1. Why is Tarlac the chosen location instead of NCR or a coastal city?

Tarlac sits at the intersection of SCTEX and TPLEX, giving equal access to North, Central, and Southern Luzon while avoiding flooding, truck bans, and congestion. It functions as an inland logistics command center that remains operational when NCR is disrupted by disasters or traffic restrictions.

2. How many cities and provinces does the Luzon Mega Hub manage?

The Luzon Mega Hub oversees 25+ key cities and growth centers across Central and North Luzon, with expansion capability to 30+ cities. Each city operates as a small fulfillment node (staff- or partner-based) under the centralized Tarlac WMS and operational control.

3. How is same-day or next-day delivery achieved across such a wide area?

Orders are fulfilled through a hub-and-spoke model:

• Tarlac handles inventory, batching, and routing

• City-level hubs or staff purchase and fulfill locally when speed is required

• Long-distance deliveries are consolidated overnight
  This hybrid approach balances speed, cost, and reliability.

4. What proof exists that OFWs will order at scale for provincial delivery?

Cebu operations already demonstrate:

• Repeat OFW customers from the US, Canada, and Australia

• Average baskets of ₱8,000–₱12,000

• Successful deliveries to non-core cities (e.g., Zamboanga, Pagadian)
  These behaviors translate directly to Luzon’s provincial cities.

5. What happens if OFW demand temporarily slows down?

The Luzon Hub is intentionally diversified:

• OFW fulfillment (core)

• Domestic gift & essentials

• B2B and disaster-response bulk orders

• Membership-based concierge retail
  This multi-engine design ensures revenue stability even if one segment softens.

6. Why include a premium lounge and membership model in a logistics hub?

The lounge:

• Increases average order value

• Generates high-margin F&B revenue

• Builds brand trust and exclusivity
  However, the business remains viable without it—the lounge is an upside, not a dependency.

7. How is investor capital protected in this project?

Capital protection is achieved through:

• 65–70% allocation to hard assets (facility, fleet, cold-chain)

• 18 months of fully funded payroll

• Conservative break-even assumptions (~₱1M/day)
  This reduces operational risk and limits downside exposure.

8. How does the Luzon hub differ from NCR, Cebu, and Davao hubs?

Each hub has a distinct role:

• Cebu: Alpha site & OFW proof-of-concept

• NCR: High-velocity, high-density consumer engine

• Luzon (Tarlac): Inland resilience & provincial command center

• Davao: Southern gateway & Mindanao logistics bridge
  They are complementary, not redundant.

9. Is ₱450M a reasonable funding ask for this hub?

Yes. The ask covers:

• Large-scale, flood-proof infrastructure

• Regional fleet and cold-chain assets

• 18-month operational runway

• Multi-city expansion under one command
  Comparable logistics infrastructure projects often exceed this cost without the same revenue diversity.

10. What is the exit strategy for investors?

The target exit is a Year 5 strategic acquisition by:

• National conglomerates

• Regional logistics platforms

• E-commerce or super-app players
  Based on conservative EBITDA multiples, investors target a 140% conservative ROI, with aggressive upside beyond that if full provincial penetration is achieved.