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Old 12-14-2006, 07:16 PM   #1 (permalink)
 
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Need major solarium advice... LONG post

Hello there,

I'm a newbie to the game so go easy! I am having a major dilemma at the moment in choosing a salon. Here in the land of OZ (Australia that is), we have two major solarium franchisors. I am trying to decide between the two and hopefully I'll make the right choice. I do prefer to buy an existing salon, however will open new if the right location is found. No, I won't open under my own name, because these two have dominated the market and I won't stand a chance. There are a few smaller other named salons and they just can't compare in terms of brandname.

So, here's a breakdown.


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Franchisor #1
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Summary
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This franchise is the most popular. They have a great brand/image and have the majority
of the market. They have basically covered ALL the key suburbs in my city (35+ stores), so
opening up a new one isn't the best idea as there are almost no quality suburbs left, or are too far to travel or too close to another store.

Beds
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They only implement/support Dr Mueller beds (6+ yrs old) and ISO Italia (Matrix stand ups). Almost all franchises have these beds. All the Dr Mueller's are 2nd hand, however the tubes are changed yearly. Some salons have the newer 'Elixir' model produced by Dr Mueller ($30K AUD) which looks quite nice. It is double the cost of the old beds. Beds can only be purchased
through this franchisor. They believe in results not technology.

Fees
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They charge 6% of the bed hours (not sales), and %3 for marketing both annually (approx $15k per year). If a new store is opened, there is a $20k franchise fee.

Other
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They do provide 24/7 support, provide training, meetings, staff for free if you need them etc. They are 100% solid in the franchisee/franchisor relationship. They sell software called 'SalonTouch' which looks OK, has a few software glitches but does the job. Most salons ask the user how many minutes to get ready then start the bed remotely. They also produce their own creams/sunscreen which is discounted to all franchisees.

They structure there salons in MINUTES. For example, 6 minute bed, 8 minute bed etc. One sessions is 8 minutes.


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Franchisor #2
-------------------
Summary
-------------

Number #2 in the game, have only 8 or so stores situated in key demographic suburbs. The brand/image is above average.

Beds
---------
These guys are into the old stuff and the new stuff. Some existing salons have Ultra Sun 5000 & 8000 beds (Few years old now), and some have the newest stuff including UWE (Cayenne, lotus, white power, etc), newer Ultra Sun's. Bed prices range from $20K-$80K AUD. They are a strong believer of the Mystic Tan booth (new model) all stores having one of these.

In terms of technology, they are on the money.

Fees
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Normally they charge a $20K franchise fee, however this is waived (not sure why). Royalty's are $250 per week which includes support and marketing/design (Total $13K per year).

Other
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A big question mark comes into my mind about their support network/training. Just doesn't seem strong/professional. They stock a WIDE range of creams & SunFit lamps that are discounted to franchisees. They also try to get their stores to implement the T-MAX system, which is integrated into the software 'SalonMaster 5000'. The T-MAX is in each solarium room and the user has full control of when they start their session, etc (it seems great).

They structure their salons in LEVELS.

Level 1 for basic, Level 2 intermidiate and Level 3 for advanced. Level 3 beds are the most expensive so they charge more for these which makes sense (you need to recoup your money somehow).


----------------------
Overall Summary
----------------------


I'm very unsure what to do. I really want to buy an existing salon as virtually no key suburbs are left and I'd love to start with a client base already. There are a few up for sale for both #1 and #2, but I'm just unsure.

I'd love to go with the franchisor #1, but all the beds are getting very old. Yes the beds produce OK results, but come on. A few more years and then what? Franchisor #1 believes in this old bed result producing idea to keep business expenses down for the franchisee, which makes smart business practise...but still! I actually have a friend that owns a #1 and they are doing incredibly well for their 1st year of trade. The feedback from them has been
nothing but positive. They have all older beds with only one new 'Elixir'. There feedback is that everyone loves the look of the 'Elixir' and wants to use that bed.

Franchisor #2 has the latest of the latest in some salons, but the market just isn't there. I have looked at two existing salon's which they are is selling and they are just simply not producing results (they want WAY too much as well).

I am tanner myself, and I go to a salon simply for convenience, thats it. If another salon opened right next door with much better result producing technology and similarly priced, I'd go there immediately. BUT thats me.

I'd love to hear all comments and ideas. Sorry for the long post.

Thanks :)
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Old 12-14-2006, 07:23 PM   #2 (permalink)
 
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Re: Need major solarium advice... LONG post

Soon as I saw Franchise I just scrolled down to Quick Reply. Why a franchise?????
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Old 12-14-2006, 07:40 PM   #3 (permalink)
 
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Re: Need major solarium advice... LONG post

They have dominated the market here. The other smaller ones aren't doing as well. It's almost like going up against McDonalds.

People love their brands, and unfortunately I live in a city that is very potentious.
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Old 12-14-2006, 07:51 PM   #4 (permalink)
 
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Re: Need major solarium advice... LONG post

Then maybe you should ask yourself am I really working for myself you probably won't like most of our answers on here cause the majority of us are can I say it guys Against Franchises they just take your money and leave you to the headache, ideal for them is it for you?????
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Old 12-14-2006, 07:52 PM   #5 (permalink)
 
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Re: Need major solarium advice... LONG post

Neon
do I get a gooodie for this post I only have one boo hoo how do you give these by the way?
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Old 12-14-2006, 07:57 PM   #6 (permalink)
 
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Re: Need major solarium advice... LONG post

You mean like the little bottle? someone has to buy them for you..........
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Old 12-14-2006, 09:16 PM   #7 (permalink)
 
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Re: Need major solarium advice... LONG post

I know, it sucks, but pro's and con's with both! only 5% of franchises fail, the figure is alot higher for individual companies
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Old 12-14-2006, 09:18 PM   #8 (permalink)
 
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Re: Need major solarium advice... LONG post

Tanning franchises or franchises as a whole?
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Old 12-14-2006, 09:35 PM   #9 (permalink)
 
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Re: Need major solarium advice... LONG post

franchises as a whole... in this city, it's not wise to open an individual
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Old 12-14-2006, 09:40 PM   #10 (permalink)
 
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Re: Need major solarium advice... LONG post

Odd. People think my place is a franchise. Can't you go it alone and make it look like a "big" name?
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