Now, many beginning businessmen are interested in how to open a beauty salon. This is due to the fact that this industry has recently gained high popularity. Even those who have not previously encountered such a sphere, with a competent approach, will be one hundred percent success. Since the fashion for beauty and a healthy lifestyle is only growing in recent years, the segment of such establishments has become quantitatively larger. At the same time, the price factor does not play any role at all - be it elite establishments or democratic hairdressers. This article will talk about one of the ways to start your own business in this area - the franchise of a beauty salon.
Relevance of the topic
As already mentioned, such a business is very relevant. The franchise of a beauty salon in Russia will definitely not be a losing affair, since among the population groomed is considered bad form. According to statistics, Russians spend the same amount of money on themselves as European ladies. And this is despite the fact that the income of our beauties is much lower. Demand for the services of cosmetologists and makeup artists is growing more and more rapidly. This, of course, cannot but please the owners of beauty salons.
This trend came to Russia from Western Europe and America. Previously it was believed that visiting such establishments was only the lot of the rich. Now these services are used by the broad masses of the population, who have an average income. Only in the domestic market the overwhelming majority are individual private entrepreneurs, while abroad a large share belongs to chain stores. This is due to the fact that foreigners have long understood that by acquiring a franchise in a beauty salon, you can make a profit. That is, we can say that if you open a business in this way, the result is known. Of course, one should not exclude management literacy, as well as the ability to introduce existing technologies and experience on other grounds. The franchise itself is also important for success.
The peculiarity of this business is that, by acquiring low-cost franchises, one may encounter a rather narrow target audience. Do not forget about the high competition in this industry. For this reason, before starting the project, it is necessary to conduct marketing research in order to highlight their circle of customers and assess their capabilities. Evaluating from three perspectives, such as geographical, demographic and psychophysiological characteristics, you can segment the market and isolate potential visitors.
According to statistics, most of these establishments are located in the center and historically formed sleeping areas. Therefore, before you open a beauty salon, you must either develop new territories, or think through an interesting competitive idea. One of the options for the latter decision may be the franchise of a beauty salon.
Franchise Benefits
The main advantage is an easy start to the business. The franchise of a beauty salon, hairdresser or any other object of a beauty business is an excellent choice for an easy start, because it allows even a person without experience to do their own thing. The only thing necessary for this is money and desire. Also the main advantages of this method include:
- no need for lump-sum payment and royalties;
- deliberately wide customer base due to brand awareness;
- lack of the need for skills in the recruitment and management of personnel;
- lack of problems with team building;
- significant savings on construction and repair work, equipment and promotion, materials.
Franchise Disadvantages
Reviews about the franchise of a beauty salon indicate that the most significant drawback is the lack of individuality and independence of decision-making. That is, it is important to understand that when you open your own business in this way, you will not succeed in bringing something of your own and showing your imagination. That is, you will have to work only according to pre-established standards and norms that are adopted by this brand. Uniqueness certainly will not be a distinguishing feature of this beauty business facility.
Another drawback is the absence in the state regulatory framework of such a thing as a franchise. It is also unimportant whether this business brings profit or not - all the same, a fixed royalty will need to be paid.
Opportunity Assessment
The franchise of a beauty salon in Moscow involves the investment of a sufficient amount of funds. For this reason, the first step in starting a business in this way is to evaluate your potential and capabilities. They are a whole complex, which consists of three parts:
- Investment. In this paragraph, you need to analyze and evaluate what finances you can invest at the moment and how they will pay off. Do not count on your last money. Such a risk will not always be justified. It is realistic to predict the turnarounds only if the business is more than one year old, as this allows us to understand the mistakes made and set new goals.
- Temporary. Need to evaluate and way of doing business. After all, there are also several options. It can be direct management and participation in the life of the project or just investment.
- Features of the standards. In this case, it is important to understand that sometimes franchisors tightly control compliance with the policies of their brand. For yourself, you should decide on the willingness to follow a given direction.
Franchisor Search
The second step in this business is the search for the very franchisor. The main success factor is the choice of a well-known and trusted brand. In this business, the Barber beauty salon is such. The franchise, before it is purchased, must certainly be checked. Attention should be paid to the documentation, reviews of other people. The history of the creation and development of the brand itself is also important. Thanks to this, you can track at what stages of its formation he was most successful and what problems he faced. Do not even pay attention to little-known one-day firms.
Before acquiring a franchise, it is necessary to assess the brand's popularity and promotion. Of course, it is better to trust the more popular franchise of the Familia beauty salon than an unknown network. It is worthwhile to ask whether consulting services are provided, how and at whose expense staff training takes place.
To avoid unexpected problems and expenses, you need to clarify the following points:
- How many franchises are possible in one locality?
- What is the contract period?
- On what conditions are royalties paid?
- How is control carried out?
- How is the contract renewed?
- Is it mandatory to purchase equipment and materials only from an established supplier?
Responsible choice
It is quite clear that the franchise of a beauty salon and hairdresser has many pros and cons. Investments and payback directly depend on the correctness of the final choice. To do this, you need to analyze how successful are enterprises that already do business in this way. It will not be superfluous to clarify with the franchisor information on the system of discounts and promotions. Perhaps the company has developed a support system for its franchisees.
In order to prevent or minimize the possibility of failure, it is necessary to understand the reasons why enterprises operating under the franchise of this brand were closed or purchased.
Before the final choice, you need to find out about a special package that characterizes the business reputation of the owner. It also enshrines those opportunities and obligations that must be fulfilled under the contract.
A success indicator is the discovery of new facilities of this brand, as well as good results of the work of potential partners.
Possible difficulties
Firstly, the cost of the franchise should be clearly agreed, however, as well as the method of payment. Not very good if it will be carried out with cash.
The second problem that may arise is the incorrectness of paperwork. The conditions themselves and the procedure for their implementation depend on this. If the contract was not drawn up correctly, then in the future this may lead to litigation.
The franchisor must provide information about the company's turnover and showrooms in other regions, but this does not always happen. Decisions should not be made under pressure. But the franchisee may be required to conduct an audit in order to determine competitiveness and demand in the selected territory.
Transaction specifics
A feature of such a method of starting a business as franchising is that it is not regulated in any way by state regulatory legal acts. The Civil Code contains only information on a commercial concession agreement. According to this information, the copyright holder grants part of his rights to ownership of intellectual property.
Also, the acquisition of a franchise implies that both parties must adhere to the same system. The terms of the contract concluded depend on the very installation of the development of the system. The commercial concession includes exclusive rights to the company name, trademark, commercial information and experience of the enterprise. In addition, the franchisor must provide a training course for employees and facility management.
The main responsibilities of the franchisor
The franchise price includes certain obligations on the part of the franchisor. First, he must provide all the necessary information so that the buyer can fully exercise the rights under a commercial concession agreement. He must help, instruct staff and administration in working moments. On his shoulders also lies the registration of the right to use the franchise. The franchisee is obliged to conduct quality control of the services provided, which are provided by the user.
The main responsibilities of the franchisee
On the part of the franchisee, obligations represent the proper conduct of activities according to the contract, the use of a trademark, mark or brand. It should ensure the quality and proper level of services provided. They in their level should not be lower than those from the copyright holder. The franchisee must follow all instructions and adhere to all the rules that are enshrined in the terms of the contract. The provisions of the document, in turn, fix the ways, nature and conditions of use of the rights granted.
The franchisee must not disclose confidential information and any brand secrets. Also, his duties include informing the customer base about the brand through the use of a trademark, brand and any means of individualization.
Mandatory Items
It is necessary to discuss in advance such a moment as the formation and direction of pricing policy. That is, the order in which payments will be made is important.
Another mandatory point is a clear delineation of the capabilities of the franchisee. For the copyright holder, the granting of a wide range of rights, but at the same time strict control, is considered successful.
The contract must also establish provisions for the payment of additional services. A moment is also prescribed as the obligation to purchase materials and equipment from a single supplier.
The procedure for extending the contract is also set in advance. Perhaps the franchisor decides not to do this, preferring to work for himself, but with an already developed client base. For this reason, fixing the termination of the contract and the terms of this procedure must be discussed.
Invalidity conditions
To terminate the contract, you must notify the other party in advance. The period for which the franchise owner must be notified cannot be less than six months. Both the franchisor and the franchisee have the right to such a step, especially if someone is declared insolvent.
The copyright holder may refuse such a transaction if the conditions have been violated or the means of individualization have been changed.
The user has the right to terminate the contract if, after the death of the franchisor, his heir has not received the status of an individual entrepreneur within six months.
Payback period, profit
Even low-cost franchises can make good profits. It all depends on competent leadership. Regarding the objects of beauty business, the payback period is on average from six months to three years. This period is not accidental, because the period depends on the return of both invested funds and the starting price of the franchise. The second factor affecting the payback is the terms of the contract, which are individual in each case.
For example, when working under the auspices of Familia and paying royalties at the level of 15,000 rubles, the payback period is 12 months. The company sells 3 franchise formats. The format "City", worth 150 thousand rubles, is intended for franchisees from cities with a population of up to 500 thousand people. According to the calculations of the franchisor, the amount of investments for the salon will be from 850 thousand rubles, the estimated profit will be equal to 250 thousand rubles. . The Megapolis format is designed for cities with a population of 500 to 1 million people. The lump-sum contribution to it will amount to 200 thousand rubles, investments - from 950 thousand rubles, and profit - 280 thousand rubles. There is also a metropolitan format (for cities with a population of more than 1 million people). The largest amount of the entry fee in this case is 300 thousand rubles, 1,245,000 rubles of investments, as far as possible income is concerned, it will reach 320 thousand rubles.