Nail Salon franchise is considered by many people a recession resistant business models. The secret behind this is that women love beauty and off-course their nails! When the economy is not so good, a lot of women go back to work so they can have extra money to do things they like to do, like get their nails done according to Tammy Tailor, CEO of Tammy Nails Inc. She says: “Women are more careful about what they spend their money on, but they still like to feel pretty, and Nails are a good investment; they get undivided attention for an hour with their favorite Therapist (their Nail Tech) and their hands and feet look beautiful for 2 whole weeks.
On the other side there are people who believe recession also affects the nail salon industry. Nail salons have seen revenue plunge 25% this year, Bill Patterson, a Mintel analyst, said to Time Magazine in 2009. Fancy nails, it seems, just have not been a priority in this recession — possibly because many struggling women aren’t in the mood to be flashy, but more likely, says Paterson, because “they’d rather go without nail coloring than do a bad job themselves. However, in another market research performed by anythingresearch.com, data shows that nail salon industry revenue went up from $6.3B in 2008 to $7.3B in 2011 which might show a rapid recovery from recession occurred during 2007-2009.
At the time of writing this article, nail salon industry is performing at its highest level during the past years thanks to economy recovery. Data gathered on the Nail Salon industry by Nail Magazine shows there are some 53,815 Nail Salons within the USA’s beauty business in 2014, with a growth of 9.9% compared to previous year.
Why a Nail Salon Franchise?
Although there are many nail salons in the nation, but the market is so fragmented and there are only limited number of nail salon franchises in the industry. Even if you have not been in nail or other beauty related businesses, a nail salon franchise can provide you with advantages that are not available through a mom and pop business. A nail franchise can provide you with support and training you require for starting your own nail salon as well as benefiting you through marketing and brand awareness which leads you to attracting more customer into your nail salon.
Nail Salon Franchise Services
A nail Salon franchise typically offers the following services:
- Manicure Treatments
- Pedicure Treatments
- Acrylic Overlays and Extensions
- UV Gel Overlays and Extensions
- Silk/Fibreglass Overlays and Extensions
- Nail Art
- Acrylic and UV Gel Sculpted Extensions
- Waxing
Nail Salon Franchise Requirements
A typical nail salon franchise unit requires between 1,100-1,300 Sqft of space. Such a nail salon franchise usually employ a high number of people called Nail Technicians. These people should have formal, state recognised qualifications in order to be able to grant licenses to the salons. Nail salon franchises require their franchisees to observe their requirements regarding location of their franchised units. A good location for a nail salon franchise could be inside a shopping center or in strip mall. Depending on the location of nail salon (and many other factors as well), it is possible to see a nail salon franchise exceeds $1.5 million in annual revenue.
As a nail salon franchisee, you will need a combination of skills and experience, but not necessarily in running a nail salon or in manicuring. An ideal nail salon franchisee will have previous management experience, business management skills, excellent people-skills and a passion for developing people and providing outstanding customer service.
Nail Salon Franchise Cost
Nail salon franchise cost mostly is due to franchise fee and build-out cost of the nail salon. It is possible to start a nail salon franchise with total investment of $115,000-270,000 (depending on real estate costs) of which $40,000 charged as franchise fee. A nail salon franchise usually charges royalty (e.g. 6% a) and ad fund (e.g. 2% ).
Nail Salon Franchise Funding Options
There are several ways to fund your nail salon franchise. In addition to liquid capital that you should bring to the table, some of the nail salon franchises are registered with Small Business Administration (SBA) and are eligible for SBA loan. You also might be able to roll over your 401K account and invest your money into your new business. There are some other options such as equity backed loans, credit lines and unsecured loan might be available depending on your condition.
