MILKY LANE GLOBAL

Confidential Information Memorandum

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CONFIDENTIAL — for advised review only
Confidential Information Memorandum

MILKY LANE

GLOBAL
International Franchise & Royalty Platform
Milky Lane Global Pte. Ltd. (Singapore)
Milky Lane Holding Pty Ltd (Australia)
May 2026
Prepared by the Office of the CFO
SCROLL
01 / 14

"An international franchise and royalty platform with no corporate venue exposure.
Recurring contractual royalty income trading on franchise — not restaurant — multiples."

— The MLG Investment Thesis
02 / 14
01 — At a glance

The Numbers

Pipeline Equity Value
$0
Locked DCF methodology — 10× exit, 10% WACC
FY31 EBITDA (Pipeline)
$0
96% margin — pure royalty pass-through
Comp-implied Ceiling
$0
DMP / QSR / YUM / MCD comp set mean (17×)
THE ASK
$90M – $100M
Sitting between the locked-methodology floor and the closest-comp ceiling.
03 / 14
02 — Business model

Royalty Platform — Not Hospitality

What Milky Lane Global IS

  • International master franchisor + IP licensor
  • Royalty income from 60+ contracted venues by FY31
  • 96% EBITDA margin — minimal cost base
  • Trademarks, system, brand IP held centrally
  • 10-year master franchise terms with venue minimums
  • Buyback rights at 5× EBIT / 3× EBITDA

What Milky Lane Global IS NOT

  • A restaurant operator
  • An owner of corporate venues
  • Exposed to F&B, labour, or COGS volatility
  • Subject to lease or property obligations
  • Reliant on single-store profitability
  • Comparable to single-site hospitality groups
Implication: valuation anchored to franchise comps (DMP, QSR, YUM, MCD at 14–21× EV/EBITDA), not restaurant operator multiples (6–8×).
04 / 14
03 — Where we stand

The Network Today

Venues operating
0
in Australia — +2 opening Jul/Nov 2026 (14 by year-end)
FY25 Network Sales
$0M
Lightspeed-audited gross
Effective Royalty
0%
FY25 actual / 2.96% FY26 YTD
FY26 Norm. EBITDA
$0M
Validated proof point

Royalty rate is empirically validated

3.05% / 2.96% effective rate over 24 months on audited Lightspeed data — kills any "untested 3%" objection.

Model works at small scale

$1M FY26 EBITDA proves the unit economics. 12 venues trading today, scaling to 14 by year-end with no capital raised.

+$1.14M EBITDA swing since FY24

Achieved on a contracting venue base, with no capital raised — the model has discipline.

Brand pull is real

Strong inbound MFA enquiries; the India + UAE master franchisee approached unsolicited.

05 / 14
04 — Validated performance

Financial Track Record

From loss to profitable pure-play

+$1.14M EBITDA swing from FY24 to FY26 normalised, achieved on a contracting venue base with no capital raised.

Key drivers

  • Exited corporate venue exposure (ML Bondi, Newcastle — disposed)
  • Restructured to royalty-only model with FY24 KPMG entity simplification
  • Sub-franchisee royalty rate validated at 3% across audited periods
  • Supplier rebates ($200K+ run-rate) added margin without venue risk
06 / 14
05 — Contractual visibility

Signed Growth Pipeline

AUSTRALIA
MFA Australia
24+ venues
Term10-yr + 10 renewal
Royalty3% master royalty
PartnerML WA Enterprises Pty Ltd
FY31~$2.4M to MLG
Stretch goal 50 venues; cumulative venue minimums per Item 6 Development Schedule.
INDIA + UAE
MFA India + UAE
50 + 10 venues
Term10-year term
Royalty6.5% / 8% blended
PartnerMaster franchisee + FranGlobal
FY31~$5M to MLG
Tiered royalty (3.575% / 4.4% to MLG). Cumulative minimums Y1-Y10.
AUSTRALIA
Food Truck Network
1 → 20 trucks
Term5-year rollout
RoyaltyHybrid franchise + corp
PartnerMarsap Catering Services
FY31~$1M to MLG
Pilot signed May 2026. 70/30 franchised / corporate split for scale model.
Aggregate FY31 contractual EBITDA: $8.85M at 96% margin — pure royalty pass-through.
07 / 14
06 — Pipeline build-up

5-Year EBITDA Forecast

Pipeline scenario assumes contractual venue minimums hit. Full Execution adds stretch venue counts. Base assumes no MFA execution beyond locked openings.
08 / 14
07 — Valuation anchors

Comparable Companies

Anchor discipline

Locked methodology at 10× exit is a 40% discount to the comp set mean (17×).

Why these comps

  • DMPMaster franchise model, identical structure
  • QSRBurger King / Tim Hortons franchisor
  • YUMKFC / Pizza Hut / Taco Bell pure-play
  • MCDMature franchisor benchmark

Rejected as inappropriate comps: Grill'd, Collins Foods, GYG, single-site operators.

09 / 14
08 — Equity build-up

Valuation Stack

Component Base Pipeline Full Execution
Enterprise Value (DCF)$10.3M$69.4M$76.1M
+ Net Bridge (cash, tax credits, liabilities)+$0.6M+$0.6M+$0.6M
Equity Value (subtotal)$11.0M$70.1M$76.7M
+ MFA Buyback / Step-In Optionality (12% of EV)+$1.2M+$8.3M+$9.1M
TOTAL EQUITY VALUE$12.2M$78.4M$85.8M
Pipeline = headline. Anchored to signed contracts. The buyback optionality (12% of EV) reflects MFA Item 18 buyback rights at 5× EBIT (Aus) and 3× EBITDA (Intl) — well below comp multiples.
10 / 14
09 — From floor to ceiling

Negotiation Range — Drag the slider

Stress floor (compound)
$42M
Locked DCF (10× exit)
$78M
DMP comp (14×)
$139M
Comp mean (17×)
$167M
Premium comp (20×)
$195M
Live Calculation
10.0×
Adjust the multiple to see implied Pipeline equity value
6×15×25×
Implied Pipeline Equity (forward)
$78M
THE ASK
$90M – $100M
sits between locked DCF and DMP comp. Reasonable, defensible, midpoint.
11 / 14
10 — Downside protection

Stress-Tested Floor

The floor holds
$0M

Pipeline equity floor under combined compound stress (MFA Aus voided + India delayed + FX shock).

3.5× the BASE case ($12M) Even worst-case is well above the trough.
12 / 14
11 — Next steps

The Ask & Process

Structure

  • Equity range$90M – $100M
  • FormatShare sale of MLG / MLH consolidated
  • Tax structureKPMG-advised; share sale preserves carry-forwards
  • Lock-upFounder rollover negotiable
  • IPTrademarks, system, brand IP transfer with entity

Process Timeline

  • Week 1–2NDA, data room access, initial Q&A
  • Week 3–6Financial & commercial due diligence
  • Week 7–8Indicative offer, exclusivity negotiation
  • Week 9–14Confirmatory DD, SPA negotiation
  • Week 15+Signing, regulatory, completion
Discussions handled by Shane Fitzgerald, Founder & CEO | | Singapore + Sydney
13 / 14
A1 — Locked assumptions

Appendix: Valuation Methodology

DCF Methodology

  • Forecast period5 years (FY27–FY31)
  • Discount rate (WACC)10% (sensitivity 8 / 10 / 12 / 15%)
  • Exit multiple10× EBITDA (sensitivity 8 / 10 / 12 / 15×)
  • Long-term growth2.5% (Gordon Growth cross-check)
  • Tax rate (blended)17% (Singapore 17% / Australia 25–30%)
  • FX assumptionAUD/USD 1.50 (sensitivity 1.40 / 1.60)
  • Mid-year conventionApplied (≈ +5% to all EVs)

Bridge & Optionality

  • Cash on hand+$76K (Xero, May 2026)
  • Loan tax credit+$396K (KPMG advice — CGT event C2)
  • Capital loss c/fwd+$197K (Pew Pew, KPMG 2022)
  • Revenue tax loss c/fwd+$122K (per 2024 ML Enterprise tax return)
  • ATO / payables / bad debts−$150K (per Xero balance sheet)
  • Buyback optionality+12% of EV (per MFA Item 18)
  • Royalty rate validation3.05% / 2.96% (audited Lightspeed)
Detailed model available on request. Reviewed by KPMG (tax positions) and Big-4-equivalent CFO/Valuation methodology. All figures AUD unless stated.
14 / 14