Offering Memorandum

Jay’s Bird Barn& Hallmark Store1490 S. Riordan Ranch Rd., Flagstaff | Arizona

Colliers International | Arizona1150 N. San Francisco Street

Flagstaff, AZ 86001 P: +1 928 440 5450

Accelerating success.

Confidentiality and Disclaimer

2 JAY’S BIRD BARN | FLAGSTAFF, AZ

This Offering Memorandum contains select information pertaining to the business, affairs and assets of the company commonly known as Jay’s Bird Barn located at 1490 S. Riordan Rd., Flagstaff, Arizona 86001 (here-inafter the “Company”). It has been prepared by Colliers International.

This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Company. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Colliers International from sources it deems reliable.

Neither Owner, nor their officers, employees, or agents makes any representation or warranty, express or im-plied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projec-tions and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree:

1) The Offering Memorandum and its contents are confidential;

2) You will hold it and treat it in the strictest of confidence;

3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Company and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Company unless and until a written agreement for the purchase and sale of the Company has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of this Company or in the future youdiscontinue such negotiations, then you agree to purge all materials relating to this Company including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Com-pany, or information provided herein or in connection with the sale of the Company shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Company.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Company or constitute an indication that there has been no change in the state of affairs of the Company since the date of this Offering Memorandum.

BUSINESS SUMMARY

JAY’S BIRD BARNFLAGSTAFF LOCATION

If you are a bird lover and enjoy helping others enjoy the great outdoors, you would be an excellent buyer for Jay’s Bird Barn in Flagstaff. Let your passion become your full-time motivator for this store. Jay’s Bird Barn was established over 16 years ago in 2003 in Prescott. The owner opened the Flagstaff location in 2016 and has consistently increased sales year over year. The Prescott store is one of the largest retail bird operations in the country grossing over one million in sales each year. The owner feels that it could be duplicated at this Flagstaff location if he were present every day. With an owner who lives in the community, who is connected to the community, who can attend Chamber events, Audubon meetings, lead bird walks, teach classes, write a column or story for the local newspaper or create a newsletter, develop relationships with non-profits, do some community speaking engagements, attend off-site events and create awareness of the Flagstaff store, this location could be as successful as the Prescott location. The base sales level has been established in Flagstaff and the store is poised for major expansive growth. People shop at this location because they know they can get professional, knowledgeable help, they can get good advice and answers to questions. The Flagstaff store has been built on good customer service and needs a hands on, dedicated on-site owner to take this location to a whole new level.

Jay’s Bird Barn has a variety of goods and services that they provide to the local birders of Northern Arizona. They are widely known for making their own bird seed blends, that are formulated for the different types of wild birds found in Northern Arizona. You can not purchase this bird seed anywhere else but at Jay’s Bird Barn. They do not have any filler ingredients which usually ends

up on the ground because wild birds don’t want these fillers. Jay’s customers and the wild birdscan tell the difference. All the proprietary bird seed recipes mixing, and bagging is outsourced to a non-profit organization that employs adults with disabilities to show support to the local community. When customers purchase seed at Jay’s they are not only supporting a family owned business, but they are also supporting adults with disabilities and their opportunity for meaningful employment. Not only does Jay’s sell great bird seed they also sell other produces such as, bird feeders, bird houses, birdbaths, fountains, nectar related products, yard art, educational materials, professional optics and all kinds of gifts, apparel and Hallmark cards.

FLOOR PLANS

JAY’S BIRD BARN | HALLMARK STORE

Jay’s Bird Barn is also a Hallmark multi-focus store. Being associated with Hallmark brings a powerful brand recognition to this store with Hallmark’s national marketing and highly sought-after cards, gifts and other incredible Hallmark products. Hallmark also provides its robust rewards program to the store, encouraging customers back again and again. This association with Hallmark has no franchise fees or any other fees associated with the program. Hallmark’s businesses employ approximately 30,000 worldwide and generates

over $4 billion in revenue. The branding of this store with Hallmark and its famous collaborations helps this store thrive with current products for its customers. Hallmark helps Jay’s Bird Barn fulfill inspired meaningful gifts and products that helps connections come to life in its products.

This location has established a strong foundation for a new owner to build on and make it their own. This is the place to be if you are interested in birds and the great outdoors of Northern Arizona.

4 JAY’S BIRD BARN | FLAGSTAFF, AZ

JAY’S BIRD BARN | HALLMARK STORE

Leased Location:

The 3,200 square-foot retail space rents at $3,296/month and has been located at the same great location since 2016 in the Sprouts Shopping Center located at 1490 S. Riordan Ranch St, Flagstaff, AZ. The lease ends May 31, 2021 with an additional five-year option, however the landlord is willing to sign a new long-term lease with a qualified buyer.

• Asking price: $99,000 plus inventory

• Inventory: not included in price – inventorywill be taken at time of purchase and soldat owners’ cost. Estimated to be $140,000-$150,000.

JAY’S BIRD BARN | FLAGSTAFF LOCATION

Business Asking Price: $99,000

• FF&E & TI’s: $ 65,000

• Support and training: The owner is willing to provide a transition period with the new owner. He is willing to train and provide long term guidance for the right owner.

• Reason for selling: To concentrate and work full time on the Prescott store near his home, consolidating and downsizing.

• Website: https://www.jaysbirdbarn.com/

6 JAY’S BIRD BARN | FLAGSTAFF, AZ

MARKET OVERVIEW

FLAGSTAFF, ARIZONA

Flagstaff is located in Arizona’s high country surrounded by the largest ponderosa pine forest in the world. Considered a tourist destination for all seasons there is plenty of outdoor recreation with camping, hiking and biking trails, beautiful fall colors, and winter snow play and skiing. Taking advantage of the comfortable summer temperatures Flagstaff has outdoor festivals from June through October, including the Museum of Northern Arizona Heritage Festivals focused on Native American and Latin cultures.

This is your rare opportunity to live and work in the beautiful city of Flagstaff. People travel from all over the state, country and world to visit Flagstaff and the area’s famous landmarks.

Flagstaff is the regional crossroad for Northern Arizona and Grand Canyon National Park. Flagstaff was chosen as one of the fittest places to live in the United States by Men’s Journal in 2015 and listed as one of the top 25 Best Towns in America in a 2017 edition of Outside Magazine. The 4 million visitors and large second homeowner population in Flagstaff are drawn to the city’s four seasons, accessible location and fulfilling quality of life.

This ever-growing resort type community consisting of local families, vacation rentals, surrounding Northern Arizona regional market and second homes from all walks of life providing an ever-growing market for this one of a kind retail experience.

KEVIN B. CALL, CPAVice President+1 928 440 5450kevin.call@colliers.com

DENNIS KELLYSenior Vice President+1 928 440 5450dennis.kelly@colliers.com

Contact Us: