Health and beauty franchises cover a wide range of products that help customers feel their best (health/wellness) and look their best (beauty). Businesses, both franchises and not, within this service field are also referred to as the personal care service industry.
Popular segments of the industry include:
- Barbershops
- Beauty salons
- Diet and weight reduction centers
- Hail removal salons
- Massage centers
- Makeup salons
- Nail salons
- Tanning salons
Also, per the North American Industry Classification System (NAICS), these establishments count as part of the industry as well:
- Day spas
- Hair replacement services (except by physician offices)
- Steam or Turkish baths
- Tattoo parlors
Popular franchises within the industry include: Fantastic Sams, Sport Clips, The Joint Chiropractic, 100% Chiropractic Urban Float, Great Clips, Massage Envy, Relax the Back, Seva Beauty, BodyBrite, Merle Norman, The Lash Lounge, Palm Beach Tan, SolSculpting, Kika Stretch Studios, StretchLab, Deka Lash, BeBalanced Hormone Weight Loss Centers, QC Kinetix, and so many more!
Note: A number of franchises provide services in multiple segments. Some franchises can also crossover into the fitness franchise industry as well.
Salon Suites Making Their Mark in the Health and Beauty Industry
Every industry has employee turnover, but salons consistently rank among businesses with the highest employee turnover from year-to-year. There are several reasons, but many revolve around the desire of the stylist to find a work environment that better suits them personally. As a result, in their quest for more independence, health and beauty professionals have indirectly made property management a bigger piece of the industry pie.
Professionals within salons typically rent their booth from the salon owner and pay a commission to the owner for the space they use. “The unofficial rule is for stylists to find a busy salon that provides advanced education, build a clientele… and then take that clientele to a better commission deal at another salon… or set up camp as a booth or suite renter,” said Neil Ducoff of Strategies, a salon and spa consultancy. “Why? Because it’s damn near impossible to rent a booth or suite and go it alone without the cash flow of a full book [the clientele list].”
For salon professionals that have decided to strike out on their own, suite rental franchises (such as Encore Salon Suites, Sola Salons, My Salon Suite, Salon Plaza or others) allow their clients, the stylists, to avoid the expensive cost of a studio build out personally, and spread the cost of property rent among several tenets. The rentals also allow for the stylists to separate themselves from many of the constraints that come with working for traditional outlets.
Typically provided in the rental deals are access to fully-equipped studios alongside the tools needed to run a salon business and varying levels of support. According to Sola, salon suite rental services “offer salon professionals the freedom and benefits of salon ownership without the upfront costs and risks associated with opening a traditional salon.” The salon suite rental model “empowers hairdressers, estheticians, nail techs, massage therapists and other like-minded professionals to take control of their lives and their careers.”
Top Benefits of Owning a Health & Beauty Franchise
There are several advantages health & beauty industry franchisees could enjoy over their independent counterparts. Here are a few.
Name Recognition: When it comes to finding a service provider, people tend to deal with someone they have a familiarity with. Franchises tend to have established brand names that, in many instances, have been around for years. If you buy a health & beauty franchise, you will be given the right to associate your business with that franchise company's name, trademarks, and logo.
Furthermore, partnering with a franchise that has a strong, distinctive brand can have a tangible impact on a franchisee’s success. Many franchises within the industry provide similar services to one another. The thing that will help franchisees stand out from their competitors is the franchise system’s uniqueness and commitment to customer service.
Advertising: Getting your name out there can be expensive and sometimes it can be hard to know where to spend your advertising and marketing budget. With a franchise, national advertising is typically done by the franchisor. In addition, though local advertising is generally up to you, you’ll have guidelines in place to help guide you.
Training & Support: A popular feature with all franchises is the training provided. While in business, franchisees will have access to the franchisor’s operations manual, computer systems, and other items designed to help you successfully manage your health & beauty franchise.
Knowledge of Special Considerations: If you want to own a franchise that operates within the medical realm—such as a chiropractic franchise, you will need to be aware of regulations governing these franchises where you live such as HIPAA regulations and certain Medicare and Medicaid statutes. In some cases, a licensed medical professional will have to be involved with the franchise in order for it to operate. The benefit of franchising in this area is franchises have already navigated these areas, and can pass along their knowledge to their franchisees.
Initial Investment and Opening Costs for Health & Beauty Franchises
The opening costs for prospective health & beauty franchisees can depend on many factors including, but not limited to: the business system and execution requirements.
The initial investment typically includes expenses such as the initial franchise fee, lodging during training, the purchase of tools and equipment, insurance and licensing, grand opening advertising material, real estate expenses, and more.
Franchisors offer estimates in their Franchise Disclosure Document (FDD) based upon their experience establishing, and in some cases operating, units. However, prospective franchisees should keep in mind these estimates are just that—an estimate. Prospective franchisees should review the figures presented with a business advisor, taking into consideration their unique circumstances, before making the decision to enter into a franchise agreement.
You can check out many categories of health and beauty franchises here on Franchise Direct, such as: