The Hair Salons Franchise Industry
Hair salon franchises help people look and feel good by offering hair cutting and hair styling services to women, men, and children. According to IBISWorld, “revenue for the hair salons industry is expected to rebound in 2021 due to the reopening of nonessential businesses and pent-up customer demand for industry services.”
A fact about the hair industry that draws entrepreneurs, as well as being a major factor in the industry’s consistency and future prospects: It’s one of the few industries not foundationally affected by the Internet. As Boynton Weekes, master franchise co-owner of a Fantastic Sams in Northeast Pennsylvania and Northern New Jersey said: “(People) still have not found a way to do anyone’s hair on the Internet.”
Another reason hair salon franchises are popular with prospective franchisees is that it is a franchise type that readily allows for absentee or semi-absentee ownership, a more flexible setup that some other franchise types allow.
In a semi-absentee or absentee franchise, the owner of the franchise will hire a manager to oversee the franchise’s day-to-day operation. Commonly, prospective franchisees who want to dip their toes into ownership instead of jumping in full-time utilize this kind of setup to maintain their existing income while the franchise business gets off the ground.
Well-known companies in the hair salon franchise industry include: Fantastic Sams, Great Clips, Nikita Hair, Supercuts, and more.
Note: In addition to beauty salons, barbershops and blow dry bars, closely related hair care franchises such as eyelash salons and salon suite rentals commonly appear in industry franchise searches as well.
Specialty Areas Common within Hair Salon Franchises
Positioning is important to attracting customers. And in the hair salon franchise industry, that positioning gives rise to specialties within the field. Here’s a look at two common ones.
The first of those specialty areas is men’s grooming.
Once upon a time, men’s grooming was seen as a luxury, a practice reserved for those of a certain age, class and/or wealth. Not anymore. The walls have been broken down, the stigma surrounding men’s grooming is fading, and men of all ages and within virtually all socio-economic backgrounds are indulging themselves more.
However, the men’s grooming franchise market isn’t an entirely new space. Haircut franchises in this industry segment date back to at least the early 1990s. At first, though, the concepts featured themes that were expressly masculine, a “safe” way for men to venture into the health and beauty market without straying too far from conventional norms.
However, a more unapologetic men’s luxury is now taking hold. Newer franchise concepts to the scene are promoting environments that “make you feel comfortable and at home” with complimentary beverages (both alcoholic and not), leather chairs, and ambiances more befitting a lounge than a typical barbershop.
Franchises such as Diesel Barbershop, Hammer & Nails, Roosters Men's Grooming Center, Scissors & Scotch, Sport Clips and The Great American Barbershop are leaders in this area.
Another big specialty segment in the industry is children’s hair salon franchises.
Hair salons that cater to kids strive to take what could be an intimidating and unpleasant experience and transform it into a “fun-filled adventure” as Snip-its says.
Environment is the key for these franchises that can often come across more playground than salon with their video games, play areas and “fantasy chairs.” Some of these franchises even host birthday parties.
Popular children-focused hair salon franchises include: Cookie Cutters Haircuts for Kids, Pigtails & Crewcuts, Sharkey's Cuts for Kids, Shear Madness Haircuts for Kids, Snip-its, Sweet & Sassy, and more.
Research Advice for Future Hair Salon Franchisees
With decades of industry experience – including starting out as a franchisee himself – Gordon Logan, founder and CEO of Sport Clips, is a great person to seek advice from if you’re looking at starting a hair salon franchise.
Logan strongly encourages those interested to fully investigate the hair salon industry for an ideal business opportunity that can “meet their goals for lifestyle, financial independence and a rewarding career.”
To that point, he was kind enough to give us some of his top tips for prospective franchisees:
- Pay close attention to the selection process. Do they accept anyone who can write a check or are they careful and selective as to who they accept?
- Is the top management solid, with experienced professionals to back up the promotional materials?
- Is the system well-documented? Are the training programs solid?
- Visit several locations. Is there a high degree of consistency between locations? If not, that may point out weaknesses in the support systems, and consistency is a critical factor in building a brand.
- Talk to existing franchisees. They will be your “partners” in building the brand, and their input can be invaluable.
- Does the franchisor have any company-owned stores? If not, ask how they test out new ideas/innovations before asking franchisees to invest their money in these changes to the system.
“This is a big decision for anyone,” adds Logan. “Make sure you have done your homework and select the right franchise for you. There are a number of well-established franchises addressing different segments of the market…find one that feels ‘right.’ If you make the right decision, it could change your life.”
Initial Investment and Opening Costs for Hair Salon Franchises
The amount necessary to open a franchise varies depending on the unique business system and execution requirements. The opening costs for a hair salon franchisee can depend on many factors, including but not limited to: the initial franchise fee, land and building costs, training expenses (such as travel and living expenses, not the actual training courses), grand opening advertising and marketing costs, and more.
Franchisors offer estimates in their 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.
Top Benefits of Being a Hair Salon Franchisee
The benefits of owning a franchise can be numerous vs. independent operation. Here are a few of the top benefits for those who decide to own a hair salon franchise instead of going at it alone.
Name Recognition: People tend to deal with people and places 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 hair salon franchise, you will be given the right to associate your business with that franchise company's name, trademarks, and logo.
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 in general local advertising is up to you, you’ll have guidelines in place.
Training & Support: A popular feature with all franchises is the business 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 hair salon franchise. Remember the franchisor can’t be successful without you!
If you would like to get more details about hair salon franchise opportunities, contact any of the franchises listed on our site by clicking the request info button and filling out the short form.
You can also check out many more Health & Beauty Franchises here on Franchise Direct, such as: Barbershop Franchises.