Licensing vs. Biz Op vs. Franchise...
There never seems to be a solid consensus as to which fits for an online business.
Here is what I'm wanting to do for my business model with a new start up:
- Have a national brand across Canada & the USA.
- Have territories for "local marketers" to acquire new clients and customers
- These territories for $XX.xx dollars a year
- Plus a % cut to my company
- Use of brand name and logo
- Stationary templates
- POS Templates
- Handle transaction fees ( 2% - 6% dependent on volumes)
- Pay out weekly earnings
- Handle affiliate commissions
- Handle Support for marketers/ clients & customers
- Training
- R&D
But there have been even more people saying that because I offer training, use of a brand name etc.. I have to go with franchising.
Then there is the Biz Op avenue but I'm looking at more than $500 one time fee with the yearly and percentage fees. Which then again throws back to the license vs. franchise.
In my research I've even come across a yogurt chain that claims to not be a franchise but a license agreement which blows my mind as it fits everything about a franchise.
I digress.
Now I have an new thought, to me anyways, maybe not to many out there.
I was thinking about"Area Partner" agreements for each territory and that way I should be able to charge the yearly fee and the percentage. Then I would just have to state the value of their partnership is ever changing as new area partners come on and grow the company. Thus changing each partners % of the company while in some way I always maintain a minimum 51% controlling interest with out getting into shares.
How does this sound?
Is it viable?
Is it legal even?
Any suggestions?
I thank everyone in advance!
Journalism, the profession is undergoing a massive change since the WWW has arrived. I help people to build their personal profile and create a multi-media platform with WordPress, Podcasting, Writing and Video.
Digital Media for a Noisy World