Franchise buyers are currently combing through a choice of some 160,000 franchise businesses in the United States. Why do some franchises businesses take off while others flounder? What franchise is right for you? More importantly, is owning a salon franchise right for you?
Although there are many factors when looking for a franchise (training, length of time that the franchisor has run the business, and number of franchisees currently in the system), there are four ultra important keys to look for when seeking a salon franchise.
1) Does the Business Model Make Money? First and foremost, you must determine if the business model you are looking at makes money. This may sound elementary, but franchising, with all its advantages, is a completely different business model. Many businesses make money, but if those businesses were forced to pay an additional 6 to 12% in Royalty and Marketing costs, their owners could not survive. Therefore it's recommended to not try and reinvent the wheel. Seek out a salon franchise business that currently has a long track record of success. Keep in mind that the franchise system itself may be younger than the actual concept itself. Find out how long the franchisor has had a history with the concept itself. Have they really figured it out before offering the franchise?
2) Is the business model sustainable? We live in an ever changing and fast paced world. Consumers demand change by the minute and we are greatly influenced by technology. Look for businesses that are being done the same way today as yesterday, and will be done the same way tomorrow. Luckily haircuts (and hair care in general) is a pretty hard industry to imagine being completely taken over by technology! This is why over the last decade more and more salon concepts have begun to franchise.
3) Is the business relevant? We can probably all think of companies whose products have either gone out of style or are no longer relevant. The most recent example is Block Buster entertainment. The video rental store has been replaced by Netflix and other on demand movie services. Another example is Borders. Borders book stores unfortunately didn't keep up with Amazon's on line book stores, and recently closed most of its locations as well. Again, it's hard to imagine a time when hair care is no longer a need - no matter what happens with technology.
4) Can you see yourself in the business? If you can't visualize yourself in the business, don't do it! Find something you're passionate about, something that you feel would make a difference in others people lives, and something that makes the world a better place. Running a business is hard work. Make sure you have a strong support system around you and seek wise council before you begin. Salon franchise or not - you must be passionate about what you do! A salon owner may or may not cut hair! Remember, running the business portion of a salon doesn't take a cosmetology degree because it's much different than cutting hair.
It's a fact that running a business can be hard work and encompasses many challenges that most people have never encountered. But it's arguable that you can buy a salon franchise and have a greater chance of success. Most salon franchises do offer the advantage of a successful business history. However, even getting a salon franchise off the ground takes effort!
When evaluating any franchise - the above 4 questions are those that MUST be answered with a YES. Luckily with the salon business, it's likely that two of the four already have YES as the answer! Now, what about the other two? Can you see yourself in this business? This question you can most likely answer for yourself.
The other question - does this business make money? That one can only be answered by doing a little research. Contacting many salon franchises, talking to the franchisors, and comparing business models is something that is important to find out. Getting the Franchise Disclosure document, the Franchise Agreement, and then talking to current franchisees is the best way to determining this answer.
If you would like to talk to us about a Shear Madness Haircuts for Kids Franchise, please call 1-888-98-Gone Mad (1-888-984-6636). To find out more about Franchising and receive our free Franchise Buyer's Toolkit, just click the link below!