LONDON, Ont. — Odd Burger Corporation has launched its innovative franchising initiative called the Odd Stock Program, which allows franchisees to become eligible to have their entire franchise fee due to the company’s subsidiary franchisors waived by investing an equivalent amount into the company through a private placement or, with the consent of Odd Burger, acquire shares on the open market.
The program allows franchisees to use the full amount they would otherwise be required to pay as a franchisee fee to the company’s subsidiary franchisors to purchase Odd Burger common shares, turning that amount into an investment instead of a cost. Launched last month, Odd Burger anticipates the program will result in a significant increase in the number of franchise units under development and expects the program will result in 10 additional franchised locations in Canada and two additional international development projects.
The Odd Stock Program is one of the first of its kind in the franchise industry and re-defines how franchise fees are utilized. Traditionally, franchise fees are an additional expense added to the already high cost of entry into a franchise system. Furthermore, franchisors often pay 50 to 100 per cent of the franchise fee to brokers who facilitate the sale. The Odd Stock Program encourages franchisees to invest directly with the company, resulting in a more efficient use of funds for all parties.
The initial launch of the Odd Stock Program included eight participants in the company’s private placement, investing an aggregate of $495,000 in common shares that are eligible to count towards the waiver of franchise fees. By comparison, the company collected $355,000 in franchise fees for all of FY2022, demonstrating a significant acceleration in franchise growth. “We see an incredible opportunity to revolutionize the entire franchise industry,” says James McInnes, CEO and co-founder of Odd Burger. “Franchisees are some of the largest investors in any franchise system, and the Odd Stock Program now gives franchisees the ability to benefit from the overall success of the company and unite franchisee and franchisor like never before so that everyone is truly working towards the same goals.”
