It’s a pretty new thing in salons, but it has been around in barbershops now for quite some time. The salon suites business model works kind of the same way. Hair stylists pay for part of a larger “shop,” having access to tons of professional assets that salon pros need to give everyone the perfect treatment.
salon suites are able to make something affordable top people when otherwise it might not be. Starting a business is expensive, even when you already have clients. Getting something for a fraction of the rent of a full space is able to help every aspiring hair stylist have a shot at really spreading their wings and building something real in their community.
If you are looking to get into a new franchise business model, then maybe salon suites is the way to go for you. The work is fulfilling, the clientele is highly motivated, and the income is recurring.
What is a “salon suite”
The salon suite business model is one in which the business owner rents out parts of the space to smaller business owners. Basically, the boss takes care of all of the suites for the stylists (within reason) in exchange for rent paid each month. The different franchise brands in this segment can differ in the way payments are made, for what, how often, and how much.
It’s important, if not talking to someone like us, to make sure you look into all of these details. Every franchise opportunity can differ in hundreds of ways. buckle down and do some research to find the fit that’s right for you. This is a primary objective with any client when you work with us at Business in a Box.
How much does it cost to run a salon suites franchise?
According to suitemanagementfranchising.com, the startup costs can range anywhere from $550,000-1,120,000. Where you will place in the range depends on the size of the space you are buying or renting as well as the market. Naturally, a new business opening up in New York City will have a different experience than someone opening up in Philadelphia, for example.
Your startup costs also depend on how many locations you decide to build, their size, configurations, and where they are situated. The developers you use will depend on the ones you have connections with. Those prices are always flexible depending on who you know.
Here is a helpful chart that breaks it down for us, courtesy of suite management franchising
You will be provided with the full details of your franchise in the Franchise Disclosure Document (FDD)
This is a basic idea of what you can expect to see.
Is it worth the start-up costs?
When you invest, you’ll gain access to a $53 billion recession-resistant industry known as the health and beauty industry. You’ve heard of that one, right?
Salon Suites, when set up and correctly implemented, enjoy a high return on investment (ROI) relatively fast.
This, of course, assumes that you can keep your suites well rented to consistent stylists.
Benefits
semi-absentee ownership
One of the benefits of this business model is the professional nature of your “clients.” Once you have the chairs rented, you can become less attached on a daily basis and manage remotely.
Many franchise business owners aspire to have this kind of schedule.
Little to no employees
You aren’t hiring (or firing) salon employees. Your business is built on business owners renting space from you.
Few moving parts
The one thing you’ll have to worry about is making sure your chairs are all rented out to salon professionals. Once that is done, you can sit back and collect the rent. There aren’t any of the traditional headaches you’d find in the salon industry.
Recession-resistant
The health and beauty industry is famously recession-resistant. The salon segment does not experience the large ups and downs that come along with an economic crisis or recession.
A proven model
Regardless of the franchisor you choose, size, layout, furniture, and services are all typically chosen for you. The brand is built, you just have to take the reins.
That’s why they call it a business in a box.
Your franchise training and support will get you through the challenges that come along with starting your own business.
Franchising vs independent ownership
There are some unique benefits to salon suites franchising that you don’t have access to when starting something from scratch.
- A paved path – when you franchise, you are working within the parameters of a proven formula. Hundreds of existing franchisees can help you by answering questions and getting you through the tough parts of setting up and managing your new locations.
- Franchise network – you’re given a list of franchisees in your area, other areas, and countrywide that you can call and develop relationships with. Franchising is built on the idea of collaborative effort and success, rather than competition.
- Corporate marketing and brand recognition – You get to experience ownership in a brand that is (many time) built for you way ahead of time. People know what these brands are and have trust for them before you ever take the reins. You don’t need to worry about having things designed and built for you.
The ideal candidate for salon suite franchising
We are looking for franchise owners who are self-motivated, interested in building multiple locations, and ones who have a strong ability to lead people.
Even though the salon suite business model doesn’t require full-time involvement day-to-day, you need to be available 24/7. Thats part of the territory when you own any business.
If you think you have what it takes to run a successful salon suite business, schedule a call with us today. Consultations are free and we can help you figure out if this is what you want.
Talk soon.
