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?
Neveu: At 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.