Shnerez420

I strongly agree with you moses!! I think that is absolutely the best way to learn about working with franchises!!
Although for most people on this board it might be a little difficult because we're probably overqualified.
When it comes to HT, I feel like Im pretty aware of how they are because my girlfriends family owns 2.

movieking

It seems you have already made your decision and just need to sign the contract. Your girlfriend is your best source of info for HT, not anyone on this board!

Shnerez420

I am very close to making my decision to sign but there are some things holding me back.
Although HT does do ALOT of advertising in my area, this area is also pretty saturated with HTs. If I take a location it wouldnt be "the best" location... It would be "secondary" in my opinion.
Also, royalties are a function of your gross, like any royalty, and thats quite a bit of money before you see ANY profit. Advertising is also a function of your gross for national advertising BUT there is also a charge for advertising which is arbitrary and from HT based on how much they spend in each specific market.
Even though they are coming out with beds now, they try to use primarily stand ups. I think stand ups are great but I think there is a clear need for beds.
There is more concerns of mine but this has been covered above.
THe reason why I asked the questions is I have is to see how valid my concerns are and to see what else is out there that I havnt yet seen.
I havnt run or owned a salon before and I think its a big decision, not something to just dive into. My questions and comments are to learn as much as I can before I make a decision; whether to sign with a franchise, with HT or another franchise, or go solo.
Here I have learned alot of reasons why people dislike franchises, but also Ive seen which are valid reasons.
I still stand undecided.

Jancy

Look, just get a copy of the HT contract and read for yourself that you will have royalty money flying out the door every month for the rest of the time you are a franchise. Understand that you are giving up the control of your business to some pencil necked geek with a business degree who has probably never seen the inside of a tanning bed. Understand that once you've learned the business (in under six months) you don't need these people anymore, but you've got a contract and it's their way or the highway. And that if your business "fails" or has decreased income for a specific amount of time, you agreed to allow them to manage or resell the business to someone else who could make profit. You are locked into their technique, their image, their supplies and their goals, but not your own. Give up your freedom and tie yourself into remaining a employee if you will, because for all essential purposes, that is what you are, you are still somebody's employee.

Shnerez420

I agree and you are correct! Royalties will be paid before anything else... if I dont produce a certain level than they have the right to take over or buy me out, and Im locked into their image, supplies, etc.
I totally agree with you there.
The question is if having their model is worth it? I mean, listen, they have a proven tequnique which has been successful for over 10 years (I think its that long). Yes, some go down and arnt run properly, like any business... but is the proven tequnique worth the royalties? Because thats what it comes down to.
I think if I beleive 100% in there proven model than there is no such thing as being "locked into there image etc". If I beleive in their model than I WANT to mimick their image and rules etc.
Further, is the royalties worth the amount of training and support they give?
Does the royalties and advertising balance off for their name recognition? Does the amount of business I should receive from the recognition and advertising equal or outwheigh the cost of royalties etc?
There is a reason why they are successful... is it because of their model? Is it because of their advertising?
Most importantly, if I open a salon on my own, can I out do them? In my area there is a HT in every market and they are dominating, can I go in there and truly compete with them or would I be begining a pipe dream that will slowly end in my closing-up like so many other mom&pops competing with HT?

Shnerez420

And if every mom and pop in my area has been going down because of a HT, than should I try to reproduce the wheel or should I join the winning team?
Even if my HT doesnt do the BEST or as well as some of the best than the question still stands... Would you rather be the best guy on the losing team or the worst guy on the winning team?

engfant

Quote:
On 2005-06-12 09:39:00, Shnerez420 wrote:
I agree and you are correct! Royalties will be paid before anything else... if I dont produce a certain level than they have the right to take over or buy me out, and Im locked into their image, supplies, etc.
I totally agree with you there.
The question is if having their model is worth it? I mean, listen, they have a proven tequnique which has been successful for over 10 years (I think its that long). Yes, some go down and arnt run properly, like any business... but is the proven tequnique worth the royalties? Because thats what it comes down to.
I think if I beleive 100% in there proven model than there is no such thing as being "locked into there image etc". If I beleive in their model than I WANT to mimick their image and rules etc.
Further, is the royalties worth the amount of training and support they give?
Does the royalties and advertising balance off for their name recognition? Does the amount of business I should receive from the recognition and advertising equal or outwheigh the cost of royalties etc?
There is a reason why they are successful... is it because of their model? Is it because of their advertising?
Most importantly, if I open a salon on my own, can I out do them? In my area there is a HT in every market and they are dominating, can I go in there and truly compete with them or would I be begining a pipe dream that will slowly end in my closing-up like so many other mom&pops competing with HT?



Yeah, and GOOGLE is REALLY worth more than GM AND FORD together.

Come on now. Don't fall for funny numbers. The MAIN OFFICE maybe doing just great. HAS NOTHING TO DO WITH the person who owns the HT that's STRUGGLING to do everything to keep from just DISAPPEARING ONE DAY.

You are trying to convince yourself that $400K on a HT is a good idea. MYself and the others on here KNOW that if WE had access to $400K I'd build a salon that would DESTROY DESTROY DESTROY Hollywood Tans.

Shnerez420

Anyone with a good business plan and good credit can get $250-$300k... what are you waiting for?

soapking

WOW!!! 250-300K You can get that much????!!!!

Then why give it to some franchise???? If I had THAT kind of money, I'd own one **** of a salon...with all AUVL beds, and not some standups that HT private labels...

But you seem determined to go that route. God bless you!
Guess we won't be seeing you around on the boards much longer, so the best of luck to you..

Oh, why, you ask, won't you be on the boards much longer?? Because the majority of franchisors prohibit their 'puppets' from participating on any open-on-line forums. They fear 'corporate secrets' would be revealed.

As I said, "read the fine print"

Shnerez420

But SoapKing, you never responded about your sanitary conserns. You wrote alot above about your concerns about the sanitary differences or the lack there-of from beds to stand-ups and I asked you to elaborate but got nothing....
Can you elaborate on your comment above about the beds not being more sanitary than stand-ups? Im very interested in hearing about that.
Thanks