BeautyMatter: Why Professional Service Franchising Is On The Rise

According to a recent article from BeautyMatter, beauty and wellness companies are increasingly turning to franchising as a means of expansion. This trend is driven by scalability and the attractiveness of the franchise model to investors. For instance, Exaltare Capital Management recently acquired UKW Holding company, operator of Uni K Wax, with plans for aggressive expansion. 

The International Franchise Association (IFA) predicts a 14% expansion in personal services franchising over the next few years. The final values for 2023 are still being tallied, but this sector is expected to lead franchise expansion, with a projected increase to 120,302 locations and a 6.7% rise in output to $42.1 billion. This growth is anticipated to generate 577,450 new jobs within the franchising market.

The IFA also reported that the United States had approximately 790,492 franchise establishments in 2023, which supported nearly 8.4 million direct jobs. The economic output of these establishments was estimated at $825.4 billion, contributing around 3% to the gross domestic product (GDP).

“Most people are surprised when they hear about the impact franchising has on the economy,” Heather Elrod, who joined Uni K Wax as executive chair in June 2023, told BeautyMatter. Elrod, who is also a managing partner of the franchisor growth accelerator Conscious Capital Growth, added that franchising is a way to grow quickly into multiple markets. 

“If you have the right product and deliver service levels the guest appreciates, you can experience rapid growth through franchising,” she said. 

Elrod is also the former CEO of Amazing Lash, which she helped grow from 53 to 250 locations in five years. She wants to replicate that success in the wax market with Uni K Wax, which currently has 35 locations. 

Factors like the "Great Resignation" (when record numbers of employees left their jobs in the wake of the COVID-19 pandemic) and a growing emphasis on self-care are driving individuals towards franchising in the service industry as a safer entrepreneurial option. Nick Powills, Publisher of 1851 Franchise, also noted that macroeconomic challenges tend to favor franchising: "When the economy goes down, franchising often goes up."

And while consumers may be curbing spending on dining out or other activities, they aren’t letting go of their beauty regimens, Elrod noted. "Beauty and lifestyle products and services are stable even during economic downturn."

Read the full article here. 

For more information on franchising with Uni K Wax, visit: https://1851franchise.com/uni-k-wax.