Use legal, organizational and technological leverage to move your franchisor

Multiply your efforts by using the laws of our society intelligently.

Accelerating Relationship Leverage

A private for-profit corporation (anonymous franchisee shareholders) AND a 100% locked-down, franchise law-specific indexed document database (wiki) pivoting WITH a highly public attorneyless franchise network.

Benefits

• solves the information and resource imbalance endemic in franchising,
• takes less than 3.0 per cent of franchisees needed to start as shareholders,
• valuation of for-profit calculated annually (franchisees will clamour for 0.1% share in 5 years),
• allows innovators and early adopters to carry at first,
• focuses attention on a single, credible voice for franchisees that is respected because it is in the franchisor’s  self-interest to do so,
• shareholder anonymity balanced with managerial control (no one shareholder can highjack the agenda),
• accesses the most cautious investors (overcomes stigma of betrayals and organizational collapse),
• retains franchisee “equity” (for-profit franchisee corp. directly aims to support and increase re-sale value),
• prevents much of future franchisor opportunism: self-interest with deceit (franchisee cost avoidance),
• voluntarily shifts capital from franchisee’s “equity” (temporary, illusory) to group equity (real),
• more able to reform system rather than just legally fight and be forced to leave,
• facilitates: vendor programs, franchisee self-borrowing, stock purchase PADs, training, life:work balance,  buying/selling franchises,
• each franchisee is issued a membership in the attorneyless franchise network and a share in the for-profit corporation (one share),
• enables former franchisees to invest (if desired),
• strategically positioned to defend against private equity vultures,
• builds trust with shareholder group (external investments, reducing risks, development),
• accesses and retains expertise that dues-paying organizations cannot afford, and
• capitalizes on the fact that CDN, ON Court decisions have shifted economics on dispute resolution in franchisees’ favour.

Costs

• takes time, need for long-term perspective,
• 24 franchisee shareholders to start “risking” 2% of their cash they’ve made in the last 10 years,
• requires patient shareholders (no interest payable initially).

My project work in franchising

There was no map or rule book in testing the limits of the industry.

By nature, these were all unreasonable actions from the conventional viewpoint.

To me, they were just taking one step ahead of the other.

• national franchisee association (Canadian Alliance of Franchise Operators),
• defined Big Franchising,
• manual archive of published articles,
• investigate government guaranteed loans (predatory franchise lending),
• multi-million dollar one party lawsuit,
• group lawsuit (Grand & Toy, Tupperware),
• request made to for support from Ontario government (letter/proposal: Information Sharing Project),
• class action,
• digital archive of documents (WikidFranchise),
• national attorneyless franchisee association (NBN),
• franchisee-created trademark system wiki,
• a franchisee-funded private equity structure (The Grange Fund).

Not bad.

[At Play]

Only Franchisee PE can combat franchisor private equity

Franchisees need to invest in a private capital fund.

Not just hang out wasting time.

[ArtistsandArt.org]

Private equity freaks are savages

Hatched in the dark so they can survive sunlight.

Heads-up to franchisee vegans when the PE guys show up for dinner (ie. your family’s equity):

get some MBA-type advice because your franchisor is was  a pussy cat in comparison.

Thanks to ILoveCharts