If you don’t have time, just look at the following image on VendShare moving forward;
These few months are trying months for VendShare, as there is an uprising by the errant franchisees to hurt the interest of VendShare and also the rest of the franchisees.
VendShare franchise license is a scheme which franchisees would work on bringing customers to the machines and their income would commensurate to their capability to bring customers to the machines and to their own marketing and sales efficacy. However, there are numerous errant franchisees who would characterize this as an investment scheme and put that responsibility solely on the franchisor.
They have gone on further by misusing the Press (Rice Media primarily) to report on us and threatening us to compensate them for their losses which was caused by their own lack of abilities and also the overall pandemic climate. Not to mention that during these difficult times, the franchisor (me) has been absorbing the loss, thinking that it is a difficult time for all, and if I am able, I would absorb the losses first instead of exercising my contractual right to invoice them for the losses.
They have also made a lot of police reports which in my own opinion are false and omitted the fact that there is a franchise contract and not investment contract between us. I was informed that the latest police report was made just 1-2 weeks back, that actually disappointed me even further.
But putting aside the false report, the fact that there are franchisees making a police report on a person who has been absorbing losses for them is morally discouraging. My heart goes out to the other hardworking franchisees, and the many staff who have worked hard in this business. I also am very sorry to have involved my family members including my mother to help pack the coffee during some free days for her.
Even the police officer is asking me, why have I not taken legal actions to pursue all the losses that these franchisees suffered? However, I do want to state the context, the police is not asking me out of concern, he is asking me whether there is truly a contract for his investigation purposes. The police ended by saying that while they investigate, they do not interfere with my contractual right to exericse the contract on all franchisees as long as they are legal. And they do not really care whether I sue the errant franchisees for defamation.
As such, for the franchisees who are working hard and for my family members, I would do the following;
1) Exercise the contract and pursue operating losses from franchisees. The operating losses that would be recouped would be mostly given back to the hardworking franchisees (V2 franchisees – blockchain version). I am not doing this to recoup my own subsidy of the VendShare franchise, I am doing this so that hardworking franchisees (V2 franchisees – blockchain version) would get more value.
2) They would be given a goodwill release contract that would release our obligations from one another (franchisee to franchisor and franchisor to franchisee) if they cannot afford to pay for the operating losses, or choose not to afford the operating losses.
3) The franchise license that may be terminated in the process, the all associated value would be redistributed to the hardworking franchisees (V2 franchisees – blockchain version) who have supported VendShare in its lawsuit against the errant franchisees.
3.5) Some leeway would be given to existing V2 franchisees & non V2 franchisees – blockchain version. Some time would be given to them to top up if necessary. Existing V2 franchisees can top up assuming default approval. Present non V2 franchisees would be allowed on a case by case basis – depending on what the franchisor measures of his / her professional conduct as a franchisee in this matter. If there is any doubt on the professional conduct, a termination notice may be given at this stage.
4) All franchisees would be evaluated for their compliance and contravention of the contract. Which would include what they have done for VendShare. If they have assisted in the compliance, they would be rewarded. If there is irrefutable evidence of their ethical / moral behaviour like coaxing others to make a false police reports (franchise contract has a clause that franchisor has right to terminate in case of franchisee committing a crime or an act of “moral turpitude”), they can be terminated as per the franchisor contractual rights, and also the respective financial damage to be charged.
All such financial damage collected would be redistributed to hardworking franchisees (V2 franchisees – blockchain version).
5) Upon termination, all such punished franchisees, their franchise license shall be absorbed back to be redistributed to hardworking franchisees (V2 franchisees – blockchain version).
All franchisees who disagree with our evaluation or insist on holding on to the franchise license without paying for the operating losses would be given avenues to air their grievances or to settle this in arbitration. I propose Singapore International Arbitration Centre. Their fees are generally cost effective than going to settle in the Court of Law. Do note however, while the franchisees may hold on to the franchise license while this case is settled either in Singapore International Arbitration Centre or the Court of Law, the franchisees are still responsible to pay for the continuing operating losses.
Franchisees are free to make their own police reports. While I feel that some franchisees have contravened the law by inducing false police reports, stopping others from making police reports is also against the law, so you can make a police report, if you truly feel that you need to make a police report. That said, do note that while I cannot deny you making a police report, do note that in my view, making a police report especially without exploring more peaceful options like meeting me and talking, contravenes your contractual obligations in the franchise contract.
Do note that I am at a point in which I am already deciding that it is pointless to absorb any more losses for any franchisees. When I do that, many franchisees did not know or appreciate so if that is the case, I shall invoice all franchisees (specifcally those who have never assisted in resolving our emergency) for their operating losses.
Moving on there are a few good things happening;
1) We have formed a contract with a orange vending machines, which would be exclusively for the V2 franchisees. Also combining with the blockchain part, the money income is more certain. The V2 franchisees have been getting every week some income.
2) We have restarted our location finding with working with some of the franchisees’ contact, like working with some networking group which still have huge audience. Working with them would be beneficial.
I won’t be marketing for more outside & new franchisees (unless they are related to 2) until I have processed the present batch of franchisees.
Let’s move forward strongly. While I get the best interests for all franchisees, even for those we are going to terminate (according to terms and conditions).
Yours Sincerely,
Raymond Ng