Blockchain technology is pushing the frontiers beyond cryptocurrency transactions and application to different forms of record keeping. This technology seems relentless in its penetration of even those sectors which hitherto, kept their status quo.
From the world of arts to the thrill dripping round leather game of football and basketball, blockchain continues to make its entrant like the ‘big fish.’
The next port of call which many are keen on exploring is franchising, according to an op-ed on Forbes by Ed Teixeira, Chief Operating Officer of Franchise Grade, a franchise research firm in New York. It is no gainsaying that the intrinsic features of blockchain technology make it applicable to a wide range of businesses that are not even related to cryptocurrencies—it’s most popular use case.
The use of blockchain in combination with other innovative technologies is yielding great results in supply chain management processes as well as in promoting efficient healthcare systems.
Exploring New Grounds with Blockchain
Teixeira highlights the potential that abounds in the possible use of blockchain technology in franchising in his piece, which was the matter of discussion at the recent International Bar Association’s Franchise Law Committee meeting held in Italy. Legal Practitioner Craig Tractenberg who works at Fox Rothschild LLP stated at the meeting:
“One of the roundtable discussions dealt with the use of blockchain technology in franchising. Those familiar with blockchain technology know that it can be used beyond cryptocurrency transactions and applied to any record keeping. The anticipated uses of this digital public ledger technology are for digital payment, smart contract, and database- record management systems.”
Disruptive technologies are known for removing the need for the middleman in most transaction arrangement, which could nevertheless still yield efficient processes and less commission remitted to third parties depending on the type of business. Smart contracts could also be used in the peer-to-peer approach, which are self-gratifying agreements that are closed once the required pre-determined conditions are fulfilled.
Tractenberg expatiate on this while making references to a few platforms saying:
“The discussion itemized the commercial application of the technology to the franchise context. Cited was FOODCOIN Ecosystems as a global marketplace for food and agricultural products designed to eliminate intermediaries through the use of smart contacts. Another emerging company is FANTOM Foundation which has apps for food reservations, geolocation and supply chain management. Carry Protocol, provides merchants and customers a platform to communicate and understand each other, and is effectively an advertising channel.”
It will be recalled that U.S. retailer Walmart Inc. recently introduced a system where suppliers of leafy greens are to implement blockchain technology for traceability and food safety.
Appreciating Customers In Crypto
Teixeira’s piece sees the introduction of reward programs as another means of using blockchain in the retail sector. Chanticleer Holding which has been well-known for its stablecoins (American Burger and Hooters) introduced a loyalty program for Hooters.
The group’s CEO Michael Pruitt had stated at the time:
“Customers can have a cryptocurrency loyalty program across all Chanticleer Holding brands – and beyond. It runs on the Mobivity Mind commerce platform, and will pay out in Merits, a cryptocurrency that is leveraging the same infrastructure and principles of Bitcoin, Ethereum, Ripple, Litecoin and more.”
Certain players in the beauty industry have also made plans to reward their faithful clients with crypto, which will not only enhance their customer base but will also increase the usage and adoption of cryptocurrency in the retail industry.
The First Blockchain Franchise
Europe’s fastest growing energy provider Restart Energy initiated the first blockchain franchise – RED-P – using a model that afford entrepreneurs the opportunity to show their managerial finesse through the energy business.
Entrepreneurs were required to own a certain amount of MWAT tokens which gave them the access to trade as much as 1MWAT on the RED-P platform. A minimum of 10,000 tokens (Red City Franchise) allows holders to sell energy in their city of residence while MWAT tokens within the range of 10,000,000 or more give holders the exclusive right to own sub-franchises within his or her country of residence.