Example of one of the promises. Just how much effort went into this "intention"? Did Zig turn down or not follow though on "intentions". Was the "demand" fabricated? You be the judge by how Motion DNA sits right now.
SCOTTSDALE, Ariz. -- Motion DNA Corporation (OTC:MTDN) announced its intention to launch its franchise program six months ahead of schedule. "Demand from potential franchisees is driving our decision," said Zig Ziegler, President of Motion DNA. "This is a way to expedite our deployment plan. We already have a great prototype facility with a good patient base and a solid business model. This is a natural move for a young company, with consumers and shareholders clamoring for more availability of our technology."
According to the company, franchisees will be assigned territories which include the exclusive rights to service collegiate and professional teams in their areas. While the company hoped to launch a franchise program late in the second quarter 2005, all of the necessary filings are near complete and the first group of franchisees may be assigned as early as the first quarter of 2005. Earlier this year, the company launched a comprehensive research program for high school athletes. Franchisees will be expected to help deliver services to participants at all levels.
"Franchising will allow us to expand without increasing our expenses," added Ziegler. "Most of our shareholders have been interested in how we plan to sustain growth, control quality, and maintain financial stability. Franchising has been our plan from the start of our deployment."
While expected franchise fees have not yet been set, average franchise fees range from $25,000 to $50,000 per franchise and may include royalty payments to the franchisor. Motion DNA's deployment plans call for over 100 locations by the end of the 2005. Some locations are expected to be corporate owned. However, due to the early launch of the franchise program, a larger number of next years locations may now be up for sale.
