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Cleveland

Skidmark Garage

About Documents
103%
$10,350 Funded
$10,000 Target
Closed Time Left
21 Investors
$10,000 Min. Raise
$25,000 Max. Raise
36 mo. Term Length
8.5% Interest Rate
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Overview

Skidmark Garage is a unique business model. It is a community access motorcycle garage that provides all the tools and lifts for members to work on their own motorcycles. It is not a traditional mechanic’s garage - there are no mechanics on duty at Skidmark Garage. It is a DIY garage where everyone is expected to not only work on their own personal motorcycles, but to offer help to every other member. It is a safe space for all where everyone has something to contribute.

Skidmark Garage sells membership time by the month, half year, or full year. During a member’s time at Skidmark Garage, they can store their motorcycle there, and they have 24 hour access to the garage, its tools, its lifts, and the community of like-minded people. The physical space is the initial reason people are attracted to join. Skidmark has 13 work stations stocked with tools, a welding area stocked with Lincoln Electric welders, multiple sandblasters, and a 2,000 sq ft lounge complete with a bar (sans liquor license), pool table, multiple couches, and foosball table. When a member is done working on their bike for the day, they are expected to take it down from the lift and roll it into the storage area. Unless 13 members are working at the exact same time in the garage, there will always be a lift and a bay full of tools for any new arrival.

It is not until they have joined and have been using the space for a few weeks that they realize the real value of Skidmark Garage is the culture and community. The members of the garage look out for each other and develop relationships that extend far outside the four walls of Skidmark Garage. In addition, there are certain members who have enough expertise in specific areas of motorcycling and machining and welding that they teach classes in the evenings or weekends at the garage. Members come from all walks of life, but generally they are all owners of motorcycles that are at least 15 or 20 years old. Many already own their own tools and have a garage to store and work on their motorcycle, but the social aspect is what they seem to value the most.

The Skidmark Lounge functions as an event space that gets rented out for small concerts, private parties, weddings, stand-up comedy, and various other social, professional, and corporate meetings. When not being rented out, it serves as a place to take a break and simply relax between turning wrenches on one’s motorcycle.

Skidmark Garage is looking to raise $25,000. There will be a six-month interest-only period at 3.75% and a 30-month fully-amortizing period at 8.50%. The campaign ends on June 26, 2020 at 11:59pm.

 

 

How You'll Help During COVID-19

In this time of Covid-19, the garage has been forced to close its doors to the members. Skidmark Garage thrives on community, and the coronavirus is decidedly anti-community. The garage has not been able to collect membership dues while being closed. Bills must be paid once the doors are reopened. This loan is a stop-gap that will enable rent, utilities, and all the indirect costs that come along with running a business to be paid.

 

The welding room.

Business

History

In the 1990’s, Skidmark Garage Owner Brian Schaffran, a then young guy in his 20’s, set out to drive his beat-up VW bus across the country and it kept breaking down. When he landed in LA, he found a kind mechanic who took pity on his financial situation and lent him the tools to learn to fix it himself. He didn’t have much room on the street in front of his apartment, so Brian asked the mechanic if he could put the bus up on his lift one day. The mechanic laughed and explained to Brian that this was crazy, and his insurance wouldn’t cover him if the bus fell on his head. For years after, Schaffran always wondered if he could create a place for people to work on vehicles themselves.

Brian eventually moved back home to Cleveland and began a career in teaching. His love of old vehicles morphed into a passion for vintage motorcycles. It is difficult to find a mechanic willing to work on older motorcycles, and when you add in the qualifications of trustworthiness and ability, one’s choices are extremely limited. As his motorcycles would break down, he was left to tinker in his home garage with friends until late in the night. Riding his motorcycle to teach in the morning, his dream of creating a shared space to fix vehicles together grew stronger and stronger. Brian even figured out how to make wrenching on motorcycles a part of his curriculum with his students at an inner-city Cleveland high school.

Finally, Brian left education to pursue the 20+ year dream. Skidmark Garage was born out of a love for working together in the garage with friends, but it grew because of the common need for shared space other owners of motorcycles have. When a motorcycle is over 20 years old, it means the dealership from which it was purchased will no longer work on it. The owner/rider of a vintage motorcycle must learn to fix almost any problem on the bike, because old bikes break down.

Skidmark is where it is today because of the purposeful slow growth, the “all are welcome who welcome all” culture, and the community of members within it. The garage has attracted folks from every walk of life, from retired high school principals, to tradesmen, to professional bike builders, to those who have been formerly incarcerated. Members of every ethnicity, race, and gender come together and realize that though they have different stories, they are like-minded in wanting to enjoy using the specialty tools, space, and the knowledge of expert builders to help each other out. The members’ loyalty to the space and community shines through with a robust social media following. Skidmark continues to have a presence at local bike nights, the international motorcycle trade-shows, and is consistently covered in the media. When a nightclub shooting happened in Orlando, Skidmark Garage held a fundraiser for the LGBT Community Center. When Puerto Rico was hit by an earthquake, they held a motorcycle ride to raise money for supplies. Skidmark Garage even started a non-profit, Motogo, so that Brian could teach - and train others to teach - students how to take apart and build motorcycles. Skidmark Garage has become a vital community space for more than just motorcyclists.

 

Working on a 1954 Zundapp.

 

The Future

Skidmark Garage and its growing community are bursting at the seams, outgrowing the current 10,000 sq ft lease. Across the country, though there are 30+ Community Motorcycle Garages, Skidmark has seen more success than most and has become the expert in this unique business space. In order to keep serving the community as not only Ohio’s Community Motorcycle Garage, but a leader in the country, Skidmark has to move into a space that meets the needs of the greater community. With some support, Skidmark Garage can make a major impact in 3 areas: 1) the motorcycle community, 2) makers-space style education, and 3) as a sought-after Cleveland destination space.

A larger space will enable Skidmark to reach even more people in the motorcycle community with added services like more on-site classes for students and adults, gear rental, space storage, community gathering space with ADA bathrooms, and even being able to become a location for the Motorcycle Safety Foundation to hold rider classes. It will become the place to go for anyone thinking about buying their first motorcycle - we will have used safety gear to rent to those just dipping their toes into the water. The garage will have classes almost every night of the week - from maintenance, to welding, to machining, to how to build a custom motorcycle.

Skidmark Garage has a history with providing makers-space style education to the community. They have already tapped into the corporate team building sector, serving groups like departments from University Hospital. The garage offers various levels of activities centered on getting one’s hands dirty through problem solving as coworkers become a team with the goal of putting together a vintage motorcycle from the ground up. The office hierarchy disappears as corporate duties are turned upside down, and new leaders emerge as they work together to get a bike built and running. Students are brought to the garage by groups like the Girl Scouts and Boy Scouts, Cleveland Metropolitan School District Schools, family learn to weld classes, and parent-child build competitions. In the current space, Skidmark Garage is limited in its access to growth while education groups must overflow into the space with member work stations.

Lastly, Skidmark Garage, or more specifically, “Skidmark Lounge” will be able to develop its partnership with groups like Destination Cleveland, promoting this unique Cleveland rental space for a wide variety of events all week long- from bands, to fundraisers, to holiday parties, to weddings and private events. Where else in the country can you transform a space into fine dining next to rows and rows of shiny chrome exhaust pipes on vintage motorcycles, electrified by professionally lit production equipment. Skidmark Lounge gives Cleveland the opportunity to showcase itself as a unique, first notch event space, and one more reason for travelers from all over to continue making the journey to the Midwest.

With the opportunity to grow the Skidmark Garage physical footprint, this community will make a huge impact in not just Cleveland, but it will emerge as a leader in the Worldwide Community Garage Movement.

 

An event held at Skidmark Garage.

 

Why We Stand Out

Skidmark Garage is one of the few places in the world where two people from extremely different backgrounds can find commonality working side by side to fix something that is broken. People that would otherwise never cross paths, people from all walks of life, come together because of a common love for a machine, but leave with a love for each other. While Skidmark Garage is a Community Motorcycle Garage, it is truly just a “Community.” People, riders and non-riders alike, want to be a part of the garage atmosphere; they want to be involved with something bigger than themselves that is a force for good in this world. Being a part of Skidmark Garage has an exclusive feel about it because the people that are not onboard with “welcoming all,” weed themselves out. The culture of the Skidmark Garage community is the pinnacle of human existence - teaching, learning, helping, caring, and deep friendships for those that are open to them - centered around the motorcycle, but finding its way into everyday life.

From a business standpoint, supporting Skidmark Garage is a sure bet. Ohio has an enormous motorcycle market, and Skidmark is the only game in town (Chicago has the next closest Community Garage). It is bursting at the seams and people in their 20s are buying old motorcycles with the intention of obtaining the experience of working with their hands and riding a unique motorcycle all their own. The motorcycle community alone will keep this place alive and growing, building or none, for many generations to come. The fact that this community has trickled its way into non-riders lives through education, events – and as a destination must for travelers – is icing on the cake.

 

From a fundraiser held to benefit Puerto Ricans affected by Hurricane Maria.

 

Fast Facts

  • Skidmark Garage inspired the Esquire Network’s reality show “Wrench Against The Machine”.
  • The garage has been featured on the cover of several industry magazines.
  • Skidmark is the only currently operating Community Motorcycle Garage in America that has been open longer than 5 years.
  • Over 200 members have joined the Skidmark community since opening.
  • Tens of thousands of dollars worth of tools and machinery have been donated to the garage over the last 5 years.
  • Skidmark Garage is the only Community Motorcycle Garage in Ohio and all 5 of its bordering states.

 

Skidmark Garage is a "no-collar" environment welcome to all.

 

About the Owner

Brian Schaffran earned his education degree from Cleveland State University. He has taught exclusively within the City of Cleveland at two different high schools. He worked for Packy Hyland as a solutions installer and trainer between teaching jobs (during a reduction in workforce). Brian was the host of a reality television show about custom motorcycle building in 2016 on The Esquire Network. In 2017, Brian started a non-profit called Motogo that has a mission to bring shop class back and teaches motorcycle maintenance at several schools throughout the greater Cleveland area.

 

Owner Brian Schaffran.

Deal Summary

Summary

Issuer

  Skidmark Garage LLC

Security Type

  Secured loan

Loan Purpose

  Working capital during the COVID-19 pandemic

Offering Amount

  $10,000 - $25,000

Interest Rate

 3.75% interest only period

 8.50% amortization period

Payments

  Monthly, disbursed to investors quarterly

Maturity

  6 months interest only + 30 months amortizing

Personal Guaranty  

 Brian Schaffran

Security Interest

 Blanket lien in assets of the company

 

Your Earnings Potential

If you choose to invest, you will make a one-time investment via ACH that will be transferred to a secure escrow account. If the campaign successfully reaches its target, the funds will be distributed to Skidmark Garage LLC.

For more information on the mechanics of Honeycomb’s crowd investing platform, please review our Education Materials.

Investment Amount One-Time Fee

Potential Quarterly

Return: Interest-Only Period*

Potential Quarterly

Return: Amortization Period*

Potential Total Repayment*
$100 $1.40 $0.93 $11.14 $113.23
$500 $7.00 $4.68 $55.68 $566.14
$1,000 $14.00 $9.37 $111.35 $1,132.28
$5,000 $37.25 $46.87 $556.77 $5,661.42

Your ongoing responsibilities from investing are very limited. Over the life of the loan, you will receive a yearly 1099-INT, which is a simple tax document similar to what you receive for most savings accounts.*Individual payments may vary slightly based on rounding. Potential repayments include principal and interest; they do not include the one-time fee which is assessed when you make your investment. These amounts are calculated as a hybrid interest-only + amortizing loan, which means that there is a specified interest-only period followed by a an amortization period. There are no prepayment penalties and Skidmark Garage LLC may pay down their loan early, which may impact your earnings potential. Please note: returns are not guaranteed and investors could lose some or all of their investment.

Skidmark Garage LLC pays as agreed. You will receive quarterly payments directly into your bank account. In the event of a default, you will be contacted by the administrative agent to manage the collections process on the investors' behalf.

 

How Honeycomb is Compensated

Honeycomb charges Skidmark Garage LLC a $100 posting fee and a 6.0% loan origination fee on the total amount funded.

Additionally, to cover expenses associated with each investment, Honeycomb charges a 1.40% investment fee capped at $37.25 per investor.

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Offering Documents

Comments

Q & A

+ Hey Brian, Love the story and the model. Curious if you have visions of either expansion outside of Cleveland and/or franchising?

I have always had that vision - the surrounding rustbelt cities are ripe for it! However, the cost of all the legal that it would take to franchise it correctly is presently out of my reach. And the time it would take to expand rather than franchise is also not available to me. But yes...someday I would LOVE for Skidmark Garage to expand outside the Cleveland area.