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).
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