Read the full interview by Uptick Newswire with CEO Steven Rossi

Read the full interview by Uptick Newswire with CEO Steven Rossi

Uptick news wire Interviews CEO Franchise Holdings International

Announcer: This is the Uptick Newswire Stock Day Podcast, sponsored by investorshangout.com. Subscribe to us on iTunes, Google Play, and YouTube to stay up-to-date on Penny Stock news and interviews, public information on OTC, pink sheets, and micro-cap stocks from around the world with your host Everett Jolly.

On today’s show, I am bringing you back a returning guest and I am super-excited to have him back on the show because I believe we are getting him at the very early stage of the curve line. Their stock is grossly undervalued. We are talking none other than Franchise Holdings International. They were on this show about six months ago, December 19, 2017. They trade on the OTCQB under the ticker symbol FNHI.

And with us today to bring us up to speed about his company is the President and CEO, Steven Rossi; Steven, welcome back to the show.

Steven Rossi: Thanks for having me, Everett.

Everett Jolly: Give my listeners – it has been six months – give them a little bit “about statement” about your company and what you guys do. And then I want to get into some Q&A.

Steven Rossi: For sure, for sure. So just to refresh, Franchise Holdings International is a holding company, we are the parent company that signs high accrual, high revenue opportunity company. Right now our main investments our exclusive investment is the subsidiary Worksport. So, Franchise Holdings is directed towards finding companies that are going to be profitable and that are going to have explosive revenues. And just ahead of that curve, so these kinds of businesses that are just starting off, there is proof of concept, there is a huge market, all the story plays out and we can monetize it immediately.

The last franchise and that’s BMO, it’s a pure consumer – oh sorry, pure capitalist company that we are focused on earnings, revenues. Worksport a subsidiary is exactly that. It’s an innovative producer of truck bed covers. So the number one sold item out there – number one sold truck vehicle out there are light trucks, pickup trucks, Ford, Dodge, GMs. And there are dominating the market. And the number one most popular go to accessory or must have for that truck is a tonneau cover. And that’s exactly what Worksport is.

It’s a huge market and full of huge mergers and acquisitions. Mergers and acquisitions over a $100 million from competitors that we have had previously, and it leaves Worksport in a very advantageous, very enviable position of being one of the very few exclusive independently owned producers, designers, and inventors and manufacturers, ultimate manufacturers of these huge selling covers. And these covers sell in thousands per day, and I think its $7 million of tonneau cover are sold just in the aftermarket every day. So that is the parent FNHI. It’s all about revenues and earnings. And Worksport is all about designing, inventing, getting those revenues, getting those earnings in the truck space where we do well.

Everett Jolly: You and I have gotten to know each other over the last couple of years. And I think I know a little bit about your integrity and everything. I know that you are looking out for your shareholders. You don’t want to do toxic debt like the rest of the OTC on there, but what is really important to you?

Steven Rossi: What’s really important to me is it’s about ethics. It’s about revenue. It’s about sustainable growth. And these are all key phrases. They are all catch phrases. They may not mean a lot. But what they mean to me is ethics are – the business ethics of not selling two different people for example. So we have a client – two clients where you are – Arizona for example and they are right down the street from each other. It is unethical to go to one and then you go to the other, ethical to go to one and build your partnership, and should that partnership dissolve over a year mutually, amicable, and they close off or whatever, then you go back. That’s the ethics of business. Doing things right as opposed to doing things kind of the backwards way or the hidden the way. And that applies also to FNHI. It’s not taking toxic debt. It’s not growing with convertible debentures and derivative liabilities. It’s not misguiding shareholders. It’s not promising or alluding to one thing or the other. That’s the ethics are. Sustainable growth to me really and truly means something that’s going to be there quarter after quarter, year after year.

So if you see us with a $500,000 revenue quarter, you are going to see us with $500 or $600,000 next year or next quarter and the quarter after and the quarter after. We don’t want to be the company that has peak and then a valley where we have $1 million a year and investors start coming in and everyone super excited about it, and then all of a sudden it plateaus. That is not fair. What we want to do is we want to make sure we get there ethically and we sustain it at a reasonable growth rate so that we can work for again revenues and then ultimately earnings. And earnings are the most important part. That’s what business is all about.

Everett Jolly: But let’s talk about that. What are some of your goals and by when?

Steven Rossi: Oh man, we have such a full plate for the rest of this year. Outside of FNHI and getting the QB status and CSE listing and raising a bit of capital, the goals for the company and the targets are to build out – we have three different types of programs. Number one is we are all business to business. We do not at this point believe in business to consumer. So, we are not – you can’t find us online, Buyers Direct. We go to distribution. We have some very very high level distribution accounts into the 9 and 10 features. We have Fortune 500 accounts as well that we are working to build out and evolve with.

But short term goals are let’s build out our private label and OEM manufacturing division and then we have our business to business. So, to branch that all, Worksport designs, invents, and patents amazing products, and that’s the Alpha that we talked about in the past and people could find it online and the Alpha Helios which is the most inventive featured truck bed system that produces electrical – produces 300, 400, 500 watts of electrical current that are power lithium ion pack in the body of your truck that will give you on and off grid power to your contractor outdoors. I mean this is the innovation. This is the exclusive excitement in the market. And that will be a Worksport brand.

So, everything that Worksport comes out with as a business to business product. It will be branded as an amazingly innovative product. And the Helios that we came out over two years ago it’s literally us just stretching before the race. That is the tip of the iceberg. We have so much innovation in our back pocket that we are trying to get out there that the show has yet to start. Then there is the private label OEM manufacturing. We have been in discussions many times and things are evolving on this front so stay tuned. But many times with other business 9 figure and 10 figure businesses, brands in our workspace that have a marketplace they have huge revenues and they have a huge thirst for their brand and their product, but they lack in the innovation department or they lack in the time maybe to innovate or the ability.

Worksport, we can navigate patents. We can build a lot of patent – we have been building on our patent portfolio and trademark portfolio. So, we’re going to be building out this private label OEM manufacturing where we are going to be entrusted with other very large brands to manufacture their products for them. So 9 figure, 10 figure company comes to us and says we need a tonneau cover. We have a marketplace. You guys have the patents and the configurations and the knowhow, so you make them for us. So we participate in the frontend and in the backend.

The backend is huge revenue opportunities and things are really evolving rapidly on that front. When you are making for other brands, guys that already have their market share or they have distribution. They have sale, they have clients as 30, 40, 50, 60 or 100 year history or tapestry of business. And then you have your building of brand. Building your empire as a consumer brand and that’s what works for direct which will be your Alphas and your Helios. So these are the short-term goals are that raise some capital. We promise our shareholders the $5 million revenue mark and we’re going to get there as quickly as we possibly can, and where possible other 1.5 or $2 million in revenue. And after that, it’s all about revenue and earnings and that’s it.

Everett Jolly: What’s the chatter going on with your company delisting?

Steven Rossi: Oh man, we’ve been working on that. The CSE is one of the prestigious exchanges we had the pleasure of working with. And I mean these guys are astute. They are dynamic. They are just – it’s – they have been an amazing experience. We have been trying to catch up on our filings. And we will be caught up very soon. And once we are caught up, we will be solely listed on the CSE. The CSE’s upper management verbatim says, “We know you, we know who you are and we are just eager and excited to get you on board.” So we will be – we had two rounds of comments. We are working on the response, the second round of comments which might be the last round. There might be another round of comments on our perspectives.

Once the CSE – OSC is satisfied and has no further questions, we are immediately accepted into CSE. And we have everything. We have gun powder behind us on that. We have the commitment to capital from gun powder relating to that as well. I mean it’s all green light. It’s just a matter of getting one last batch of financials which is quarter one financials. Once that’s done, it’s sending the comments. There will be responses to their comments. And we are hoping for green light. And so what we are hoping on a Q3 listing on the CSE which is something that’s – it’s a huge milestone for our company.

Everett Jolly: You have been listening to Steven Rossi. He is the CEO and President of Franchise Holdings International Inc. which trade on the OTCQB under the ticker symbol FNHI. The reason why I really like this company, I asked him to come back on the show, and Steve, you correct me if I am wrong. You guys have got close to nearly 10 patents. Your market cap is only about 1.5 million. I mean the patents got to be worth more than that and you are only doing I think three and half times your revenues?

Steven Rossi: Yeah. I believe that right now the value for shareholders is that we are undervalued. And we’re going to be working on building and bringing the best shareholder value out there. We have on and offline exposure plan. We are working on our media assets, our web assets, our social medias. I mean we are trying to get everything going. And then in Q3 we will really start to build that out and things will go fast for us. But we are very, very undervalued in our opinion.

There will be different opinions on that, but we built out a revolving patent portfolio of lots of patent applications and with U.S. continuing patent office, trademark applications and just on those assets alone which revenues hovering between $0.5 million to $1 million. We believe that there is huge opportunities. And we’ve had an overwhelming demand for product where the earnings – sorry, the revenues realized are almost outweighed by the pending sales. So to speak is if we sold a dollar, we have a dollar worth of product that’s waiting to be shipped.

We just need the capital. We will be to keep up with the demand. It’s insane. Just so you know, Everett, adequate inventory levels in our market is about 2000 pieces per line. We have five lines. So, that’s about 10,000 units in stock assuming that each item cost, for example, which we don’t know I can’t give you exact cost at this time, but assuming that each cost $100, that’s $1 million in inventory. So for us to get you know, ask or look for a capital raise of a million dollars would get us our adequate inventory levels. But with that adequate inventory levels, we have forecasted 50 to $100 million in revenues at a profit level of $2 million U.S.

So just basic math in that, everyone can understand that. We really really only just stared. And you are right. We are just at the bend of curve. And once we catapult around, we built an amazing foundation on that. When we raise some capital and we get moving with inventory, the things will evolve very rapidly. And those shareholders that participate at this level should be quite happy because I believe we very undervalued.

Everett Jolly: Well, share your roadmap with us. How are you going to reach your goal?

Steven Rossi: Well, CSE listing and the OTCQB listing would be in fully current – will get us to a point where we believe we will be able to raise capital. The capital we are going to be looking to raise is going to be non-dilutive, non-convertible, non-toxic, non-derivative capital. So we are going to be looking for credit investors that will invest directly with the company on exchange for stock and warrants. And with that growth capital, we can start building out our inventory, building other business-to-business models which would be the Alpha, the Helios and the Worksport brand and then also the other products that will be selling through private label and OEM sales.

Once we can stock our warehouses of which have three, we have Toronto, Ontario. We have Pennsylvania and we have California warehouse, but they are all sitting. The Pennsylvania warehouse is utilized. The California warehouse will be open once we have the inventory for it. We have the logistics now. We have supply chain solutions in place. So once the inventory is under control and we have enough to be able to feed the machine, the revenues will follow. We have proven that over the past five years with millions of dollars in sales.

Everett Jolly: Well, we are running out time today. I want to thank you for coming on the show. I want my listeners take a look at Franchise Holdings International. They trade on the OTCQB under the ticker symbol FNHI. Steven, thanks for coming on the show. Please come back in 40 or 50 days and give us an update.

Steven Rossi: I will for sure. Thank you very much, Everett.

Everett Jolly: Talk to you soon.

This program is entirely sponsored and produced by Uptick Newswire LLC which is responsible for the content. The opinions and the information provided on this program are those of the guest and those of the companies they represent and do not necessarily reflect those of the staff or management of Uptick Newswire. UPTICK Newswire encourages all listeners of this program to do their due diligence and research when determining investment strategies that will work for them or to seek the assistance of an investment professional. The guest of this program may have paid for its distribution and not directly affiliated with UPTICK Newswire or this station.

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