Top 10 Beauty and Wellness Franchises To Watch in 2020

More than any generation before, millennials and Gen Z consumers are recognizing the value of self-care. This, along with a growing desire to be Instagrammable at all times, has resulted in a massive boom within the beauty and wellness services segment. According to a recent study by Orbis Research, the global beauty industry is a $532 billion business and is expected to advance at a 5%-to-7% compound annual growth rate to reach or exceed $800 billion by 2025.

“The beauty industry is thriving because the quality of life is more important to the younger generations who now have purchasing power,” said Steve Beagelman, CEO of SMB Franchise Advisors*. “Massage, cryotherapy and other services are becoming more popular as people prioritize looking and feeling good.” 

These are some of the most exciting franchise brands tapping into the beauty and wellness services segment and finding ways to stand out from the crowd.

Massage Envy

Locations: 1,150 in 49 states

Investment range: $434,823 to $1,030,500

Franchise opportunity website: https://www.massageenvy.com/own-a-franchise/

Massage Envy is a global wellness franchise brand that provides massage and skincare services on an individual service or membership basis. Since its founding in 2002, the brand has expanded its network to include more than 25,000 massage therapists and estheticians and 1.5 million members. With a dense offering of massage services and customized skincare including treatments and facials, Massage Envy has performed more than 100 million services in its history thanks to its positioning as a body maintenance practice instead of luxury indulgence. 

What you can learn from this brand: Massage Envy recognized the rising trend of self-care early, rebranding after 14 years to prioritize a new vision—’Total Body Care’—to help people “manage the side effects of living.” With this, Massage Envy created a marketing campaign that perfectly falls in line with the younger generation’s view that everyday living takes a toll, and that total body care should be a part of a total wellness routine right alongside eating right and exercise.

Urban Float

Locations: 4

Investment range: $452,300 to $1,053,300

Franchise opportunity website: https://franchise.urbanfloat.com/

Urban Float is a national leader in an industry primed for exponential growth—flotation tanks. Started in 2008, Urban Float is a chain of high-quality retail float centers and cutting edge floatation tanks that focus on providing floaters with a superior experience to that offered by all other one-off competitors. The brand’s commitment provides clients with excellent customer service and leaves them wanting to come back.

What you can learn from this brand: As consumers look for niche alternatives to traditional health and wellness services, Urban Float is on the cutting edge of what could be the newest and hottest category of the health and wellness segment. In 2019, there are more than 300 float centers in the U.S., up from 50 in 2010. Some studies have found that sensory deprivation floating in Epsom salt water can be helpful for ailments ranging from depression and post-traumatic stress disorder to chronic pain and Lyme disease. Recently, the trend has been endorsed by public figures such as the podcast host Joe Rogan and NBA star Stephen Curry.

iCRYO

Locations: 23

Investment range: $239,400 to $591,800

Franchise opportunity website: https://www.icryo.com/start-a-cryotherapy-business/

iCRYO utilizes Cryotherapy, one of the most innovative markets emerging in the health and wellness segment. This treatment has grown in popularity over the last year due to endorsements from celebrities and athletes. The Cryotherapy treatment stimulates the body temperatures to as low as 200 degrees below zero for three minutes. The company states the benefits of Cryotherapy include tissue repair, reduced inflammation and boosted metabolism.

What you can learn from this brand: Not only is there an array of service needs in the beauty and wellness segment, but there is also a massive amount of nuance that allows for niche markets to flourish. The Cryotherapy sector is expected to grow to $4.29 billion by 2023. The rising cases of drug reaction, drug resistance or non-responsiveness alongside the rapidly increasing prevalence of cancer in the U.S. are bringing the Cryotherapy sector to the forefront. iCRYO is poised to dominate this about-to-explode sector by pairing expert business practices with savvy franchisees with experience growing other health-focused concepts. 

Sola Salon Studios Health & Beauty

Locations: 400-plus

Investment range: $413,800 to $1,134,300

Franchise opportunity website: https://pages.solasalonstudios.com/signup?utm_campaign=fran_dev&utm_source=referral&utm_medium=website

In 2004, Sola Salon Studios co-founders Stratton Smith and Matt Briger developed the innovative concept of a turnkey salon studio in a co-working environment. Their vision was to give the beauty professional control over their environment, schedule, choice of retail, pricing and so much more. 

What you can learn from this brand: Sola Salon Studios’ real passion isn’t hair—it’s real estate. As more landlords begin to prioritize renting to significant foot-traffic generators due to the rise of e-commerce, the shared salon suite brand offers an Amazon-proof service. Given the competitive environment in most attractive commercial districts and high-traffic strip centers, Sola and its franchisees are able to take advantage of a simple yet effective real estate model in which rent is collected electronically from beauty professionals.

Hand & Stone Massage and Facial Spa

Locations: 400-plus

Investment range: $466,155 to $528,389

Franchise opportunity website: https://handandstonefranchise.com/

Since 2004, Hand & Stone Massage and Facial Spa has brought luxury spa services to the masses and has made a name for itself by offering a family-friendly and differentiated franchising opportunity. The massage and facial spa franchise has grown immensely in the last 15 years, now operating more than 400 spa locations across the U.S. and Canada.

What you can learn from this brand: As facial and hair removal services become more popular within the segment, Hand & Stone has differentiated its services and positioned itself as a leader in the skincare sector, selling more skincare products and facial services than any other brand. It is important that brands keep their services up-to-date, which is why Hand & Stone has continued to innovate with techniques such as L.E.D. photo skin therapy, microcurrent technology, hydro dermabrasion, as well as multiple product lines with Clarity Rx and Dermalogica.

Palm Beach Tan Health & Beauty

Locations: 400-plus

Investment range: $498,278 to $802,420

Franchise opportunity website: https://palmbeachtan.com/franchising/

Palm Beach Tan has been in business for 30 years and dominates indoor tanning in several of the most competitive markets in the country. The brand has achieved this success by building a strong identity and executing proven retail business strategies in more than 500 company-operated and franchise-owned salons. 

What you can learn from this brand: The tanning bed industry has seen a rapid decline in the past few years due to health concerns and changing social opinion, yet Palm Beach Tan has found a way to combat this through diversification of revenue streams—specifically with the sale of sunless skincare products and intensifiers. Today, 15% of all beauty franchise sales come from products instead of services.

Great Clips*

Locations: 4,371

Investment range: $136,900 to $259,400 in the U.S.

Franchise opportunity website: https://www.greatclipsfranchise.com/

Since it was established in 1982, Minnesota-based Great Clips has grown into one of the world’s largest salon brands with a speedy-yet-quality walk-in service offering that prioritizes customer convenience. Great Clips provides quality assurance by putting its almost 40,000 stylists through ongoing training. 

What you can learn from this brand: The brand maintains both a local and national presence through various community involvement efforts and clever marketing campaigns. Each year, Great Clips provides more than 200,000 free haircuts to both active and retired military members on Veterans Day. That has come out to more than 1.3 million complimentary haircuts valued at more than $12 million. It is community-driven efforts like this that allow Great Clips to stand out in the crowded segment as more and more consumers look for socially-conscious brands.

Amazing Lash Studio®

Locations: 220

Investment range: $224,659 to $482,528

Franchise opportunity website: https://franchising.amazinglashstudio.com/

Amazing Lash Studio is a beauty services franchise that was founded in Texas in 2010. The franchise has grown exponentially since it launched, especially since being acquired by parent company WellBiz Brands in 2018. Specializing in semi-permanent eyelash extensions, the brand developed four proprietary eyelash extension styles (Natural, Cute, Sexy and Gorgeous) that achieve a different look based on eye shape, lifestyle and preference. The brand’s application process is patented as well, allowing for speed, comfort and precision. 

What you can learn from this brand: According to an article on Lash Affair, the eyelash extension market is projected to reach a whopping $1.5 billion in the next five years in product alone. While other competing brands offer a fuller catalog of services, Amazing Lash Studio focuses on a single core offering and excels at it. Because of this, Amazing Lash Studio quickly established itself as not merely the dominant player, but the owner, of the lucrative lash space. 

Blo Blow Dry Bar

Locations: 132

Investment range: $242,823 to $367,102

Franchise opportunity website: https://franchise.blomedry.com/

Blo Blow Dry Bar is North America’s original blow dry bar. The brand has transformed beauty norms for the modern woman by making catwalk-quality blowouts accessible worldwide, providing seven signature styles, as well as offering beauty services such as waxing, makeup, and mani-pedis. The brand currently has 132 locations to pamper clients across the U.S., Canada and the Philippines.

What you can learn from this brand: Like cryotherapy and flotation tanks, blow-dry bars are a niche service that is picking up steam. For the past few years, blow dry bars and salons have been one of the most significant emerging trends in the beauty and wellness segment, with 25% growth in both service revenues and locations across the United States reported in 2017. This surge in popularity has fueled Blo Blow Dry Bar's ongoing success, achieving 15 consecutive months of positive year-over-year same-store sales growth.

Elements Massage®

Locations: 225-plus

Investment range: $225,350 to $374,350

Franchise opportunity website: https://elementsfranchise.com/

Elements Massage franchises offer therapeutic massage services and wellness programs as a way to reduce stress, bolster the immune system, ease muscle aches, encourage better sleep and mitigate lingering issues that stem from injuries and illness. Since its acquisition by WellBiz Brands in 2018, the therapeutic massage brand has emerged as a leader in the segment and surpassed the 250-unit mark. 

What you can learn from this brand: Today, a successful digital marketing strategy is incredibly important for emerging franchise brands in any segment, especially one trying to appeal to a younger demographic. Elements Massage has done an amazing job at staying ahead of the curve, offering franchisees geotargeted pay-per-click advertising, organic social media support, personalized email campaigns and massage therapist recruitment at the corporate level.