Chip Lord NZ Ltd trading as Lord of the Fries NZ

By Bruce Craig

PledgeMe.Investment

Food,



NZ $392,390 pledged


267 people pledged


Closed


NZ $1,000,000 minimum target


Min

NZ$1,000,000

Max

NZ$2,000,000

39 39% Complete

Pledges will only be confirmed if the target is reached by: 13/12/2019 at 8:00 PM (NZDT)

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About

Chip Lord NZ Ltd trading as Lord of the Fries NZ

Welcome!

 

BRUCE AND BAKSHO ARE EXCITED TO INVITE YOU TO JOIN US IN THE LORD OF THE FRIES NEW ZEALAND FAMILY.

 

The journey to now has been an amazing rollercoaster of learning, growing, testing and tweaking. We’ve opened 4 stores, employ almost 40 staff and feed thousands of kiwis Plant Based goodness every week. 

 

Now we are ready to go big, and we want to have our supporters join us and become part of the Plant Based Fast Food Revolution.

 

The timing is right, the concept is proven, and the world of Plant Based foods is moving fast. LOTFNZ is at the forefront and leading the charge, and to have the support of a crowd of investors who share and champion our vision will make a huge difference: To us as a business of course, but also for all the reasons we exist.

 

Read on and we will share those reasons for being, along with the journey to now, and of course the offer to you, our potential new shareholders!

 

SHARE OFFER SUMMARY

 

DOWNLOAD INFORMATION MEMORANDUM

 

OUR PURPOSE

Lord of the Fries New Zealand at its core is a purpose based business. We’re about helping save the world with plant based fast food: Creating a comfort food experience for our customers which makes a difference.

One of the most effective ways to reduce global environmental impacts by humans is to adopt a dietary change to plant based or vegan diets. LOTFNZ sells delicious 100% plant based fast food burgers, hotdogs, sides and fries.

A Big.Hairy.Audacious.Goal for sure. But we believe that helping transition the country (and the world’s) population from animal based protein and the associated damaging animal agricultural practises, to plant based proteins and foods, needs to be big and boldly done, as anything less will be doing future generations a disservice. We can be, and are, part of the solution the world needs. Like yesterday.

We also wish to offer a business model to our investors and franchisees that both works financially and gives them their own purpose based businesses to own and feel great about. Because we actually do believe everyone wants to save the world!

Better for the planet, better for the people, and better for the animals that share her with us.

OUR STATED MISSION IS ‘SAVING THE WORLD, BITE BY BITE’.

 

WHO WE ARE

Lord of the Fries New Zealand (LOTFNZ) is a master franchise area (ie all of New Zealand). We serve delicious fast food to our adoring fans and their friends, parents, brothers and sisters. That food happens to be 100% Plant Based. 

 

LOTFNZ is a separate legal entity to LOTFAU. LOTFNZ operates under a master franchise license from LOTFAU and pays it continuing royalty and marketing contributions. The master franchise licence is for a period of 10 years (which started in 2016) and provides for a further right of 10 years. LOTFNZ is financially independent.

 

We want the world to know that you can still have your treats, fast food burgers and fries and shakes, without harming animals or damaging the environment. And as another bonus your health will benefit too. 

The studies linked below indicate a causal effect between red and processed meat consumption and Coronary heart disease as well as certain types of cancers.

 

»» https://news.un.org/en/story/2015/10/513662-new-un-reportlinks-processed-meats-cancerhumans-Red-meat-also-likely-cause

»» https://www.heartfoundation.org.nz/statistics

»» https://www.health.govt.nz/yourhealth/conditions-and-treatments/diseases-and-illnesses/bowel-cancer

 

Launched in Melbourne in 2004, LOTFAU now has over 25 stores across Australia, with a stated goal of reaching 50 sites over the next few years. This is a good indicator for the potential growth opportunity here in New Zealand for LOTFNZ, given we currently have just 4 stores.

 

Australasia’s largest Plant Based fast food chain, we are New Zealand’s only 100% vegan franchise system, and have been about saving the world from day zero!

 

Lord of the Fries came to New Zealand in 2016, after Bruce and Baksho first experienced the food on a stopover in Melbourne in 2015. The experience was so fantastic, and the concept so in alignment with Bruce’s values, that he gave up Architecture and with Baksho on board purchased the master franchise for New Zealand.

 

THE JOURNEY THUS FAR..

 

IT STARTED WITH A KISS.. SORT OF

 

LOTFNZ

 

 

OUR IMPACT SO FAR

SOME OTHER ACHIEVEMENTS TO DATE

Lord of the Fries New Zealand we reckon is a cultural and cuisine phenomenon!

 

 

 

READY TO LEVEL UP (INVESTMENT READY)

Over our first three years since opening here, LOTFNZ has achieved a bunch, in preparation for nationwide expansion.

 

That has always been the goal, and by spending our startup period testing the market, developing systems, and working on our costs and KPI’s, we know now we are ready to expand with a view to becoming the incumbent Plant Based fast food chain here in New Zealand.

 

Our 4 stores combine turn over around $3.4m per annum. LOTFNZ has implemented and installed several software packages across the stores to monitor and report, and ensure compliance with regulatory agencies.

 

THE BENEFITS WE’D LIKE TO ACHIEVE FROM LOTFNZ’S EXPANSION

   

 

MORE ON OUR GROWTH STRATEGY

We believe Lord of the Fries New Zealand could achieve opening up to around 25 stores over the next 5 – 7 years.

 

WE HAVE IDENTIFIED THE POTENTIAL SITES AND CENTERS AROUND NEW ZEALAND AND ARE CONFIDENT IT IS A REALISTIC GOAL.

 

As our store network expands, through both company owned and franchised stores, we would expect our growth to be supported by the sales volume increases driving our costs lower.

 

Additional stores will allow for a better resourced head office support team, including a general manager, plus stronger and more extensive marketing, more community initiatives, and being able to support causes that we view are appropriate for our brand to be aligned with.

 

It may also be that establishing our own product storage and distribution facilities in the main centres will become viable and support further cost reductions. This would occur post the expansion proposed in this document.

 

Bringing our focus into the catering and event space more than it is currently is, by building a mobile kitchen, and actively pursuing opportunities in this area is another revenue stream we will target to improve.

 

As our network reach increases, in the years ahead we also see no reason to not explore establishing outlets in food courts, and drive-throughs as well. If our goal is to disrupt the animal protein fast food industry, then the ultimate goal is to displace them in all their traditional haunts.

 

BASICALLY, WE’RE AIMING TO SWAMP NEW ZEALAND WITH LORD OF THE FRIES, IN ORDER TO HELP SAVE IT!

 

MARKET OPPORTUNITY

Bruce has been a vegan and has been following the Plant Based movement for almost 30 years. He has watched the vegan/Plant Based market grow and mature, and has watched the rate of change accelerate markedly over the last few years.

 

Following developments such as the rise of Beyond Meat and Impossible burger from the start, to seeing more and more local restaurants and shops add vegan items to their offerings, has given LOTF great confidence in being a trend leader for Plant Based fast foods. LOTF is the only 100% Plant Based burger chain in Australasia.

 

PLANT BASED FOODS ARE CURRENTLY THE NUMBER ONE FOOD TREND AROUND THE WORLD.

 

More and more people are recognising the multiple benefits of eating less meat, or eliminating meat from their diets altogether.

 

Think reductions in global greenhouse gas emissions, water use, environmental degradation, animal welfare and health, deforestation, human wellbeing, resistance to disease from overuse of antibiotics.

https://www.stuff.co.nz/life-style/wellgood/116916538/kiwis-hungry-forplantbased-foods-as-1-in-3-eating-lessmeat--survey

 

AT THE SAME TIME MORE KIWIS ARE EATING MORE GOOD ON THE GO.

 

Those living in the Wellington region spend the highest proportion of their food budget on restaurant and ready-to eat food (29 percent), closely followed by people in the Auckland region (28 percent). The average for the whole of New Zealand is 26 percent.

 

WHY CROWDFUND? WHY NOW? 

We have an incredibly passionate fan base, with over 11k Facebook fans, 4k Instagram followers, plus an email VIP database of over 13k, and of course our customers who flock into our stores every day and into the night.

 

Many of our customers are vegan or vegetarian, or flexitarian, and choose to eat our food for various reasons. Taste is key for sure, but many also eat our food knowing that by doing so, they are having a positive environmental impact (less greenhouse gas emissions, less water use, less waterway and land degradation), they are supporting better animal welfare outcomes, and they are also improving their personal health.

 

What that adds up to is customers who are aligned with why we are doing what we do, and therefore they are customers who we believe will want to come along for the Lord of the Fries New Zealand ride, support our purpose and benefit from our success as the market transitions to Plant Based foods.

 

Our want is to move faster with our expansion plans, to make a bigger difference, to build a robust and profitable franchise chain here, and to become the best known and best loved fast food chain in New Zealand.

 

Traditional growth route for a Quick Service Restaurant (Fast Food) franchise such as ours requires finding the right people at the same time as the right sites: this can be a slow process. We are also very mindful of

who we bring in to the LOTFNZ ‘family’, both to protect our brand and avoid downstream issues.

 

Thus the decision has been made to equity crowdfund, allowing us to open further company owned stores in those places we know will work, when they come up. For instance we know we would like a mid-town Auckland store, a second store in Wellington, and Christchurch and Dunedin are both currently screaming out for us to open. In some cases we know exactly where we want to be, but haven’t been able to find the right person fit.

 

With new capital we can own and operate more company owned stores, and once we have found a suitable franchisee, decide whether to sell them a company owned store, or to set up a franchised store in a new area.

 

Expansion also increases our overall profitability with reduction in costs on our supplied goods due to increased volumes. It will allow us to begin localised manufacture of our core products, again reducing costs, spread head office cost loads, and allow for a bigger marketing spend to further grow brand awareness and brand love.

 

As well as opening 2-5 more stores, we want to build a mobile kitchen for the events market. We already have a huge following at events such as Laneway, Outer Fields and Childish Gambino, but we operate from a pop up tent each time and hire items such as fryers, freezers etc. These events while successful, are also about connecting to our core audience, and ensuring we remain the coolest fast food brand out there.

 

A tailor made trailer would be a dream for our team, and make it a much quicker set up and pack in and out, reduce hire overheads and as well we can target more events in and around Auckland and further afield.

 

Finally, we wish to purchase some currently rented equipment reducing running costs for existing stores, and we will hold some cash reserves for expansion costs and unforeseen expenses etc.

 

We believe our offer is timely and on trend, with Lord of the Fries already riding on the crest of the Plant Based food wave, and ready to rocket.

 

We invite you, the investor, to become part of one of the best solutions to the climate crisis, to healing our land and rivers, to animal welfare issues, to reducing harm to our own bodies.

 

Put your money where it can make a difference and where you know it is helping fulfill a big purpose, and, at the same time invest in a growing business that has the potential to become a true force in the New Zealand Quick Service Restaurant landscape.

 

OUR SHARE OFFER

Subject to the terms of our Constitution, the Company shall have Ordinary Shares and Investor Shares conferring rights as follows:

  

DOWNLOAD INFORMATION MEMORANDUM

 

CURRENT & PROPOSED SHAREHOLDING

 

* Upon the successful completion of the PledgeMe Crowdfunding campaign, the current shareholder loan of $381,000 will be converted Into equity. This will have the effect of diluting shareholding %. However the Group value will also have increased.

 

USE OF CAPITAL

 

Crowdfunding Fund Spend Breakdown

 

Total Estimated Cost per company owned store - $ 250,000.00 

 

DOWNLOAD INFORMATION MEMORANDUM

 

VALUATION

 

The company valuation was undertaken by the company director with internal and external advice. 

We used a combination of conventional models to determine the value of the business (including discounted rates and multiples of revenue, EBITDA and NOPAT).

We are confident that our current valuation, which can be read as forecast revenue for current financial year (2020) multiplied by a factor of 1.75, is reasonable. 

For comparison, the table below illustrates recent market transactions in the plant-based food sector.

CORPORATE STRUCTURE

 

 

KEY FAMILY MEMBERS

 

RETURNS

LOTFNZ is gearing up for significant growth so any profits generated will be reinvested for at least the next 3 years. (Thereafter reviewed annually).

 

We want to grow the business to a point where our shareholders can enjoy returns and also know their investment is making an impact on the animal protein driven fast food sector, with all the positive environmental, health and animal welfare outcomes that would create.

 

Bruce and Baksho are passionate about Lord of the Fries and our mission, and so while we can’t promise anything, we want to stick around and ride the wave for a good long while! 

 

If, along the way, we are presented with a purchase offer that is both financially attractive and aligns with our vision for LOTFNZ, on behalf of all shareholders, we would consider it.

 

RISKS AND MITIGATIONS

NOTE FROM PLEDGEME

We have completed a Veda check on the company and their Director, as well as a Google check. There were no adverse findings.

Updates 4

⏰ Last day - please share, pledge, tell the world

13/12/2019 at 11:14 AM

Today is the day! We have until 8pm to hit our goal of $1 million to fund the expansion of our plant-based future. We really believe we’ve got the know-how to take this business to the next level, we just need the cash to do it.

 

PledgeMe have told us that there’s this thing called “deadline magic”, and that companies can raise up to 70% of their goal in the final few hours of a campaign. We really want that to happen here!

 

Why do we want that to happen? Because we truly believe that plant-based alternatives are needed if we are going to face some of the biggest challenges humanity faces. I wrote an OpEd for Stuff today that covers why I quit my job as an architect to back this movement. 

You can read it here: https://www.stuff.co.nz/business/118138513/i-was-an-architect-heres-why-i-quit-my-job-to-sell-vegan-fries-and-burgers

 

Thank you to those of you that have already pledged your support. It means the world to us. If you haven’t yet, now is your chance.

 

Please share our campaign, and why you back us, with your crowd. We need a movement if we’re going to hit our goals, and make our plans happen. A people-powered movement is exactly what our world needs right now too. 

 

If you’re online at noon today, I’m going to do a Facebook Live update on our Facebook Page (here). Feel free to watch, ask questions, and share with your crowd. 

 

We can do this - bite by bite.

 

Bruce and Baksho

 

Not long left !

10/12/2019 at 10:42 AM

Hi everyone, and thank you again for all the support and pledges!

As you can all see, we're well off our target still, and are chasing all our channels to have people jump in: it seems kiwis love last minute deadlines, but it's very nervewracking for us I can tell you!

Can we ask you all post out to you social media channels encouraging action: one thing to remember is that if we don't meet our minimum target none of our crowd ends up with shareholding (it is likely larger private investors will step in), and also, when you pledge you are not asked to pay until we are successful, and even then it will be post xmas in the new year due to the holidasys..

So, let's cause a miracle or two and have a successful raise where we all get to make a positive impact, while investing in the future of fast food!

Facebook Live tonight!

03/12/2019 at 1:48 PM

Hi all, we're on with Anna from PledgeMe tonight on facebook live, join us and find out all about our journey so far, where we're going, and why we're crowdfunding!

here is the link:

https://www.facebook.com/pledgeme/videos/1420099534848384/

We're off and running, THANK YOU

21/11/2019 at 10:31 AM

Hi all, we're super excited to be underway, and have had 128 fantastic folks pledge already: thank you from the bottom of our hearts to those who have already pledged, and if you're yet to join us, please do we'd love to have you on board!

Next week we're heading to Wellington to do a roadshow event, and share with Wellingtonians the journey so far and where we're going, and why we're crowdfunding.

 

Here is the link for the event page:

https://www.facebook.com/events/501116000488092/

We're busy today following up interested parties and investors, and will be back with more updates  soon!

Meantime, some snippets of news links showing just how quickly the world is changing to plant based foods:

https://www.economist.com/graphic-detail/2019/11/15/how-much-would-giving-up-meat-help-the-environment

https://www.plantbasednews.org/culture/bbc-documentary-meat-threat-to-planet

https://youtu.be/h04fRFCIRKM

 

    Details

    Offer Details

    Current Valuation 6,000,000
    Raise Minimum 1,000,000
    Raise Maximum 2,000,000
    Share Price 1.00
    Maximum Shares Offered 2,000,000
    Explanation of valuation:

    The company valuation was undertaken by the company director with internal and external advice.
    We used a combination of conventional models to determine the value of the business (including discounted rates and multiples of revenue, EBITDA and NOPAT).
    We are confident that our current valuation, which can be read as forecast revenue for current financial year (2020) multiplied by a factor of 1.75, is reasonable.

    Financial Summary

    Prev Year Current Year Est. FY 2021 Est. FY 2022
    Revenue NZ $2,703,000 NZ $3,432,000 NZ $5,304,000 NZ $8,269,000
    Operating Expenses NZ $1,733,000 NZ $2,134,000 NZ $3,364,000 NZ $5,080,000
    EBITDA -NZ $232,000 -NZ $15,000 NZ $102,000 NZ $519,000
    Net Profit -NZ $278,000 -NZ $95,000 -NZ $18,000 NZ $345,000

    Company Details

    Company Name: Chip Lord NZ Limited

    Company Number: 6043891

    Company details are currently being synced with the Companies Office, please wait.

    Company Documents

    Documents no longer available to download, as this campaign has closed

    Director Details

    Name Role Profile URL Invested?
    Bruce Craig General Manager http://www.linkedin.com/in/bruce-craig-8069371

    Questions 18

    Ask a Question (You must login to ask a question)


    Can you please re-upload the business plan? Something has happened to the formatting in the pdf doc and it's all gone berserk.
    Cheers

    Posted on 14-11-2019 by Arron Craig

    Hi Arron,
    I've emailed a copy of the IM to you. Our tests weren't able to replicate your problem- if you can send me some screenshots of your issue, I can get our IT team to investigate.
    Thanks for your interest!
    Max from PledgeMe.

    Answered on 14-11-2019 by Bruce Craig


    What are the benefits for us as the consumer to invest other than good feels?

    Posted on 14-11-2019 by Steven

    Hi Steven, if you are meaning benefits for the consumer of LOTF, you will see some merchandise rewards, food discounts for shareholders and other goodies depending on the investment level. If you mean benefits as an investor, pledges are for purchasing shares in our company, helping us expand our store and brand footprint, which very likely increases the share value at the same time. The feel goods are truly supporting our environment, so we think that's a pretty nice benefit..

    Answered on 16-11-2019 by Bruce Craig


    I like the concept of a 100% plant-based fast-food chain with drive-thru's etc. but I don't see LOTF having any chance of displacing the likes of McDonald's unless it has McD's prices--Is this something you will work towards? Will any decrease in costs be passed on to the consumer? Or will it remain to be a 100% plant-based Burger Fuel rather than 100% plant-based McD's type outlet?

    Posted on 15-11-2019 by Stella Love

    Hi, thanks for the question Stella. There are really two parts to the answer.

    One is in about lowering our costs and therefor our prices. We are quite early in the transition to plant based foods, especially in the production at scale of plant based 'meat' products, and as such they currently are a more expensive ingredient, meaning our burgers need to be priced above McD's in price, (but below BurgerFuel). However the beauty about plant based over animal protein is it's ability to scale, just by building more manufacturing facilities (and of course having more supply of-their raw ingredients such as pea protein and soy). Right now the majority of the worlds soy for instance is fed to animals for beef production. If that volume was sent to plant based 'meat' factories we would very quickly see a drop in (soy based) meat substitute prices I believe.

    The second part of the answer is about the 'true cost' of meat. There are many examples on the internet of researchers exploring the true cost of for example a big mac, including things like greenhouse gas emissions, water use, costs to the health system , allowance for subsidies (where they exist) etc. Were those factored in to the price of a big mac, the price indicated by some researchers would be more like $12. If that were to occur the playing field would level quite quickly!

    thanks!

    Answered on 16-11-2019 by Bruce Craig


    Hi, I am also having a problem downloading the IM - it just comes up with a blank screen.

    Posted on 15-11-2019 by Isabelle Maloret

    Hi Isabelle (and anyone else who is having issues downloading the IM). Really sorry about this, we are working to figure out and have the issue sorted asap: meantime if you drop an email to [email protected] requesting the IM, we will get it emailed directly to you.

    Answered on 16-11-2019 by Bruce Craig


    Hi, I am currently on a working visa.I was wondering if I can still invest since I couldn't find another option if not nz citizen or permanent resident ,and not a international wholesale investor.
    I do have a NZ driver license thought.
    Thanks

    Posted on 17-11-2019 by thiago

    Hello, we can confirm that you can pledge while you are on a work visa. You will just need to provide your current NZ drivers licence or proof of NZ address and overseas passport when we come to verify you when the campaign ends. Hope that helps !

    Answered on 18-11-2019 by Bruce Craig


    Do you have to be a New Zealand resident to invest? I live in the uk.

    Posted on 18-11-2019 by Jamie Dooley

    Hi, see below for this one:
    - New Zealand citizens living abroad need to confirm this offer is compliant with all applicable laws in their country of residence.
    - International investors need to confirm this offer is compliant with all applicable laws in their country of residence, and confirm they are a “wholesale investor” within the meaning of the Financial Markets Conduct Act 2013.

    Answered on 18-11-2019 by Bruce Craig


    If the minimum gets hit/not the maximum by the 13th will there be any chances for those that bought shares to buy more/invest more in the New Year ? Thank you :)

    Posted on 18-11-2019 by Zeno

    Hi, sorry for delay for responding. The short answer is no, once this campaign is closed the opportunity for now will be complete. i.e. we suggest purchasing as much as you are looking for before the closing date! We may well undertake another raise further in the future of course.

    Answered on 20-11-2019 by Bruce Craig


    Having the same issue that Arron Craig is. I can see the current version overlaid on the old version of the IM. I'm trying to look at your financials, and I'm finding it difficult to do so. Could you please send me a corrected IM?

    Posted on 18-11-2019 by Dennis Draeger

    Hi Dennis, we have PledgeMe looking at this, our apologies. Please send an email to [email protected] and I will send direct for now..

    Answered on 18-11-2019 by Bruce Craig


    Do you have any commentary about what your exit strategy is, or what one might possibly look like?

    Posted on 18-11-2019 by Sam Durbin

    Hi Sam: We are passionate about our brand and our purpose. We don’t see ourselves selling in the near future, as we grow our impact and our revenue. While this raise is to get us up to 8/9 stores (if we raise the maximum), we feel Nz can easily sustain around the mid 20's store numbers, and potentially a lot more. Of course as the company grows in footprint our value will increase for our shareholders. and having said that, it would be negligent of us not to consider any offers if they arise, and we would do so in the interest of the brand and the shareholders.

    Answered on 18-11-2019 by Bruce Craig


    Future Meat Technologies, a start-up that makes lab-grown meat, plans on selling hybrid products that use lab-grown fat and plant protein by 2021. How do you think this will impact the 100% plant-based 'meat' industry and how would your business respond? Would you consider adding lab-grown meat to your menu?

    Posted on 18-11-2019 by Stella Love

    Hi Stella. I seriously doubt we would ever include animal based protein/lab grown products in our range, it's certainly not what our we hear our customers are looking for. I would expect those types of ingredients would alienate our vegan customers and our religious ones too (halal, kosher, religious vegetarians).

    I am confident the plant based 'meat' products will be as good and as cost effective as lab grown meat, and without the 'ick' that we hear many express about the concept. I expect we'll leave that to others to test that type of offering in the marketplace! As mentioned in an above answer, if efficiencies continue to grow, and more plant based factories spring up, I am certain we will see the cost of PB 'meats' drop dramatically allowing us to remain competitive.

    Thanks for the great question!

    Answered on 18-11-2019 by Bruce Craig


    I'm seeing a few references to dividends, but no details. Tell me more. Thanks.

    Posted on 19-11-2019 by atom

    At this stage, for at least the next three years, LOTFNZ will reinvest any profits to accelerate the growth of the business, to achieve some of our stated goals ie 'owning' the plant based fast food space in NZ, and building revenue and stores, driving cots down and profitability up. This will be reviewed periodically and we will advise of any changes to the position taken.

    thanks for asking!

    Answered on 20-11-2019 by Bruce Craig


    If in a few years I have decided to sell my shares, will I be able to do so? And would the company be interested in buying the shares back?

    Posted on 20-11-2019 by Hussain AlGhayeb

    Hi , we are aiming to work with an online trading platform such as Syndex, which will facilitate the trading of privately held shares during specific time periods, likely to be twice annually. The shares would be traded between interested parties, and LOTFNZ would not be directly involved in the transacting. It is difficult to say whether LOTFNZ would be buying back shares at this stage.

    thanks!

    Answered on 20-11-2019 by Bruce Craig


    Hi, can you please provide more detail around the corporate structure? Particularly regarding the royalties and marketing percentages on the diagram.

    Cheers,
    Alex

    Posted on 28-11-2019 by Alex Gardiner

    Hi Alex. As master franchise owners for New Zealand, Chip Lord New Zealand charges each of the LOTFNZ stores 6% in royalties and a 3% marketing fee. We on-pay to Australia, who own the franchise system, 3% of the 6% royalty we collect, and 1% of the marketing fee. ie Chip Lord is 'left' with 3% royalty and 2% marketing. Hope that is clear, and thanks for asking! The projections provided reflect these percentages.

    Answered on 28-11-2019 by Bruce Craig


    Hi Bruce,

    IF the campaign fails to hit minimum level, would you offer any shares still to select few or restart campaign?

    Cheers
    Jashan

    Posted on 28-11-2019 by Jashan Janda

    Hi, our first priority of course is to achieve our minimum funding goal, and we're working hard to get there! If we do not make that it is likely we would turn to larger private investors, which in may ways would be a shame as our vision is to have our crowd of supporters on board for our expansion and to be a part of the impact we can have across NZ.
    So, right now our focus is squarely on all the conversations we're having with potential investors, small and large, so we can hit that 1m mark. cheers!

    Answered on 29-11-2019 by Bruce Craig


    Hello Bruce! If ever, will you cover the annual cost with Syndex? Thanks!

    Posted on 30-11-2019 by Jason Alipao

    Hi Jason, yes if we end up working with Syndex, LOTFNZ will cover all costs relating to our shareholders being registered onto Syndex. This includes registry management, investor relations services, investor portal and a secondary market for LOTFNZ's shares.
    The only cost to shareholders will be brokerage fees of around 0.1% with a minimum of $150 if they were to sell their shares. All other costs will be covered by LOTFNZ.

    Answered on 03-12-2019 by Bruce Craig


    Re: your earlier comment "Chip Lord New Zealand charges each of the LOTFNZ stores 6% in royalties and a 3% marketing fee" does that mean each nz based store and their full income is not included under Chip Lord Ltd. So you are valuing the master franchise agreement with no other assets at 8 mil? I thought there were also centrally owned stores? Also you have not made it clear in your documents that 45% of your earnings go to Australia. I would have thought you would have structured it so only 4% went, or at least 45% of net profits. How is the company ever suppose to make sufficient returns to be a viable investment?

    Posted on 02-12-2019 by Jacob Boyes

    Hi Jacob, that’s not quite right. Each of the stores are operated as separate legal entities and are 100% owned by Chip Lord NZ Limited. The four stores financial performance and financial position have been consolidated in the financials provided and are part of the value of the group. CLNZLTD charges each store 6% and 3% of their revenue for royalties and marketing, as we should whether they are company owned or franchise stores. CLNZLTD will in turn pay a total of 3% of store revenue for royalty plus 1% of revenue for marketing to Australia, which are included in our expenses. The value established also is $6m also not $8m. Hope that helps, and thanks for the question Jacob.

    Answered on 02-12-2019 by Bruce Craig


    Hi , I would like to buy some shares for my family can i have the shares put in their name ?

    Posted on 04-12-2019 by denise cutler

    Hi Denise, you will need to buy them in your name, and then when the shares are issued you can transfer into their name, fairly simply. We are providing a 'pledge gift' certificate for those who do want to gift shares, which acknowledges you have pledged and intend to gift those shares to the recipient..hope that helps, we think LOTFNZ shares are a great Xmas gift in this time of too much plastic and throw away products, ie giving the gift of a stake in the future of food !

    Answered on 04-12-2019 by Bruce Craig


    Hi I would like to pledge but it seems like you won't reach your goal with only 5 days left. What will you do at the end of the campaign? will you return pledges to people or seek investment from elsewhere?

    Posted on 08-12-2019 by Steven

    Hi Steven, firstly we're still working with a bunch of larger level investors we are expecting will jump in, AND we are following up all the people, like you, who are holding off in their pledging! The deal is, no money is paid by investors up front, in fact the money is only collected after the campaign has closed AND only if it has reached its minimum target, and that would be in the new year... So you, and everyone else, should jump in and pledge asap, and help us build momentum in this last week! Thanks Steven!

    Answered on 08-12-2019 by Bruce Craig

    Pledgers 267

    Matt Cantwell
    2019-12-13 19:57:04 +1300
    Adrian Edge
    2019-12-13 19:41:12 +1300
    Travis
    2019-12-13 19:13:24 +1300
    Martin Pugh
    2019-12-13 19:04:07 +1300
    Anthony Harris
    2019-12-13 18:43:57 +1300
    Nathan
    2019-12-13 18:41:19 +1300
    David
    2019-12-13 18:38:22 +1300
    Rajeev Bhadresa
    2019-12-13 18:36:45 +1300
    Jenny Pang
    2019-12-13 17:19:29 +1300
    Rawiri McKree Jansen
    2019-12-13 17:19:16 +1300

    "Ka pai"

    Tasi Murare
    2019-12-13 16:44:11 +1300
    Steve McCleary
    2019-12-13 16:23:15 +1300
    Merryn Bayliss
    2019-12-13 15:19:30 +1300
    Colin Henwood
    2019-12-13 14:58:18 +1300
    Daniel Eaton
    2019-12-13 14:31:38 +1300
    Frances Claire McKee
    2019-12-13 13:58:50 +1300
    Becca Barnes
    2019-12-13 13:19:07 +1300

    "Happy to invest in such a great company. Good luck folks!"

    Ryan Davis
    2019-12-13 13:16:09 +1300
    Jimmy George
    2019-12-13 13:09:25 +1300
    Martin Paris
    2019-12-13 13:09:12 +1300

    "Best of luck LOTF!"

    James hope
    2019-12-13 12:51:48 +1300
    Gianni Flego
    2019-12-13 12:44:13 +1300
    Steve Reindler
    2019-12-13 12:17:47 +1300
    Josue Munro
    2019-12-13 11:43:39 +1300

    "What an awesome company, keen to come along for the ride."

    Cole Brown
    2019-12-13 11:30:40 +1300

    "Good luck!"

    Mike McGreevy
    2019-12-13 11:25:27 +1300
    Alan Owen
    2019-12-13 10:43:49 +1300
    Hana Sullivan Deavoll
    2019-12-13 10:34:11 +1300
    Connie Barnes-Barrington
    2019-12-13 08:22:03 +1300
    Erika Whittome
    2019-12-13 06:23:35 +1300

    Followers 50

    Chip Lord NZ Ltd trading as Lord of the Fries NZ

    Welcome!

     

    BRUCE AND BAKSHO ARE EXCITED TO INVITE YOU TO JOIN US IN THE LORD OF THE FRIES NEW ZEALAND FAMILY.

     

    The journey to now has been an amazing rollercoaster of learning, growing, testing and tweaking. We’ve opened 4 stores, employ almost 40 staff and feed thousands of kiwis Plant Based goodness every week. 

     

    Now we are ready to go big, and we want to have our supporters join us and become part of the Plant Based Fast Food Revolution.

     

    The timing is right, the concept is proven, and the world of Plant Based foods is moving fast. LOTFNZ is at the forefront and leading the charge, and to have the support of a crowd of investors who share and champion our vision will make a huge difference: To us as a business of course, but also for all the reasons we exist.

     

    Read on and we will share those reasons for being, along with the journey to now, and of course the offer to you, our potential new shareholders!

     

    SHARE OFFER SUMMARY

     

    DOWNLOAD INFORMATION MEMORANDUM

     

    OUR PURPOSE

    Lord of the Fries New Zealand at its core is a purpose based business. We’re about helping save the world with plant based fast food: Creating a comfort food experience for our customers which makes a difference.

    One of the most effective ways to reduce global environmental impacts by humans is to adopt a dietary change to plant based or vegan diets. LOTFNZ sells delicious 100% plant based fast food burgers, hotdogs, sides and fries.

    A Big.Hairy.Audacious.Goal for sure. But we believe that helping transition the country (and the world’s) population from animal based protein and the associated damaging animal agricultural practises, to plant based proteins and foods, needs to be big and boldly done, as anything less will be doing future generations a disservice. We can be, and are, part of the solution the world needs. Like yesterday.

    We also wish to offer a business model to our investors and franchisees that both works financially and gives them their own purpose based businesses to own and feel great about. Because we actually do believe everyone wants to save the world!

    Better for the planet, better for the people, and better for the animals that share her with us.

    OUR STATED MISSION IS ‘SAVING THE WORLD, BITE BY BITE’.

     

    WHO WE ARE

    Lord of the Fries New Zealand (LOTFNZ) is a master franchise area (ie all of New Zealand). We serve delicious fast food to our adoring fans and their friends, parents, brothers and sisters. That food happens to be 100% Plant Based. 

     

    LOTFNZ is a separate legal entity to LOTFAU. LOTFNZ operates under a master franchise license from LOTFAU and pays it continuing royalty and marketing contributions. The master franchise licence is for a period of 10 years (which started in 2016) and provides for a further right of 10 years. LOTFNZ is financially independent.

     

    We want the world to know that you can still have your treats, fast food burgers and fries and shakes, without harming animals or damaging the environment. And as another bonus your health will benefit too. 

    The studies linked below indicate a causal effect between red and processed meat consumption and Coronary heart disease as well as certain types of cancers.

     

    »» https://news.un.org/en/story/2015/10/513662-new-un-reportlinks-processed-meats-cancerhumans-Red-meat-also-likely-cause

    »» https://www.heartfoundation.org.nz/statistics

    »» https://www.health.govt.nz/yourhealth/conditions-and-treatments/diseases-and-illnesses/bowel-cancer

     

    Launched in Melbourne in 2004, LOTFAU now has over 25 stores across Australia, with a stated goal of reaching 50 sites over the next few years. This is a good indicator for the potential growth opportunity here in New Zealand for LOTFNZ, given we currently have just 4 stores.

     

    Australasia’s largest Plant Based fast food chain, we are New Zealand’s only 100% vegan franchise system, and have been about saving the world from day zero!

     

    Lord of the Fries came to New Zealand in 2016, after Bruce and Baksho first experienced the food on a stopover in Melbourne in 2015. The experience was so fantastic, and the concept so in alignment with Bruce’s values, that he gave up Architecture and with Baksho on board purchased the master franchise for New Zealand.

     

    THE JOURNEY THUS FAR..

     

    IT STARTED WITH A KISS.. SORT OF

     

    LOTFNZ

     

     

    OUR IMPACT SO FAR

    SOME OTHER ACHIEVEMENTS TO DATE

    Lord of the Fries New Zealand we reckon is a cultural and cuisine phenomenon!

     

     

     

    READY TO LEVEL UP (INVESTMENT READY)

    Over our first three years since opening here, LOTFNZ has achieved a bunch, in preparation for nationwide expansion.

     

    That has always been the goal, and by spending our startup period testing the market, developing systems, and working on our costs and KPI’s, we know now we are ready to expand with a view to becoming the incumbent Plant Based fast food chain here in New Zealand.

     

    Our 4 stores combine turn over around $3.4m per annum. LOTFNZ has implemented and installed several software packages across the stores to monitor and report, and ensure compliance with regulatory agencies.

     

    THE BENEFITS WE’D LIKE TO ACHIEVE FROM LOTFNZ’S EXPANSION

       

     

    MORE ON OUR GROWTH STRATEGY

    We believe Lord of the Fries New Zealand could achieve opening up to around 25 stores over the next 5 – 7 years.

     

    WE HAVE IDENTIFIED THE POTENTIAL SITES AND CENTERS AROUND NEW ZEALAND AND ARE CONFIDENT IT IS A REALISTIC GOAL.

     

    As our store network expands, through both company owned and franchised stores, we would expect our growth to be supported by the sales volume increases driving our costs lower.

     

    Additional stores will allow for a better resourced head office support team, including a general manager, plus stronger and more extensive marketing, more community initiatives, and being able to support causes that we view are appropriate for our brand to be aligned with.

     

    It may also be that establishing our own product storage and distribution facilities in the main centres will become viable and support further cost reductions. This would occur post the expansion proposed in this document.

     

    Bringing our focus into the catering and event space more than it is currently is, by building a mobile kitchen, and actively pursuing opportunities in this area is another revenue stream we will target to improve.

     

    As our network reach increases, in the years ahead we also see no reason to not explore establishing outlets in food courts, and drive-throughs as well. If our goal is to disrupt the animal protein fast food industry, then the ultimate goal is to displace them in all their traditional haunts.

     

    BASICALLY, WE’RE AIMING TO SWAMP NEW ZEALAND WITH LORD OF THE FRIES, IN ORDER TO HELP SAVE IT!

     

    MARKET OPPORTUNITY

    Bruce has been a vegan and has been following the Plant Based movement for almost 30 years. He has watched the vegan/Plant Based market grow and mature, and has watched the rate of change accelerate markedly over the last few years.

     

    Following developments such as the rise of Beyond Meat and Impossible burger from the start, to seeing more and more local restaurants and shops add vegan items to their offerings, has given LOTF great confidence in being a trend leader for Plant Based fast foods. LOTF is the only 100% Plant Based burger chain in Australasia.

     

    PLANT BASED FOODS ARE CURRENTLY THE NUMBER ONE FOOD TREND AROUND THE WORLD.

     

    More and more people are recognising the multiple benefits of eating less meat, or eliminating meat from their diets altogether.

     

    Think reductions in global greenhouse gas emissions, water use, environmental degradation, animal welfare and health, deforestation, human wellbeing, resistance to disease from overuse of antibiotics.

    https://www.stuff.co.nz/life-style/wellgood/116916538/kiwis-hungry-forplantbased-foods-as-1-in-3-eating-lessmeat--survey

     

    AT THE SAME TIME MORE KIWIS ARE EATING MORE GOOD ON THE GO.

     

    Those living in the Wellington region spend the highest proportion of their food budget on restaurant and ready-to eat food (29 percent), closely followed by people in the Auckland region (28 percent). The average for the whole of New Zealand is 26 percent.

     

    WHY CROWDFUND? WHY NOW? 

    We have an incredibly passionate fan base, with over 11k Facebook fans, 4k Instagram followers, plus an email VIP database of over 13k, and of course our customers who flock into our stores every day and into the night.

     

    Many of our customers are vegan or vegetarian, or flexitarian, and choose to eat our food for various reasons. Taste is key for sure, but many also eat our food knowing that by doing so, they are having a positive environmental impact (less greenhouse gas emissions, less water use, less waterway and land degradation), they are supporting better animal welfare outcomes, and they are also improving their personal health.

     

    What that adds up to is customers who are aligned with why we are doing what we do, and therefore they are customers who we believe will want to come along for the Lord of the Fries New Zealand ride, support our purpose and benefit from our success as the market transitions to Plant Based foods.

     

    Our want is to move faster with our expansion plans, to make a bigger difference, to build a robust and profitable franchise chain here, and to become the best known and best loved fast food chain in New Zealand.

     

    Traditional growth route for a Quick Service Restaurant (Fast Food) franchise such as ours requires finding the right people at the same time as the right sites: this can be a slow process. We are also very mindful of

    who we bring in to the LOTFNZ ‘family’, both to protect our brand and avoid downstream issues.

     

    Thus the decision has been made to equity crowdfund, allowing us to open further company owned stores in those places we know will work, when they come up. For instance we know we would like a mid-town Auckland store, a second store in Wellington, and Christchurch and Dunedin are both currently screaming out for us to open. In some cases we know exactly where we want to be, but haven’t been able to find the right person fit.

     

    With new capital we can own and operate more company owned stores, and once we have found a suitable franchisee, decide whether to sell them a company owned store, or to set up a franchised store in a new area.

     

    Expansion also increases our overall profitability with reduction in costs on our supplied goods due to increased volumes. It will allow us to begin localised manufacture of our core products, again reducing costs, spread head office cost loads, and allow for a bigger marketing spend to further grow brand awareness and brand love.

     

    As well as opening 2-5 more stores, we want to build a mobile kitchen for the events market. We already have a huge following at events such as Laneway, Outer Fields and Childish Gambino, but we operate from a pop up tent each time and hire items such as fryers, freezers etc. These events while successful, are also about connecting to our core audience, and ensuring we remain the coolest fast food brand out there.

     

    A tailor made trailer would be a dream for our team, and make it a much quicker set up and pack in and out, reduce hire overheads and as well we can target more events in and around Auckland and further afield.

     

    Finally, we wish to purchase some currently rented equipment reducing running costs for existing stores, and we will hold some cash reserves for expansion costs and unforeseen expenses etc.

     

    We believe our offer is timely and on trend, with Lord of the Fries already riding on the crest of the Plant Based food wave, and ready to rocket.

     

    We invite you, the investor, to become part of one of the best solutions to the climate crisis, to healing our land and rivers, to animal welfare issues, to reducing harm to our own bodies.

     

    Put your money where it can make a difference and where you know it is helping fulfill a big purpose, and, at the same time invest in a growing business that has the potential to become a true force in the New Zealand Quick Service Restaurant landscape.

     

    OUR SHARE OFFER

    Subject to the terms of our Constitution, the Company shall have Ordinary Shares and Investor Shares conferring rights as follows:

      

    DOWNLOAD INFORMATION MEMORANDUM

     

    CURRENT & PROPOSED SHAREHOLDING

     

    * Upon the successful completion of the PledgeMe Crowdfunding campaign, the current shareholder loan of $381,000 will be converted Into equity. This will have the effect of diluting shareholding %. However the Group value will also have increased.

     

    USE OF CAPITAL

     

    Crowdfunding Fund Spend Breakdown

     

    Total Estimated Cost per company owned store - $ 250,000.00 

     

    DOWNLOAD INFORMATION MEMORANDUM

     

    VALUATION

     

    The company valuation was undertaken by the company director with internal and external advice. 

    We used a combination of conventional models to determine the value of the business (including discounted rates and multiples of revenue, EBITDA and NOPAT).

    We are confident that our current valuation, which can be read as forecast revenue for current financial year (2020) multiplied by a factor of 1.75, is reasonable. 

    For comparison, the table below illustrates recent market transactions in the plant-based food sector.

    CORPORATE STRUCTURE

     

     

    KEY FAMILY MEMBERS

     

    RETURNS

    LOTFNZ is gearing up for significant growth so any profits generated will be reinvested for at least the next 3 years. (Thereafter reviewed annually).

     

    We want to grow the business to a point where our shareholders can enjoy returns and also know their investment is making an impact on the animal protein driven fast food sector, with all the positive environmental, health and animal welfare outcomes that would create.

     

    Bruce and Baksho are passionate about Lord of the Fries and our mission, and so while we can’t promise anything, we want to stick around and ride the wave for a good long while! 

     

    If, along the way, we are presented with a purchase offer that is both financially attractive and aligns with our vision for LOTFNZ, on behalf of all shareholders, we would consider it.

     

    RISKS AND MITIGATIONS

    NOTE FROM PLEDGEME

    We have completed a Veda check on the company and their Director, as well as a Google check. There were no adverse findings.

    ⏰ Last day - please share, pledge, tell the world

    13/12/2019 at 11:14 AM

    Today is the day! We have until 8pm to hit our goal of $1 million to fund the expansion of our plant-based future. We really believe we’ve got the know-how to take this business to the next level, we just need the cash to do it.

     

    PledgeMe have told us that there’s this thing called “deadline magic”, and that companies can raise up to 70% of their goal in the final few hours of a campaign. We really want that to happen here!

     

    Why do we want that to happen? Because we truly believe that plant-based alternatives are needed if we are going to face some of the biggest challenges humanity faces. I wrote an OpEd for Stuff today that covers why I quit my job as an architect to back this movement. 

    You can read it here: https://www.stuff.co.nz/business/118138513/i-was-an-architect-heres-why-i-quit-my-job-to-sell-vegan-fries-and-burgers

     

    Thank you to those of you that have already pledged your support. It means the world to us. If you haven’t yet, now is your chance.

     

    Please share our campaign, and why you back us, with your crowd. We need a movement if we’re going to hit our goals, and make our plans happen. A people-powered movement is exactly what our world needs right now too. 

     

    If you’re online at noon today, I’m going to do a Facebook Live update on our Facebook Page (here). Feel free to watch, ask questions, and share with your crowd. 

     

    We can do this - bite by bite.

     

    Bruce and Baksho

     

    Not long left !

    10/12/2019 at 10:42 AM

    Hi everyone, and thank you again for all the support and pledges!

    As you can all see, we're well off our target still, and are chasing all our channels to have people jump in: it seems kiwis love last minute deadlines, but it's very nervewracking for us I can tell you!

    Can we ask you all post out to you social media channels encouraging action: one thing to remember is that if we don't meet our minimum target none of our crowd ends up with shareholding (it is likely larger private investors will step in), and also, when you pledge you are not asked to pay until we are successful, and even then it will be post xmas in the new year due to the holidasys..

    So, let's cause a miracle or two and have a successful raise where we all get to make a positive impact, while investing in the future of fast food!

    Facebook Live tonight!

    03/12/2019 at 1:48 PM

    Hi all, we're on with Anna from PledgeMe tonight on facebook live, join us and find out all about our journey so far, where we're going, and why we're crowdfunding!

    here is the link:

    https://www.facebook.com/pledgeme/videos/1420099534848384/

    We're off and running, THANK YOU

    21/11/2019 at 10:31 AM

    Hi all, we're super excited to be underway, and have had 128 fantastic folks pledge already: thank you from the bottom of our hearts to those who have already pledged, and if you're yet to join us, please do we'd love to have you on board!

    Next week we're heading to Wellington to do a roadshow event, and share with Wellingtonians the journey so far and where we're going, and why we're crowdfunding.

     

    Here is the link for the event page:

    https://www.facebook.com/events/501116000488092/

    We're busy today following up interested parties and investors, and will be back with more updates  soon!

    Meantime, some snippets of news links showing just how quickly the world is changing to plant based foods:

    https://www.economist.com/graphic-detail/2019/11/15/how-much-would-giving-up-meat-help-the-environment

    https://www.plantbasednews.org/culture/bbc-documentary-meat-threat-to-planet

    https://youtu.be/h04fRFCIRKM

     

      Offer Details

      Current Valuation 6,000,000
      Raise Minimum 1,000,000
      Raise Maximum 2,000,000
      Share Price 1.00
      Maximum Shares Offered 2,000,000
      Explanation of valuation:

      The company valuation was undertaken by the company director with internal and external advice.
      We used a combination of conventional models to determine the value of the business (including discounted rates and multiples of revenue, EBITDA and NOPAT).
      We are confident that our current valuation, which can be read as forecast revenue for current financial year (2020) multiplied by a factor of 1.75, is reasonable.

      Financial Summary

      Prev Year Current Year Est. FY 2021 Est. FY 2022
      Revenue NZ $2,703,000 NZ $3,432,000 NZ $5,304,000 NZ $8,269,000
      Operating Expenses NZ $1,733,000 NZ $2,134,000 NZ $3,364,000 NZ $5,080,000
      EBITDA -NZ $232,000 -NZ $15,000 NZ $102,000 NZ $519,000
      Net Profit -NZ $278,000 -NZ $95,000 -NZ $18,000 NZ $345,000

      Company Details

      Company Name: Chip Lord NZ Limited

      Company Number: 6043891

      Company details are currently being synced with the Companies Office, please wait.

      Company Documents

      Documents no longer available to download, as this campaign has closed

      Director Details

      Name Role Profile URL Invested?
      Bruce Craig General Manager http://www.linkedin.com/in/bruce-craig-8069371

      Ask a Question (You must login to ask a question)


      Can you please re-upload the business plan? Something has happened to the formatting in the pdf doc and it's all gone berserk.
      Cheers

      Posted on 14-11-2019 by Arron Craig

      Hi Arron,
      I've emailed a copy of the IM to you. Our tests weren't able to replicate your problem- if you can send me some screenshots of your issue, I can get our IT team to investigate.
      Thanks for your interest!
      Max from PledgeMe.

      Answered on 14-11-2019 by Bruce Craig


      What are the benefits for us as the consumer to invest other than good feels?

      Posted on 14-11-2019 by Steven

      Hi Steven, if you are meaning benefits for the consumer of LOTF, you will see some merchandise rewards, food discounts for shareholders and other goodies depending on the investment level. If you mean benefits as an investor, pledges are for purchasing shares in our company, helping us expand our store and brand footprint, which very likely increases the share value at the same time. The feel goods are truly supporting our environment, so we think that's a pretty nice benefit..

      Answered on 16-11-2019 by Bruce Craig


      I like the concept of a 100% plant-based fast-food chain with drive-thru's etc. but I don't see LOTF having any chance of displacing the likes of McDonald's unless it has McD's prices--Is this something you will work towards? Will any decrease in costs be passed on to the consumer? Or will it remain to be a 100% plant-based Burger Fuel rather than 100% plant-based McD's type outlet?

      Posted on 15-11-2019 by Stella Love

      Hi, thanks for the question Stella. There are really two parts to the answer.

      One is in about lowering our costs and therefor our prices. We are quite early in the transition to plant based foods, especially in the production at scale of plant based 'meat' products, and as such they currently are a more expensive ingredient, meaning our burgers need to be priced above McD's in price, (but below BurgerFuel). However the beauty about plant based over animal protein is it's ability to scale, just by building more manufacturing facilities (and of course having more supply of-their raw ingredients such as pea protein and soy). Right now the majority of the worlds soy for instance is fed to animals for beef production. If that volume was sent to plant based 'meat' factories we would very quickly see a drop in (soy based) meat substitute prices I believe.

      The second part of the answer is about the 'true cost' of meat. There are many examples on the internet of researchers exploring the true cost of for example a big mac, including things like greenhouse gas emissions, water use, costs to the health system , allowance for subsidies (where they exist) etc. Were those factored in to the price of a big mac, the price indicated by some researchers would be more like $12. If that were to occur the playing field would level quite quickly!

      thanks!

      Answered on 16-11-2019 by Bruce Craig


      Hi, I am also having a problem downloading the IM - it just comes up with a blank screen.

      Posted on 15-11-2019 by Isabelle Maloret

      Hi Isabelle (and anyone else who is having issues downloading the IM). Really sorry about this, we are working to figure out and have the issue sorted asap: meantime if you drop an email to [email protected] requesting the IM, we will get it emailed directly to you.

      Answered on 16-11-2019 by Bruce Craig


      Hi, I am currently on a working visa.I was wondering if I can still invest since I couldn't find another option if not nz citizen or permanent resident ,and not a international wholesale investor.
      I do have a NZ driver license thought.
      Thanks

      Posted on 17-11-2019 by thiago

      Hello, we can confirm that you can pledge while you are on a work visa. You will just need to provide your current NZ drivers licence or proof of NZ address and overseas passport when we come to verify you when the campaign ends. Hope that helps !

      Answered on 18-11-2019 by Bruce Craig


      Do you have to be a New Zealand resident to invest? I live in the uk.

      Posted on 18-11-2019 by Jamie Dooley

      Hi, see below for this one:
      - New Zealand citizens living abroad need to confirm this offer is compliant with all applicable laws in their country of residence.
      - International investors need to confirm this offer is compliant with all applicable laws in their country of residence, and confirm they are a “wholesale investor” within the meaning of the Financial Markets Conduct Act 2013.

      Answered on 18-11-2019 by Bruce Craig


      If the minimum gets hit/not the maximum by the 13th will there be any chances for those that bought shares to buy more/invest more in the New Year ? Thank you :)

      Posted on 18-11-2019 by Zeno

      Hi, sorry for delay for responding. The short answer is no, once this campaign is closed the opportunity for now will be complete. i.e. we suggest purchasing as much as you are looking for before the closing date! We may well undertake another raise further in the future of course.

      Answered on 20-11-2019 by Bruce Craig


      Having the same issue that Arron Craig is. I can see the current version overlaid on the old version of the IM. I'm trying to look at your financials, and I'm finding it difficult to do so. Could you please send me a corrected IM?

      Posted on 18-11-2019 by Dennis Draeger

      Hi Dennis, we have PledgeMe looking at this, our apologies. Please send an email to [email protected] and I will send direct for now..

      Answered on 18-11-2019 by Bruce Craig


      Do you have any commentary about what your exit strategy is, or what one might possibly look like?

      Posted on 18-11-2019 by Sam Durbin

      Hi Sam: We are passionate about our brand and our purpose. We don’t see ourselves selling in the near future, as we grow our impact and our revenue. While this raise is to get us up to 8/9 stores (if we raise the maximum), we feel Nz can easily sustain around the mid 20's store numbers, and potentially a lot more. Of course as the company grows in footprint our value will increase for our shareholders. and having said that, it would be negligent of us not to consider any offers if they arise, and we would do so in the interest of the brand and the shareholders.

      Answered on 18-11-2019 by Bruce Craig


      Future Meat Technologies, a start-up that makes lab-grown meat, plans on selling hybrid products that use lab-grown fat and plant protein by 2021. How do you think this will impact the 100% plant-based 'meat' industry and how would your business respond? Would you consider adding lab-grown meat to your menu?

      Posted on 18-11-2019 by Stella Love

      Hi Stella. I seriously doubt we would ever include animal based protein/lab grown products in our range, it's certainly not what our we hear our customers are looking for. I would expect those types of ingredients would alienate our vegan customers and our religious ones too (halal, kosher, religious vegetarians).

      I am confident the plant based 'meat' products will be as good and as cost effective as lab grown meat, and without the 'ick' that we hear many express about the concept. I expect we'll leave that to others to test that type of offering in the marketplace! As mentioned in an above answer, if efficiencies continue to grow, and more plant based factories spring up, I am certain we will see the cost of PB 'meats' drop dramatically allowing us to remain competitive.

      Thanks for the great question!

      Answered on 18-11-2019 by Bruce Craig


      I'm seeing a few references to dividends, but no details. Tell me more. Thanks.

      Posted on 19-11-2019 by atom

      At this stage, for at least the next three years, LOTFNZ will reinvest any profits to accelerate the growth of the business, to achieve some of our stated goals ie 'owning' the plant based fast food space in NZ, and building revenue and stores, driving cots down and profitability up. This will be reviewed periodically and we will advise of any changes to the position taken.

      thanks for asking!

      Answered on 20-11-2019 by Bruce Craig


      If in a few years I have decided to sell my shares, will I be able to do so? And would the company be interested in buying the shares back?

      Posted on 20-11-2019 by Hussain AlGhayeb

      Hi , we are aiming to work with an online trading platform such as Syndex, which will facilitate the trading of privately held shares during specific time periods, likely to be twice annually. The shares would be traded between interested parties, and LOTFNZ would not be directly involved in the transacting. It is difficult to say whether LOTFNZ would be buying back shares at this stage.

      thanks!

      Answered on 20-11-2019 by Bruce Craig


      Hi, can you please provide more detail around the corporate structure? Particularly regarding the royalties and marketing percentages on the diagram.

      Cheers,
      Alex

      Posted on 28-11-2019 by Alex Gardiner

      Hi Alex. As master franchise owners for New Zealand, Chip Lord New Zealand charges each of the LOTFNZ stores 6% in royalties and a 3% marketing fee. We on-pay to Australia, who own the franchise system, 3% of the 6% royalty we collect, and 1% of the marketing fee. ie Chip Lord is 'left' with 3% royalty and 2% marketing. Hope that is clear, and thanks for asking! The projections provided reflect these percentages.

      Answered on 28-11-2019 by Bruce Craig


      Hi Bruce,

      IF the campaign fails to hit minimum level, would you offer any shares still to select few or restart campaign?

      Cheers
      Jashan

      Posted on 28-11-2019 by Jashan Janda

      Hi, our first priority of course is to achieve our minimum funding goal, and we're working hard to get there! If we do not make that it is likely we would turn to larger private investors, which in may ways would be a shame as our vision is to have our crowd of supporters on board for our expansion and to be a part of the impact we can have across NZ.
      So, right now our focus is squarely on all the conversations we're having with potential investors, small and large, so we can hit that 1m mark. cheers!

      Answered on 29-11-2019 by Bruce Craig


      Hello Bruce! If ever, will you cover the annual cost with Syndex? Thanks!

      Posted on 30-11-2019 by Jason Alipao

      Hi Jason, yes if we end up working with Syndex, LOTFNZ will cover all costs relating to our shareholders being registered onto Syndex. This includes registry management, investor relations services, investor portal and a secondary market for LOTFNZ's shares.
      The only cost to shareholders will be brokerage fees of around 0.1% with a minimum of $150 if they were to sell their shares. All other costs will be covered by LOTFNZ.

      Answered on 03-12-2019 by Bruce Craig


      Re: your earlier comment "Chip Lord New Zealand charges each of the LOTFNZ stores 6% in royalties and a 3% marketing fee" does that mean each nz based store and their full income is not included under Chip Lord Ltd. So you are valuing the master franchise agreement with no other assets at 8 mil? I thought there were also centrally owned stores? Also you have not made it clear in your documents that 45% of your earnings go to Australia. I would have thought you would have structured it so only 4% went, or at least 45% of net profits. How is the company ever suppose to make sufficient returns to be a viable investment?

      Posted on 02-12-2019 by Jacob Boyes

      Hi Jacob, that’s not quite right. Each of the stores are operated as separate legal entities and are 100% owned by Chip Lord NZ Limited. The four stores financial performance and financial position have been consolidated in the financials provided and are part of the value of the group. CLNZLTD charges each store 6% and 3% of their revenue for royalties and marketing, as we should whether they are company owned or franchise stores. CLNZLTD will in turn pay a total of 3% of store revenue for royalty plus 1% of revenue for marketing to Australia, which are included in our expenses. The value established also is $6m also not $8m. Hope that helps, and thanks for the question Jacob.

      Answered on 02-12-2019 by Bruce Craig


      Hi , I would like to buy some shares for my family can i have the shares put in their name ?

      Posted on 04-12-2019 by denise cutler

      Hi Denise, you will need to buy them in your name, and then when the shares are issued you can transfer into their name, fairly simply. We are providing a 'pledge gift' certificate for those who do want to gift shares, which acknowledges you have pledged and intend to gift those shares to the recipient..hope that helps, we think LOTFNZ shares are a great Xmas gift in this time of too much plastic and throw away products, ie giving the gift of a stake in the future of food !

      Answered on 04-12-2019 by Bruce Craig


      Hi I would like to pledge but it seems like you won't reach your goal with only 5 days left. What will you do at the end of the campaign? will you return pledges to people or seek investment from elsewhere?

      Posted on 08-12-2019 by Steven

      Hi Steven, firstly we're still working with a bunch of larger level investors we are expecting will jump in, AND we are following up all the people, like you, who are holding off in their pledging! The deal is, no money is paid by investors up front, in fact the money is only collected after the campaign has closed AND only if it has reached its minimum target, and that would be in the new year... So you, and everyone else, should jump in and pledge asap, and help us build momentum in this last week! Thanks Steven!

      Answered on 08-12-2019 by Bruce Craig

      Matt Cantwell
      2019-12-13 19:57:04 +1300
      Adrian Edge
      2019-12-13 19:41:12 +1300
      Travis
      2019-12-13 19:13:24 +1300
      Martin Pugh
      2019-12-13 19:04:07 +1300
      Anthony Harris
      2019-12-13 18:43:57 +1300
      Nathan
      2019-12-13 18:41:19 +1300
      David
      2019-12-13 18:38:22 +1300
      Rajeev Bhadresa
      2019-12-13 18:36:45 +1300
      Jenny Pang
      2019-12-13 17:19:29 +1300
      Rawiri McKree Jansen
      2019-12-13 17:19:16 +1300

      "Ka pai"

      Tasi Murare
      2019-12-13 16:44:11 +1300
      Steve McCleary
      2019-12-13 16:23:15 +1300
      Merryn Bayliss
      2019-12-13 15:19:30 +1300
      Colin Henwood
      2019-12-13 14:58:18 +1300
      Daniel Eaton
      2019-12-13 14:31:38 +1300
      Frances Claire McKee
      2019-12-13 13:58:50 +1300
      Becca Barnes
      2019-12-13 13:19:07 +1300

      "Happy to invest in such a great company. Good luck folks!"

      Ryan Davis
      2019-12-13 13:16:09 +1300
      Jimmy George
      2019-12-13 13:09:25 +1300
      Martin Paris
      2019-12-13 13:09:12 +1300

      "Best of luck LOTF!"

      James hope
      2019-12-13 12:51:48 +1300
      Gianni Flego
      2019-12-13 12:44:13 +1300
      Steve Reindler
      2019-12-13 12:17:47 +1300
      Josue Munro
      2019-12-13 11:43:39 +1300

      "What an awesome company, keen to come along for the ride."

      Cole Brown
      2019-12-13 11:30:40 +1300

      "Good luck!"

      Mike McGreevy
      2019-12-13 11:25:27 +1300
      Alan Owen
      2019-12-13 10:43:49 +1300
      Hana Sullivan Deavoll
      2019-12-13 10:34:11 +1300
      Connie Barnes-Barrington
      2019-12-13 08:22:03 +1300
      Erika Whittome
      2019-12-13 06:23:35 +1300
      This campaign was unsuccessful and finished on 13/12/2019 at 8:00 PM.

      This campaign has closed, but this company may choose to do more equity raises on PledgeMe in the future. If you're interested in investing in Chip Lord NZ Ltd trading as Lord of the Fries NZ, you can sign up to be notified when a new equity campaign from this company is published.

      Notify Me

      Investor Perks

      Shoestring

      NZ $250.00+

      Investor Shares (A Small Bite of LOTFNZ) 🍟 LOTF Baseball Cap 🍟 LOTF Burger Biter Lapel Pin 🍟 Free kids sized fries with any big burger or hotdog purchased at LOTFNZ while you remain a shareholder 🍟 Note: all physical rewards are to be collected in store

      Classic

      NZ $1,000.00+

      Investor Shares (A Bigger Bite of LOTFNZ) 🍟 Same as Shoestring Rewards 🍟 PLUS Shareholder only invite to new product pre launch testing for 1 year (2020) 🍟 Note: all physical rewards are to be collected in store

      Chunky

      NZ $5,000.00+

      Investor Shares (A Decent bite of LOTFNZ) 🍔 LOTF Cap, T Shirt and Limited Edition tote bag 🍔 LOTF Burger Biter Lapel Pin 🍔 Shareholders only invite to new product pre launch testing for 1 year (2020) 🍔 A Lord, Lady or Laird Ship (straight up, you get to become landed gentry! And help preserve Scottish Highlands at the same time) 🍔 10% off all food purchases at LOTFNZ while you remain a shareholder 🍔 Note: all physical rewards are to be collected in store

      Sweet Potato

      NZ $25,000.00+

      Investor Shares (A big bite of LOTFNZ) 🍟 LOTF Cap, T Shirt and Limited Edition tote bag 🍟 LOTF Burger Biter Lapel Pin 🍟 Shareholders only invite to new product pre launch testing for 1 year (2020) 🍟 2 x Lord, Lady or Laird-ships! 🍟 15% of all food purchases at LOTFNZ while you remain a shareholder 🍟 One food catered event for up to 20 people at Snickel Lane (AKL) or Cuba Street (WGTN), or your city if/when we open there. To be redeemed during 2020 🍟 Note: all physical rewards are to be collected in store🍟

      Loaded

      NZ $50,000.00+

      Ordinary Shares (A serious bite of LOTFNZ) 🍔 LOTF Cap, T Shirt and Limited Edition bag🍔 LOTF Burger Biter Lapel Pin🍔 Shareholders only invite to new product pre launch testing for 1 year (2020)🍔 4 x Lord, Lady or Laird-ships!🍔 15% of all food purchases at LOTFNZ while you remain a shareholder🍔 One food catered event for up to 50 people at a venue of your choice in Auckland, Wellington or Queenstown, or other centres if/ when we open there. To be redeemed during 2020 🍔 Note: all physical rewards are to be collected in store

      Warning statement about equity crowdfunding

      Equity crowdfunding is risky.

      Issuers using this facility include new or rapidly growing ventures. Investment in these types of business is very speculative and carries high risks.

      You may lose your entire investment, and must be in a position to bear this risk without undue hardship.

      New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision.

      The usual rules do not apply to offers by issuers using this facility. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment.

      Ask questions, read all information given carefully, and seek independent financial advice before committing yourself.