The health and beauty franchise business has grown enormously recently, with more people seeking quality salon services, spa experiences, and medically-focused treatments. In the UK alone, the hair and beauty sector was valued at £7.4 billion in 2021, with over 46,000 hair, beauty and wellness enterprises in operation. For entrepreneurs interested in tapping into this booming market, health and beauty franchises offer a popular pathway to business ownership.
Franchising provides built-in branding, processes, training and support – lowering risk and enabling franchisees to capitalize on interest in self-care, grooming, relaxation and beauty enhancement. This article will explore the world of health and beauty franchising – the opportunities it presents for franchise owners and key considerations for success in this sector.
Table of Contents
What is a Health and Beauty Franchise?
A health and beauty franchise allows an individual or small group to purchase the rights to operate under an established brand name. The franchisor (brand owner) provides the franchisee with a complete business model, including products, services, marketing materials, processes, training and ongoing support.
Some of the most popular types of health and beauty franchises include hair and nail salons, spas, skin care clinics, fitness studios, weight management programs, massage therapy, tanning salons and cosmetic surgeons. Approximately 9% of franchised businesses in the UK fall under the broad health and beauty category.
Franchisees pay an upfront franchise fee and ongoing royalties for the rights to utilize the brand name, systems and assistance. This helps launch their business quickly and benefit from the franchise’s reputation. In return, the franchisee must follow the franchisor’s system and operating procedures. Health and beauty franchises provide entrepreneurs with the benefits of an established brand and ongoing training and support needed to manage daily operations.
Why Health and Beauty Franchises Are Popular
There are several factors driving interest and growth in health and beauty franchising:
Increasing demand for personal care services: More consumers seek salon, spa, fitness and aesthetic treatments for pampering and self-care. The global spa industry is predicted to reach £130.5 billion by 2030.
Ageing population: The growing 50+ demographic is spending heavily on anti-ageing treatments, cosmetic procedures and relaxation.
Focus on health, fitness and wellbeing: Interest in looking and feeling good drives demand for fitness, weight loss, nutrition and medical spa franchises.
Deferred spending: Consumers have disposable income for discretionary services after limiting spending during COVID-19 shutdowns.
Flexibility: Health and beauty franchises offer flexible working hours, especially for parents/caregivers. Many operate outside 9-5 business hours.
Lower startup costs: Established brands have negotiated discounts on equipment, supplies, insurance, etc., lowering franchise launch costs.
Built-in brand: Franchisees benefit from an existing brand reputation versus building a customer base from scratch.
For aspiring business owners, health and beauty provides an opportunity to capitalize on growing consumer demand in a booming sector. Franchising reduces the risks and learning curve compared to an independent startup.
Franchising offers many advantages for those looking to break into the profitable health and beauty sector:
Established Brand and Reputation
A major benefit is tapping into a well-known brand. Franchisees gain instant brand recognition and credibility versus building an unknown startup. Consumers are more likely to trust an established name and reputation.
Proven Business Model
Franchisors provide a turn-key business system, avoiding mistakes and trial-and-error learning. Franchisees follow successful procedures for operations, marketing, finances, HR and more.
Training and Ongoing Support
Extensive training is provided on managing daily operations, delivering services, using equipment/tools, inventory ordering and more. Ongoing support helps troubleshoot challenges.
Purchasing Power
Larger franchises have negotiated discounts on equipment, inventory, services, marketing and insurance that individual owners couldn’t obtain. This improves profit margins.
Networking Opportunities
Franchisees can network, share ideas and learn from fellow franchise owners. Periodic conferences and events also provide the community.
Flexibility
Many health and beauty franchises allow owners to set their hours and schedules. This accommodates family or other responsibilities.
By leveraging these advantages, health and beauty franchise owners increase their chances of success in an otherwise competitive marketplace. The brand power and replicated model provide a head start.
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Drawbacks of Owning a Health and Beauty Franchise
While franchising offers many benefits, there are also drawbacks to consider:
High Initial Investment
The startup cost for a health and beauty franchise ranges from £25,000 to over £200,000, depending on the brand. This includes franchise fees, equipment, inventory, marketing launch costs and more.
Ongoing Royalties and Fees
Franchisees pay an ongoing percentage of sales revenue as a royalty to the franchisor. Other fees for training, conferences and network services may also apply.
Less Control
Franchisees must adhere to the franchisor’s system and operating procedures without much flexibility. There is limited ability to differentiate.
Territory Restrictions
Franchisors designate exclusive territories for each franchisee. This limits geographic expansion options.
Tight Margins
Discounts negotiated by the franchisor and royalty payments may leave tight profit margins for franchise owners.
Franchisor Dependence
The success and reputation of the franchise depend heavily on the franchisor’s decisions. Poor management can jeopardize individual locations.
By understanding both advantages and challenges, prospective franchisees can make an informed decision about whether this model suits their needs and capabilities.
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Types of Health and Beauty Franchises
Health and beauty is a broad category encompassing many different franchising niches. Some major types of health and beauty franchises include:
Hair Salons
Hair salon franchises focus on cutting, styling, colouring and treatments. Popular UK franchises include Regis, Rush Hair, Francesco Group, Ego Hair Design and Charles Worthington Salons, which provide turnkey operations for delivering hair services.
Nail Salons
Manicures and pedicures are growth services. Nail salon franchises like The Nail Salon, Nails Inc, Cheeky Tikka, Beautique and Gorgeous offer kits for launching a stylish nail bar with trained technicians.
Spas
Spa franchises provide facilities for facials, body treatments, massage and relaxation services. Examples include Serenity Spa, Amara Medi-Spa, Spa Originals and Made For Life Spas.
Fitness Studios
Major fitness franchises include clubs like Anytime Fitness and Snap Fitness and boutique studios like Barre, Club Pilates, Pure Barre, Row House and Orangetheory Fitness. These offer specialized equipment and exercise programs.
Medical or “med spas” offer minimally invasive cosmetic procedures performed under medical supervision, like laser skin treatments, injectables and body contouring. Popular franchises include LaserAway, Ideal Image, and AquaMed.
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Laser Hair Removal
Specialized hair removal franchises use laser technology to reduce hair in all body areas. Leading UK franchises are The Laser Beast, Sk:n Clinics, Laserase Esthetics and Nouveau Beauty Group.
Tanning Salons
UV and spray tanning franchises allow clients to build UV-free, sun-kissed looks. Top UK tanning franchises include Soleil Sun, Aussie Chic, Gorgeous Tan and LA Tan.
Makeup Studios
Makeup studio franchises like Divine MakeUp Studio, La Belle Make-up Academy, and Make-up Pro focus on makeup artistry services for events and teaching makeup application techniques.
Perfume Retail
The fragrance retail sector represents a significant opportunity in the health and beauty franchise market. Leading UK perfume franchises like The Perfume Shop and Jo Malone have established successful business models that combine luxury retail with exceptional customer service. A modern perfume retailer would offer:
Service Type
Description
Premium Fragrances
Designer and niche brand collections
Personalized Consultations
Expert fragrance profiling services
Gift Services
Custom packaging and corporate solutions
Loyalty Programs
VIP events and member benefits
These franchises typically require an investment of £75,000-£300,000 depending on the location and model chosen. Successful perfume retail franchises focus on prime retail locations, sophisticated inventory management, and comprehensive staff training in fragrance expertise.
Cosmetic Surgery Centers
Medical franchises like Transform Cosmetic Surgery, Pall Mall Cosmetics, and Harley Cosmetic Group offer procedures like liposuction, breast augmentation, facelifts and more performed by licensed cosmetic surgeons.
This range of options allows potential franchisees to choose a niche aligned with their interests and skills. Hair salons, med spas, fitness clubs and many other sub-sectors fall under the health and beauty umbrella.
What aspects of health and beauty are you most passionate about? Do you love styling hair or doing makeup? Are you fascinated by skin care or nutrition? Consider your interests as well as any relevant skills or experience.
Research the Franchise Market
Look at franchisor websites along with third-party franchise ranking sites to compare offerings. Assess several locations, years in business, fees, profitability, training, marketing support and areas for geographic expansion.
Talk to Current Franchise Owners
Speaking to current franchisees gives insight into the pros and cons of day-to-day operations. Ask about their experiences with corporate support, challenges they faced, and their satisfaction level.
Read the Franchise Disclosure Document (FDD)
A franchisor’s FDD provides detailed information on fees, contract terms, litigation history and past franchisee turnover rates. Review this carefully.
Understand Your Locale
Factor in the demographics, competition, and needs of your target community. A franchise suited to a bustling city may not work in a rural village. Location impacts success.
Consider Lifestyle Needs
Factor in family obligations, other responsibilities and your own work/life balance preferences. Many health and beauty franchises allow flexible scheduling.
By carefully weighing options based on these key factors, health and beauty franchise hopefuls can make the best choice for their situation. The brand selected should align with both aptitude and lifestyle.
Launching a health and beauty franchise requires significant capital investment. The total can range from tens of thousands to over £200,000, depending on the brand. Costs typically include:
Franchise Fee
The franchise fee provides the rights to operate under the brand name and use the franchisor’s systems. This ranges from £15,000 to £45,000 for most health and beauty franchises. High-end spas and cosmetic surgery centres can reach over £100,000.
Equipment and Inventory
Equipping a salon, spa or fitness studio requires investment in furniture, tools, machinery, technology, cabinets, products and inventory. These startup equipment costs often total £20,000 to £75,000.
Real Estate Fees
If constructing a new standalone location, franchisees must budget for real estate fees, architectural plans, permits, contractor fees and construction costs surpassing £100,000.
Marketing and Launch
Initial marketing and advertising to announce a grand opening averages £5,000 to £20,000 for many health and beauty franchises. Ongoing marketing is also required.
Working Capital
Franchisees need working capital on hand to cover rent, payroll, insurance, utilities, supplies and other expenses during the business ramp-up phase before steady revenues are achieved. This is often advised at £25,000+
Additional Fees
Other costs like licensing, legal fees, business incorporation and training may also apply. Franchisors also charge ongoing royalty fees.
Combining these costs provides a total investment estimate to launch a health and beauty franchise, which small business financing and loans can assist with funding.
THE STEPS TO FRANCHISE YOUR BUSINESS
How to Succeed as a Health and Beauty Franchise Owner
To achieve success after investing in a health and beauty franchise, owners should:
Follow the Franchisor’s System
The franchisor has already developed a recipe for success. Closely adhere to their operating manual, procedures, branding and marketing. Don’t veer too far from the proven formula.
Provide Excellent Customer Service
Health and beauty businesses thrive on repeat clients and word-of-mouth referrals. Ensure clients have an outstanding service experience at your location.
Hire and Train Great Staff
Recruit talented staff members suited for the rigours of the industry. Invest in thoroughly training them on customer service, products and performing services properly.
Adapt to Emerging Trends
Keep up with new products, equipment, ingredients, techniques and trends sweeping the industry. Today’s consumers want the latest and greatest.
Use Technology
Leverage salon management software, online booking, social media marketing, customer databases and other technology to elevate operations and reach new audiences.
The franchisor’s training and ongoing support, combined with the franchise owner’s commitment to service excellence, execution and business growth, creates a formula for thriving success.
Tim Hortons
Tim Hortons is a Canadian coffee and doughnut chain with over 4,000 locations in North America. The company was founded in 1964 by Tim Horton, a former National Hockey League player. Horton and his partner, Ron Joyce, opened their first Tim Hortons restaurant in Hamilton, Ontario. The restaurant was a success, and the company began to expand rapidly. In 1974, Tim Hortons sold a controlling interest in the company to Wendy’s International. Wendy’s helped Tim Hortons to expand into the United States, and the company continued to grow rapidly. In 1994, Tim Hortons became a publicly traded company. Today, Tim Hortons is one of the most successful franchise businesses in the world.
McDonald’s
McDonald’s is the world’s largest restaurant chain, with over 38,000 locations in over 100 countries. The company was founded in 1940 by Maurice McDonald and his brother Richard. The McDonald brothers opened their first restaurant in San Bernardino, California. The restaurant was a success, and the brothers began to franchise their business. In 1955, Ray Kroc joined the company and began to expand the McDonald’s franchise system. Kroc is credited with turning McDonald’s into the global powerhouse it is today. Today, McDonald’s is one of the most successful franchise businesses in the world.
Subway
Subway is the world’s largest sandwich chain, with over 43,000 locations in over 100 countries. The company was founded in 1965 by Fred DeLuca and Peter Buck. DeLuca and Buck were college students who needed money to pay for tuition. They borrowed $1,000 from a family friend to open their first Subway sandwich shop in Bridgeport, Connecticut. The sandwich shop was a success, and the company expanded rapidly. In 1974, Subway began to franchise its business. Today, Subway is one of the most successful franchise businesses in the world.
These are just a few examples of successful franchise businesses. Many other franchise businesses have helped people to achieve their entrepreneurial dreams.
Here is a summary of the key points from the three case studies above:
All three of these franchise businesses grew rapidly through franchising.
All three of these franchise businesses are now some of the most successful businesses in the world.
If you are considering starting a franchise business, these case studies should give you hope and inspiration. With hard work and dedication, you can achieve your entrepreneurial dreams and build a successful franchise business.
Franchise opportunities in the UK, Ireland, and USA
The UK, Ireland, and the USA are all popular destinations for franchise businesses. In the UK, over 40,000 franchise units generate over £17 billion in turnover. The Irish franchise sector is also growing rapidly, with over 2,000 franchise units generating over €2 billion in turnover. The US franchise sector is the largest in the world, with over 700,000 franchise units generating over $450 billion in turnover.
Here are some of the most popular franchise opportunities in each country:
UK
Food and beverage franchises, such as McDonald’s, KFC, and Subway
Retail franchises, such as Boots, Costa Coffee, and Greggs
Fitness franchises, such as Anytime Fitness, PureGym, and David Lloyd Leisure
Business services franchises, such as TaxAssist Accountants, ActionCOACH, and Regus
Ireland
Food and beverage franchises, such as McDonald’s, Subway, and Costa Coffee
Retail franchises, such as Spar, Londis, and Centra
Fitness franchises, such as Anytime Fitness, PureGym, and Energie Fitness
Business services franchises, such as TaxAssist Accountants, ActionCOACH, and Regus
USA
Food and beverage franchises, such as McDonald’s, Subway, and Starbucks
Retail franchises, such as Walmart, CVS Pharmacy, and 7-Eleven
Fitness franchises, such as Anytime Fitness, Planet Fitness, and LA Fitness
Business services franchises, such as H&R Block, Jackson Hewitt Tax Service, and ManpowerGroup
Canada
The Canadian franchise sector is growing rapidly, with over 30,000 franchise units generating over $100 billion in turnover. Franchising accounts for over 15% of all retail sales in Canada, and it is a major source of employment, creating over 1.8 million jobs.
Some of the most popular franchise opportunities in Canada include:
Food and beverage franchises, such as Tim Hortons, McDonald’s, and Subway
Retail franchises, such as Shoppers Drug Mart, Canadian Tire, and The Source
Fitness franchises, such as Anytime Fitness, GoodLife Fitness, and PureGym
Business services franchises, such as H&R Block, ManpowerGroup, and Jackson Hewitt Tax Service
Australia
The Australian franchise sector is also growing rapidly, with over 70,000 franchise units generating over $150 billion in turnover. Franchising accounts for over 17% of all retail sales in Australia, and it is a major source of employment, creating over 400,000 jobs.
Some of the most popular franchise opportunities in Australia include:
Food and beverage franchises, such as McDonald’s, Subway, and KFC
Retail franchises, such as 7-Eleven, Coles Express, and Woolworths Metro
Fitness franchises, such as Anytime Fitness, Fitness First, and Jetts Fitness
Business services franchises, such as H&R Block, Jim’s Mowing, and Snap Fitness
New Zealand
The New Zealand franchise sector is relatively small, but it is growing rapidly. There are over 10,000 franchise units in New Zealand, generating over NZ$20 billion in turnover. Franchising accounts for over 12% of all retail sales in New Zealand, and it is a major source of employment, creating over 50,000 jobs.
Some of the most popular franchise opportunities in New Zealand include:
Food and beverage franchises, such as McDonald’s, Subway, and KFC
Retail franchises, such as Z Energy, The Warehouse, and Countdown
Fitness franchises, such as Snap Fitness, Anytime Fitness, and Les Mills
Business services franchises, such as H&R Block, Jim’s Mowing, and Property Investors
France
The French franchise sector is the largest in Europe, with over 70,000 franchise units generating over €50 billion in turnover. Franchising accounts for over 4% of all retail sales in France, and it is a major source of employment, creating over 600,000 jobs.
Some of the most popular franchise opportunities in France include:
Food and beverage franchises, such as McDonald’s, Subway, and KFC
Retail franchises, such as Carrefour Express, Intermarché Express, and Monoprix
Fitness franchises, such as Basic Fit, Keep Cool, and L’Orange Bleue
Business services franchises, such as Ace Hardware, ManpowerGroup, and FedEx
Germany
The German franchise sector is the second-largest in Europe, with over 60,000 franchise units generating over €40 billion in turnover. Franchising accounts for over 3% of all retail sales in Germany, and it is a major source of employment, creating over 500,000 jobs.
Some of the most popular franchise opportunities in Germany include:
Food and beverage franchises, such as McDonald’s, Subway, and KFC
Retail franchises, such as Aldi, Lidl, and Tchibo
Fitness franchises, such as McFit, Fitness First, and Mrs. Sporty
Business services franchises, such as ManpowerGroup, H&R Block, and FedEx
Japan
The Japanese franchise sector is the third-largest in the world, with over 100,000 franchise units generating over ¥10 trillion in turnover. Franchising accounts for over 10% of all retail sales in Japan, and it is a major source of employment, creating over 1 million jobs.
Statistics
There are over 40,000 franchise units in the UK, generating over £17 billion in turnover. (British Franchise Association)
The Irish franchise sector is growing rapidly, with over 2,000 franchise units generating over €2 billion in turnover. (Franchise Ireland)
The US franchise sector is the largest in the world, with over 700,000 franchise units generating over $450 billion in turnover. (International Franchise Association)
Glossary of terms
Franchise: A business relationship in which the franchisor (usually a large corporation) grants to the franchisee (the franchise owner) the right to use the franchisor’s trademark, brands, and operating methods.
Franchisee: The owner of a franchise business.
The franchisor: The company that grants the franchise to the franchisee.
Franchise fee: A one-time fee that the franchisee pays to the franchisor to obtain the right to operate the franchise.
Royalty fee: An ongoing fee that the franchisee pays to the franchisor for using the franchisor’s trademark, brands, and operating methods.
Franchise agreement: A legal contract that outlines the terms and conditions of the franchise relationship.
Franchise disclosure document (FDD): A document that the franchisor is required to provide to the franchisee before signing the franchise agreement. The FDD contains important information about the franchise, such as the startup costs, the ongoing fees, and the franchisor’s financial performance.
Franchise system: The franchisor’s business model and operating methods that the franchisee must follow.
Territory: The geographic area where the franchisee is granted the exclusive right to operate the franchise.
Trademarks and brands: The franchisor’s intellectual property that the franchisee is licensed to use, such as the franchisor’s name, logo, and products or services.
Resources for franchise owners
International Franchise Association (IFA): The IFA is the world’s largest franchise association. It provides various resources for franchise owners, including educational materials, networking events, and legal assistance.
Franchise Direct: Franchise Direct is a website that provides information on franchise opportunities. It also has a directory of franchise brokers who can help franchisees find the right franchise opportunity for them.
Entrepreneur Franchise 500: Entrepreneur magazine publishes a list of the top 500 franchise opportunities yearly. This list is based on various factors, including the franchise’s financial performance, growth potential, and franchisee satisfaction.
Franchise Opportunities Guide: The Franchise Opportunities Guide is a publication of the US Department of Commerce. It provides information on the franchise industry and how to choose a franchise opportunity.
Franchise Times: Franchise Times is a magazine that covers the franchise industry. It provides news and analysis on the latest trends and developments in the industry.
Franchise Business Conclusion
Health and beauty franchising allows aspiring entrepreneurs to capitalize on growing consumer demand in a multi-billion pound industry. Franchise ownership benefits from established branding, a turnkey business model, operational assistance and discounted costs negotiated by the franchisor. However, franchisees make a considerable capital investment and must adhere to the franchising system and brand standards.
Those passionate about the industry who carefully research opportunities, create business plans and leverage franchisor resources can thrive. However, health and beauty franchising involves hard work and demands execution. With dedication, franchise owners can build rewarding businesses and earn excellent returns on investment. The growing interest in grooming, self-care, fitness and beauty enhancement points to continued growth in this sector. For prospective owners, now is an opportune time to get on board this booming industry.
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