Why Franchises Are Threatened By Cooperatives

When an aspiring entrepreneur wants to start a business, the tendency is to check out franchise opportunities. Unfortunately, a franchise business model primarily benefits the franchisor and the franchisee finds himself left to his own devices, struggling to make the business model a success. Is this what you want? Or would you prefer a business model that provides you resources, creates a sense of ownership, offers you support, and let’s you keep more of your profits – all the while having an equal stake in the organization?  Wisdom dictates that you opt for the second business model, which is offered by cooperatives. In fact, in the recent past, many investment experts admit that cooperatives are gaining popularity thereby threatening the feasibility of the franchise model.


In a cooperative, members realize that success of the coop is dependent on all members succeeding. While a franchise offers you a brand that is already established, you are typically left on your own to fail or succeed. Finding the right location for your business and marketing are your responsibilities. In a cooperative, the reverse happens. You get comprehensive support in making those determinations. You are assisted all the way – be it customer database, building your online presence or expanding your business. As a result, with minimal investment, you maximize your profits and meet your business goals.


No doubt there will be times when you question whether you are taking the right steps to drive your business forward. In a franchise model, you are left alone, abandoned. This can be de-motivating and may result in taking actions that could adversely affect your business. But as a member of the coop, you’ll have the collective knowledge of all the members to use as a resource.


Imagine the large sums franchises ask from prospective franchisees. It can be mind-boggling. It may take years to recover the initial fee. On the other hand, coops have nominal fees, which are primarily for buying the membership. For this fee, you get the brand, support and guidance that help you increase your profitability. With low operational costs and high quality products, your business flourishes and you can maximize your profitability.


In a coop, everyone is equal. Every member has a vested interest, driving the coop on the path of success. You are not a slave to the franchisor. Instead, collectively and democratically decisions are made, giving you a voice in how your business should be run. After all operational costs are met, the surplus profits are returned to the membership. There is evidence to show coops perform much better than conventional businesses because they are owned by the members. As the hard work you put into your new business pays off, you’ll be encouraged to work even harder.

The Bottom-Line: A Business-Opportunity for the Right-Entrepreneur

A coop works for you and with you. This is what makes it a unique and successful business model. If you are looking for a business opportunity where there is no franchise or franchising fee, a cooperative may be the  perfect opportunity for you,  in particular the opportunity offered by KaleidoScoops. This ice cream coop has garnered attention for its outstanding and proven business model and high quality products. It offers the perfect opening to a self-starting entrepreneur, who wants to become successful without a high capital investment or excessive rules to run his (or her) business. KaleidoScoops assists you in every aspect, be it marketing or scouting for the right location.  And, then there’s the high quality hand-dipped ice cream that is like the perfect icing on the cake!

Starting your business is not easy, but without the burden of high franchisee fees and operational costs and obligations, business ownership is less complicated. Although success is not effortless, with KaleidoScoops, you have the comfort of knowing that there will be someone guiding and supporting you all the way to the bank!  For more information on how you can start your own KaleidoScoops store, get the “scoop” or call (877) 426-8488.

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