PAO Group Inc (PAOG)

[SooS416]

Was thinking more about the affiliate clinics last night and don't get me wrong the corporate clinics will be the bread and butter early but long term the affiliates will be the growth.

Why, well name recognition. If PAO Group can prove they are a legitimate, well run business they will start to become the place to go for people looking for alternative therapies. People are creatures of habit so they like going places where they know what to except and will be happy with the service provided. So once the name is recognized other clinics that are already opened or are planning to open may want to attach themselves to PAO group to get that name recognition as well as the other benefits that come along with becomming a franchise.

For instance, think of Spa's. You are out of town or are staying in new area and want to go to a Spa, do you go to a "local" spa you have never heard of before or do you go to the Hand and Stone plance because you have heard of them and your friend had good things to say about it. You probably go to Hand and Stone to ensure you won't be going to a shady place. Could work the same here as Hand and Stone is massive.

So short term, prove concept with Corporate locations, build the brand then expand to other states with franchises which is a high margin business