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Texas

Cowtown Brewing

About Documents
74%
$111,050 Funded
$150,000 Target
36 days Time Left
22 Investors
$30,000 Min. Raise
$250,000 Max. Raise
60 mo. Term Length
8.5% Interest Rate
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Overview

Cowtown Brewing Company is a small-scale craft brewery located on the east side of downtown Ft Worth, Texas. We bring a unique dining/entertainment offering to a rapidly growing mixed-use urban neighborhood. By combining a BBQ concept with quality, award-winning craft beer, we meet two needs that are underrepresented in the greater Ft Worth area. In addition to BBQ and beer, we offer live entertainment. Our establishment is aligned with the culture of our community and reflects that culture in our products and brand development. Our priority has been to offer product and entertainment options with a Texas flavor. We also, whenever possible, utilize local suppliers and vendors for the goods and services we need to create our product offerings. We are a brand that is as much associated with our community as we are known for our products. With our recently increased brewing capacity, we intend to not only sell our beer for consumption onsite but to also self distribute our beer on a small scale to other restaurants and bars in the greater DFW area. Additionally, we have added packaged beer for distribution and to go and intend to further develop our catering business in and around downtown Ft Worth.

We are raising $250,000 at an 8.50% interest rate, paid over a 60-month term! 

We were founded on the idea that great beer deserves equally great barbecue! 

 

The Project

We are raising capital to open a Tap Room in Southlake, Texas within a well-established and successful Town Square Retail Development. We are taking over a space that is built out and will require minimal cosmetic improvements along with Kitchen Equipment, draft Beer dispensing system, AV/Network, FF&E, OS&E along with some working capital for startup costs.

The addition of the Southlake Tap Room will increase distribution revenue by approximately 35% and will provide additional visibility to the Cowtown Brewing Co. brand and provide an opportunity to further grow our distribution network in the surrounding area. The total raise is $250,000 with the cost spread as follows:

  • TABC License - $5,000
  • Kitchen (Equipment/OS&E) - $27,000
  • Beer Distribution System and Inventory - $24,000
  • Office Supplies (POS, AV, Network, Utilities) - $18,000
  • Tap Room FF&E / OS&E - $19,000
  • Labor - $20,000
  • Marketing - $10,000
  • Construction - $40,000
  • PM Fee - $22,000
  • Working Capital - $30,000
  • Cost of capital - $18,000
  • Contingency - $17,000

 

Cowtown brews over 27 different beers, with 16 different beers on tap at all times.

Business

History

We opened in October of 2018 following three years of planning and raising capital. Our first year and a half was successful and provided a great springboard to the growth we started to experience in the first quarter of 2020. The Pandemic of 2020 provided many opportunities and challenges for us, however, we were able to navigate the challenging environment through our bootstrap mentality and the support of our community. We adjusted our service format and quickly added packaged beer to our products which positioned us well as we started our third year of operations in 2021. We added a canning line and additional production capacity and are poised to see additional revenue growth. Our brand recognition continues to grow through our distribution and strategic partnerships with the local community. We have been recognized by our peers and the community through a number of awards.

 

Our light German-style lager, High Brau, recently won a silver medal at The Great American Beer Festival!

 

Future

We will grow our brand recognition in the DFW market and continue our measured growth in the State of Texas through our self-distribution channel. This will provide an opportunity to continue to increase our production capacity and open additional avenues for partnership throughout the community.

 

Cowtown Brewing is currently the only brewery in downtown Fort Worth. We've been featured in Texas Monthly, Avid Golfer, and Forbes Magazine!

 

About the Owners

Shawn Kidwell

Shawn Kidwell has over 22 years of sales, sales management, and hospitality experience. An award-winning homebrewer, he has also been a partner on an award-winning, competitive BBQ cook-off team as well. While a part of that team, he discovered home brewing and began to homebrew beer to accompany the BBQ being cooked by his team at competitions. In addition to more than six years of homebrewing experience, he earned his Journeyman Brewer's Certificate from Eastfield College in 2015 and has more than a year of professional brewing experience gained working as an assistant brewer at Grapevine Craft Brewery. He brings his passion for Craft Beer and BBQ to the creation of this concept.

 

Billy Avila

Billy Avila is an accomplished commercial real estate development professional with over 28 years of experience in Design, Construction, and Development. His diverse knowledge of all phases of the commercial real estate development process has proven to be an asset in the successful execution of the projects he leads. Billy’s collaborative approach to the development process ensures success for all stakeholders while maintaining clarity and continuity of direction. Billy has been involved in the Hospitality business throughout his career in all facets of the industry from Operations to Design and Development of Restaurants, Bars, Hotels, and Resorts.

Deal Summary

 Issuer

 CBC Southlake LLC

 Doing Business As

 Cowtown Brewing Co

 Security Type

 Secured Loan

 Loan Purpose

 Construction + equipment

 Offering Amount

 $30,000 - $250,000

 Interest Rate

 8.50% annually

 Payments

 Monthly, disbursed to investors quarterly 

 Maturity

 6 months interest only, followed by 54 months fully amortizing

 Personal Guaranty  

 Shawn Kidwell, Billy Avila

 Security Interest

 Blanket lien on assets of the company

 Offered Portal 

 Honeycomb Portal LLC

 Offering Type

 Reg CF

 

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 CBC Southlake 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  $2.85  $2.12  $6.71  $124.94
 $500  $14.25  $10.62  $33.53  $624.70
 $1,000  $28.50  $21.25  $67.05  $1,249.41
 $5,000  $37.25  $106.25  $335.25  $6,247.04

Your ongoing responsibilities from investing are 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 an amortization period. There are no prepayment penalties and CBC Southlake 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.

CBC Southlake 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 CBC Southlake LLC a $250 posting fee and a 6.0 - 8.0% loan origination fee based on the total amount funded.

Additionally, to cover expenses associated with each investment, Honeycomb charges a 2.85% investment fee capped at $37.25 per investor.

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