Use of Proceeds

BuffBrew expects the complete buildout of the new building and brewery to be a $14 million project. The scope of the Buffbrew Taproom is $3.4 million. Buffbrew is committed to financing the total project, while opening up a portion of the financing for BuffBrew Taproom through NextSeed.

100% of the funding proceeds will be used towards the buildout of the new Buffbrew Taproom facility. The spend includes construction as well as the purchasing of equipment, furniture and supplies.

Key Terms

Issuer
Buffbrew Taproom, LLC

Type of Offering
Regulation Crowdfunding

Offered By
NextSeed US LLC

Offering Min

$250,000

Offering Max

$1,000,000

Min Individual Investment

$100

Type of Securities

Revenue Sharing Note

Investment Multiple

1.90x

If the final offering amount raised is less than or equal to $600,000, the investment multiple will be 1.70x.

If the final offering amount raised is greater than $600,000 but less than or equal to $800,000, the investment multiple will be 1.80x.

If the final offering amount raised is greater than $800,000 but less than or equal to $1,000,000, the investment multiple will be 1.90x.

Revenue Sharing Percentage

13.5%

Buffbrew Taproom's revenue streams will come from tap sales, restaurant sales, beer garden sales and facility tour and event sales.

If the final offering amount raised is less than or equal to $400,000, then 4% of monthly gross revenue will be shared.

If the final offering amount raised is greater than $400,000 but less than or equal to $600,000, then 4% of monthly gross revenue will be shared during the first 12 months of operation, then 7% thereafter.

If the final offering amount raised is greater than $600,000 but less than or equal to $800,000, then 4% of monthly gross revenue will be shared during the first 12 months of operation, then 10.25% thereafter.

If the final offering amount raised is greater than $800,000 but less than or equal to $1,000,000, then 4% of monthly gross revenue will be shared during the first 12 months of operation, then 13.5% thereafter.

Maturity 78 months, including a 6-month startup period for ramp up
Payments

Monthly

Security Interest Blanket Lien
Ownership % Represented by Securities

0% Investors will not receive any equity interests in the Issuer or any voting or management rights with respect to the Issuer as a result of an investment in Securities.

View the Issuer's SEC Form C filing

Revenue Sharing Summary

This investment has a 6-month startup period during which no cash payments will be made. The startup period commences the first full month after the offering’s close.

After the end of the startup period or once the Issuer commences operations (whichever comes later), the Issuer will share a percentage of each month’s gross revenue with the investors as a group until they are paid in full. The total amount raised by the offering will determine the Investment Multiple and the monthly Revenue Sharing Percentage.

Total Raise Amount: $250,000 - $400,000

  • Investment Multiple: 1.70x
  • Monthly Revenue Sharing Percentage (first year): 4.0%
  • Monthly Revenue Sharing Percentage (years 2-6): 4.0%

Total Raise Amount: $400,100 - $600,000

  • Investment Multiple: 1.70x
  • Monthly Revenue Sharing Percentage (first year): 4.0%
  • Monthly Revenue Sharing Percentage (years 2-6): 7.0%

Total Raise Amount: $600,100 - $800,000

  • Investment Multiple: 1.80x
  • Monthly Revenue Sharing Percentage (first year): 4.0%
  • Monthly Revenue Sharing Percentage (years 2-6): 10.25%

Total Raise Amount: $800,100 - $1,000,000

  • Investment Multiple: 1.90x
  • Monthly Revenue Sharing Percentage (first year): 4.0%
  • Monthly Revenue Sharing Percentage (years 2-6): 13.5%

Each investor will receive its proportionate share of the monthly payments made to the investors as a group.

Scenario 1:

Total Raise Amount: $500,000
You Invest: $5,000


Based on the Total Raise Amount, the Issuer will share 4.0% of its revenues for the first 12 months of operations and then 7.0% of revenues thereafter, until the 1.70x Investment Multiple is reached.

Let’s assume that the Issuer generated $100,000 in revenues in month 9. The issuer will make a $4,000 payment ($100,000 x 4% = $4,000) to investors. Since you invested with 1% of the total amount raised ($5,000 / $500,000 = 1.0%), you would receive a $40 payment.

Scenario 2:

Total Raise Amount: $1,000,000
You Invest: $5,000


Based on the Total Raise Amount, the Issuer will share 4.0% of its revenues for the first 12 months of operations and then 13.5% of revenues thereafter, until the 1.90x Investment Multiple is reached.

Let’s assume that the Issuer generated $100,000 in month 24. The issuer will make a $13,500 payment ($100,000 x 13.5% = $13,500) to investors. Since you invested with 0.5% of the total amount raised ($5,000 / $100,000 = 5.0%), you would receive a $67.50 payment.

*The calculations above are mathematical illustration only and may not reflect actual performance. They do not take into account NextSeed fees of 1% on each payment made to investors. The exact length of time that it will take the Issuer to pay each investor in full cannot be known in advance since the Issuer's actual revenues may differ from its reasonable forecasts. If any balance remains outstanding on the maturity date, the Issuer is contractually required to promptly pay the entire outstanding balance due to each investor. Payment is not guaranteed or insured and investors may lose some or all of the principal invested if the Issuer cannot make its payments.