Beauty is booming and more than ever, the franchise industry is catching on with terrific new concepts. The Health & Wellness category annually generates $60 billion in revenue, offers many concepts in the low-cost service industry and generates lots of repeat business.
One of the hottest trends is custom beauty boutiques offering customers professional services that they can’t do by themselves. More than just hair and nail salons, customers can now enjoy beauty treatments targeting areas such as eyelash enhancement, permanent makeup and eyebrow enhancement.
Because the techniques and procedures require training, the business model isn’t competing against the internet. These beauty boutiques often require only limited space to operate, so real estate is easy to locate and inexpensive.
Many of these beauty services provide temporary enhancement, so the business generates significant repeat business and recurring revenue. New business is regularly generated not only through word-of-mouth but through social media. In fact, recent surveys found that social media platforms like Facebook and Instagram can influence as much as one-third of beauty purchasing decisions among women.
Competition in this sector is low for many of these franchise concepts because the beauty procedures are relatively new. With most markets featuring only mom-and-pop shops, customers find franchise concepts with proven models and reliable service more appealing. Further, many of the franchise brands still have plenty of desirable territories available so candidates can explore developing entire areas instead of just one store.
Best of all, many of these franchise concepts are manager-driven, meaning owners can run their business in a semi-absentee model. Owners can keep their day jobs if desired because the business only requires 10–15 hours of high-level management per week. This also means these concepts are scalable, so candidates desirous of building a multi-unit franchise empire will find these business models appealing.
Like most franchise concepts that fall into the “emerging trend” category, it’s important that candidates do thorough vetting and due diligence when considering one of these businesses. As a franchise consultant, I am especially useful in this instance because I can help guide candidates towards emerging brands that have proven their concept, have a strong management team in place and are already receiving validation from current franchisees.
Think you might be right for a franchise in the beauty business? Give me a call.