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We were once asked how we can guarantee our services vs a franchisor's. There are few absolutes in business, but we offer three guarantees to our clients, and we extend them to all operators in the salons suites industry:
1. Royalties - SCG guarantees that we do not charge on-going royalty fees that can amount to millions of dollars over the life of franchise agreements. We're there to support our clients down the road (we're a call, click or text away), but they generally won't need us once they are set up and running. (Why pay thousands per month for that support through royalty fees?) 2. Competition - You may currently live in an area where there is little or no suites competition, but we guarantee it's coming. Multiple franchisors and independents WILL likely pop up soon in your area, and it's difficult to compete when burdened by huge franchise royalty payments right off the top. All other things being equal, independents will always have the advantage in a competitive market. 3. Franchise profits - Since franchisees have on-going royalty obligations of 5%-7% of the gross revenues, we guarantee that the franchisor makes money even if the franchisee doesn't. (Remember: Salon suites franchises are a GREAT model for the franchisor, not so much for the franchisee.)
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You have been over the website, so you probably have a pretty good idea of what we do. One of the most important assets that SCG has is what we simply call, "The Manual". Every franchisor provides their franchisees with something similar. Since everyone considers theirs to be unique and proprietary, they are not readily available to non-franchisees, but we can speak about ours. It is comprised of five major sections:
1. Preliminary Analysis 2. Site Selection, Criteria and Process 3. Planning, Design and Construction 4. Operations 5. Marketing All of the sections are very detailed, but today we focus on Section 2, Site Selection, Criteria and Analysis. As you commence your site selection process, can you answer these questions? If you can, then you might not need SCG! But the reality is that if you can't, you might be setting yourself up for some headaches, or worse, down the road.
Section 2 alone is nearly 30 pages of criteria, guidelines, specifications, methodologies and standards for site selection, qualification and lease negotiation. It is full of important information to help determine the ideal, and the minimal, site for your salon suites facility, and it answers all five questions above. All sections of The Manual are similar in their detail dedicated to each topic. Again, if you can answer the five simple questions above, then you don't need help from us (or anybody else) in finding your facility. But if you have doubts, maybe we can help. Email us today. We can provide guidance and help where you need it. 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. |
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April 2020
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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, A Suite Salon, My Salon Suite, Studio Salons, Salon Spa Suites, Salon Plaza, Cirque Salon Studios, Image Studios 360, Salon Boutique, Universal Salons, Mimosa Salon Suites, Encore Salon Suites, Cosmopolitan Suites, Salon Concepts, Mix Salon Studios, Beauty Bungalows, Salon Studios, Spectra Salon Suites, Utopia Modern 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.