Nail care is big business in the United States.
Nail salon franchises offer nail care services such as manicures and pedicures, along with other nail enhancements and services. Several nail salon franchises also augment their bottom lines by offering other services such as: waxing, massages, facials and body wraps. In addition, some nail salon franchises have begun their own retail product lines as well.
Popular nail salon franchises include: Frenchies Modern Nail Care, MiniLuxe Nail Salon, Regal Nails Salon & Spa, PROSE Nails, and Bellacures.
Per the most recent count, there are 333,791 personal waxing & nail salons businesses in the United States. And for good reason, people like to pamper themselves and feel good. According to IBISWorld, nail services account for over 95% of revenue in the $18.7 billion personal waxing and nail salons industry. Additionally, consider the following from the market researcher’s industry report:
- The personal waxing & nail salons industry has low market share concentration and there are no companies with more than 5% market share.
- The market size (revenue-wise) of the personal waxing & nail salons industry has grown 6.4% per year on average between 2016 and 2021.
- The number of businesses in the personal waxing & nail salons industry has grown 5.3% per year on average over the five years between 2016 and 2021.
- The market size of the personal waxing & nail salons industry is currently increasing faster than the economy overall.
- More specifically, the market size of the personal waxing & nail salons industry has increased faster than the consumer goods and services sector overall over the past few years.
- The primary positive factors affecting this industry include a growing life cycle stage and a low revenue volatility.
- The industry’s performance depends on active consumer spending. With more disposable income, consumers are more likely to purchase personal-care products and services, such as those offered in this industry. Consumer spending is expected to increase, creating a potential opportunity for the industry.
Just as the pandemic elicited innovation in other industries, nail salon franchises weren’t an exception. Heavily impacted by the shutdowns, some franchises started experimenting with at-home services.
Take California-based Bellacures, for example. The franchise now offers at-home services for specific neighborhoods around Los Angeles. Certain conditions apply and the services are currently offered outdoors only (backyard, front yard, patio, pool area, balcony, etc.).
However, one thing that nail salon franchises were doing quite a bit more than other franchises before the pandemic was touting their safety measures. As you will see in your franchise search, cleanliness and sterilization is a big selling point in the industry. For instance, below is what Frenchies Modern Nail Salon has said about its cleanliness practices:
<blockquote>At Frenchies®, We Love Clean™
At Frenchies Modern Nail Care, cleanliness and sterilization of the studio and all tools is of utmost importance.
We truly care about the health and well-being of each guest, and we guarantee a clean and fresh environment at every visit. We go above and beyond industry standards, and exceed regulations to ensure each guest is safe and comfortable. We know that sterilization is the only form of infection prevention that can kill all bacterial, viral, and fungal organisms, so we take it very seriously.
So what really makes Frenchies different?
- Sterilization is performed in a medical-grade autoclave, which utilizes steam under pressure to kill all contaminates. An autoclave is a fancy way of saying a pressure chamber that sterilizes the tools inside. We use it in our three-step disinfection process on each and every tool that is used on Frenchies guests.
- Sealed pouches with disposable tools - like files and birch wood sticks - are only opened at the start of the service and in view of our guests, and are disposed of at the end of the service. If you'd like to take the disposable tools home with you, they're all yours...in the cute Frenchies pouch!</blockquote>
In addition, many nail salon franchises have branched and expanded to show how they fit into overall health, not just a beauty add-on. For instance, PROSE Nails launched their own line of non-toxic, vegan nail polishes to “further complete [its] mission of providing a toxic free environment without harmful fumes.”
Initial Investment and Opening Costs for Nail Salon Franchises
The opening costs for prospective nail salon 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, 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.
Top Benefits of Being a Nail Salon Franchisee
As noted above, there are no companies with more than 5% market share in the industry. And similar to the cleaning industry, there are several advantages nail salon 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 nail 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 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 nail salon franchise.
You can also check out many more Health & Beauty Franchises here on Franchise Direct, such as: Spa Franchises.