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.
- 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.
- 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).