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The Freakie Fries Franchise Plan

General Management Philosophy

The preliminary phase of the implementation of Freakie Fries will involve my finding experienced franchisees who will be instrumental in helping me to develop a franchise organization that every franchisee will be happy to be part of.

To that end, for both the restaurant and the spa franchises, I am requiring five years of ownership/management experience of a restaurant or spa franchise from the first ten franchisees that sign up. I am seeking individuals who already know the ins and outs of running a franchise restaurant or spa.

These individuals will help me to set up the right company policies that will get Freakies Fries off to a good start. They will show me how to get what I want, with regards to setting up the menu, the operation manual, the decor, the advertising fees, and so on..

After the initial phase, where the policies will be established by consultations with these ten co-franchisors/franchisees, I want to set up Freakie Fries as a co-franchisor/franchisee organization, where every individual franchisee is also a shareholder in the Franchisor structure. All of the policies will be collectively decided by the franchisees in a fashion similar to a democracy.

There will be elections to elect the board of directors, the chairman, and the chief executive officer. There will be referendums on policies and issues that effect the organization. We may hire experienced staff from outside to help run the organization, or they may come from within the ranks. Absentee ownership, being permitted by the collective will, makes it possible for franchisees to work in the organization, as well as owning their franchises. This is how I envision for Freakie Fries to operate. Again, what's best for all that is decided by all is what will be done.

The Freakie Fries Franchise Association will be owned and operated by all of the co-franchisors in this very unique way outlined below.

Each individual franchise will own one share of the total for each year of service to Freakie Fries as well as one vote for each year. By this I mean that for example…

Let us say that The Freakie Fries Franchise Association has built up net assets worth $500,000.00, and that there are 100 co-franchisors with a total of 1500 years of service among the whole group. By dividing the 1500 into $500,000.00, you come to $333.00 per share and then multiply that amount by the number of years of service, say 7, for a total of $2331.00. So, that Freakie Fries restaurant or spa that has been with us for seven years owns 7X$333.00 = $2331.00

Every year, the amount of shares and the value per share changes according to the net worth of the company and the number of ‘years-of-service’ shares in the totals.

As a restaurant or spa grows with the company, so does the the amount of shares.

The shares belong to the restaurant or spa and cannot be sold separately but only when you sell the franchise restaurant, the shares go with it, so that your selling price will reflect this additional asset.

As well, each share is worth one vote, so that the aforementioned restaurant or spa with seven years, will have seven votes to cast when policies need to be decided.

Another system of rewarding seniority is the ‘Seniority Re-distribution Fund’ as explained in ‘Item 6’ of this circular.

As well, if there are among you, existing short order restaurants, that would like to make the gradual transition into Freakie Fries, you would be able to carry on your current menu, and add in the Freakie Fries menu of ‘Montreal-Style’ hot dogs, french fries and smoked meat sandwiches as well as the ten low calorie combo platters.

The timetable for full compliance to the still developing Freakie Fries format will be one year. As there will only be an up front fee of $100.00 to join and you would be free to dis-engage yourself with the concept, should you decide that it is not to your liking, your risk factor is kept to an absolute minimum. You may even end up selling  the sign to another franchisee. 

This is the way I want to start Freakie Fries. In the years to come, Freakie Fries will evolve into a franchise restaurant or spa such as we are accustomed to seeing with all of the franchisees looking and operating similarly. This gradual approach allows any existing restaurant or spa to start and then grow with Freakie Fries.

Thank you.