Scores Holding - Operations

On March 31, 2003, SCORES Holding Company, Inc. entered into a Master License Agreement (the "Master License") with Entertainment Management Services, Inc. ("EMS").

The Master License grants to EMS the exclusive worldwide license to use and to grant sub-licenses to use the "SCORES" trademarks in connection with the ownership and operation of upscale, adult-entertainment cabaret night clubs/restaurants and for the sale of merchandise by such establishments.

Merchandise must relate to the nightclub that sells it, and may be sold at the nightclub, on an internet site maintained by the nightclub, by mail order and by cataloge. The term of the Master License is twenty years. EMS has the option to renew the Master License for six consecutive five-year terms.

EMS shall pay royalties to SCRH as described in the Master License Agreement which can be viewed viewed by clicking on the "SEC Filings" button on the left side of this page; then click on the Form 8K filing on 2003-04-16.

SCORES intends to accelerate business operations through an aggressive licensing strategy and building relationships with existing clubs are continually being explored and cultivated.
All clubs operating under a “SCORES” licensing agreement will be required to operate as a premiere adult entertainment nightclub providing topless entertainment in a fun, yet discreet, environment.

The Company will market through hotel publications, local and national radio, cable television, newspapers, billboards as well as a variety of promotional campaigns that will ensure that the “SCORES” brand is kept before the public.

Prior to the opening of the original “Scores” in Manhattan in 1991, the adult club business was characterized by small, dimly lit establishments with no set standards for performers' personal appearance, conduct and personality. The quality of bar service was low and food was usually not offered. Music was usually played at a loud level by a disc jockey with frequent interruptions for general announcements. Cash was usually the only transaction allowed and most business people felt uncomfortable in such an environment.

SCORES recognized the need for first-class adult entertainment designed to target the business segment of the market by providing a quality-assured environment. SCORES has achieved this and is now recognized nationally as "the premier adult entertainment club in the United States."

The SCORES officers Management will ensure that licensee’s of the “SCORES” brand name maintain the highest standards of operation particularly with their performers in the areas of personal appearance and personality as well as the ability to interact intelligently with customers and engage them in meaningful conversation.

The superior quality of its performers is a hallmark of the “SCORES” experience and one of the factors that keeps bringing long-term customers back year after year. Until the 1980s, topless nightclubs were small, dimly lit cash-only establishments generally managed by their owners.

The standards for performers' personal appearance and behavior were minimal, the quantity and quality of bar service and food was low and music was usually hard rock 'n' roll. Scores East filled a market void for first-class adult cabarets targeting the discerning businessmen and professionals. The clubs have a pleasurable ambiance, accept credit cards and maintain strict codes of appearance and conduct for performers.

 

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