What is Franchise Token?
Franchise Token Platform is a peer-to-business (P2B) marketplace that connects private investors with franchisors in order to speed up and clarify fundraising for network growth. This offers fast low-risk ROI for investors
Franchise Token leverages the BANKEX's Proof-of-Asset protocol (PoA) to transform any franchise outlet into a security token. The PoA provides transparency of operations, so investors can track business processes and cash flow in real time.
What we offer for
Our service allows investors to contribute crypto to a coffee shop, restaurant, or any other business that operates on a franchise model, and receive regular payments in return. Stable cash flow guarantees low risk returns on investment, and blockchain technology allows investors to track business operations in real time.
Franchise Token provides franchisors access to the cryptocurrency market, where retail fundraising is much more transparent than traditional financing instruments. This raises the likelihood that sufficient funds will be raised and collected, and streamlines the process of receiving access to the funds.
Franchisees often face a lot of barriers when trying to start a business — lack of private funding, problems getting bank loans, insufficient credit history for a commercial line of credit. Our service makes receiving loans to starts your business easier, by allowing Franchisors to raise funds to lend to their Franchisees. Franchisees have an important role in making the case for using Franchise Token to Franchisors.
How it Works
Franchisor Registers with Franchise Token
The key parameters for future security tokens are based on the franchise’s general business plan. BANKEX then conducts KYC for the new franchisor and verifies their registration.
Security Token Development
Asset tokenization requirements are determined. This may include IoT sensor setup and other ways to provide operational data required for business transparency.
A smart contract is developed for each security token. Dashboards are created for each investor’s personal account.
Security Token Creation
Franchisor creates the security token and provides real data for the outlet for which investment is planned.
BANKEX issues the new security token and places it on the market. This process is repeated for every new tokenized outlet.
Investors receive notice that there is a new token on the market. After doing their due diligence, investors decide whether or not to purchase this token. If the hard cap is reached during the fundraising period, the project starts. If not, the funds are returned to investors.
Security Token Operation
Franchisor receives the funds. Franchise Token Platform performs escrow operations by managing appropriate expenditures. BANKEX installs IoT sensors in designated outlets and sets up IoT and PoS data flows for monitoring the business as it begins to earn revenue.
Return on Investment
The investor’s share of the tokenized outlet’s profit is coded into the token. The Franchisor makes regular deposits to a smart contract that automatically distributes dividends to investors.
THE FIRST TOKENized franchise
Why a coffee shop?
Because it is a simple and transparent business that is relatively easy to tokenize — its revenue can be counted in terms of cups of coffee and tracked remotely.