The Grilled Cheese Truck Inc. (fka GRLD)

[bar1080]

LOL! "$100 million Restaurant Empire Invites Vets To Share Its Success!"

I have little doubt these sleazoids will play up that angle.

[bar1080]

I repeat: There was no IPO, at least in the traditional sense. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=111189658

Likely virtually all shareholders have restricted stock that can't be sold yet. The earliest GRLD activity probably consisted of "friendly" matched trades to dazzle the press and prospective franchisees.

[protagonist12]

Would love to check out your article Zeke, sorry no I never traded this illiquid and overpriced stock. Anyway how is it that this new OTC issue with few assets was able to obtain a market cap of $100M at the time of the IPO? Totally arbitrary valuation! Is this something a simple lawyer letter would have accomplished? It seems I'm in the wrong line of work and need to get into the business of buying shells and bilking investors. Kidding.

[bar1080]

The first penny stock I ever bashed online, around 1997, was a two-pronged scam: an unworkable franchise concept hawked by a Pump and Dump public corp controlled by convicted felons. The web was new then, but minimal research turned up plenty of red flags.

I knew quite a bit about the field the franchisor was in and I managed to reach a few of the "marks" by phone. There I got my education into the mentality of franchisees. Many are utterly unsophisticated and not inclined to tackle meaningful research (like penny stock players, especially back in those Dot Com bubble days). Hard for me to understand how someone will sink their entire savings in an untested business based on a couple of glossy promotional pamphlets and sales patter from a toothy salesman. As for audited numbers... there weren't any. At least GRLD provides some figures, as dreadful as they are!

I pleaded with several prospective buyers to contact a competent franchise lawyer or CPA before investing. Not one did, and all lost everything. One called me back a year later to describe how she blew thru $100,000+ ... all the money she had inherited from her parents. At least she thanked me for the advice she ignored!

With that 1997 deal some lost twice. Several of the more prosperous franchisees also invested in the franchisor's stock. I spoke with a franchisee who dumped $75,000 into the firm's shares that traded briefly around $7 on the OTCBB. The stock followed the typical Pennyland trajectory... a 2-year decline to near zero followed by a reverse split and name change. The whole operation vaporized by the time of the Dot Com meltdown in 2000.

Likely GRLD will be able to sell some franchises even at $25,000. The tougher problem will be keeping trucks on the road. As you said, operating a food truck must be a "soul-sucking" endeavor. I presume there will be ongoing franchise fees beyond the $25,000 startup fee. How much can they charge for a stinkin' grilled cheese or even a "gourmet" variant? LOL!

With GRLD you'll probably see a succession of operators running the same trucks with each paying a startup fee. (one way Subway makes money). I agree with you, many operators are likely to walk away immediately. I hope the vets spend as much time researching the brutal food truck business as they'll spend listening to the franchise sales hype.

[GerBear]

Never happened to the extent it is being described. They leased more trucks in AZ that lasted less than 6 months because: 1 - they never produced the actual trucks, and 2 - vets didn't realize what a soul-sucking business a food truck can be and backed out of the agreements shortly after training.

Sorry I'm answering publicly, but I don't subscribe to the message board

[GerBear]

One California truck is company owned, one is a pre-public offering "franchisee", but not in the sense of the vet's trucks. That one seems to be doing well. Only the AZ truck is a franchisee.

After the original Grilled Cheese Truck opened in 2009, a multitude of grilled cheese trucks popped up, including, most successfully, The Melt Truck, which has a number of trucks on the road in more than one state as well as at least one brick and mortar in, I think, San Francisco. There are a number of other grilled cheese themed trucks out there doing well, including Roxy's in Boston, The Milk Truck in, I think NY, one in Portland, and others in Florida, Chicago, Canada. I mean, the concept is a no-brainer. Low product overhead, pretty universal appeal.

[bar1080]

GRLD seems unusually amateurish even by Pennyland standards. Cervantes credentials are thin. He's bounced around the country. Customers and franchisees are going to see thru contrived social media tweet bombing which may backfire as other food trucks complain.

The core idea of peddling $25,000 food truck franchises to vets is already inviting scrutiny. Can't wait to see what Bloomberg has to say. It shouldn't be difficult for an energetic reporter to speak with franchisees of trucks in operation and those, if any, that have folded. (most jurisdictions require extensive licensing and inspections).

A huge problem for GRLD is that franchising is regulated by the Federal government (FTC). Plus many states require a Franchise Disclosure Document which is often public. (but not in Arizona or Florida, I believe). The California trucks may be company owned.

In any event, it will be easy to observe these trucks in operation and to speak with franchisees. That's never a good situation for a penny stock. Penny shareholders crave hype and fantasy.... Not, perhaps, the depressing reality of a vet working his butt off in a grim business.

There is no upside to running a Grilled Cheese Truck. Food truck proprietors know which trucks are doing well and which aren't. In the unlikely event GRLD trucks do well, competition will soar. A truck can change its theme overnight. Tacos one day; grilled cheese the next; and then back to tacos!

Note too that unrelated grilled cheese trucks have been in operation all around the country for years. GRLD has nothing to offer. Not to vets; not to investors.

[GerBear]

They lied. They never had 14 trucks. They PLANNED to have 14 trucks. Their filing is full of half-truths.

[bar1080]

But this says they had 14 trucks more than a year ago.

"A group of investors, including Goldstein, bought the company in 2013. The Grilled Cheese Truck got its start in California in 2009. It's grown from two trucks in 2009 to 14, now driving around cities in California, Arizona and Texas."

"Goldstein said. It expects to have a set of accredited investors by the end of April. Franchise fees will be $25,000."

http://articles.sun-sentinel.com/2014-01-29/business/fl-the-grilled-cheese-truck-20140129_1_food-trucks-cheese-truck-south-florida

January 29, 2014 By Miriam Valverde, Sun Sentinel

[bar1080]

Each unit [sold to insiders] consists of "one share and one stock-purchase warrant. The units are priced at $1.25 each and the warrants will be exercisable at $2.50 until Oct. 31, 2016."

Read more: The Grilled Cheese Truck raising up to $5M in general-solicitation offering - The Deal Pipeline http://www.thedeal.com/content/consumer-retail/the-grilled-cheese-truck-inc.php.";

"The offering began in October and has so far raised $815,000 with 652,000 units to 28 accredited investors, the company said in the March 14 SEC filing.

"I-Bankers Securities Inc. is acting as placement agent. It will receive a fee equal to 10% of the gross proceeds raised in the offering, a $10,000 retainer and four-year warrants for up to 10% of the shares sold."

Read more:
http://www.thedeal.com/content/consumer-retail/the-grilled-cheese-truck-inc.php

Expect big dumpage!

[bar1080]

GRLD, coming down hard!

[bar1080]

The truth about franchising and how it affects GRLD stock.

[Professor] "Bates' Research Underscores Three Harsh Realities:

1.Many franchisees never make much money. Average profitability is poor, especially after taking into account the purchase price of the franchise. So take the hype used to sell franchises with a big pinch of salt!

2."Studies" used to sell franchises are paid for by the franchisors. Don't mistake the information provided for balanced consumer guide information. It's a carefully engineered sales pitch. Getting hold of the information you need to make a rational buying decision is difficult, to say the least. So use your common sense and a healthy dose of cynical discretion.

3.Franchise agreements always favor the franchisor. It is very easy to be swept away in the heat of the moment and get into a binding contract that is not in your best long term interests. And it is very hard to get out of a franchise agreement without taking a big financial loss. Remember, the main purpose of franchising is to make the franchisor wealthy. So be careful."

That full story can be found here:
http://www.moyak.com/papers/franchising-failures.html


Consider the above in deciding whether to invest in GRLD or in one of its franchises.

[bar1080]

Hi Zeke. I'm mostly a penny stock basher, (and, yes, sometimes a franchise basher). Scams in both abound, with some overlap. GRLD seems to combine the worst elements of both while targeting veterans. I have no inside info about the company, but, offhand, it reeks in so many ways!

The Company seeks to franchise its Gourmet Grilled
Cheese Trucks operations and intends to principally
offer the first 100 franchised grilled cheese
trucks to Veterans, having invested significant time
and resources over the last 2 years to develop a
business model that provides jobs, business opportunities
and support for Veterans.
http://finance.yahoo.com/news/grilled-cheese-truck-inc-announces-130000266.html

Lucky vets, eh. Running a food truck is a stinkin' job involving incredible hours standing in a tiny hot kitchen for minuscule pay. The dropout rate is high for food trucks operators. Any why would anyone need to BUY a franchise to make toasted cheese? They say they're "offering" the franchises to vets, but I presume they're charging plenty for them, while perhaps loading the vets with debt. And what's General Clark's angle here? His compensation is outlandish, unless he has some extraordinary toasted cheese credentials!

You might look at research on franchise failure rates done by Professor Timothy Bates of Wayne State.
http://www.moyak.com/papers/franchising-failures.html

My own investments are all quality blue chips, so I most certainly haven't owned or traded GRLD. Notice how GRLD's been plummeting lately? Wonder too how many veterans groups bought stock previously?

[zfaux]

GRLD Investors Wanted for Bloomberg News story!

I'm writing a story about GRLD for Bloomberg News. If you ever traded the stock, I would like to interview you. Please message me.

Thanks, Zeke D. Faux

[RealAgent99]

Current press release from The Grilled Cheese Truck.

http://ir.thegrilledcheesetruck.com/press-releases/detail/144/the-grilled-cheese-truck-inc-and-the-orange-county-rescue-mission-to-combine-efforts-to-support-veterans

[bar1080]

But latest 10-Q says: "We generated revenue from retail sales through nine company operated food trucks and two trucks operated by third-party licensees. We added five (5) Company trucks and one (1) licensed truck in the fourth quarter of 2013 and have maintained this level during the first nine-months of 2014. We have also finalize an area licensing arrangement during the third quarter of 2014. All trucks are rented or leased.

For our company operated trucks, we receive 100% of reported revenue and bear all associated costs. On licensed trucks, we collect 6% of gross revenue of the third-party licensees. We intend to expand and generate revenue from additional company trucks, company stores, third-party license agreements at airports, stadiums, malls and other locations, as well as franchise revenues, to consist primarily of royalties based on a percentage of sales reported by franchise revenue and franchise fees paid by franchisees, as well as the development of Company operated and the acquisition of grilled cheese stores. However, we cannot provide any assurance or guarantee that we will be able to implement our expansion of food trucks and stores or collect any royalties based on a percentage of sales reported by licensees or franchisees."

[GerBear]

They have 4 trucks. Not 9. That's for real.

[bar1080]

The real story: Trading only totaled about $150,000 in GRLD stock for first 20 days. That's trivial considering the publicity.

The press doesn't understand that there was no IPO and no one paid over $100,000,000 for a few food trucks (does anyone know the precise number of trucks?) and a brain-dead business plan. Investors aren't idiots, although penny stock players are often addicted gamblers.

Note too that GRLD shares quickly plummeted from $6 to $3.50. So IF GRLD was worth >$100 Mill 20 days ago, its value has dropped $40 million. I have little doubt shares will continue to fall.

This is a fun story that involves several silly fads and a lot of bad reporting

[bar1080]

CNBC: "A money-losing food truck business with ties to retired Gen. Wesley Clark recently filed with the U.S. Securities and Exchange Commission to register shares worth $33.8 million."

"Last year, Clark received total compensation, including cash and warrants, valued at $472,000 from the company. Of this, Clark received $213,333 from The Grilled Cheese Company in consulting compensation, including $100,000 in cash.

The filing comes as The Grilled Cheese Truck has racked up $6.8 million in net losses in its last two fiscal years while only generating $3.3 million in revenue. Its accountants have questioned its ability to continue as a "going concern."

Read the story and the comments. This isn't fooling anyone:
http://www.cnbc.com/id/101774653

[Green Money 00]

thank you for the great DD. i had not noticed that

[Green Money 00]

i doubt the food truck fad has died. i frequent NY and know a few food truck owners. im amazed at the upgrades that have went oon over the years to these trucks. in NYC you see these types of trucks at many corners and many with lines.. just like the Halal food carts or bagel carts.. once you get a good following people will come.

i bought a few as a lotto so far own 1000 shares.. will be adding slowly and see how this looks in 1 year.. everything is a gamble

[bar1080]

IPO??? There was no IPO. Just a reverse merger:

"1. Nature of Business

TRIG Acquisition 1, Inc. (the “Company”) was incorporated in the State of Nevada on December 31, 2009 as GSP-1, Inc. The Company was formed as a vehicle to pursue a business combination. On July 6, 2011, the Company filed a Certificate of Amendment to its Articles of Incorporation to change its name from “GSP-1, Inc.” to “TRIG Acquisition 1, Inc.”

On October 18, 2012, the Company entered into a share exchange agreement (the “Exchange Agreement”) by and among (i) the Company, (ii) Grilled Cheese, Inc., a California corporation, (“Grilled Cheese”), (iii) GCT, Inc., a Nevada corporation and wholly-owned subsidiary of the Company (“GCT Sub”); (iv) David Danhi, the majority shareholder of Grilled Cheese (“Majority Shareholder”) and (v) Michelle Grant, the minority shareholder of Grilled Cheese (“Minority Shareholder”, together with the Majority Shareholder, the “Grilled Cheese Shareholders”). Pursuant to the terms of the Exchange Agreement: (1) the Majority Shareholder transferred to GCT Sub all of the shares of Grilled Cheese held by such shareholder in exchange for the issuance of 4,275,000 shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”); and (2) the Minority Shareholder transferred all of the shares of Grilled Cheese held by the Minority Shareholder in exchange for $500,000 and 845,000 shares of Common Stock (the “Share Exchange Transaction”).


The Share Exchange Transaction has been accounted for as a reverse acquisition of the Company, by Grilled Cheese but in substance as a capital transaction, rather than a business combination since the Company had nominal operations and assets prior to and as of the closing of the Share Exchange Transaction. The former stockholders of Grilled Cheese represent a significant constituency of the Company’s voting power immediately following the Share Exchange Transaction and Grilled Cheese’s management assumed operational, financial and governance control. The transaction is deemed a reverse recapitalization and the accounting is similar to that resulting from a reverse acquisition.

For accounting purposes, Grilled Cheese is treated as the surviving entity and accounting acquirer in accordance with ASC 805, Business Combinations although the Company was the legal acquirer. Accordingly, the Company’s historical financial statements are those of Grilled Cheese. The accumulated losses of Grilled Cheese were carried forward after the completion of the Share Exchange Transaction.

All reference to Common Stock and per share amounts have been restated to effect the Share Exchange Transaction which occurred on October 18, 2012.

On February 19, 2013, following the Share Exchange Transaction, the Company changed its corporate name from “TRIG Acquisition 1, Inc.” to “The Grilled Cheese Truck, Inc.”

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=10317556

[bar1080]

Recent 10-Q For the quarterly period ended September 30, 2014

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=10317556

[bar1080]

Recent full Form 10K/A. Especially note:

"2. Going Concern and Basis of Presentation

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities in the normal course of business. The business will require significant amounts of capital to sustain operations and make the investments it needs to execute its longer term business plan. The Company has cash of $42,359 and negative net working capital of $2,192,022 at December 31, 2013. The Company’s cash and working capital amounts were derived from the proceeds of financing transactions in which it raised proceeds of $1,650,000 in 2012 and $2,144,000 in 2013 through the issuance of notes, convertible notes and common stock purchase warrants. The Company’s net loss for the year ended December 31, 2013 was $5,612,919 and the deficit accumulated by the Company amounts to $7,916,778 as of December 31, 2013. These matters raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern."

F - 6

In order to continue as a going concern and achieve a profitable level of operations, the Company will need, among other things, additional capital resources. Management’s plan to continue as a going concern includes raising capital through increased sales and conducting additional financings through debt and equity transactions. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. The ability of the Company to continue as a going concern is dependent upon the management’s ability to successfully implement the plans described above, including securing additional sources of financing and attain profitable operations. Management also cannot provide any assurance that unforeseen circumstances that could occur at anytime within the next twelve months or thereafter will not increase the need for the Company to raise additional capital on an immediate basis. The Company is actively targeting sources of additional financing through debt and equity transactions and other transactions as described in Note 18. There can be no assurance that we will be able to continue to raise funds in which case the Company may be unable to meet its obligations.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9985780

[bar1080]

GRLD chart will give heartburn. I'm guessing that little of the early trading is for real. Volume is microscopic. But notice the dump corresponding with most posting here... around Feb 9 thru Feb 11.

[bar1080]

The food truck fad died about two years ago. Used food trucks litter eBay and Craigslist. A nice basic low mileage one will go for about $20,000. Then you'll need about $100 worth of cheese. LOLOL!

For example: http://www.ebay.com/bhp/used-food-truck

Ebay even sells grilled cheese logos for $13 to stick all over your truck.

[Green Money 00]

Thankyou and i agree food trucks are a Rage

[Hennypennyaz]

Will post a photo as soon as The Grilled Cheese Truck comes back to my kids high school. I think they are coming to my kids school again sometime this or next month. Its a favorite! Food trucks are the rage here in AZ.
GRLD

[Green Money 00]

glad to hear.. next time u go take some pictures if you can

[Hennypennyaz]

I have eaten at the truck and the truck has been to my kids school as well! They are awesome!!

[Green Money 00]

things like this takes time as they roll out..

[todcia]

Rampant IPO insanity.

GRLD - $100m for 3-4 food trucks.
SHAK - $1.5B for a burger shack.

Schiff tore it up.

By the way, GRLD opened today in my city, but I never heard about it and I am unable to even test the food. It was only open for 2 hours. That says it all.

[Quaaflac]

It made ZH !
http://www.zerohedge.com/news/2015-02-09/bubble-meet-25-million-grilled-cheese-truck

[Green Money 00]

lol

[NathanH]

Its about the business model very simple and no one else is doing it who doesnt love grilled cheese? This should be at 1 billion market cap.

[protagonist12]

$100M market cap for 4 grilled cheese trucks? Haha this is worse than Shake Shack!

[Green Money 00]

CORRECTION - The Grilled Cheese Truck, Inc. Announces Commencement of Trading on the OTCQB(R) Marketplace as GRLD
Marketwired
The Grilled Cheese Truck, Inc. February 6, 2015 2:44 PM

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FT. LAUDERDALE, FL--(Marketwired - February 06, 2015) - This press release is being issued to correct the press release issued on January 28, 2015 to reference that The Grilled Cheese Truck, Inc. commenced trading on the OTCQB® Marketplace, not the OTCQX. The corrective press release is as follows:

The Grilled Cheese Truck Inc. (The Company) (GRLD) announced that its common shares commenced trading on the OTCQB® marketplace in the U.S. under the ticker GRLD.

Trading of GRLD shares on the OTCQB is designed to provide current and future shareholders with greater access to and ease of trading in The Grilled Cheese Truck Inc. Investors can find current financial disclosures and Real-Time Level 2 quotes for The Grilled Cheese Truck Inc., on www.otcmarkets.com. Financial disclosure and other information about the Company are also available at www.thegrilledcheesetruck.com, http://ir.thegrilledcheesetruck.com and www.sec.gov.

"We are pleased to commence the trading of our common stock on the OTCQB as a crucial step in the progression of our business model," said Al Hodges, CEO of The Grilled Cheese Truck Inc. "The OTCQB is a world class marketplace that enables our current and future investors to access real-time price and trading information for the common shares of our stock and facilitates the appropriate visibility in the investment community," he added.

About OTCQB
The OTCQB® venture stage marketplace offers investors transparent trading in early stage and developing U.S. and international companies. To be eligible, companies must be current in their reporting and must undergo a new annual verification and management certification process. Company Benefits on OTCQB include improved investor confidence through verified information, confirming the Company Profile displayed on www.otcmarkets.com is current and complete and providing additional information on officers, directors, and controlling shareholders, greater information availability for investors through the OTC Disclosure & News Service and transparent prices for investors through full-depth of book with Real Time Level 2 quotes.

About The Grilled Cheese Truck Inc.

The Grilled Cheese Truck, Inc. is an American entrepreneurial "emerging growth" company with a brand and menu that is widely followed throughout the nation within the Gourmet Food Truck Space. The company currently operates and licenses grilled cheese food trucks in the Los Angeles, CA area and Phoenix, AZ and is expanding into additional markets with the goal of becoming the largest operator in the gourmet grilled cheese space. The Company is pursuing major "gates" of revenue (stadiums, universities, festivals, motorsports, action sports, team sports, large outdoor events/concerts, large churches, schools, major employers, government offices, etc.) while building significant market share in the gourmet food truck industry. The company and brand maintain a growing following of customers, social media followers, and general media attention all attracted to The Grilled Cheese Truck's position in the rapidly growing industry. The Company is among the first movers in consolidating the Gourmet Grilled Cheese restaurant space with an aggressive strategic growth plan that includes significant and accretive acquisitions. Management has extensive experience and success in managing and growing large QSR companies. The Company seeks to franchise its Gourmet Grilled Cheese Trucks operations and intends to principally offer the first 100 franchised grilled cheese trucks to Veterans, having invested significant time and resources over the last 2 years to develop a business model that provides jobs, business opportunities and support for Veterans.

Forward-Looking Statements

Statements in this press release and of the management or representatives of The Grilled Cheese Truck, Inc. (the "Company") in connection therewith that relate to beliefs, plans, objectives, goals, expectations, anticipations, intentions and future financial condition, results of operations or business performance constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on management's current expectations about future events. These statements can be identified by the fact that they do not relate strictly to historical or current facts, and by words such as "may," "could," "should," "would," "believe," "expect," "project," "anticipate," "estimate," "intend," "plan" or other similar words or expressions. Any or all of the forward-looking statements in this press release may turn out to be inaccurate or wrong. This can occur as a result of inaccurate assumptions or as a consequence of significant known or unknown risks and uncertainties. The Company addresses these risks in the "Risk Factors" section of its filings with the SEC. Because of these risks and uncertainties, the Company's actual results may differ materially from those that might be anticipated from its forward-looking statements. Therefore, you are cautioned not to place undue reliance on such forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Contact:
Corporate

The Grilled Cheese Truck Inc.
Peter Goldstein
Director, President, Interim Chief Financial Officer
[e-mail]
323-786-3163

Investor Relations:
CorProminence LLC
Scott Gordon
President
(O) 516-222-2560
[e-mail]