System and Method for Attracting Private Investment in a Cooperative
OwnerPatrick Grantinventor
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Abstract
The present invention relates to an improved system and method for forming a cooperative. In one embodiment, the system and method relates to forming both a corporation entity and a cooperative entity and selling some ownership percentage of the corporation to the cooperative. In a further embodiment, the system and method further provides for a marketing process that incentivizes entities to join the cooperative.
Claims22
A method of cooperative formation, the method comprising:
- forming a cooperative entity and a corporation entity, wherein the corporation entity provides a product or service;
- selling a percentage of the corporation entity to the cooperative entity, whereby the cooperative entity holds stock in the corporation entity;
- and
- providing an incentive either to a prospective member or member of the cooperative entity for introducing, marketing, or selling the product or service or to a purchaser for testing or purchasing the product or service.
A cooperative legal entity structure comprising:
- (a) a corporation entity, wherein the corporation entity provides a product or service;
- (b) a cooperative entity, wherein the cooperative entity owns a percentage of the corporation entity;
- and
- (c) at least one cooperative member, wherein the cooperative member receives an incentive for introducing, marketing, or selling the product or service.
A method of attracting private investment in a cooperative entity, the method comprising:
- forming a cooperative entity and a limited liability corporation (“LLC”), wherein the cooperative entity owns a percentage of the LLC in exchange for a down payment and an amount owed;
- establishing a transfer mechanism comprising at least one of co-marketing fees, returns from operations, and potential stock appreciation to a prospective cooperative member entity, whereby the prospective member entity is incentivized to participate in the cooperative entity and to market a product or service of the LLC to associates, customers, owners or members of the prospective member entity.
A method of attracting private investment in a new cooperative entity, the method comprising:
- forming a new corporation entity, wherein the corporation entity provides a product or service;
- forming a new cooperative entity to market the product or service, wherein the cooperative entity owns shares in the new corporation entity;
- introducing, marketing, or selling at a fair market value the product or service to at least one member of the new cooperative entity, providing an incentive to the at least one member of the new cooperative entity for the introduction, marketing, or sale.
Dependencies are inferred from the claim text.