Franchise Forecast: Daniel Neveu of Salons by JC
Franchise Forecast: Daniel Neveu of Salons by JC

1851 caught up with the franchise development professionals representing various brands to learn more about the state of the industry and their predictions for the year ahead.

1851: Who is buying franchises right now and what type of activity are you seeing? 

Daniel Neveu, Franchise Sales Consultant at Salons by JC: People with a net worth of $1 million to $2 million. Right now it costs around $700,000 to build one of our franchises, but it’s extremely profitable, with a margin of around 35%.

1851: What's the number one thing franchisees are looking for in the conversations that you're having with prospects? 

Neveu: They’re trying to find out if the risk is worth the effort because there’s limited financing to be a part of the business. On paper, salon suites can look like the worst business, but the reality is that the industry is booming. We’ve got 10-15 years of growth; this is a good time to get in.

1851: Do you have an ideal franchisee in your system, and what are their qualities? 

Neveu: Most of our franchisees are absentee; some prefer to work in the business, some don’t. Our ideal franchisee is someone who wants to be absentee or semi-absentee, someone who cares for people and is interested in making a difference. It’s a very lucrative business, and at the end of the day, it’s not a complicated business to run, so they have some freedom and work/life balance. Once the business is established, there are not too many headaches to contend with. 

1851: What's one thing prospective franchisees should know about your brand and franchising in general before buying?

NeveuAt Salons by JC, we allow stylists to operate on their own in a building that we configure into individual suites. It’s a luxurious setting that they can personalize. We help provide the tenant with a great environment; clean, professional settings help attract the best stylists in the industry. We have a concierge service inside the building for at least 40 hours per week.