Health and Beauty Franchises Creating Beautiful Profitability

The health and beauty market is one of the most traditionally fragmented and “owner-operated” market segments in history.  There have been many excellent hair stylists and “trade experts” in different fields of health and beauty, but very few brands that have had consistent success in scaling their model.  This paradigm changed in the early 2000’s with the advent of several successful health and beauty franchises in the massage, waxing and hair styling market segments.  Today, the health and beauty franchise market is growing faster than ever before and has firmly planted itself among the franchise industry elite as one of the most successfully duplicated market models. 

What markets within Health and Beauty franchising are particularly appealing?  Our firm, Franchise Marketing Systems has the opportunity to work with some of the established brands in the health and beauty market, but also be on the front line of what new, innovative franchise models are coming to market.  The hair styling and hair cutting industry remains one of the strong points in franchising with simple business models and strong operating profits managed by structured business systems allowing for multi-unit ownership.  The industry blue chips continue to grow and set new heights in brands like Great Clips, Sport Clips and Super Cuts, but now new brands have also enter the market and are getting traction with new, innovative approaches to the market.  Studio N is a quick service, high end, low cost salon model based out of New Mexico with strong unit economics.  High end salon Cristophe is a premium salon brand that has developed a franchise model to duplicate and sale the brand into new, high end market segments.

The MedSpa and medically-supervised market segment within health and beauty is growing at a rapid pace as well.  More and more people are turning to services offered in these Medspa’s such as Botox, Facials and other new procedures which help clients look and feel their best.  New Franchisor, Ultimate Image Cosmetic Medical Center is a high end, but approachable medspa brand that is attracting interest throughout Florida with strong branding and incredible financials.  The model is scalable with structured operating procedures, efficient operating equipment and a marketing model that is proven to drive in results and consistent traffic.  Franchise owners in this category generally must be licensed medical providers, but this may vary depending on the state.

Alternative health and wellness is also on the rise with industry segments such as IV Therapy franchises and Infrared Sauna technology brands coming to market and creating new market segments.  Enhance IV is a new franchise brand offering branding, structure, systems and operating procedures in the IV therapy market and has recently sold their first few franchise units in the Philadelphia market while Saunabar is a leading brand in the infrared sauna technology market offering weight loss and a variety of other benefits to customers through incredible infrared sauna technology.  Floating has also hit the market in a big way with brands such as FLOATSpa, an Arkansas based float therapy franchise which just sold their first Master Franchise to the Houston, Texas area.  The first franchisee for this float spa franchise will be opening 8 locations in the Houston MSA.

All together, the health and beauty franchise market seems to be ahead of the curve when it comes to innovation, forward thinking and unique business ideas.  The market is fun, refreshing and most importantly, largely profitable.  If you have an interest in the market segment, my advice is to start with what you have passion for, then narrow down the numbers.  Make sure that the business has a strong enough bottom line to support the industry benchmark ROI’s for any particular market segment.  The good news is that when you are offering services and products to people to help them look better, people are always willing to pay.    

Christopher Conner is the President of Franchise Marketing Systems and has spent the last decade in the franchise industry working with several hundred different franchise systems in management, franchise sales and franchise development work.

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