SUITES CONSULTING GROUP
  • Home
  • Who we are
  • What we do
  • Franchises: Bad idea
News/Blog

An open question to all involved in salon suites franchising

10/1/2010

0 Comments

 
At SCG, our position is that franchising makes sense for many types of business applications, but absolutely not for salon suites.  For example, if you own a traditional franchise (i.e. Subway, 7-Eleven, Papa John's, etc.), in return for ongoing royalty payments, the franchise operator receives national brand recognition, product supply chains with corporate leverage and economies of scale, product research and development, programmed Point of Sale terminals, inventory management software & hardware, national advertising and marketing, ongoing support, customer support call centers, online sales/booking, etc. 

With salon suites, none of that is needed or provided by the franchise.  So the question we have is this:

What value does an operator receive for on-going royalty payments of 5-7%? 

We have asked this of clients that have looked into the franchise system, and at our suggestion, they have in turn asked franchisors.  We still have not heard a sensible answer!

Anybody involved with salon suites franchises (franchisor or operator) is free to answer here on this blog.  We will post the answers for all to see. 

0 Comments

    Welcome to our Blog

    We hope you find something useful here. Don't hesitate to contact us if you have any questions!

    Archives

    April 2020
    January 2020
    December 2019
    March 2018
    July 2017
    November 2016
    January 2015
    November 2014
    May 2014
    September 2013
    December 2012
    June 2011
    October 2010

    RSS Feed

Picture
If you have your heart set on buying a franchise and taking on the huge additional costs they incur, there are at least 23(!) by our count operating today:  Sola, Phenix, Salons by JC, Salon Lofts, A Suite Salon, My Salon Suite, Studio Salons, Salon Spa Suites, Salon Plaza, Cirque Salon Studios, Image Studios 360, Salon Boutique, Universal Salons, Blue Lion Salon Studios, Mimosa Salon Suites, Encore Salon Suites, Cosmopolitan Suites, Salon Concepts, Beauty Bungalows, Salon Studios, Spectra Salon Suites, and Optima Salon Suites.  Shop around, but why bother? You can accomplish the exact same objective at a fraction of the price. See how by clicking here. ​

  • Home
  • Who we are
  • What we do
  • Franchises: Bad idea