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The Early Stage Franchise Association (ESFA) was established to oversee the formation and development stages of Early Stage Franchise Models. These Franchise Business Models are developed exclusively in virtual business development incubators in months instead of years. The Early Stage Franchise Association is a private sector institution that supports new Business Formation Models from the embryonic stage of a business idea to a full-service Franchise Business System.


Early Stage Franchising is a new field in the traditional Franchise Industry and is home to the Virtual Business Franchise, the highest level franchise business system in the new “Billion Dollar Startup Era”. Early Stage Franchising is a private sector initiative that use special institutions to provide continuous development & support for the new model being offered. When an Early Stage Franchise is launched, a business development and support team is assigned to handle the constant changes it will face when entering the new global marketplace. This Franchise Business System provides a predictable business structure for entrepreneurs that are new to owning a business, while at the same time provide best judgment guidance for private investors that are new to equity financing. The success of growing a franchise business can be found in statistical data that shows a success rate of more than 95% after five years, compared to the 95% failure rate of starting and growing a business using the traditional method of trial and error.


Early Stage Franchise Classification

Early stage franchising is a private sector initiative that use special institutions to provide continuous development and support to the franchise business system that’s being offered. The Early Stage Franchise Classification (ESFC) is  offered to business owners and entrepreneurs that meet the criteria for initiating a Business Formation Project on either ConceptStarter.Net or GlobalConceptStarter.Net. A business trade is associated with a  Business Trade Group (BTG) that's identified with a four letter - followed by a five digit business  code guide number. For instance:  Equity Capital SourceBank – ESFC: 20301. The code guide number is issued to business owners that has met the requirements to apply for Crowd Funding Donations or Business Formation Grants using the Equity Capital Access Network. The Early Stage Franchise Association also offer certification to affiliate institutions that work with potential early stage franchise owners seeking equity and venture capital. (Business Formation Models, Certified Business Models and the Franchise Business System).

Virtual Business Franchise

Before a Virtual Business Model or Virtual Business Franchise is sold to non-accredited investors, a certification process is conducted by the Early Stage Franchise Association (ESFA). The Virtual Business Franchise is unique because of its global market reach the day it is launched. A Virtual Business Franchise is a Dual-Unit Franchise System that sell and/or lease both physical and virtual locations to authorized territories for independent outlets including undeveloped franchise territory parcels. The Dual-Unit Franchise System is a physical outlet that is surrounded by Virtual Franchise Territories.

The Virtual Business Franchise has a Double Level Franchise Territory: the 1st. level territory is the traditional for physical locations. A traditional franchise use physical location including land surveys to determine the location of the business. The 2rd. level is virtual territory locations: A Virtual Business Franchises use zip codes, email addresses, cell phone numbers and GPS locators to identify define their customer base. The Virtual Level Territory maybe sold on the Early Stage Franchise Investment Exchange, separately from the traditional physical territory. 

Private Sector Business Infrastructure

The United States is finally allowing non-accredited investors to invest in early stage business ventures, for the first time, since the 1930s. Thanks, to Title III of the Jobs Act that was signed into law by President Obama, on April 5, 2012. Traditionally you had to be an accredited investor with a net worth of $1 million dollars or more to participate in private equity investing. Moreover, the new law establishes the conditions for a Private Equity Market, for early stage start-ups. Before the new law passed, there were no private equity investment exchanges for early stage start-ups in the United States, were the general public could invest in the early stage growth of private ventures.

 The first step in the process is to build a private sector business infrastructure to fund early stage business ventures in major cities where more than 5 billion people will live by 2030. The SME Investment Exchange was established to accommodate the large number of non-accredited investors that will enter the private equity market. Industry researchers and the World Bank estimated that crowd funding generated $5.1 billion in funding transactions in 2013 and will surpass $300 billion by 2025.