bossless1

That was my wife's response, now it's my turn... WOW $17,000 in your first month. Incredible, timing and location. This is way above average. Great job I look forward to those days. When I mentioned $4200 in my first month, I was not bragging. we lost money that month, and in month 2 for that manner. (our break even is just over $9000 each month. this includes the franchise fees. and since someone asked, They are $495.00 for National Advertising campaign and web site. (we do not benefit from the Nat. Ads yet, but the web-site helps, not sure if it's worth it though) and $1195.00 for franchise fees. these number do not change regardless of our volume. We opened in Feb. a short month to begin with, but we opened on the 7th. Considering only 21 days, with only word of mouth advertising, that's pretty good.
I would like to mention, the reason for our lack of advertising was because of the contractors lack of ability of complete the project on time, not because a lack of franchise support. We were originally planning to open in Oct.(that's a whole other story, one that I'm still upset about. but I did chose the contractor...)I digress. I also want to point out here, I'm not advocating for or against franchises. I'm simply stating the facts in OUR Case. I like facts you see, because facts are niether good, nor bad, they are what they are. Every salon owner in my area that I have talked to have told me things are tougher this year. So, when I say I was happy with a $4200 first month, it's because I did better than expected. Our expectations were given to us BY THE FRANCHISE.
The decision to franchise or not, is one that needs to be considered very carefully, that was the whole point of my first respose back in March.
I would like to respond to each of exectans110's point though. Here goes...
On a personal note, referring to me as "jobless", Funny, I truly appreciate a quick with. seriously, good one.
1. Considering only 21 days, not grand opening, Feb. in So. California, not advertising, 12 other salons in town, (3 of which are within 5 miles of ours, I still think $4200 in the first month was pretty good.
2. At $4200.00 per month I would not expect to last more than three months (with or without franchise fees). Did I mention our break even was $9000 per month, including franchise fees? I though so, but figured it bore repeating.
3. We were never promised radio ads, etc you speak of, we just weren't. They did promise verbally to match dollar for dollar the cost of our grand opening. We did not get this, but only because of the construction delays, and our lack of ability to plan a big grand opening because of these delays, not because of any broken promises.
4. I NEVER said the franchisees in the law suit were lazy, (did you read my posting) I did mention that this was hard work, harder than most might think. This was for the info of anyone considering a tanning salon. I do think, however that many of the franchisees did not read their franchise agreements or perhaps they read them but did not fully understand them. Instead, they heard "the pitch" saw the $$$signs, and signed. If they did trully understand, then why did they have such a different idea as to the cost invloved then the rest of us??? And by the way, only about 20% of the ET franchise nationwide j are invloved with this law suit, not half. And We were contacted by some of the franchiees, and asked if we would "Join the Suit" we heard there points, and idin't agrre with them. simple as that.
5. Give that I've been in business all of three month... Try 13 years and counting!!! Again, did you read my first posting??? We own another business, and have been running that business for since 1994. I understand (probably better than most franchisees) how much it takes to run a business, and luck only takes you so far. So whose naive?? I do appreciate the attempt to discredit my comments though.
6. I'm sure I'm not the ONLY ONE who read my franchise agreement, but the rest of us other 80% who DIDN'T join the law suit, must have had a better understanding of what we read, and signed, how else do you explain it? When the law suit is over, we will see who violated what? (Another Fact)
7. Did you actaully mean to post 120 hour weeks? our salon is only open 69 hours per week, my wife works 30-40, I work 15-20 hours, and we have about 40 hour in payroll. (most of our shifts overlap a few hours) I would be mad as **** if I was facing 120 hour weeks, no wonder your mad.
8. And finally, I am not hold ET in high esteem, I'm simply saying I was not lied to, or cheated by them. They have done there part of the agreement, and we're doing ours.
Again, I'm not advocating for or against....I do, however, enjoy being the only franchised Tanning Salon in our town. We stand out, and (I feel), it give us a competitive advantage. One that I pay for every month, is it worth it? For now, I say "Yes". but (yet another undisputable fact) "time will tell"

I wish you all prosperity and happiness (franchisees and indies alike.)

bossless1

Just FYI, we have 9 beds. 4 base beds, 2 upgrades, 1 Stand up, 1 high pressure, and a MyMist. Not sure why our profile shows 12???
Things have picked up for us $4200 in Feb, $6600 in Mar, $11500.00 in April, and is at $10600, with 6 more business days to go. (we're closing Sunday and Memorial Day. Thanks for concern ;-)

exectans110

By ET's own admission, per their attorney, there are 30 salons represented in the lawsuit and 32 salons still operating and not represented in the lawsuit. That's about half in my book.

runfast

Bossless,
I agree that everyone here should be working with you, not against you. You certainly joined a concept which is not well respected, hence the negativity.

Based upon my vast industry experience, I have projected your annual revenue and the last 7 months for you:

Annual revenue (12 months): $75,013
June: $8,101
July: $5,851
August: $5,325
Sept: $4,725
Oct: $4,275
Nov: $4,500
Dec: $4,950

Revenue (last 7 months): $37,731
Breakeven: $63,000
Personal (lost) Compensation: $22,575 (based on 50 hours a week for 7 month)
Debt Service: $16,100 (based on 150k at 7.5% over 7 years)
Loss: -$63,944

Based upon the above assumptions, you will likely lose a significant amount of money the rest of the year (JASON). Also, I based the assumption on the fact that your $9,000 breakeven does not include compensation for you and your wife and any type of debt service.

What you have to ask yourself is - is it worth your time to give up 50-60 hours a week for a negative return? Sure, you will hopefully grow your business and your revenue, though I can't imagine alot of upside based upon your decision to join ET and locate in a saturated market.

Good luck the remainder of the year and get your personal checkbook ready.

Runfast

UVAddict

I'm just wondering what kind of High Pressure do you have Bossless???

Rodney

Odd's are it's an Ergo 650 or 850 possiable it may be UWE Sunboard this is what ET uses for their failing concept stores. However the UWE units are decent I can't say that about Ergo units. It's not so much the units that cause the failure other idiotic moves by ET do and I won't list them I see no reason to give the idiots any help.

Idiots being the corporate not the salon owners the salon owners just had a nice show put on for them and took it.

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SPOOKY

That's with a double O.

I prefer to associate and drink fine wine with educated people.

mr belvedere

So, you must be Deep Throat? haha - Dead on Spookster. Piece.

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"A dusty bible leads to a dirty life ..." -Synonymous

river_brat

ok, just from my professional opinion trying to help another person out, with those numbers you will be struggling. I am quite familiar with your area, demographics etc. My business is not near you, however I have almost 75% less people living in my demographics and only 5 beds and a mystic, and my numbers my first May which was 04, is almost double yours. You should notice a slight increase in June, however expect July and August to start dieing down. If yoru doing only 10g in may PEAK season, expect October and November to be around 4g's. If your break even point is 9g, you will hurting then spending the next busy season paying off the billls you couldnt pay in the slow season. It is a cycle. I would start hitting the pavement and trying to utilize the tail end of the season to keep people getting in your doors through the slower season. Wow. I have a friend in your area and knowing what the area is capable of doing especially with the level of disposable income, I would be very concerned. I am not bashing just trying to perhaps wake ya up!

Dustin

Franchise is just asking for problems

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Tanzenite

Period.