A love for skincare can lead to many things; a healthy complexion, a gorgeous glow and a plethora of career options, including owning a beauty and skincare franchise.
Franchising is a common way of doing business in the beauty industry and is a great option for many beauty lovers and Skin Therapists who want to run an already successfully tried and tested business.
Whether you think owning a franchise might be an option for you or are simply curious to learn more about what a franchised business is and how it works, this blog has you covered.
What is a Franchise?
A franchise is a legal agreement consisting of two parties: the franchisor and the franchisee. The franchisor (owner) sells the rights to their business including the logo, trademarks, name, products and services to a third party known as a franchisee.
There are three major types of franchise models: business format franchise, product franchise and processing or manufacturing franchise. This blog focuses on the business franchise model.
A franchise business, known as a business format franchise is the model that people most commonly think of like a franchise. In addition to buying the rights to the business and its products and services, a franchise business also acquires the complete business model including its techniques, marketing plan and operations manual.
Once the rights are purchased, as a franchisee you have effectively acquired an established business that you can now run independently.
It is a general industry standard that a franchisee is required to pay an ongoing percentage of their gross sales to their franchiser.
It’s important to make sure you research the franchise you’re interested in thoroughly to ensure the model suits your financial and personal expectations.
Benefits of Being a FranchiseeFranchising is beneficial to both parties but franchisees, in particular, reap some major advantages over their non-franchisee competitors.
Most notably, as a franchisee you enjoy the security of knowing that you’ve purchased the rights to an already successful and recognised business. Franchisees also obtain the rights to use the franchisor’s tried and tested business practices and benefit from existing brand awareness which helps you avoid the costly and timely process of developing your own. Additionally, you can avoid the hassle of obtaining uniforms, copyrights, patents, design and marketing materials to name a few.
Finally, being a franchisee also comes with the assurance that you will receive ongoing support from the franchisor and the brand.
Support comes in many ways and at various times throughout the franchise agreement, but almost always includes pre-opening support such as site selection, financing and training and ongoing support such as national and regional advertising as well as ongoing training and management support.
Keeping Things Streamlined
As the overall franchise model must be kept consistent, as a franchisee you need to ensure that you are running the business to the franchisor’s requirements, for example things like décor, advertising, uniforms and the customer experience are streamlined.
This is particularly important for maintaining customer expectations so that people are not receiving different experiences or impressions of the brand as they visit different locations.
Why is the Business Format Franchise a Good Choice in the Skincare and Beauty Industry?The business format franchise (or franchise business) is the most popular type of franchise and it’s easy to see why it thrives in the beauty industry.
Beauty and skincare is a personal and sensitive sector. Consumers need to build confidence and trust with a brand before committing their daily routine to it. This is a process that takes time and often requires a proven track record of business integrity and reputation.
Franchisors who have already built a solid brand awareness and a respected presence in the industry are highly sought after by a franchisee when looking to minimise your business risk and maximise your success.
Skincare in itself is dynamic, complex, intimate and above all, one of the most important industries that have the ability to change the way that people feel about themselves. For consumers, investing in the right skincare company is crucial, hence why franchising is a popular option for those with a passion for skincare, beauty and business.