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The beauty industry offers a wide range of opportunities for savvy business owners. Anyone with the right skills and determination can make it in the industry. If you are looking to start a business and have a knack for helping others find the right look, a salon franchise might be a good fit.
- What is a franchise? A franchise involves the right to open a specific business.
- Many franchise opportunities come with plenty of support and resources from the core organization.
- If you have the right skills, you can find a franchise option in the beauty industry that suits your needs.
Understanding Salon Franchises
A franchise is a business opportunity that comes with training and branding in place. Here’s a look at the nuts and bolts of a salon franchise.
Does a Salon Franchise Work?
A salon franchise, like other franchise opportunities, are based on a complex contract between the franchisor and the franchisee. Essentially, the person opening a franchise will pay the existing business a fee for access to brand-specific materials.
- Typically, businesses that offer franchise opportunities have an effective business model.
- The core business can choose to license its products, branding, and knowledge to franchisees.
- The catch is that you have to pay a franchise fee to access the franchisor’s knowledge.
How Much Does a Salon Franchise Cost?
The cost of a salon franchise varies widely based on the unique business.
- Costs: The cost of opening a salon franchise range from $20,000 to several hundred thousand dollars.
- Research: If you want to open a salon franchisee, be clear on the numbers before signing any contracts.
What Are the Economic Prospects for a Salon Franchise?
The beauty industry is a big business. As a prospective business owner, it’s possible to hit big numbers if you open a salon franchise.
- The hair salon industry is estimated to be worth around $63 million.
- But the economic prospects vary widely based on your salon's location. Run the numbers for your area to see what the potential is.
Why Are Salon Franchises a Popular Option for Entrepreneurs?
Entrepreneurs are often business savvy people. Here’s why many choose to open a salon franchisee.
- Built-in knowledge: It’s a challenge to start a business from scratch. When you open a franchise, you’ll have access to information on how to get started. Plus, some franchisors will take a hands-on approach as you get set up.
- Business ownership: You can turn your skills into a bull-blown business, which allows you to set your hours and increase your income potential.
- Recession-resistant: Even in dark economic times, people still need to get their hair trimmed. With that, the salon industry has some recession resistance built in.
How Do You Finance a Salon Franchise?
If you want to open a salon franchise, the startup costs can be high. But you’ll find many ways to finance this opportunity:
- Business loans: Many lenders are willing to provide financing for your franchise costs. Explore the best beauty salon loans here.
- Equipment financing: In order to help people look their best, you’ll need the right tools. You can use equipment financing to gain access to the tools you need.
- Borrow from a friend or family member: If you struggle to get a traditional loan, consider asking for help from a family member or friend.
- Franchisor financing: Some franchisors offer direct financing.
How Long Does it Take to Open a Salon Franchise?
The timeline on how long it takes to open a salon franchise varies. But in most cases, you should expect the process to take several months.
Benefits and Challenges of Owning a Salon Franchise
Every business opportunity comes with advantages and disadvantages. Here’s what to consider about owning a salon franchise.
“Life is more beautiful when you meet the right hairdresser.” (Peter Coppola)
Benefits of Owning a Salon Franchise
- Brand recognition: If you own a well-known salon brand, your potential customers might immediately trust your storefront.
- Steady demand: Even during a recession, people still need to get their hair cut. The steady demand can help you survive dark economic times.
- Be your own boss: When you own a salon franchise, you are your own boss. With that, you can set your own hours and build your income potential.
- Tap into a system that works: When you open a franchise, you don’t have to start from scratch. Instead, you can build on a business model that already works.
Challenges of Owning a Salon Franchise
- Start up costs: You might face steep start up costs when opening a beauty franchise.
- Franchise rules: When you franchise, you often have to stick with the system. If you want to deviate, you might need to talk to the franchisor.
- Royalty payments: You will likely need to make regular payments to the franchisor, which is often a percentage of your sales.
- Support varies: Some franchisors provide plenty of support, others provide very little. Do your research before jumping in.
What Are Some of the Best Salon Franchises?
Want to open a salon franchise in the beauty industry? Here are some top options to consider.
“People are more apt to believe you and like you when you know you look fine. And when the world approves, self-respect is just a little easier.” (Estee Lauder)
Beauty Salon Franchise
- European Wax Center: EWC is focused on providing high quality waxing services to its customers. It boasts 14% year over year growth. Be prepared to invest between $350,000 to $575,000 upfront and pay a 6% royalty fee.
- Sugaring NYC: Sugaring NYC offers organic waxing and lash boosting. Currently, it has 486 cities available for franchisee options. The upfront investment ranges from $80,000 to $120,000.
- The TEN Spot: The TEN spot offers clients a range of beauty services, including nails, hair removal, facials, waxing, and more. Expect to make an investment between $300,000 to $400,000.
Hair Salon Franchise
- Great Clips: If you want to open a hair salon that sticks to the basics, Great Clips is a worthwhile option to consider. The business has been around since 1983 and has around 4,400 locations.
- Sports Clips: Want to focus on men’s haircuts? A Sports Clips franchise might be the right choice for you.
- Drybar: Drybar is a high-end salon that comes with a high price tag. But in the right location, it could do very well.
Nail Salon Franchise
- Regal Nails Salon and Spa: The original business was founded back in 1997 and has a good reputation. Be prepared to invest between $170,000 and $750,000 to get started.
- Namaste Nail Santuary: If you want to open a zen-inspired nail salon, you can get started with a $29,000 franchise fee. But you’ll need another $220,000 to make the space ready for customers.
- MiniLuxe: MiniLuxe offers nail services at a salon location and through home visits. You should be prepared to invest $250,000 to get the doors open.
Tanning Salon Franchise
- Planet Beach: Planet Beach has over 24 years of franchise experience to help young get off the ground.
- Palm Beach Tan: Palm Beach Tan has a 30 year track record of success. Be prepared to invest cost to $400,000 to get started.
- Tan Republic: Tan Republic has the goal of ‘bronze without borders.’ You can get in on the action as a franchise.
Salon Suite Franchise
- Sola Salon Studios: You can build the salon of your dreams, through a Sola Salon Studios franchise. You’ll get a high-end, move-in-ready space to get started.
- Phenix Salon Suites: Through Phoenix Salon Suites, you can be your own boss in a space provodied through Phenix. Or you can open a franchise to rent suites to beauty vendors.
- Salons by JC: As a Salons by JC franchise owner, you’ll own high-end suites to rent to beauty vendors. But you’ll need a minimum net worth of $2 million.
Owning a Salon Franchise: Is It Right for You?
Owning a salon franchise isn’t the right choice for everyone. Be honest with yourself before diving in:
- Do I enjoy the beauty industry? If you are thinking about making an investment, you’ll want to be comfortable spending a lot of time in the industry.
- Can you afford the investment: It takes a lot of money to get a salon franchise off the ground. Make sure this investment lines up with your other financial plans.
- Do I want a built-in structure? Franchisors often have specific requirements for your business. Confirm you are comfortable playing by their rules.
- Can I leave the franchise contract? If you want to move on at some point, is that an option in your contract?
How to Choose the Right Salon Franchise for You
If you want to move forward with a salon franchise, it’s critical to find the best fit:
- What experience do you have? If you already have ample experience in the beauty industry, play to your strengths.
- Financial commitments: Consider how much money you have available to invest or have the ability to finance upfront. Some franchises are more expensive than others to get off the ground.
- Brand matters: Do you agree with the brand goals of a potential franchisee? Don’t sign up to work with a company that doesn’t align with your values.
What to Consider Before Buying a Salon Franchise
As you weigh your options, keep the following points in mind.
- Franchise fees: Can you afford the upfront franchise costs? Also, consider any long-term royalty fees as a part of your financial decision making process.
- Brand reputation: Do customers love the brand? If the company has mixed reviews, you might not want to work with them.
- Territorial restrictions and local competition: Is there a space for you in your current market? Also, find out if your franchise will have territorial rights. You don’t want extra competition in your area.
- Training available: What level of training is available through the franchisor? Preferably, you’ll find extensive resources available as you get your business off the ground.
- Financial projections: It’s natural to be optimistic about the potential return on investment. But take a close look at the numbers. You don’t want to sign up for a bad bargain.
How to Open a Salon Franchise
Want to move forward? Here’s how to open a salon franchise:
- Find your niche: Determine what kind of beauty business do you want to open.
- Look at the market: Is there space for your business in your local market?
- Find a franchise that matches your goals: You’ll need to dig into your franchise options to find the perfect fit.
- Schedule a call: Most franchisors offer an introductory phone call to start the process. Use this time to learn more about the franchisee.
- Nail down the numbers: You’ll need to make a significant investment. Make sure you have access to the funds before finalizing the contract.
- Work with the franchisor: After you sign the contract, the franchisor might help you set up you business. Pick their brain along the way to make everything as efficient as possible.
Top Trends in Salon Franchising You Need to Know
As you look into your options, here are some trends breaking into the salon franchising arena.
- Virtual Consultations and Booking: You want to give your clients as many options as possible when it comes to booking.
- Eco-Friendly Products and Services: Many customers are looking for environmentally friendly beauty products.
- Diversification of Services: When you offer more services, you can build up more income streams.
- Technology Integration: Technology can be helpful. But setting it up isn’t always intuitive. Many franchisors offer help getting your tech in order.
The Importance of Branding in Salon Franchising
As with many businesses, branding is important to salon franchises.
- The power of good branding: You want customers to immediately recognize your brand as a top choice. Good branding can make all the difference when a customer is selecting a salon for services.
- Franchisees can get a leg up: As a franchisee, you can piggyback on a success brand to get customers through the door. Keep the brand image shiny by treating your customers well.
Tips for Managing a Successful Salon Franchise
- Treat the customer well: Customers want a high end experience, so make them feel special.
- Be budget conscious: A successful business owner keeps a close eye on the numbers. This is especially important when dealing with high startup costs.
- Pick the right location: You want an easy location for customers to find you.
- Think about your client when designing the space: If you want upscale customers, choose an upscale look.
- Make the website easy to use: Many customers will pop onto your website. Make the website a straightforward resource.