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#11 (permalink) |
![]() Join Date: Jan 3 2002
Location: USA
Posts: 1,805
Rep Power: 7
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Re: to franchise or not?
This really depends on the ACTUAL franchise...... not all are created equal.
The size of your town doesn't warrent the expense to start and maintain a franchise imho..... you would need to be able to own 3-5 stores within miles of each other for it to PAY you..... Franchises have GREAT meetings..... almost like a Tent Revival But then, they are there for a purpose ~ and that is to SELL YOU so that they can have their piece At the FRONT.... every month.... with every item you HAVE TO purchase.... and they can be really swell at taking BACK your salon if you struggle Indoor tanning is not an EASY business..... and competition is always just a thought process away (in somebody's mind)..... Again - not all franchise operations are run the same way..... but think about it ~ ~ is there really ANYONE that is doing THIS to make YOU rich??? For the Franchisor ..... it can be very lucrative..... they have a 'plan' and they sell that mold..... then YOU have to buy your equipment from THEM, Lotions, fixtures etc...... and then charge Nationally Advertised prices and deals that would kill any operation..... to some - - this seems like a planned suicide... to me it is really a homicide. On this sites - - - there is a lot of info.... you could very well decide to build out your OWN salon.... Or you may decide to just buy your own kick *** bed for the house and work for someone else...... (and that's one way to insure a paycheck ~ ) |
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#12 (permalink) |
![]() Join Date: Sep 2 2004
Location: California
Posts: 16
Rep Power: 0
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Re: to franchise or not?
Has any franchisees posted a response? Well, now you have one. I am an Executive Tans franchisee. We opened our store 6 weeks ago, (Feb is a slow month for tanning in So. Cal) Competion is everywhere, and salon owners can be so catty. Yes, ET gets paid every month, before we do, but we knew this when we signed up. We actually read the franchise agreement and took 6 week to decide, before we signed it.
We achieved 50% of our monthly break-even point in our first month. I have spoken to 3 different salon owners in town (we are 1 of 13) and they were both impressed with our $4200.00 first month. (or so they said) We did this with no major advertising, just word of mouth, that an Executive Tans was opening in town.The majority our clients tell us that we have the nicest salon they have EVER seen. They love our equipment, and our look. In fact, we already have clients who only came to us because they Tanned at an Exectuive Tans Store where they used to live. (the reputation does follow) We would not have been able to accomplish any of this without the guidance of the franchise. Everything from the decor, the location, pricing, advertising, and website design, bed mix, and lotion selection was developed with the help of Executive Tans. And no, we do not buy from them, we buy from the same Vendors the independents do, we just get slightly better pricing. We have the freedom to do "our thing", so long as we do not stray from their image. All of these things would have taken years for us to have figured out on our own. Failure was not an opiton for my wife and I, so we went with a proven buisiness model. Not all areas are good places for a franchise, check your demographics very carefully. I think the real problem with unhappy franchisees is that they thought this would be an easy business. This is a tough way to make a living. The average salon will only net 20K to 30K per year, after two or three years. Our franchise agreement business plan only called for net profits in the second year. WE are new, but so far, we are happy with Executive Tans, and we are seeing a bright future, but the next year is going to be lean. Very Lean. If it is a success, we plan on looking for a location for a second store. Our salon has "raised the bar" for our area. All of our competitors have "shopped" us, and we welcome them. What I do not understand, is what are all of the independents so afraid of? Take a look at the most successful small businesses in America, they are all franchise business models. (Subway, Curves, Carl's Jr., The UPS Store, the list goes on) These are all owned by individuals who pay monthly franchise fees, and yet they still manage. Any business is tough, and Tanning is no different. It is only fair to point out that our salon is not our sole means of income. We run another business, and that business is what supports our family. The salon is supplemental. Anyone who plans on making a living on a tanning salon should proceed very carefully. The franchise model was ideal for us, and has been very well recieved by our community, that may not be the case every where. But the Franchises are certainly not worthy of the "Great Satan" they have been portrayed as. -Executive Tans #1403 |
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#13 (permalink) |
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www.highlinecapital.com
![]() Join Date: Nov 23 2004
Location: ITA Member & Berman Supporter!
Posts: 2,484
Rep Power: 8
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Re: to franchise or not?
Nice post - thanks for sharing!
We'll be excited to hear your update after your first year to see how things are holding up and if you would still do it all the same. If you have only yearly expenses of $100K for an ET franchise in CA, then you have been very fortunate. Most have double that -- along with several hundred thousand they spent in buildout. Best of luck |
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#14 (permalink) |
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Pea In A Pod
![]() Join Date: Mar 20 2006
Location: Missouri
Age: 25
Posts: 258
Rep Power: 104
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Re: to franchise or not?
I personally looked at some franchises. I decided to go on my own. Yes, it took a bit more time, but I am reaping a lot more from it! Bossless...I suppose that your town having 13 salons it's pretty tough competition, but I think the other salons have given you false hope. 4,200.00 in one month isn't good. We are in a very small town in the midwest and already...after only 5 weeks in operation...we have done a little over 17,000.00. I have 4 other "big" competitors as well. You should contact your franchise rep to discuss what you should be making.
ALSO...it doesn't take YEARS to plan the open of your salon...try a few solid months. If you are looking at years...by the time you open, you'll be outdated. |
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#15 (permalink) |
![]() Join Date: Nov 14 2003
Location: TEXAS
Posts: 532
Rep Power: 5
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Re: to franchise or not?
If you will,state the costs of opening a Franchise! How much for the name? How much for the buildout? What percent per month do they get? And so on...
__________________
Steve |
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#16 (permalink) |
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Police Department
![]() ![]() ![]() Join Date: Sep 6 2004
Location: Awaiting
Posts: 15,463
Rep Power: 30
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Re: to franchise or not?
Doing 4,200 in Febuary is nothing brag about by any means IMO. Especially now that you owe your royalty fee to to them also.
__________________
![]() Tan Talk Administrator |
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#18 (permalink) |
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I love Derf!!
![]() Join Date: Jul 12 2004
Location: Va
Posts: 5,292
Rep Power: 13
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Re: to franchise or not?
Precisely what I was thinking Matt. ****, that is low overhead also. Mine is more like 10-11K monthly and I only have 8 beds and a Mystic... But they are all bought and paid for as we speak in under 3 yrs. Try that with a royalty fee.
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#20 (permalink) |
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Pea In A Pod
![]() Join Date: Mar 20 2006
Location: Missouri
Age: 25
Posts: 258
Rep Power: 104
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Re: to franchise or not?
Again, I don't think so Malibu. I don't know his exact area, but I'm in a very small town with 4 big competitors and did over 17,000.00. I don't share royalties. He's gonna have to do much better to make it. Perhaps if he has 2 or 3 beds only...he'll do alright.
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