Frequently Asked Questions
Frederic Grocery Cooperative has an overall project goal of $900,000 to support the purchase of the grocery store, renovations, equipment, and the capital needed to build a strong and sustainable community-owned grocery store.
Our immediate goal is to raise $300,000 by December 31 as we prepare to take ownership at the beginning of the year.
Preferred stock gives eligible community members an opportunity to invest directly in that future.
Frequently Asked Questions
What is preferred stock?
Preferred stock is an investment in Frederic Grocery Cooperative. By purchasing preferred stock, you provide capital that the cooperative can use to support the purchase and transition of the store, operations, improvements, equipment, and other needs as we build the business.
Preferred stock is separate from your regular member-owner share.
Is preferred stock the same as becoming a member-owner?
No. A member-owner purchases a $100 membership share, which provides membership and voting rights in the cooperative.
Preferred stock is an additional financial investment. Purchasing preferred stock does not provide additional voting power in the cooperative.
How much do I need to invest?
We have investment options beginning at $100, as well as options beginning at $1,000. Investments can be structured in $100 increments, allowing investors to choose an amount that works for them.
Please review the Offering Circular for the specific classes of preferred stock available and the terms associated with each.
Do I have to be a member-owner to invest?
Please review the eligibility requirements in the current Offering Circular and Investor Questionnaire. If you're not currently a member-owner but are interested in investing, contact us and we'll help you understand the options available to you.
Who can invest?
Our current preferred stock offering is available to eligible Wisconsin residents.
If you live outside Wisconsin and are interested in investing, please let us know. We are exploring additional opportunities for out-of-state supporters in the future.
What return will I receive on my investment?
The preferred stock offering includes a 3% target annual dividend, subject to the terms and conditions described in the Offering Circular.
Dividends are not guaranteed. Investors should review the Offering Circular carefully to understand how dividends are determined and paid.
Will I eventually get my original investment back?
Preferred stock is intended to be a long-term investment in the cooperative. Redemption or repayment is governed by the terms described in the Offering Circular and is not guaranteed.
Investors should not invest money they may need returned within a specific period of time.
Is my investment guaranteed?
No. Preferred stock is an investment and involves risk.
If the cooperative were ultimately unsuccessful, investors could lose some or all of their investment. Purchasing preferred stock does not create personal responsibility for the cooperative's debts simply because you are an investor.
Please read the Offering Circular carefully, including its discussion of risks, before investing.
What happens if the cooperative doesn't purchase the grocery store?
If Frederic Grocery Cooperative does not complete the purchase of the grocery store, the money raised will be returned to investors and member-owners.
Once the cooperative completes the purchase and begins operating the store, those funds will be invested in the business and the risk changes. If the cooperative were later unsuccessful, repayment of preferred stock investments would not be guaranteed, and investors could lose some or all of their investment.
As with any investment, we encourage you to carefully review the Offering Circular and its discussion of risks before investing.
What will my investment be used for?
Our overall project goal is $900,000, which includes the purchase of the store, renovations, equipment, and capital needed to support the cooperative's future.
Right now, our immediate goal is to raise $300,000 by December 31 so we can enter ownership in a strong position, support the transition, maintain operations, and begin priority improvements.
Why does the cooperative need community investment?
Buying the store is only one part of this project.
A grocery store requires significant working capital for inventory, payroll, utilities, insurance, equipment, vendors, maintenance, and day-to-day operations. Our approximately 100-year-old building also needs continued investment.
Raising capital now gives the cooperative greater flexibility and a stronger financial foundation as we begin ownership.
What if I can't make a large investment?
You do not need to invest thousands of dollars to participate.
Investment opportunities begin at $100, and every investment contributes toward our capital goal. We want people to participate at a level that makes sense for their own financial circumstances.
And investing isn't the only way to help. Donations, memberships, sharing information about the cooperative, and connecting us with potential supporters all make a difference.
How do I invest?
Start by reviewing the Offering Circular, which explains the preferred stock offering and its terms.
Eligible investors will also need to complete the Investor Questionnaire and Subscription Agreement.
The Board Resolutions and Articles of Incorporation are also available on this page for review.
If you have questions before completing the documents, please contact us. We're happy to set up a time to talk through the process.
Before You Invest
This FAQ is intended to provide a plain-language overview of the preferred stock opportunity and is not a substitute for the official offering documents.
Please review the Offering Circular, Investor Questionnaire, Subscription Agreement, Board Resolutions, and Articles of Incorporation before making an investment decision. The terms contained in the official offering documents control.
Have questions? Reach out to us and we'll set up a time to talk.