Franchising
Odd Burger launches stock program in lieu of franchise fees
February 20, 2023
Canada-based Odd Burger has launched a franchise program called the Odd Stock Program that allows franchisees to become eligible to have their entire franchise fee waived by investing an equivalent amount into the Company through a private placement. Franchisees can also acquire shares on the open market with the consent of the brand. The company launched the program last month, according to a press release.
The program allows franchisees to use the full amount they would otherwise be required to pay as a franchise fee to Odd Burger's franchisors to purchase Odd Burger common shares, turning that amount into an investment instead of a cost.
Odd Burger expects the program will result in 10 additional franchised locations in Canada and two additional international projects.
"We see an incredible opportunity to revolutionize the entire franchise industry," James McInnes, CEO and co-founder of Odd Burger, said in the press release. "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."
The initial launch of the Odd Stock Program included eight participants investing $495,000 in common shares that were eligible toward the waiver of franchise fees. By comparison, Odd Burger collected $355,000 in franchise fees in 2022.
