + IPO option$8M ARR · $3M EBITDA at OpCo · ASX listing prospect via Project SX-to-ASX hospitality trust roll-up
— VI —

The Ask · Returns Re-Stated

— Capital Sought —
$2.0M
— for 20% of OpCo + warrants over 3 sites —
Use of FundsAllocation
Site 2 acquisition + fit-out share$800k
OpCo build-out (COO · head of compliance · brand director)$600k
Tech stack productionisation (BBI + Visual SaaS)$300k
Legal + entity structure + first-franchise docs$150k
Marketing + brand campaign launch$100k
Working capital buffer$50k
Total$2,000,000

The standalone franchise-multiple exit returns 2.4–3.6× MoIC. The thesis-defining return profile, however, requires the Project SX-to-ASX hospitality trust roll-up — ASX listing of the combined PBI hospitality stack. Multiple-expansion from franchise multiples (8–12×) to listed-SaaS multiples (15–25×) is where the asymmetric return lives.

Exit Scenario 5-yr EBITDA Exit Multiple Total OpCo Value Investor Share (20%) Investor MoIC
Standalone franchise exit$3.0M8–12× $24–36M$4.8–7.2M2.4–3.6×
ASX rollup · base$5.0M15–18× $75–90M $15–18M 5–7×
Stars-align · category-king re-rating$7.0M22–25× $155–175M$31–35Mup to 12×
— Standalone Franchise Exit —
2.4–3.6×
5-yr · base case · floor
5-site footprint · standalone franchise multiple · no listing event · franchise-comparable transaction
— ASX Rollup · Base —
5–7×
SX-to-ASX trust listing
scale to 8-site footprint · listed-trust multiple expansion · institutional re-rating · liquidity premium
— Stars-Align · Category King —
up to 12×
Compass / Sodexo analog
first credible brand in $500M/yr fragmented category captures 30–50% category share · 22–25× EBITDA at listing peak
— Why the rollup unlocks 5–12× —
Standalone hospitality-franchise OpCos transact at 8–12× EBITDA. Listed hospitality REITs and SaaS-enabled multi-site operators trade at 15–25× EBITDA — the gap is structural and well-documented (Compass Group, Sodexo, H&R Block, Domino's franchise). The Project SX-to-ASX vehicle aggregates Black Fireflies OpCo + Black Garter Holdings PropCo + the tech stack (BBI + Visual) into a single listed vehicle, capturing both the multiple expansion AND the underlying operating scale-up. Base case requires the listing event to execute on schedule with a 5-asset footprint; stars-align case requires 8+ assets, cycle tailwind, and category-king positioning.
— VII —

Defensibility · Three Moats

— Licence scarcity —
New licensed sex services premises consents in NSW metro Sydney since 2010: near zero. Every site we acquire has a 27+ year established use right that runs with the land. The licence IS the moat.
— Operator trust —
Operators don't trust outsiders. We come from inside the industry: founder 10+ years, 100+ roster, Black Garter live operation. The first operator-led national brand wins permanent allegiance.
— Tech + brand stack —
Visual.garter.app · valuation.garter.app · Black Rose recruitment pipeline · Black Box Intelligence analytics. No incumbent has any tech layer. The bar to build it is technical-founder time — which we have.
— VIII —

Risk · Mitigant

RiskP × ImpactMitigant
Regulatory tightening (NSW)20% × HIGHLegal-counsel-led compliance ops · ACMA-safe positioning · licensed-venue-only
Banking de-risking (adult-adjacent)35% × MEDWise + non-Big4 (Tyro/Cuscal) primary banking · cash float buffer · multiple payment rails
Operator-franchisee underperformance40% × MED90-day onboarding · quarterly site audits · termination clauses · brand-protection seize rights
Public-reputation event25% × HIGHIsolated brand-by-site naming · crisis comms pre-drafted · direct insurance
Property values fall (PropCo risk)30% × LOW (OpCo)OpCo is asset-light · PropCo carries property risk · triple-net protects OpCo cash flow
Founder bus factor15% × HIGHY1 SOP documentation · COO hire (post-funding) · key-person insurance · succession plan
ASX rollup event fails to materialise30% × HIGHStandalone franchise exit delivers 2.4–3.6× MoIC floor · rollup is upside not base requirement
— IX —

Process · Next Steps

NDA signed (D+0) → Box data room (D+3) → Black Garter site visit (D+7) → founder + advisor Q&A (D+14) → term sheet (D+30) → close target D+60. Direct enquiries to rio@black.industries.

Black Fireflies Pty Ltd · Sydney · MMXXVI
OpCo to Black Garter Holdings PropCo
v0.2 · 26 May 2026
CONFIDENTIAL · This document is provided for discussion purposes only with wholesale investors as defined under s708 of the Corporations Act 2001 (Cth). It does not constitute an offer to issue or sell securities, nor financial product advice. Black Fireflies Pty Ltd is not an AFSL holder. All figures are indicative, pre-audit, and subject to formal due diligence. Project SX-to-ASX is a strategic objective, not a guaranteed exit. Rollup-exit returns require successful execution of a complex multi-asset aggregation and ASX listing event, neither presently committed nor under contract. Standalone returns may differ materially from rollup-exit returns. Recipients must conduct their own due diligence and obtain independent legal, tax, and financial advice before any investment decision.