Unit Performance Report: Franchises in the Beauty Industry
By: FranDATA | 22 Shares 9,004 Reads
This report compares ten systems in the beauty industry: five in the tanning centers sub-sector and five in the hair care sub-sector. FRANdata examines the initial investment, unit financial performance and the ongoing fees of the systems.
The average initial investment for the sample is $337,065. The two sub-sectors display a significant difference in their initial cost estimates: $196,619 for the hair care and $424,844 for the tanning sub-sector. The higher costs of the latter are due to large tanning equipment expenses. In fact, tanning and related equipment is the largest item comprising initial investment for the tanning sub-sector. Leasehold improvements is the largest for the hair care sub-sector.
The large initial investment for the tanning salons impacts the initial investment per square foot measures. At an average of 2,000 sq ft, the tanning sub-sector's average unit size is 58% larger than the average of the hair care units, at an average of 1,270 sq ft. The tanning sub-sector's average initial investment per square foot is 55% larger than that of the hair care sub-sector, or $240 vs. $155, respectively.
The franchise listed above are not related to or endorsed by Franchise Update or Franchise Update Media Group. We are not engaged in, supporting, or endorsing any specific franchise, business opportunity, company or individual. No statement in this site is to be construed as a recommendation. We encourage prospective franchise buyers to perform extensive due diligence when considering a franchise opportunity.
