NW Franchise package deal in the Beauty and Lifestyle Industry
| Asking Price: | $2,040,000 |
Purchase a Northwest Franchise package deal for a large, established, leading national beauty and lifestyle franchise with 3 locations.
The business model is focused on service revenue, retail sales, and advanced purchase of services in bundles for customer savings. Customer growth comes from increased awareness, excellent customer satisfaction (through high Google review scores), and word of mouth from existing customers. The business serves women and men. As part of the beauty industry, this business helps raise the positive value customers have in themselves and encourages regular frequency of visits to maintain that positive feeling.
As stated by Sharpsheets: “The average gross sales for a [this brand] franchise are approximately $0.89 million per location. Assuming a 15% operating profit margin, $0.89 million yearly revenue can result in $133,500 EBITDA annually. A [this brand] franchised studio makes on average $884,000 in revenue (AUV) per year. This compares to $554,000 yearly revenue for similar [Service] Franchises.”
Franchisees can work along the spectrum from owner/operator to purely executive oversight of operations using local managers with hybrid alternatives in between. As owner/operators, franchisees are fully responsible for the daily operations of the business, including staffing, employee supervision and other HR duties, inventory management, and especially customer acquisition, satisfaction, and retention. In the executive role, the day-to-day operations are in the hands of local management with franchisee focus on setting growth and financial strategies, marketing, managing performance of the centers by establishing & reinforcing performance expectations of the managers for the teams.
These established locations have customer lists numbering in the thousands, with high retention rates of customers returning with regular (usually monthly) frequency. All locations are already staffed with licensed and trained therapists. Five Beauty schools in the area provide a pipeline from which to recruit qualified new therapists.
Facilities: 3 fully built-out, established locations: 2 in Spokane, 1 in North Idaho.
Competition: [This] is the largest business in a fast-growing, highly fragmented market. Only two locations of one other national franchise chain exist in the Inland Northwest.
Support & Training: National Franchisor support, marketing assistance, and training are available. Orientation and Training by the seller are also available.
