I love the implications of negative rep and factions directly opposed to you!
Shreyas, that's cool on how 'your' new faction works. I'm trying to think of a smoother way of saying "when your new faction reaches rep+4 with you, erase rep, and they become a gang/faction/whatever subject to the leadership move".
Maybe every faction has some boxes, right? One box might be "Totally Hates you", another would be "Willing to listen to your reputation", and then there are two for "Aligned with your interests" and "Your Personal Faction". I'd assume once 'your personal faction' is checked, there's no going back, but who knows? Anyway, you'd check each of these boxes depending on where your rep is, and erase it when it changes, so you start out with "Willing to Listen to your Reputation" check, when rep gets to -4, you reset to -1 and check "Totally Hates You", when you get to +4 the first time you check "Aligned" and the second time you check "Yours". Or something.
I'm picturing little index cards with Faction info on them, some flavorful, some mechanical. Maybe only the MC can see them until they become aligned to you, and then you get to hold onto the card.