Use of Proceeds

The total project cost of Louie King is $350,000, with $75,000 coming from equity investors. As Louie King will occupy a second-generation restaurant space, the total project cost is significantly lower than the complete build out of a new space.

The first $125,000 of funds raised on NextSeed will be used for construction and buildout. Any funds between $125,000 and $225,000 will be used for inventory, permits, and kitchen and bar equipment. Funds raised in excess of $225,000 will be utilized for other furniture, fixtures and expenses and working capital.


The before and after of what Louie King will look like 


Key Terms

Issuer
City Griddle, LLC

Type of Offering
Regulation Crowdfunding

Offered By
NextSeed US LLC

Offering Min

$125,000

Offering Max

$275,000

Min Individual Investment

$100

Type of Securities

Revenue Sharing Note

Investment Multiple

1.5x

Revenue Sharing Percentage

Up to 5.5%

Revenue streams will come from food and beverage sales, catering and merchandise.

If the final offering amount raised is less than or equal to $200,000, then 5.5% of monthly gross revenue will be shared during the first 12 months of operation, then 7.0% thereafter.

If the final offering amount raised is greater than $200,000 but less than or equal to $275,000, then 7.75% of monthly gross revenue will be shared during the first 12 months of operation, then 10.0% thereafter.

Maturity 48 months
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

Once the Issuer commences operations, 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: $125,000 - $200,000

  • Investment Multiple: 1.50x
  • Monthly Revenue Sharing Percentage (first year): 5.5%
  • Monthly Revenue Sharing Percentage (years 2-4): 7.0%

Total Raise Amount: $200,100 - $275,000

  • Investment Multiple: 1.60x
  • Monthly Revenue Sharing Percentage (first year): 7.75%
  • Monthly Revenue Sharing Percentage (years 2-4): 10.0%

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

Scenario 1:

Total Raise Amount: $150,000
You Invest: $1,500


Based on the Total Raise Amount, the Issuer will share 5.5% of its revenues for the first 12 months of operations and then 7.0% of revenues thereafter, until the 1.50x Investment Multiple is reached.

Let’s assume that the Issuer generated $100,000 in revenues in month 9. The issuer will make a $5,500 payment ($100,000 x 5.5% = $5,500) to investors. Since you invested with 1% of the total amount raised ($1,500 / $150,000 = 1.0%), you would receive a $55 payment.

Scenario 2:

Total Raise Amount: $250,000
You Invest: $2,500


Based on the Total Raise Amount, the Issuer will share 7.75% of its revenues for the first 12 months of operations and then 10.0% of revenues thereafter, until the 1.60x Investment Multiple is reached.

Let’s assume that the Issuer generated $100,000 in month 24. The issuer will make a $10,000 payment ($100,000 x 10.0% = $10,000) to investors. Since you invested with 1.0% of the total amount raised ($2,500 / $250,000 = 1.0%), you would receive a $100 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.