For those of you who took the time to read my post Art, Business and Community Unite about Beehive Co-Op- a retail for-profit franchise concept, do you think that it is possible to profit in the arts while providing educational and entrepreneurial support in the competitive world of retailing?
Beehive Co-Op claims to be the antithesis of the franchise concept, but, is in fact, a franchise. Frankly, this concept has me intrigued. This might be the first time I have ever seen a business concept that truly seeks to provide educational and entreprenurial support to its â€œvendorsâ€ by nurturing their spirit as a for-profit venture, instead of a not-for-profit cause.
The irony in all of this, to me, is that arts entrepreneurial incubators are starting to spring up around the country. Many of them have a lot to offer and some of them even compete with Beehiveâ€™s concept. All of these are running as not-for-profit ventures opting to raise money instead of borrowing it.
What do you think about Beehiveâ€™s concept?
Would you invest 100K in this concept, which includes a franchise fee of $30,000, but does not include the cost of leasing retail space? Does this concept seem like it belongs as a for-profit or not-for-profit given the number of arts incubators popping up across the country?
The first Beehive Co-Op was sold not long ago for less than 100K claiming cash flow of just over 50K annually. The founder is going on to build the second Beehive Co-Op in New York City. But is this enough of a profit for the 3 years of work it took for her to build the Beehive Co-Op in Atlanta, the first one, to justify a 30K franchise fee for this business-in-a-box?
Take a look at some of these programs and concepts springing up. Do you think Beehive Co-op made a mistake becoming a for-profit franchise instead of a not-for-profit cause? Tell me what you think.
(For those of you in a hurry, if you only have time to look at one of these, check out Studio 1219 first)