The Hope Chest Business Model
Hope Chest for Breast Cancer business model is a unique partnership between the Hope Chest franchisees, Hope Chest Foundation and Hope Chest franchisor. The stores sell upscale furniture, accessories and designer clothing donated to the Foundation. The Foundation contracts with the stores to solicit and convert the donated items to cash. This structure permits the donor to take a tax deduction and allows the franchisee to manage the business based on the guidelines provided by the franchisor. The revenue is shared between the Foundation, the Franchisor and the Franchisee.
Unlike typical retail stores where you purchase pre-selected inventory, virtually the entire Hope Chest inventory is donated to the Foundation. The stores are responsible for pricing, merchandising and selling this inventory. You, as a franchisee, are actively involved in your community, establishing a Hope Chest Community Advisory Board, soliciting and obtaining the inventory and ensuring an ongoing flow of goods for your store. In the Hope Chest model you do not own the inventory. You pay for it as it is sold which provides better cash flow. The amount you pay is a scaled percentage of revenue, thus allowing you to establish your business more quickly.
Initial financial requirements range from $95,600 to $155,300 depending on specific location.