Frequently Asked Questions
Finances: 1. How long did it
take you to get from startup to profitability? Profitability and
gross sales revenue are undoubtedly your biggest concerns, and we can't blame
you. However, because every city, location and owner is different, we'll never
be able to predict exactly how well you will do financially. As we grow, we will
be able to provide historical sales data in our UFOC. In the meantime, as you
look at potential revenue for your particular location bear in mind that the
strength of the Co-op is in the multiple revenue streams that are afforded to
you by virtue of the concept. The rental income, commission income, consignment
income, wholesale income as well as perhaps the revenue from products that you
yourself produce, work together to become revenue streams that you can leverage
throughout the year. Our spreadsheet templates, available to you after an
application is received, will help you be able to determine potential revenue
based upon the square footage of the space and your monthly overhead. 2. Do you have
certain bookkeeping procedures that I will be required to use? Yes, we use a
seamless sales and accounting system that is easy to learn and manage and
doesn't require a bookkeeper. 3. Will there be
periodic design changes to the store that I will be required to make, thereby
costing more for me? We don't anticipate
any design changes in the near future. We designed the fixtures and interiors
to be fresh, contemporary and timeless! We will always be sending you new ideas
for display but it will generally be up to you whether or not you implement our
suggestions. Additionally, we are cost conscious as a general rule and would
never offer suggestions that are prohibitively expensive. 4. Do you have
health insurance? Franchisees are
responsible for their own health insurance. As we grow we will research different
policies that will allow us to benefit from a group rate. 5. What decoration
of store / furniture or fixtures is included in franchise costs? You are responsible
for budgeting for store fixtures. (See our "Your Estimated Initial Investment"
chart). We designed a fixturing system as well as free standing fixtures that
we feel work perfectly for the diversity of the products at Beehive Co-op, do
not interfere visually with the product, maximize space, are easy to install
and are very economical. We have the design drawings, estimated costs per unit,
and a preferred vendor for you to use. Advertising 6. Is the company
name trademarked? Yes, Beehive Co-op
is trademarked. 7. Do I need your
consent to conduct my own advertising? Yes, in order to
maintain the integrity of the brand and consistency of the message we require
that you submit any proposed advertising or marketing collateral for approval.
We will look at your proposal and render a decision within 48 hours.
Additionally, per the franchise agreement, any new advertising that is proposed
and accepted becomes available company wide. 8. Are there
discounts if I provide my own advertising? No. However, you
would not incur additional production costs that other franchisees might. Support 9. Will I be able
to use your business plan to secure business loans or will I need to create my
own, or a combination of both? A combination of
both would be appropriate. We have a template, format and all the appropriate
verbiage that we can give to you. However, you would need to customize it to
your location and personal business strategy. 10. Will you help
find a location for my retail outlet? Yes and no. We will
provide guidance in this area and approve locations based on our criteria.
However, ultimate location is your responsibility. We will also help you
negotiate a successful lease. 11. Will there be
an operations manual? Yes. You will
receive a comprehensive operations manual that details every aspect of the
operation of a Beehive Co-op in an organized and easy to read format. 12. Will your
assistance be ongoing? How frequent – monthly, quarterly, etc.? For the first year
we will have a formal teleconference with you monthly to help you solve
problems and hear about your successes. However, you are always welcome to call
with questions or touch base when you are in need of support. Obligations / Contract 13. How flexible is
the business to retain individuality – how far can I take the business without
sacrificing the brand? We live in an
increasingly brand conscious world and we feel strongly that the Beehive Co-op
brand is distinctive and powerful and we do not want to dilute the quality and
consistency of the Beehive Co-op image and products that we promote. That being
said, we designed the brand to be flexible enough to accommodate a wide variety
of personalities and since we believe highly in individuality we will always
have an open mind towards different ideas. 14. Can we sell the
franchise? Yes. We retain the
right of first refusal if you decide to sell your franchise, meaning we can buy
it first if we so decide. If we do not buy it we still do have to approve the
buyer that you select. Misc 15. Have you
considered hiring a manager for your own store? No. We haven't felt
it to be necessary. Managing the Co-op as an owner is a relatively simple and
efficient process. Of course the more time and thought you put into the store
the better but it is possible, by nature of the systems and the Co-op concept,
for you to put in as little as 20 hours a week. Petra Geiger, the
founder of Beehive Co-op, brings sound business skills and organizational
methods to the company as well as 15 years of design and marketing skills.
Trained as a Graphic Designer in San Francisco, Petra has worked for large
corporations (Herman Miller), smaller independent companies, as well as
managing her own successful design business. Her background and experience in
design, business and as an independent handbag artist affords her the
perspective to create a company and concept that places equal emphasis on the
owners, emerging designers, and customers. 17. What are the
advantages to buying into your franchise versus starting my own store? Simply, three years
of development time, stress, experience and trouble shooting. Not to mention a
support network, already established national pr, and resources to drawn on
that most start up business do not have. This gives you a huge competitive
advantage in your market.
LOCATIONS
