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Established Nail Studio - Strong Member Base, Clean Care Salon

Woodbury, MN
Custom-built manicure stations are accented by clean, white walls and decor.
Custom-built manicure stations are accented by clean, white walls and decor.
Asking Price:$195,000
Gross Revenue:$475,000
Cash Flow:$78,000
Established Year:2016
Listing ID: 2151874Listing provided by BizBuySell
BUSINESS DESCRIPTION

Turn key, busy studio with strong franchise support

Frenchies Woodbury is a destination nail studio has operated with one owner since opening in May 2016. Because of the business' loyal customer base and foundational focus on offering clean nail care, the studio weathered the storm of COVID and has emerged in its strongest position since opening. In addition to a loyal customer base, we have an amazing team of Nail Specialists and Concierge. Frenchies was built on creating a safe, healthy work environment that encourages employee growth, which has helped retain excellent talent. We offer hourly pay versus 1099, which is a key differentiator and helps recruiting and retention. The combination of loyal customers and employees has allowed the studio to continue its growth.

As we emerged from COVID, 2022 was a strong year of rebuilding and getting to a more normal state of business with the strongest financial year in the company's history. 2023 has continued to prove the stable foundation is in place and is on track for a budgeted 40% YOY revenue increase. We have a third-party valuation available utilizing 2022 financials, a trailing 12-month through June 2023, and projected valuation based on attainable target budgets for year-end 2023.

In addition to the in-studio growth, Frenchies Woodbury is supported by a franchisor that has many years of experience building small businesses, both in the fitness and beauty industries. The owners are highly engaged with this studio, and their team provides weekly and monthly support calls, as well as strong systems to support owners, even if they don't have experience in the beauty service industry. There is also a strong studio owner network that engage in structured peer calls, offline networking sessions, and annual in-person conferences and training.

There is significant opportunity for continued growth in the market. Home construction continues to explode within walking distance and a short drive. We were the first tenant in our space and the building is well maintained by building owner Jerry's Foods. Our neighbors are consistent and supportive. The location is prime for this type of service business. As a bonus, we are next to a very busy sports complex and high school, providing even more marketing opportunities.

The business is in a strong position, but still has room for growth with the right owner. I look forward to having further conversation with you and share my experience with this exciting business.

DETAILED INFORMATION
Location
Woodbury, MN
Inventory
Included in asking price
Real Estate
Leased
Building SF
1,450
Employees
15
Facilities
The studio space is leased from Jerry's Foods, whose food store is directly next door with a shared parking lot. They are easy to work with and on top of facility maintenance. The lease is in its first extension, with additional terms built through twelve years. The building was brand new when we moved in, so the space was custom built for Frenchies. All furnishings are included in the sale. Parking is directly in front of the studio and there has always been plenty of spots for guests and team members to park within a comfortable walking distance.
Competition
Frenchies provides a personal approach with a focus on a more fun, conversational experience than quick service salons. Our guests are not ushered in and out in a flurry without any relationship with their Nail Specialist. We build long-lasting relationships, reflected in our almost 300 active members. High end salons may provide a clean experience but nails are one of many on their menu. By focusing on nails, we provide a stronger, more focused experience for the guests and team. We're the sweet spot in between in terms of experience and cost.
Growth & Expansion
There is significant growth opportunity with the business as it exists in Woodbury. As our team has doubled in size since recovering from the pandemic, we've been able to maintain our high level of utilization with limited to no paid advertising. This shows the inherent desire for our services. Each full time Nail Specialist that joins the team can provide an additional $7,000 in monthly revenue.
Support & Training
As a part of a franchise system, strong support tools like a personal coach are provided by the franchisor. The owners have extensive experience as a franchisee & franchisor, including the first Frenchies location that's still owned and operated by them. I am also a Woodbury resident and work within 5 minutes of the studio, so available for transitional support.
Reason for Selling
Additional responsibilities have arisen in owner's life.
Franchise
This business is an established franchise
BUSINESS LOCATION
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Ryan McEnaney
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Ryan McEnaney
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