Disclosure NewswireTMiCrowdNewswire - Aug 22, 2016
Salon de Lingerie is a groundbreaking, world-class global franchise business model in development.
Salon de Lingerie is a next-generation restaurant concept incorporating the diverse elements of private label retail luxury lingerie, an upscale restaurant, and a high-end lounge experience in a technologically advanced environment.
The very nature of the Salon concept lends itself to high-impact public relations and social media visibility, serving to drive traffic, revenues, and global brand awareness – all for the purpose of building our global franchise business.
I’d like to welcome you to the world of Salon de Lingerie.
Demi-couture lingerie modeled by stunningly beautiful, exquisitely styled servers, bartenders and DJs. Hand crafted cocktails. Curated champagne selections. Creative cuisine. Luxury boutique shopping. And the extraordinary, ground-floor potential of an emerging-growth company. Salon de Lingerie brings these and more together in a state-of-the-art, high energy environment with great music and ambiance.
The Salon’s management team, comprised of accomplished financial professionals and dynamic, fashion-forward and culinary-minded creatives, has invested significant time and capital to deliver the unforgettable experience of a Fashion Week event every single night. Our vision is intended to capture the next generation of progressive aesthetics, cutting-edge fashion, outstanding financial metrics, and solid returns for our franchisees and investors alike.
We’ve planned for the Salon de Lingerie global franchise business model to be highly scalable and international in its potential audience, with a well-engineered, low-cost structure and sophisticated products supporting higher-than-average margins. With its buzz-worthy nature, Salon de Lingerie is a natural fit for high-impact public relations visibility, driving traffic, revenues, and the effective marketing of franchises.
Finally, for those who are contemplating an investment in Salon de Lingerie, we anticipate that our investors will benefit from our hard work, experience, vision, and proven operational know-how.
Thank you for taking a moment review our offering – I look forward to having you as a fellow investor.
Alfonso J. Cervantes, CEO
Salon de Lingerie’s Revenue Participation Notes
Salon de Lingerie is issuing corporate notes bearing 12.5% annual interest but has added a feature of “revenue participation” whereby the investor can receive a percentage of the sales (which is based on 6%, in the aggregate, of gross revenue assuming the sale of $1,000,000 of notes either through this offering or through a separate offering where each $250 in principal amount of note provides a 0.0015% participation) if that percentage is greater than the 12.5% annual interest. If our revenues grow, the Salon revenue participation payments increase. For example, if an investor buys a note having an outstanding principal amount of $100,000, the revenue percentage would be 0.6%.
Why consider a Revenue Participation Note?
In the case of many startups, a company issues equity in the form of common stock. If the company never goes public or the management never sells the company, the investor may not see a return on their investment. In the case of the Salon Revenue Participation Notes, the investor gets what Salon management believes to be a higher than market annual interest rate (12.5%) while we build the company. If we are successful in substantially increasing revenues, each note holder can see returns higher than the 12.5%, something which might not happen as an equity investor. In the case of the Salon Revenue Participation Note, the investor receives the greater of 0.002% of revenue or 12.5% annual interest for each $500 note. In the case of the Salon de Lingerie Revenue Participation Notes, the interest or participation is paid annually based on an annual audit by a third party accounting firm which will issue audited financial statements to all investors.
We expect the Salon to be comprised of two distinct areas: the main bar and seating area, reached when one enters the Salon from the street, and the “Showroom,” reached when one enters the back of the main area of the Salon. The Showroom is essentially a micro version of a Victoria’s Secret or Agent Provocateur retail store, but with leather couches and large easy chairs where customers will be able to enjoy the same food and libations as the “front of the house” while perusing the wall displays of lingerie apparel with a champagne in hand or waiting for a partner who is trying on lingerie in one of the several dressing rooms.
The Salon will be launched with high-end “retail” visibility—that is, large glass windows that draw in prospective customers. Attractive people, great music, and high-impact theatrical lighting will make this a compelling and unique experience and visually accessible from the street. The strong street visibility will be a major component of Salon de Lingerie’s marketability.
Salon de Lingerie will essentially have three primary products:
- Private-label high-end lingerie
- Food in the form of high-margin gourmet small plates
- Liquor with an emphasis on high-margin craft cocktails, premium wines, and champagne
Private Label Lingerie
All lingerie products will be 100% proprietary and will be labeled Salon de Lingerie. While we expect that the look and feel of the lingerie will be high-end luxury with correspondingly higher price points, we intend that all products will be private labeled from a U.S.-based manufacturer. We intend to appeal to our customers’ desire for uniqueness and quality craftsmanship which we believe will be reflected in the handwork and craftsmanship involved from hand-embellished crystals and quality fabrics to accessories and packaging reflecting the demi-couture nature of our future exclusive products.
Our focus will be on premium wines, champagne, and craft cocktails with fresh ingredients, homemade mixers, and premium liquors. Margins can be substantial with the end result being the creation of premium libations with high retail price points.
While Salon de Lingerie’s food offerings will not be labeled as tapas or dim sum, the concept is similar. The Salon will serve high-end gourmet smaller portion edibles or small plates.
Every table at the Salon will have an iPad-type tablet that is always online. Our guests will be able to browse the drinks and food selection as well as order lingerie items, either those in stock or those available online at the Salon’s internet storefront.
Brands have personalities. We believe that the upscale fun and “sexy” personality of Salon de Lingerie is defined, programmed and utterly unique in the world of food and drink, and that our brand promise is a sophisticated, upscale and exciting experience. In fact, we don’t merely want to be considered the best of the best – we want to be considered the only one that does what we do. As the “only,” we become a sole-source provider with a unique brand and can dominate an international market with an early-mover advantage.
The Salon’s “uniforms” will be the very product that the Company sells. The servers will effectively be the “demo models” who model lingerie available to our customers on a real-time basis. From elegant corsets to garter belt and stockings, the customer will simply have to ask the server or tap on the screen for his/her selections. The servers and employees will be the ambassadors of the brand. The uniform is an extension of the brand of our overall restaurant design process.
We intend to launch our first property in the fourth quarter of 2016 in Miami. This property will serve as our “beta launch” or prototype, which we expect will not only generate profit, but also validate the concept for a world-wide franchising strategy targeting the top 50 global markets, including New York (the Meat Packing District), Los Angeles (West Hollywood or Beverly Hills), London (Mayfair), Paris (Montparnasse), Las Vegas, Berlin, Hong Kong (Central), Madrid (the Art District), Moscow (Tretyakovsky Proezd) and other capital markets.
The essence of any successful franchise business model is the marketability of the right to use its brand. In our case, we expect that the franchisee will pay one-time franchise fee plus a percentage of sales revenue as royalty. We believe that as we begin to launch various franchise locations, the Salon franchisee will gain immediate name recognition, a tried and tested concept, standard space design and design décor protocols, detailed systems and strategies for strategically marketing the business, training of employees, and ongoing support from the franchisor in promoting and upgrading of the products. We expect that we will be able to offer to the Salon franchisee the ability to gain the ability to expand business and earnings with a relatively low amount of capital outlay. As the franchisor, we benefit through a one-time payment for the rights, an on-going royalty and the sale of the Salon’s private label apparel at a reduced price point. While the financial data points are still being developed, management anticipates the following:
- One time franchise fee: $100,000 to $200,000
- Royalty fee: 5% of gross revenues
- Apparel sales at a price point to the franchisee between cost and 50% of retail.
From an investor’s perspective, we believe that the maximum return to be generated by the Salon is through franchising the concept internationally, thereby opening new markets while commercially capitalizing on the existing awareness of the Salon de Lingerie brand.
Comparable Franchisor Metrics
We expect that our costs on a per-square-foot basis will be similar to those of a fast-casual concept pop-up rather than a fine dining restaurant, but we expect to generate a higher than average revenue-per-square-foot. Our capital expenditure is expected to essentially “plug and play”— that is, we will move in, plug in the refrigeration and convection ovens (which require no venting or special wiring, thus eliminating numerous issues around permitting), modify existing non-bearing walls, install lighting, sound systems, clothing fixtures, tables and a bar, and commence the generation of revenue with shortened time frames and minimal capital investment in infrastructure. While that description may sound overly simplistic, it is the threshold philosophy of Salon de Lingerie.
Salon de Lingerie will employ two significant food and food preparation strategies. First, we anticipate that we will not have a full service kitchen. That is to say there will be no full time chef or sous chef. Our objective will be to have the bulk of all food offerings prepared off-premises by a high- end commercial kitchen and will generally be delivered to the Salon on the day of preparation, where they will be refrigerated until ordered. In the quick-serve restaurant world, new technologies allow for rapid heating and cooking (where required) in a highly efficient and non-invasive manner. These technologies are not traditional residential microwaves. Companies such as Subway and Starbucks as well as higher-end elegant cuisine facilities rely on a brand of products called TurboChef, which is one of the brands that we expect to utilize. The ability to deliver high-end quality food which has not been prepared on-premises is, in part, technology-driven.
Alfonso J. Cervantes is the Chief Executive Officer of the Company and he has held that position since the Company’s inception on October 15, 2015. Mr. Cervantes is also the Chief Executive Officer and President of Trilogy, the private equity firm that is the sole member of the issuer, and has held that position since July 2014.
From 2002 to July 2014, Mr. Cervantes was the Chairman and Chief Executive Officer of Trilogy Capital Partners, Inc., a financial services group and predecessor of Trilogy. His significant capital markets experience includes mergers and acquisitions, initial public offerings, alternative public offerings, private investments in public equities, or PIPEs, and bridge financings as well as strategic communications and reorganization of middle-market companies.
Both as a principal and as a financial services professional, Mr. Cervantes has facilitated a significant number of corporate finance transactions. Most recently, in 2012, through Trilogy Capital Partners, Inc., he founded Staffing 360 Solutions, Inc. (Nasdaq: STAF), an emerging-growth public company engaged in the provision of temporary staffing services on a global basis. As the company’s Vice Chairman and President, in a period of five quarters, Mr. Cervantes completed five acquisitions, facilitated approximately $25 million of debt and equity financing, and drove Staffing 360 from a pure start-up to over $130 million in annualized revenues with approximately 3,000 employees. In addition, Mr. Cervantes, through Trilogy Capital Partners, Inc., was a co-founder of The Grilled Cheese Truck, Inc. (OTCQB: GRLD), the first national rollout of gourmet food truck operations.
In addition to the above, Mr. Cervantes, in his diversified career, has significant production experience, which is relevant to the development and launch of Salon de Lingerie. Included in that experience is his tenure in the 1980s as Chairman and Chief Executive Officer of Mediacom Industries, Inc., a Los Angeles–based film and television production company. Mr. Cervantes served as Executive Producer to a number of feature films including Blueberry Hill, which was released through MGM, starring Matt Latanzi, Margaret Avery, Jennifer Rubin and Shadows in the Storm starring Ned Beatty, Michael Madsen and Mia Sara, now owned by Lions Gate. Prior to Mediacom, Mr. Cervantes was the Founder and Chairman of CM Records Corporation d/b/a Butterfly Music, an international music company distributed by MCA Universal in the United States and principally EMI Music internationally. The Butterfly catalogue was sold to Warner Music in 1988.
Early in his career, Mr. Cervantes created a St. Louis (his native city) theme-based restaurant called The Maryland Plaza Screening Room, marrying an upscale “private screening room experience” to high-end restaurant offerings. Mr. Cervantes also managed several music venues in St. Louis in his early 20s.
Bojan Didic is the President of our company and he has held that position since June 10, 2016. Mr. Didic is a seasoned hospitality executive who brings to our company a career dedicated exclusively to the highest standards in the hospitality industry. In 2016, Mr. Didic joined Trilogy Capital Group, LLC, a Miami-based private equity group and sole member of our company, as a marketing consultant working with Trilogy’s CEO, A.J. Cervantes, developing the global franchise concept that is the Salon today. On June 10, 2016, Mr. Didic was named President and General Manager of our company.
Prior to Trilogy, Mr. Didic was a senior officer at Mr. Chow Enterprises, an international restaurant group where he began his American restaurant career in 2007. Mr. Didic was a key member of the 2009 launch of the Mr. Chow operation at the W Hotel in Miami Beach. Prior to Mr. Chow Enterprises from 2002 to 2007, Mr. Didic served as a Sommelier for the prestigious Cunard Cruise Lines. In 2001 and 2002, he was a Maître D’ with the Norwegian Cruise Lines.
Mr. Didic is a graduate from the Wine & Sprit Education Trust of London and received a Bachelor’s degree from the Institute of Hotel Management Belgrade in Hospitality Administration/Management. Mr. Didic is fluent in three languages.
Ronald Scott is the Chief Financial Officer of our company and he has held that position since our company’s inception on October 15, 2015. Mr. Scott is a forward-thinking senior level finance executive and leader with over thirty years of experience and a track record of building and directing best-in-class corporate finance organizations. Mr. Scott’s expertise includes corporate finance, management, corporate reorganizations, cost reduction and avoidance, financial analysis and reporting, IPO management, financial and contract negotiations, ISO 9000 Quality Systems, SEC reporting and compliance.
From 2006 to 2016, Ron served as Chief Financial Officer and Director of Luvu Brands, Inc., a manufacturer and e-marketer of consumer products for the wellness, lifestyle and fashion seating markets. From 2004 to 2009, Mr. Scott was president of Impact Business Solutions, LLC, a consulting business that provided financial management services to small and medium sized public and private companies. Prior to Impact Business Solutions, and from 1990 to 2004, Mr. Scott was Executive Vice President – Finance and Administration and a member of the Board of Directors for Cyanotech Corporation, a Nasdaq-listed natural products company. Mr. Scott holds a B.S. degree in Finance and Management from San Jose State University and an M.B.A. degree with a concentration in Accounting from Santa Clara University. Mr. Scott has relevant operating experience with emerging growth companies and an in-depth understanding of generally accepted accounting principles, financial statements and SEC reporting requirements.
Cristina Reaboi is the principal designer for Salon de Lingerie’s line of luxury lingerie. Ms. Reaboi has extensive experience in the fashion industry with a range of skills including concept development, raw material selection and buying, sketching, pattern-making and sewing. She is experienced with research, sourcing and the identification of current trends in global and local markets. She also has all-encompassing experience with multiple new product launches.
Prior to joining Trilogy Capital as part of the launch team for the Salon, Ms. Reaboi was an Assistant Designer at Fleur du Mal in New York, a luxury lingerie company. At Fleur du Mal she executed research for upcoming seasons, built the company’s sample room, worked on fabric sourcing and utilized her sketching skills for new creations. Prior to Fleur du Mal, Ms. Reaboi was employed by Harvey Faircloth, New York as an Assistant Designer and Assistant Production Manager. In that capacity she reviewed sample prototypes, analyzed all pre-production samples to meet all company requirements, prepared fit samples and assisted pattern makers. Ms. Reaboi started her career with Art of Shade, a Fort Lauderdale-based couturier design house where she served as a Fashion Designer Assistant and had broad responsibilities ranging from original design, styling to preparing models for runway shows. Her “eco” creation was featured in BG Magazine on Eco-Couture.
Ms. Reaboi received her BA from the College of Fine Arts in Moldova where she majored in Fashion Design with a minor in Painting.
Chef David Danhi is an award winning culinary professional. Most recently, Chef Danhi was the Founder and Chef for The Grilled Cheese Truck, the first publicly held gourmet food truck in the United States (OTC: GRLD). Chef Danhi currently works as a consulting chef for a number of early stage and mature restaurants and food operations. He is also President of DD Factor, a hospitality recruiting company that he bought in 2005. A resident of Los Angeles since 1959, Chef Danhi has been an integral part of recruiting restaurant management, principally for Southern California.
Chef Danhi’s culinary career has been highlighted with such work experience as Company Executive Chef at Kings Seafood Company, a prestigious steak house concept in Los Angeles, Opening Chef at Habana Restaurant in Costa Mesa, California, a Nuevo Latino restaurant with a Cuban flair that received best new restaurant in Orange County in 1995, and Executive Chef at the now Michelin starred Water Grill, a critically acclaimed seafood restaurant in Los Angeles. Chef Danhi was also the Executive Chef at the prominent Roxbury Supper Club in Hollywood. In addition, Chef Danhi held the Executive Chef position at Georgia restaurant, also in Hollywood. At Georgia, Chef Danhi received accolades including the Robert Mondovi Award of Culinary Excellence (naming him one of the country’ stop rising star chefs in 1994), Best Restaurant of the Year in 1993 by numerous magazines including Bon Appétit, Esquire and Travel and Leisure, and best crab cakes in Los Angeles two years in a row. With the launch of Salon de Lingerie, Chef Danhi brings his special culinary skills to the Miami market.