friesDAO (Franchises & Restaurants Integrated Efficiently & Systematically) is a decentralized autonomous organization (DAO) on Ethereum seeking to buy fast food stores. For the first time in history, we will attempt to bridge blockchain-based governance with real world operations of well known franchise brands. From these operations we seek to scale in a decentralized manner, scaling into cities around the world, and shaping the utility of our endeavor through community discussions and tokenized governance. We also intend to explore IoT and machinefi capabilities of our store operations that can be accessed by the governance token. As a social experiment, it is our duty to share our findings and experiences with the world in the emerging space of real world DAOs.
What Are We Doing?
Form a Treasury
Gather USDC contributions (on Ethereum) from community donors and distribute $FRIES governance tokens.
Negotiate with franchise owners and brands to buy well-known fast food stores using the friesDAO community treasury.
Expand the Empire
Create a reproducible framework for community governance to influence store improvements or expansions.
Shape the Utility
Participate in serious yet memeworthy discussions like prioritizing jobs for ourselves and getting NFT coupons for free food.
Schematic of the friesDAO Model
The DAO will build its friesDAO network of stores primarily through two methods:
Contract Operator Ownership - Contract external companies to help acquire fast food companies on behalf of the DAO. These external companies would serve as a "proxy" to own the stores and operate like traditional entities that are more familiar to brands than a DAO type entity. The owners of these companies could be salary/fee contracted or are actual members of the friesDAO community, with obligations to the DAO by legal agreement.
Merchant Cash Advances - Use the treasury to offer 0% "interest" (factor rate) cash advances to aspiring franchisees who need financing. These can include:
Existing quick service restaurant owners
- General restaurant owners looking to transition into the quick service restaurant space
- New first-time owners entering the food service industry
- In lieu of factor rate fees, these stores would need to offer some sort of membership access perks such as free food and be required to participate in the friesDAO network by becoming token holders, per the terms of the cash advance.
Subsequently, there are three pathways into strengthening the community value and network tie between the stores and friesDAO. The following would be part of the obligations of the store:
Membership Access Perks - Any member who possesses an official friesDAO membership NFT would be able to access free or discounted food. The requirement to provide a quota of such benefits would be a contractual obligation of any friesDAO network store. Typically, a brand would permit and even encourage an individual store to do local marketing. NFTs that serve as digital coupons could help drive traffic, awareness, and sales, especially when paired with governance driven campaigns such as token airdrops to visitors.
Token Purchases (for merchant cash advance stores) - Stores that were financed through cash advances must also purchase a portion of FRIES tokens and build "equity" into friesDAO towards becoming a stronger community member. These tokens must be vested in a staking contract or similar. Since these tokens are owned by the stores or owners of the stores, they are not technically a "fee".
Governance of Store Profits (for contract operator owned stores) - Profits will be legally in the custody of the contracted external company that owns and operates the stores on behalf of friesDAO. The relationship between the company and friesDAO (a Wyoming DAO LLC) will be structured by contractual agreement, which shall include (a) requirements or operating profits of stores to be regularly converted into a cryptocurrency compatible format and held in a multisig wallet that can be publicly viewed on the blockchain; (b) governance clauses that will influence how profits are used towards store improvements or rolled into use to acquire additional stores, or transferred to another permissioned entity to achieve the same objectives; and/or (c) other community decided clauses to be negotiated with the store seller and/or brand.
On Chain Integration
At late stage, we will begin exploring IoT and machinefi capabilities such that the community can see real time data of store operations, from sales transactions and payroll to logistics and supply chain. This provides further transparency in the operations of contracted store management personnel and enhances community decision making in a near-trustless manner.