Wayne B. Bailey - Page 5




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          coffee, wine, or food he served in his basement, but he did                 
          occasionally receive tips.                                                  
               In pursuit of the retail aspect of the Tasha’s Cafe concept,           
          petitioner identified and attempted to obtain retail space in               
          which to operate a Tasha’s Cafe in Lombard, Illinois.  Petitioner           
          obtained interior design schematics for the location, negotiated            
          business loans for capital to install equipment and furniture at            
          the Lombard location, negotiated the rental contract for the                
          location, and developed advertising strategies for the store.               
          However, it became evident to petitioner that opening a retail              
          location was much more costly than he had previously estimated,             
          and he abandoned the retail aspect of the business in January               
          2003 without having opened a cafe or sold any inventory.                    
               Petitioner also pursued the franchise aspect of Tasha’s                
          Cafe.  In addition to demonstrating the Tasha’s Cafe concept in             
          his basement, petitioner occasionally rented space at hotels near           
          Chicago O’Hare Airport in which he would conduct similar                    
          demonstrations of the concept to potential franchisees flying in            
          from beyond the Chicago area.  Petitioner estimated that he held            
          “a couple of dozen” such presentations at airport hotels between            
          2001 and 2003.  Petitioner continued to market the Tasha’s Cafe             
          franchise concept until May of 2003, when he concluded that he              
          could no longer fund the development of the franchise concept.              
          Petitioner never sold a Tasha’s Cafe franchise.                             







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Last modified: November 10, 2007