Hey Everyone I am new to this site and found it by accident but I consider it to be very valuable now I stumbled upon it.
I have heard about ABC Learning and how they now have 800 Child Care Centres. The Founder just started buying out smaller competitiors.
My Boss and I are looking to do the same in the Martial Arts Industry and I would like to know how to go about buying out smaller Martial Arts training places.

The way our current system works is that if you want a peice of our action you buy a franchise, that means eg $100k up front and you have a MA Studio just like you would have a McDonalds.
A Franchise fee up front that is that big for a small time MA studio struggling to make ends meat is too hefty and would be very hard to get a buyer, so I thought about Leasing the MA Franchise.
The way the lease agreement would basically work is that F/Y+I=MFL (Franchise Fee divided by Years of Agreement plus Interest equals Monthly Franchise Lease).
To make this option more attractive and more beneficial to my Boss and I we would include a Lease fee which is half the interest rate on a Bank Loan.
So what the Franchisee is basically getting is Class Content, Advertising, Business Help for timetabled classes (which is what the Lease fee is for....Timetabled Classes).
Now for our benefit, the Franchisee would sign over their current business to us and we would have controll over it so if we didnt like it we are able to change things around. And that way we can gurantee Lease payments.

What do you see as the Pro's and Con's and the Flaws of this.