The Co-Op Business Opportunity And The KaleidoScoops Difference
The modern cooperative or co-op concept arose out of a fundamental failure inherent in the franchise system. The growth in numbers is evidence that co-ops do provide the business opportunity entrepreneurs have been searching for. Business co-ops like KaleidoScoops offer the chance to work hard and earn big – without passing your profits on to a franchiser. The co-op business opportunity and the KaleidoScoops difference explain the success in this particular marketing segment.
The traditional franchise concept presents a strong corporate identity that pursues a certain rigid business model. That is, it will create a chain of businesses that duplicate the original. The franchiser extends a well established brand and business benefits to the franchisee in exchange for a sizable financial entry fee, a firm commitment to continue royalties to the franchiser, and a promise to purchase supplies, follow rules and recipes, limit products, and so on. There are many hugely successful franchisees in the country, but franchising does not serve that ever present special entrepreneurial appetite for ambition, empowerment, and return on investment.
That special entrepreneurial appetite:
Entrepreneur.com reports that co-op members actually run the cooperative as voting members of the organization. In a franchise setup, the corporation dictates how the business is operated and the franchisee has little say over the day to day operations. You see, entrepreneurs frequently seek out and actually like the challenge presented by personal risk so long as that risk can be calculated and offset by rich reward. They relish being self-employed and resist being managed from far away or answering to somebody else’s whistle.
Modern co-ops – such as donut shops, carpet retailers, ice cream stores, and more – largely came about when franchisers pulled the plug on franchisees despite what those franchisees had committed in terms of time, talent, personal wealth and sweat equity. Energized by their experience, their confidence in their product and service, and their will to survive successfully, those disenfranchised owners grouped themselves into co-ops.
What is the KaleidoScoops difference?
Business owners organize to form a co-op that will create a business identity to determine their business model, vision, and values. In a co-op, that business identity – its officers and staff – are much closer to the business owner than in the franchise world. The KaleidoScoops members can tap into the expertise and accumulated experience of their leadership and other members at will.
- Organization: A co-op operates more independently than a franchise. The group has a president and a board of directors, and life in a co-op is not a free-for-all. The co-op provides standards and guidelines. But, there is a great deal more flexibility. Menus, for example, are not etched in stone. While recipes and product packaging may be restricted and required, individual co-op stores can adapt menus to their respective markets.
- Corporate support: An individual franchise enjoys extensive corporate support including local and national marketing, purchasing, product development, logistics, and more. The co-op members, on the other hand, pitch in to support these functions. Like-minded owners lighten your business load – location selection guidance, business plans, product quality and recognition, training and more.
- Membership buy-in: With no franchising fees, advertising fees, or royalty fees, start-up costs for a co-op are typically 30 to 60 percent of that traditionally required for a franchise in terms of up front cash down. With that small investment, you get a national brand and the freedom to run your business your way.
- Control: Franchises are heavily controlled by corporate identity, including architecture, contractors, and providers. The control protects the integrity of their brand, but it also diminishes the enthusiasm, passion, and individuality of entrepreneurs – co-op owner/members feel qualified and empowered to make their own decisions.
- Business know-how: Kaleidoscoops understands what you want and need to go into the ice cream business. They know menus, nutrition, allergens, and specialty items. There are well over 44 flavors of superior hand-dipped ice cream – plus sherbets, frozen yogurts, dietary and Kosher treats. There are ice cream cakes, malts, shakes, sundaes, and banana splits. Kaleidoscoops knows the ice cream business and serves customers in 13 states and growing. When members join the Kaleidoscoops co-op, they inherit this legacy.
When you are energy-ready and self-confident about your desire to work independently towards financial comfort, look into the KaleidoScoops co-op opportunity. If you have questions about any of the Kaleidoscoops products, services, or opportunities, contact us today. If you just want a taste of what our ice cream co-op can mean to you, request your KaleidoScoops starter kit now.