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.
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.
| Line | Year 1 (stab.) | Year 2+ (stab.) | Notes |
|---|---|---|---|
| Gross room revenue | $3.60M | $5.40M | 22 rooms × 50% Y1 / 75% Y2 occupancy |
| Bar & ancillary | $280k | $420k | balcony 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 | $801k | 13.8% margin Y2 · pre-tax to franchisee |
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.
| Year | Milestone | Detail |
|---|---|---|
| 2026 | Black Garter Rockdale | Anchor site · renovation complete Q3 · V1 unit economics validated across calendar year |
| 2027 | Site 2 — Sydney metro | Existing operator acquisition + rebrand · Eastern Suburbs or North Shore · off-market warm-intro |
| 2028 | Sites 3 + 4 | One Sydney · one Melbourne (VIC licensing reform-eligible) · franchise mode · operator-co-invest |
| 2029 | Site 5 + IPO option | $8M ARR · $3M EBITDA at OpCo · ASX listing prospect via Project SX-to-ASX hospitality trust roll-up |
| Use of Funds | Allocation |
|---|---|
| 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 | $3.0M | 8–12× | $24–36M | $4.8–7.2M | 2.4–3.6× |
| ASX rollup · base | $5.0M | 15–18× | $75–90M | $15–18M | 5–7× |
| Stars-align · category-king re-rating | $7.0M | 22–25× | $155–175M | $31–35M | up to 12× |
| Risk | P × Impact | Mitigant |
|---|---|---|
| Regulatory tightening (NSW) | 20% × HIGH | Legal-counsel-led compliance ops · ACMA-safe positioning · licensed-venue-only |
| Banking de-risking (adult-adjacent) | 35% × MED | Wise + non-Big4 (Tyro/Cuscal) primary banking · cash float buffer · multiple payment rails |
| Operator-franchisee underperformance | 40% × MED | 90-day onboarding · quarterly site audits · termination clauses · brand-protection seize rights |
| Public-reputation event | 25% × HIGH | Isolated 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 factor | 15% × HIGH | Y1 SOP documentation · COO hire (post-funding) · key-person insurance · succession plan |
| ASX rollup event fails to materialise | 30% × HIGH | Standalone franchise exit delivers 2.4–3.6× MoIC floor · rollup is upside not base requirement |
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.