From the beginning the mission was clear: Serve only the best quality barbecue available anywhere in a fun, casual atmosphere surrounded by authentic blues music and memorabilia.

RED HOT & BLUELocated from Dallas, Texas to Cherry Hill, New Jersey, Red Hot & Blue is a full-service, casual-themed restaurant chain and caterer featuring award-winning ribs, Memphis-style barbeque, smoked wings, Southern sides and desserts. The atmosphere is steeped in legendary and contemporary blues music and memorabilia and delivers a large dose of Southern hospitality in a fun and entertaining dining environment. The lunch check averages between $8-10 and $14-16 for dinner. Red Hot & Blue restaurants include a dining room, full bar, Take-out and private banquet room(s). We are also known for our full-service catering–no matter how large the occasion.

OUR PRODUCTSOur barbeque and ribs spend hours in our “pits”, smok-ing with real hickory wood for hour after hour, to give our BBQ real down-home Southern flavor. Though menu items vary from location to location, depending on the part of the country the restaurant is located, the quality is consistent–only the finest U.S.A. produced meat, fresh produce and ingredients are used. Freshness is key, for example, our Grandma’s Famous Potato salad is homemade in 12-pound units every four hours so it is always fresh.

THE Blues TRADITIONThe name, Red Hot & Blue, is taken from the title of DJ Dewey Phillip’s radio show that aired on WHBQ-AM in Memphis, Tennessee in the 1950s. This show introduced the world to Elvis Presley, Jerry Lee Lewis and Johnny Cash and broadened audiences for artists like B.B.King, Muddy Waters, Robert Cray and Rufus Thomas.

AWARD-WINNING In 2014, Red Hot & Blue was named in the top 3 “Best Barbecue Chains in America”. The Daily Meal Editor, Dan Myers, sifted through regional preferences to funnel the most popular chains in his list of 10 Best Barbecue Chains in America. Criteria for selection was based on: locally renowned, consistency of food across all the locations, adherence to traditional barbecue techniques like “low and slow” on-premise smoking, atmosphere and most importantly, how good the food tastes.

Red Hot & Blue celebrated its 25th Anniversary in 2013 by partnering with a charitable organization at 24 different restaurant locations. The yearlong celebration culminated in the presentation of thousands of dollars in donations to numerous local community charities.

25 YEARS &WE’RE STIll SMOKIN’ !

HISToRYThe first Red Hot and Blue restaurant opened in Arlington, Virginia in 1988, started by Lee Atwater, Don Sundquist and friends. Don Sundquist was from Memphis and served in the House of Representatives and as governor of Tennessee. The late Lee Atwater was an amateur blues musician and political figure that managed George H.W. Bush’s successful race for the presidency.

These men were friends who longed for authentic Memphis-style barbeque and great blues music. Unable to find that combination anywhere in the Washington, DC area they decided the only way to get it done was to open a restaurant of their own.

From the beginning, the Arlington Red Hot & Blue restaurant was a bipartisan hot spot. It was common to see Congressmen from opposing political parties playing in the band together or sharing a rack of ribs and a cold brew. Red Hot & Blue was the first to introduce Washingtonians to full-flavored, authentic Memphis-style barbeque and true Southern hospitality.

Dancing Pigs, LLC, purchased the barbeque chain in 2006. Investors John Walker, Chief Executive Officer and Randy McCann, President, head the Dancing Pigs, LLC management team. Both Walker and McCann are Southerners, blues fans and avid barbeque-lovers.

The company moved its headquarters from Arlington, VA to Winston-Salem, NC in the fall of 2007 to be centrally positioned for the growth of franchised locations nationwide.

OPENING YOUR RESTAURANTWe help to make it as easy as possible:1. Fill out a franchise application online.2. A corporate franchising representative will contact you.3. A FDD, Franchise Disclosure Document, will be sent to you to review and return with signature pages.4. Complete and submit a credit and personal background check form to Red Hot & Blue. You will be required to prove your financial ability to invest.5. Upon franchise application acceptance the following will occur:• Real estate will be located and secured• Franchise fees will be paid• Operating franchisee will attend a three week Red Hot & Blue manager training program• On site management training in your restaurant by Red Hot & Blue staff

GENERAL REQUIREMENTSYou or your partner(s) should have more than five years of experience as an owner and/or operator of a full-service restaurant, preferably casual-themed. Red Hot & Blue is looking for people with $1,000,000 in net worth, excluding home and personal property and $500,000 in liquid assets. In addition, the ideal franchise candidate has a desire to build multiple locations.

YOUR RESTAURANT DEVELOPMENTRed Hot & Blue does retrofits of existing restaurants as well as build-to-suits. Visibility is a key factor for site selection.

The interior design of Red Hot & Blue restaurants varies slightly from location to location, but all feature blues-themed musical memorabilia. All locations must feature the com-pany’s signature “Dancing Pigs” logo - two pigs with Elvis hairdos, shades and guitars. Most logo signage is 8’ x 9’ in size. The “Dancing Pigs” are also featured on all promotional and corporate materials issued by the company.

It typically takes six months to a year from the time you sign your franchise agreement until you open. The major time factors are site selection, planning, permitting and construction phases.

TRAINING SUPPORTPrior to opening, Red Hot & Blue will provide a full set of operations manuals for all positions. Many Red Hot & Blue training programs are also available on video.

You or the person designated as the General Manager will train with our Red Hot & Blue Corporate Training Director on site at your restaurant. In addition, Red Hot & Blue staff-ers will train your assistant managers in your restaurant.

One of the principals in the business must attend the Red Hot & Blue Owner’s Training Program for three weeks. Training Equals Success, so even if you have owned or operated restaurants for years, training for Red Hot & Blue systems and recipes is mandatory and takes the full amount of time required.

FOOD QUALITYA complete kitchen manual and recipe guide will be provided by Red Hot & Blue to ensure food quality and consistency.

National food contracts are procured through our national buying co-op for quality control and best value purchasing opportunities.

Menus may be regionalized to meet the taste preferences of your local customer base. Red Hot & Blue’s National Pitmaster, Sonny McKnight, has been with the company since its inception and is available to visit franchises on a regular basis to offer support on your menu. Red Hot & Blue is continually seeking new ideas to enhance its culinary offerings.

SITE SELECTION The ideal size for a full service Red Hot & Blue is 4,500 to 6,000 square feet.

We consider you to be the expert on the community in which you chose to locate. Once you begin to narrow potential locations, Red Hot & Blue personnel will visit the sites and give you feedback and suggestions. Your site will require formal approval from Red Hot & Blue management. We also provide guidance during the lease negotiations. Once you have secured the real estate, Red Hot & Blue will provide you with a design manual and rough layouts for use by your architect.

Site Selection Considerations:• Free-standing locations but visible end-caps are acceptable• Ability to develop drive-through service• Ample parking, with reserved spaces for carry-out business• Easy access from a well-travelled primary road. Minimum traffic patterns should surpass 30,000 vehicles per day.• Preference locations are near: - Major shopping centers - Large office or business park - Corporate headquarters - Universities - Hospitals• Residential population must exceed 50,000 people within your five-mile protected market.

WhAT YOU CAN EXPECT AS A RED HOT & BLUE FRANCHISEE• Recommendations and suggestions for site selection• Approved resources for equipment and fixtures• Proven systems for point-of-sale, catering and on-site management training programs prior to opening• Menu development and recipe assistance• Sourced quality products and purchasing co-op• Regular new product and limited time promotions• Award-winning branded barbecue sauces and dry rub; gift card program and branded apparel & imprinted gear resources• On-going marketing and graphics support

We strongly recommends that franchisees take a hands-on approach to their business. Franchisees that follow company procedures closely and work in their restaurants are the most profitable.

MARKETING SUPPORTDine-In and Carry-Out Business: Red Hot & Blue’s dine-in and carry-out competition is typically other casual-themed restaurants within a three to five mile radius of your loca-tion. Catering Business: Your catering market may be efficiently extended up to a one hour driving radius from your store.

Red Hot & Blue will provide you with a local store marketing plan and materials to build and maintain your customer base. Involvement in your community is a key marketing strategy for the Red Hot & Blue Brand.

Red Hot & Blue provides on-going marketing support through seasonal new product introductions; limited time menu offering promotions; email marketing programs; birthday club management; customer service support; direct mail material development; internet and social media marketing resources; graphic design support services and corporate public relations activities.

Type of Expenditure Low High Method of Payment When Due To Whom Payment

Is To Be Made

Initial Fee $45,000 $45,000 Lump Sum Upon acceptance as a Franchisee Red Hot & Blue

Building Landscaping and Improvements (3) (4) $450,000 $1,000,000 As Incurred Before Opening Suppliers

Wages, Travel and Living expenses for You and Your Management Staff During Training (5)

$18.000 $30,000 As Incurred During Training Employees, Airlines, Hotels and Restaurants

Furniture, Fixtures, Decor and Equipment (6) $215,000 $310,000 As Incurred As Incurred Red Hot & Blue, Supplier or Leas-ing Company

Architectural, Engineering and Impact Fees $30,000 $115,000 As Arranged Before Opening Suppliers

Signage and Awning Package $35,000 $60,000 Lump Sum Before Opening Suppliers

Point-of-sale and Computer Systems (7) $45,000 $65,000 As Incurred As Incurred POS Suppliers

Liquor License Costs (8) $0 $300,000 Lump Sum Before Opening Governmental Agencies and for Professional Services

Employee Salaries - 3 Months $78,000 $96,000 As Incurred As Incurred Employees

Miscellaneous (9) $10,000 $50,000 As IncurredBefore Opening or otherwise as arranged

Landlord, Utilities, Government Agencies, Insurance Companies, Attorneys, Accountants and Other Professionals

Grand Opening (10) $15,000 $30,000 As Arranged Before Opening Suppliers

Additional Funds - 3 months $35,000 $60,000 As Incurred As Incurred Red Hot & Blue, Employees

Total (12)(13) $976,000 $2,161,000

MARYLAND (5)Annapolis200 Old Mill Bottom Rd.Annapolis, MD 21401Phone: (410) 626-7427

Gaithersburg*16811 Crabbs Branch WayGaithersburg, MD 20855Phone: (301) 948-7333

Laurel677 Main St.Laurel, MD 20707Phone: (301) 953-1943

Waldorf3350 Crain HighwayWaldorf, MD 20603Phone: (301) 705-7427

MISSOURI (1)Joplin2601 Rangeline Rd.Joplin, MO 64804Phone: (417) 782-7427

NEW JERSEY (1)Cherry Hill2175 Route 70Cherry Hill, NJ 08002Phone: (856) 665-7427

NORTH CAROLINA (3)OPENING FALL 2014:CaryWaverly Place Shopping CenterCorner Tryon/Kildaire Farm Rd.Cary, NC 27518Phone: (000) 000-0000

Raleigh6615 Falls of Neuse Rd.Raleigh, NC 27615Phone: (919) 846-7427

Winston-Salem613 Deacon BlvdWinston-Salem, NC 27105Phone: (336) 770-4227

TEXAS (6)Dallas9810 N. Central ExpwySuite 600Dallas, TX 75231Phone: (214) 368-7427

Flower Mound2608 Long Prairie Rd. #208Flower Mound, TX 75022Phone: (972) 899-7427

Fort Worth3000 S. Hulen St. #600Fort Worth, TX 76109Phone: (817) 731-8770

Las Colinas/Irving5910 N. MacArthur Blvd. #157Irving, TX 75039Phone: (972) 402-0225

North Richland Hills9143 Grapevine Hwy 620N. Richland Hills, TX 76180Phone: (817) 605-1333

Plano5017 W. Plano Pkwy. #100Plano, TX 75093Phone: (972) 248-3866

Red Hot & Blue is a full-service, casual-themed restaurant chain featuring quality Southern award-winning cuisine, legendary and contemporary blues music, a large dose of Southern hospitality and a fun dining

environment featuring collectibles and entertaining memorabilia from the popular blues era.

VIRGINIA (8)Arlington*1600 Wilson Blvd.Arlington, VA 22209Phone: (703) 276-7427

Fairfax City4150 Chain Bridge Rd.Fairfax, VA 22030Phone: (703) 218-6989

Falls Church* (Express)169 Hillwood AveFalls Church, VA 22046Phone: (703) 538-6466

Manassas* (Express)8366 Sudley Rd.Manassas, VA 20109Phone: (703) 367-7100

Warrenton*360 Broadview Ave.Warrenton, VA 20186Phone: (540) 349-7100

Kingstowne6482 Landsdowne CentreAlexandria, VA 22315Phone: (703) 550-6465

Leesburg*541 E. Market StreetLeesburg, VA 20176Phone: (703) 669-4242

Williamsburg1622 Richmond RoadWilliamsburg, VA 23185Phone: (757) 259 1670

* Company-owned

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