Closed Offering Industry: Restaurant

Sector: Fast & Casual Dining

Minimum investment: $600

Offering Type: Prospectus

Offering Amount (Max): $24,000,000

Offering Amount (Min.): N/A

Offering Price: $12

Targeted Annual Yield:*Seeks to provide 4% annual dividend

 

*Seeks to provide 4% annual dividend, based on the offering price of $12.00 (paid quarterly) or $0.48 per share annually ($0.12 per share quarterly), which amount may be raised or lowered in the future without advance notice

INVESTOR MATERIALS

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OVERVIEW

FAT Brands, Inc. seeks to raise up to $24 million under Regulation A+ of the JOBS Act and then, in succession and subject to NASDAQ requirements, be listed on the NASDAQ under the ticker “FAT”. FAT Brands shares will be listed at a pre-money valuation of ~$96 million (offering 2,000,000 shares at $12.00 per share). Notably, FAT Brands is seeking to become the first dividend-paying issuer to complete a Regulation A+ IPO. The transaction is expected to close on or about October 19th and expected to go public on October 23, 2017 and trade on NASDAQ under the symbol “FAT”.

FAT Brands Inc. (“FAT” or the “Company”) is a leading multi-brand restaurant franchising company that develops, markets and acquires predominantly fast casual restaurant concepts around the world. FAT currently operates Fatburger, Buffalo’s Cafe and Buffalo’s Express concepts with 176 total locations across 7 states, 18 countries and 4 continents as of June 25, 2017. As a franchisor, FAT generally does not own or operate restaurant locations (zero company-owned Fatburger’s and one company-owned Buffalo’s), but rather generates revenue by charging franchisees an initial franchise fee and ongoing royalties. This asset-light franchisor model provides the opportunity for strong profit margins and an attractive free cash flow profile while minimizing restaurant operating company risk, such as long-term real estate commitments or capital investments.

Investment Considerations

  • Strong brands aligned with FAT Brands vision and driven by loyal following
  • Experienced and diverse global franchisee network
  • Scalable management platform built for domestic and global growth
  • Ability to cross-sell existing franchisees additional concepts from the FAT Brands portfolio
  • Capital-light business model drives high free cash flow conversion
  • Track record of profitability and strong store-level economics
  • Experienced and proven management team with veteran board of directors

 

An investment in the securities described herein involves risks and other considerations. Before you invest, you should read the Form 1-A and other documents that Fat Brands, Inc. (“FAT”) filed with the Securities and Exchange Commission (“SEC”) for more complete information about FAT and the risks and other considerations relating to the securities described herein. Any terms of securities described herein represent a general overview of certain selected terms and are qualified in their entirety by reference to the prospectus and other documents that FAT filed with the SEC.

THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. AN OFFERING IS MADE ONLY BY THE PROSPECTUS. THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS.

LEGAL NOTICE THE OFFERING STATEMENT FOR THIS OFFERING HAS NOT YET BEEN QUALIFIED BY THE SECURITIES AND EXCHANGE COMMISSION UNLESS OTHERWISE INDICATED ABOVE. ACCORDINGLY, NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED, AND IF SENT, WILL NOT BE ACCEPTED. NO SALES WILL BE MADE OR COMMITMENTS TO PURCHASE ACCEPTED UNTIL THE OFFERING STATEMENT RELATING TO THIS OFFERING HAS BEEN QUALIFIED BY THE SECURITIES AND EXCHANGE COMMISSION. A PROSPECTIVE PURCHASER’S INDICATION OF INTEREST IS NON-BINDING.