Blockchain-Based Sharing Economy Of The Future
The FOHO Club offering (FOHO.Club) allows an “Organiser” to create a club and recruit Members who are then entitled to book properties within the club. To organise a Club, the organiser must be in good standing, subject their business plan for the Club and subject themselves to scrutiny as they recruit Club Members. Club memberships have a fixed tenure and once a Club reaches a certain committed Member base, it comes into being. At the end of tenure, the Organiser may set new terms and Members will have to recommit to the membership. Joining a Club does not entitle the Member to a share of capital gain and it is not meant to replace owning a property but to replace renting a property.
Organiser of the Club rents the fully furnished apartment above for $23,940 per annum and then budgets for additional costs of $11,000 towards electricity, utilities, internet, cable, consumables etc. He decides to offer 40 memberships and values the property at $125 per night on an average. This can be represented below:-
Sample Transaction on FOHO Club
Sample Workspace Transaction on FOHO Club
In the first instance, FOHO will itself act as the Organiser of the first few clubs on FOHO Club It will enter into a Property and Rental Management Agreement with Tripvillas for the management and revenue generation of these properties which will act as a Property Manager for the Property and adhere to all rules and the governance norms of the platform.
On FOHO Club, every Club requires an Organiser who plays a role similar to a Sponsor. He is responsible for conceptualising interesting Clubs, negotiating with key service providers such as landlords, property management companies and other vendors to curate an experience and then recruiting Members to ensure that the Club gets the target number of Members. Members commit to a Club by paying to underwrite the Club’s expenses in FOHO Coins, which are then released by the platform to the landlord in a staggered manner based on the terms mutually agreed. The landlord and the Organiser both need to be registered on FOHO and confirm the terms. The Organiser is given the Club Members contributions on a semi- annual basis while the landlord is paid the rent in a staggered manner. This protects all Club Members and ensure compliance with the terms of the lease deed.
Listing and Verification
Organiser creates listing and pays the listing fee. FOHO verifies the antecedents of the organiser as well as of the landlord.
Organiser F, F&F Marketing
Organiser can invite F, F&F to join the Club but the Club is not visible to retail Members. FOHO releases the same to members when it deems fit.
Retail Member Marketing
Property is released to Members of FOHO Club who join and clarify their doubts or recruit other Members.
Organiser completes submission of due diligence documents and payment of DD fees. Lawyer completes due diligence and submits the agreement to landlords, Organisers and Memebers.
Club reaches target subscription and closes. FOHO executes necessary agreements with all parties. Organiser is able to take the property live on the FOHO app and website – property becomes bookable by Members.
Members become tradable. Each membership has a fixed tenure and at the end of the tenure, they guarantee to go to post payment of Club incentive.
The FOHO Ecosystem
The ecosystem is based on fractional sharing of real estate with fractional ownership of real estate as well as fractional sharing of real estate rentals and experiences coming soon. The 3 pillars of the FOHO Ecosystem include FOHO Haus which is a blockchain based residential fractional real estate marketplace, FOHO Work which is a blockhain based commercial fractional real estate marketplace and FOHO Club which allows tour operators, community leaders, property management companies to bring together a group of individuals to share assets that they collectively lease or rent out and create a governance model and rules for usage that is unique to the Club. FOHO Coin is a blockchain-based sharing economy of the future.
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Foho Holdings Inc.
130 Queens Quay East, Suite 601,
Toronto, ON, M5A 0P6