Ann: Franchisee Remuneration Structure Review, page-9

I'm not au fait with MOC financials (going through annual report now) but my understanding is that MOC's business is written entirely through franchisees(?). Meaning that if they've been screwing them over then long term they may have killed the goose that lays golden eggs.

If it works like PLAN (which i assume its similar, though PLAN wasn't a franchise model per se) then the fact that the franchise income looks small compared to upfront/trail commission in the revenue would be because the bank pays those commissions to MOC for loans written by it's franchisees - then MOC on-pays a percentage to the franchisees. So all that upfront/trail is in reality from the franchises even though superficially it doesn't look that way on the report.

This would only be not an issue if MOC directly employed a significant number of brokers, which i don't think is the case.... can someone more knowledgeable please advise?