“This is the best bakery in Louisville! Having to be gluten free is a challenge but there are no questions
when eating here! EVERYTHING is amazing! Staff is always extremely nice and helpful. If you haven't
been, stop I and get your fix! You won't regret it"
Customer, March 2019
“I LOVE Annie May's. I don't live close, but when I make a trip to Louisville, I stock up! I've been to
several GF bakeries in and out of state, but this is by far the best! Also, I'm pretty sure they are known
for their oatmeal cream pies. Before I discovered my gluten intolerance, I never ate/liked LD. BUT, I was
told that I had to try them at AM. Well, they are now a favorite of mine!”
Patricia B. Greensburg
Customer, February 2019
“Annie May's has some great desserts for those who are on strict diets (eg: gluten free, dairy or egg
free). The crazy thing is, you would never know by the taste! Everything I have had from here is crazy
good. My favorite right now is the chocolate chip cookie sandwich with cream cheese icing in the
middle AND dipped in chocolate! Wowzers! Even if you don't have food allergies, give Annie May's a
try! You won't be disappointed.”
BOSTON - AllergyEats is pleased to announce its 2019 list of the Top Allergy-Friendly Sweets Shops in America. Released for the first time this year, this prestigious list is derived from the reviews of food-allergic diners across the U.S. on the AllergyEats app and website ( www.allergyeats.com).
Two kids in every classroom have food allergies. 40% of these kids are allergic to more than one food.
The story started in 2009, a few years before the first bakery opened, because my nephew had food allergies. My sister Annie, who was a teacher and working on her PhD at the time, had always been a hobby baker and decided to make our nephew some things he could eat.
She would experiment week in and week out with recipes. I would go to visit her and she would have made 14 different trays of brownies, all with different textures and slightly different ingredients, and I had to rate them all.
A Hobby Becomes A Business. Free of the Top 8 Allergies in the US.
In 2012, Annie decided to start a bakery full time in Louisville, KY. The business has been open and profitable for 7 years and is on track to do well over a half-million dollars this year. In late 2017 I had sold my technology startup and was focused on investing and she approached me about help franchising. I decided to be her first franchisee.
Time To Expand
I decided to buy the rights to the 7 states in and around Massachusetts, and financed the opening of the first bakery in Newton, MA. The entity I setup also owns 50% of the e-commerce and wholesale business nationwide.
Investors in this raise are investing in Annie May's New England LLC, not the original Louisville location.
I'm using the things I've learned about online marketing, robotics, and other technology fields to work with my sister Annie to fulfill her dream of building the world's first allergy-free national brand. And now you can be a part of it too!
My favorite thing about this business so far has been the excitement that allergy-sensitive people have when they realize they can eat anything in the bakery, and that it tastes just as good as the real thing. It's a testament to all those hours back in Annie's kitchen experimenting with thousands of different recipes. We have a long and exciting road ahead and hope you will join us on this journey!
What does your company do?
Allergy-free bakery where everything is free of the top 8 food allergens.
Where will your company be in 5 years?
We hope to have (although cannot guarantee) $20M in revenue from all New England stores plus ecommerce
Why did you choose this idea?
My sister runs the original bakery in Louisville, KY. She is a baker, not a business person, so I decided to buy the rights to New England and become her first franchisee.
Why is this a good idea, right now? What changed in the world? Why wasn't this done a few years ago?
Food allergies are increasing, and making good allergy free baked goods is difficult because when you change ingredients it changes the food chemistry and becomes harder to make it bake and taste like the original. People with food allergies are concerned that restaurants and bakeries don't take them seriously, and so we seek to be the first national allergy-free brand that can calm those fears.
What is your proudest accomplishment?
Being ranked #2 in the country.
How far along are you? What's your biggest obstacle?
Our first store is open. We license all the recipes from the original store. We will start on store #2 later this year. Our biggest obstacle is finding the right locations for new stores.
Who are your competitors? Who is the biggest threat?
There are no national competitors and very few fully allergy free bakeries, but most cities have some local gluten-free bakeries.
What do you understand that your competitors don't?
We have been experimenting on these recipes longer than most people, and have been profitable in one location for 7 years, and have experience franchising. We also have very strong expertise in online marketing.
How will you make money?
Selling baked goods to the public via retail, wholesale, and e-commerce. 92 million Americans have food allergies— that's about 1 in 10 people who can't eat at a Starbucks.
What are the biggest risks? If you fail, what would be the reason? What has to go right for you to succeed?
Balancing expansion and growth with cash flow, profitability, and financing. If we grow too fast we could end up in a bad spot, but we want to grow fast enough to seize the opportunity.
What do you need the most help with?
Promotion in local areas where we open new stores, real estate expertise to help with location selection.
What would you do with the money you raise?
$100K will go to incubate the wholesale and subscription ecommerce business as a separate entity (the entity you are investing in will own 50% of that entity) and the rest will go to open the next 4-5 stores.
Annie May's Sweet Cafe has financial statements ending December 31 2018.
Our cash in hand is $40,000, as of October 2019. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $15,000/month.
At a Glance
to December 31
Short Term Debt
Raised in 2018
Cash on Hand
As of 10/ 1/19
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Allergy free bakery where everything is free of the top 8 food allergens.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Annie May's New England LLC was incorporated in the State of Delaware in July 2018. Annie May's New England LLC is modeled off of an existing separate entity called Annie May's Bakery in Louisville, KY. The two entities do not share any liabilities or assets. Investors in this campaign are investing in Annie May's New England LLC only.
Since then, we have:
Building a national allergy free brand
The company this was was modeled after has been in business for 7 years
Utilizing technology for higher margins
Historical Results of Operations
Our company was organized in July 2018 and has limited operations upon which prospective investors may base an evaluation of its performance. Investors in this campaign are only investing in Annie May's New England LLC, and not the Louisville location.
Revenues & Gross Margin. For the period ended December 31, 2018, the Company had revenues of $0.
Assets. As of December 31, 2018, the Company had total assets of $37,550, including $29,916 in cash.
Net Loss. The Company has had net losses of $20,683 for 2018.
Liabilities. The Company's liabilities totaled $8,233 for 2018.
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been financed with $200,000 in convertibles.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 48 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 18 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Annie May's New England LLC cash in hand is $40,000, as of October 2019. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $15,000/month, for an average burn rate of $15,000 per month. Our intent is to be profitable in 6 months.
There is an original Annie May's bakery in Louisville, KY that has been open for about seven years. Annie May's New England LLC is opening new locations for the bakery in the New England area. The first of the bakeries is going to be open in October 2019. We intend to open other locations under this same entity. The cost to open each location is about $300,000 on average, but varies widely. We expect (although cannot guarantee) that this first location will be profitable within 4 - 6 months of opening. We then hope to be profitable in 6 months at about $70K per month in revenue and $62K in expenses.
If needed, we have private investor funds we can draw on.
A note from Wefunder. Unlike companies on the NASDAQ, early-stage startups have little operating history. Financial analysis is not as useful when there is limited data. It's more important to predict the size of the future market. If the founder achieves their vision, will enough customers pay the company enough money?
It's also common for fast-growing startups to lose money even faster: they are investing in future growth. In these cases, it's often better to check if the Cost of User Acquisition (CAC) is lower than the Lifetime Value (LTV) of that customer. If one spends $1000 today to make $10,000 over the next five years, that may be a smart bet. Amazon is a famous example of re-investing potential profits to maximize growth over 20 years.
Opening bakeries in the NorthEast can be slow and time consuming because of permits, and may slow growth by taking longer than expected.
Our bakeries are free from all major food allergies. One food allergy mishap could tarnish the reputation of the brand and damage business.
Our headquarters is in Massachusetts which has stricter labor and tax laws than many other states. Changes in these laws could negatively impact our business.
We are dependent on key suppliers for our allergy free ingredients. These suppliers could cease being in business which would negatively impact our business.
Local city ordinances can change at any time and cause problems in our business if we need new permits etc.
Robert May is a part-time officer. As such, it is likely that the company will not make the same progress as it would if that were not the case.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
The Board of Directors
CEO @ Annie May's New England LLC
450,000 Common Units
Doryphore Ventures, LLC
550,000 Common Units
Past Equity Fundraises
Convertible Notes Outstanding
Related Party Transactions
Use of Funds
50% to fund a wholesale/ecommerce business, 42.5% open the second bakery, 7.5% Wefunder intermediary fee
10% to fund a wholesale/ecommerce business, 82.5% open the additional bakeries; each one costs about $300k to get started, 7.5% Wefunder intermediary fee
Class of Security
Securities (or Amount) Authorized
Securities (or Amount) Outstanding
The Funding Portal
Annie May's Sweet Cafe is conducting a Regulation Crowdfunding offering via Wefunder Portal LLC. CRD Number: #283503.
Form C Filing on EDGAR
The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.
Wefunder supports three different federal laws that allow startups to raise money legally. To comply with the law, Wefunder Advisors LLC and Wefunder Portal LLC (both owned by Wefunder Inc) also list startups depending on the regulation used.
Legal May 16th 2016
Wefunder Portal LLC
for 237 startups
Wefunder Advisors LLC
for 98 startups
for 2 startups
Curious how well the companies have done? Or how many raised follow-on financing?
Some fine print: 1) These numbers include startups currently live on Wefunder if they pass their minimum target. 2) Some startups use two different laws at the same time (i.e., Regulation D and Regulation Crowdfunding).
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