Are Beauty Industry Franchises a Good Investment for You?
A beauty and wellness franchise can be a terrific way to start your own business while leveraging someone else’s brand. The best beauty and wellness franchises offer the opportunity to work in a field with a high demand for services, without the high start-up costs, and the risk of building it from scratch.
But it’s not all a bed of roses. While there are many advantages to buying, owning, and operating a franchise, beauty businesses operate in a highly competitive industry.
In this article, we outline the pros and cons of beauty industry franchises for entrepreneurs.
The advantages of owning beauty industry franchises
Owning a beauty industry franchise can be an attractive opportunity for entrepreneurs. Here are seven reasons why.
Franchising is a tried and tested business model
Franchising is arguably the most successful business model of the modern world. Globally, the franchising industry generates trillions in revenue each year, with millions of people running their own franchises.
In the United States, franchises of all types employ around 7.5 million people and contribute around $670 billion to our economy.
Brand recognition and marketing
Being an established and recognizable brand in the industry is a big plus for franchisees, who can use that recognition to help establish themselves in the market and really start distinguishing themselves from other businesses.
You’ll also get plenty of assistance when it comes to marketing your business with plenty of help from expert marketers, on hand to help you with advice on building up a reputable brand.
Training and support
It’s often hard to get started in a new venture. A franchise can make things much easier by offering detailed training support ─ something that many of us lack. They want you to succeed, so they often train you throughout your experience with them.
Success rates of franchises are better
As a franchisee, you have everything you need to start your business, including branding, products or services, and existing operating procedures. This will give you a head-start in your business.
The result of this is more new businesses succeeding than if they had been starting without all this assistance.
Offer structure and consistency to clients
Franchises are a valuable investment for this exact reason. Your clients will feel more confident that they’re getting genuine, high-quality services because they know what to expect from the brand ─ and this makes them more inclined to become loyal customers.
High-tech equipment and lower equipment costs
Starting a beauty business can be expensive. The industry is increasing its use of technology, and this can be a costly investment.
The size and scope of franchise business allow them to negotiate extremely competitive prices on equipment and supplies. They pass these savings to their franchisees.
Successful franchise brands have a lot of reach ─ and that’ll help you get in front of many potential customers.
The disadvantages of owning beauty industry franchises
A franchise might not be right for you. You’ll need to ensure you have the time and money to run your business. Here are three disadvantages of investing in a franchise business in the beauty industry.
Starting a fitness franchise can have lower startup costs, but you’ll also need to consider the ongoing cost of keeping the franchise running, especially in the first few months as you are building your business.
You will also be expected to pay ongoing fees or commissions while you own the franchise. These fees allow the franchisor to provide training, support, marketing assistance, and so on.
You may not get much support
There are many different beauty franchises in which you can invest. Some provide exceptional support throughout the term, others may not be as helpful.
You should make sure you know exactly what you need ─ talk to a franchise consultant who can tell you more about how your work and experience align with the needs of the franchise and the level of support you will receive from them.
Strict guidelines ─ a lack of independence/flexibility
If you are the sort of entrepreneur who wants complete control over how you run your business, then franchising is not for you.
Then again, becoming a franchisee is a fantastic way to leap into a business with a proven business model ─ wouldn’t you want to follow the franchisor’s guidelines and not stray from what has been proven to work?
Are you ready to become a successful franchisee?
Franchising is a popular option for entrepreneurs and first-time business owners. Many who invest in a franchise continue to do so and become multiple franchise unitholders.
Is it a business model for you? As you can see, there are many advantages to owning a franchise business in the beauty industry.
There are many reasons why it’s the right decision. It offers an established business model with proven success, generally lower start-up costs, training, and support. But you should also be aware of the potential downsides.
Do you have what it takes to be a successful franchisee?
Take our free franchise aptitude assessment today. It takes only a few minutes, and you’ll discover a huge amount about your business acumen you didn’t know before. It’s the first step to benefiting from all the advantages of owning a franchise business and mitigating the disadvantages.