Yeah, not so good Pitbull.
You're investing in what is essentially a cashless subsidiary, from what I can tell. Not Giggles n Hugs (the parent corporation).
What happens if the restaurant never opens? Any claims you have to recover your money will be against a shell LLC entity.
Whether Joey can transfer/use funds raised through a subsidiary LLC to pay expenses at the corporate level is debatable. I think with his track record it wouldn't be too difficult to convince a court that he never intended to open the third location, which could constitute fraudulent conveyance, and would allow you to possibly pierce the corporate veil and go after his personal assets (and maybe those of the other officers). I highly doubt Joey has D&L insurance but if he does, you'd go for that, first.
Look, maybe this turns out to be the best investment in the world and it's an easy 250% return. I hope that's the case. And if you're doing it to help out the rest of the shareholders, they should all be very appreciative. All I am saying is that Joey's actions, including recently (and for no apparent reason) lowering the amount needed, raises questions that he doesn't feel comfortable answering for the time being.
The WeFunder Q&A has comments that specifically ask if he will guarantee, in writing, whether any funds raised will be used exclusively for a new restaurant. He has yet to reply.
AI
