Would you like some stock with that?Would you like some stock with that?

This post is part of the On the Margin blog.

Imagine going to a restaurant and getting a menu -- and a prospectus.

That could happen, at least in theory, under a relatively new way for companies to go public known as Regulation A . It's sometimes known as a “mini-IPO” because that’s what they are: Smaller companies raising smaller amounts, often from their own customers. 

Over the past few weeks, three growth chains have announced plans to explore mini-IPOs: Bobby’s Burger Palace, Fatburger owner Fat Brands, and the movie theater/casual-dining concept iPic Entertainment.

The mini-IPO is designed to improve the fundraising prospects for smaller companies that have been left out of the traditional IPO market, while giving individual “retail” ...