Franchisor Stories
Although some brands were experimenting with how crypto and NFTs could play a role in franchise and royalty fees, the trend may become less popular as Bitcoin prices continue to drop rapidly.
Last week, the failure of crypto exchange FTX shocked the industry and made many experts wonder whether the end of cryptocurrency had finally arrived. The $32 billion company fell into bankruptcy basically overnight, coinciding with broader headwinds facing the tech industry due in large part to rising interest rates. Tech stocks have crashed, and nearly 800 tech companies have laid off more than 120,000 workers this year.
Over recent years, as interest in the blockchain gradually increased amongst the general public, several franchisors dipped their toes into the space by accepting Bitcoin as payment for franchising fees or offering limited NFTs to customers.
In April, for example, the fitness franchise Send Me A Trainer announced that new franchisees would receive a complementary NFT in celebration of their investment. Chicken franchise Chick’nCone launched the minting of their NFT Chick’nCOIN in February, which gave investors the opportunity to receive a portion of the franchise fees and royalties paid by the owner of a Chick’nCone restaurant opening in a particular trade area.
Now, with Bitcoin prices down 75% lower than their previous all-time high, many franchisors who were on the fence about entering the world of crypto may be wise to wait and see how everything plays out.
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