Beauty Feature Articles

Those sanitarily questionable movable feasts that have rolled through America's cities for decades are being replaced.

The stagnant economy. Sustained unemployment. Rising food and gas prices. It's no wonder consumers are more value-conscious than ever before.

The beauty of the franchise business model is that it allows individuals to start their own businesses without the sweat equity and headaches associated with starting a business from scratch. No reinventing the wheel here. Hundreds and hundreds of franchise systems have already perfected the products, services, and delivery mechanisms into a proven and successful formula. That's a distinct advantage. But as a first-time franchise prospect how can you ensure that you choose the right system? Are some systems more suited for you than others? What will be your strategy for choosing the right franchise opportunity? These are all important questions that we'll try to answer in this section.

Social media, social networking, social marketing, social recruiting. Whatever you call these new connectivity platforms, they're sweeping the business world in 2009--much as the Internet and World Wide Web did circa 1995. Everybody wants in on the action, but no one is quite sure how. Okay, maybe some people know. We asked a few--and went online (of course) to find out more. We also pulled a few thoughts from "The Long Tail," a book by [i]Wired[/i] magazine Editor Chris Anderson on how Web 2.0 and social media have transformed marketing and sales.

Franchise Update Media Group (FUMG), the leading industry resource for franchise development, reports that for the first time, multi-unit franchises are the new industry majority, providing growth opportunities in these times of economic uncertainty.

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 FTC's new Franchise Rule "permits a franchisor to provide information about the actual or potential financial performance of its franchise and/or franchisor-owned outlets." Does this mean it is game-on for providing financial performance representations (FPRs, formerly known as earnings claims)?

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.

Even 10,000-unit gorillas have an Achilles' heel. For Curves, the number-one women's fitness and weight loss franchise, its own success is now biting it in the ankle. Competitors of all sizes and shapes have sprung up, offering women an ever-increasing array of options for losing weight and staying fit.

Last Saturday, mom and dad packed the kids into the minivan and headed out to the fitness center (Curves for her and Athletic Republic for him). First they dropped the kids off (one at Huntington Learning Centers, the other at Abrakadoodle). Before they left, they'd made sure the woman from Bathfitters knew exactly what they wanted done with their new shower, and reminded the man from Spring-Green to cut the back lawn extra short this week.

In the chronicles of franchising history, some names come immediately to mind - Ray Kroc, S. Truett Cathy, Dave Thomas. The names conjure up images of independent-minded entrepreneurs with the savvy, know-how, and vision to create successful business models replicable anywhere. As part of the celebration of Franchise UPDATE's 20th anniversary, we look back at some of these colorful, inspiring, and sometimes controversial characters.

Getting laid off by United Airlines in the 1982 recession was perhaps the best business move Regina and Jerry Lillie ever made (even if they didn't actually make it themselves).

When Doug Castino decided it was time to get out of his hugely successful restaurant design and supply business, he'd never thought of franchising and didn't know what an area developer was.

Out of the American West came a term that has changed meaning from its use by the vaqueros herding cattle 100 years ago, to that of today's slick marketers of products and services. That word (or buzzword) is branding. In a world of instant communication, in which images whirl by us daily through multiple media, branding is crucial to success for both individuals and corporations.

Wouldn't it be great if you could call a home repair service, book an appointment, and be guaranteed they'd show up on time (and not within a four-hour window!), be courteous and respectful, and perform a reliable, professional job?

"Our first salon was a real struggle," explains Doug Barnes. "There were times when we didn't know if we'd have enough money to get through the next day." But those hard times helped forge a determination that he and his wife Elizabeth rely on still today. And it must be a formula that works because today, Barnes operates 26 Cost Cutters and three Supercuts locations throughout Nebraska and Iowa, and Regis Corporation, the parent company of Cost Cutters and Supercuts, just recognized him with its 2005 Multi-Concept Franchisee of the Year Award.

There's nothing mysterious about what investors and franchisors want from one another: a reliable partner who can help them achieve their goals. For the franchisor, it's all about brand and unit growth; for the investor, it's return on investment.

The hair care industry is a $50 billion annual business in the U.S. Seems as though there's a hair cutting niche for every type of American. There are salons for guys, gals, kids, even pets. It's a highly fragmented industry composed of mom-and-pop shops as well as franchise operations. And in 2006, it continues to be a strong area for franchising.

Once there were day spas, places for women (and a few brave men) to spend time being pampered and rejuvenated with lotions, potions, and massages. Today there are medical spas, or MedSpas, which take all the comfort and care of day spas and add the latest in medical technology. MedSpas provide services in comfortable retail settings, services once confined to medical settings and performed by dermatologists and plastic surgeons.

Time for my annual "just got back from the IFA Convention" column. I saw lots of my lawyer friends while there-also met a lot of suppliers, franchise consultants, academicians, journalists, and franchisees. Occasionally, I even came a cross a franchisor. Didn't see too many psychologists, however. Why not?

Imitation is said to be the sincerest form of flattery. If that's true, discount giants Wal-Mart and Target have paid a glowing compliment to small but booming dollar stores, including franchises such as My Dollar Store, Dollar Castle, Just-A-Buck and Dollar Discount. Wal-Mart is testing "Pennies-n-Cents" sections in 20 of their Supercenters, and Target has launched The I Spot in the front of about 125 of its stores.

Despite recent economic turmoil, franchising in Argentina has rebounded at a surprising rate. In the 1990s, many foreign franchisors (particularly from the U.S.) expanded to Argentina. At the height of the economic turmoil in 2002, the sector shrunk by 4% and the expectations for 2003 were very low. However, contrary to expectations, in 2003, the sector grew by 70%, generating approximately US$1.9 billion in sales in 2003, and adding twenty-nine (29) new franchises. Today, franchising in Argentina represents 20% of the total retailer sector, accounts for more than 13,000 retail stores, and employs more than 100,000 employees. Furthermore, the national franchising association (Asociacion Argentina de Franchising), an organization affiliated with the International Franchise Association, estimates that the sector will continue to enjoy strong growth, projecting sales volume to reach US$2.35 billion in 2005 and for the sector to account for 30% of the retail sector in the next decade.