What to Consider Before Purchasing a Cosmetology Franchise
Top Tips for Beauty Pros Considering a Franchise
When it comes to your path in the beauty industry, choosing the right way to go can sometimes feel complicated. Should you opt for a traditional, in-salon career?
Should you do something out-of-the-box like traveling cosmetology? Should you join a salon or start your own? There’s no wrong or right answer, and everyone is different–ultimately, what you do is up to YOU.
But while there’s no real wrong answer here, what you decide should still be based on a lot of different considerations–and choosing to purchase or join a franchise is a big decision.
There are plenty of benefits to starting your own brand, and there are also plenty of benefits to purchasing a place in a franchise. So, how can you know what’s right for you?
Running through the pros, cons, complications, and benefits of purchasing a franchise is the only way to decide if it’s the right route for you. Not sure where to start this little evaluation? You’re in the right place. Read on to get a full breakdown of what’s good, bad, and best about choosing a franchise!
What to Consider Before Joining a Franchise
Built-In Branding & Marketing Support is Possible
Believe us when we say that this can be a huge benefit when you first start your business. As a brand of your own, it’s up to you to get your branding on point and make sure your marketing efforts are doing their job.
With a franchise (in most cases), the pressure comes off a touch in this regard because they’ll provide you with brand guidelines, rules, and instructions on how to carry on their brand’s name properly.
A little direction like that can be huge for a new business–and having those resources from the start can put you miles ahead than if you were building your own business from scratch.
What Your Territory Covers
Can you ever expand? Are you stuck with one specific location? Is there any rule against opening up another franchise in a neighboring area?
Purchasing or joining a franchise can have a lot of benefits because you get established branding, brand recognition, and a built-in reputation (to some degree), but it can also make expansion and growth harder if you’re not careful!
Make sure you know the rules about expanding your business, adding in another franchise, and your territory’s hard-and-fast boundaries before you decide!
Brand Recognition & Established Reputation
This could be a pro or a con–it all depends on what the brand’s reputation already is. If the franchise you’re buying into is highly regarded and has a great reputation, you’re getting a great intro into the marketplace.
If you’re buying into a franchise with a less-than-stellar reputation, you might have more work cut out for you.
What You Can & Can’t Do
Most franchises will have strict rules about what’s permitted and what’s not under their direction–that can include what services you add, what you have to keep on the service menu, how many people you hire, etc.
For some, having a set list of rules can be helpful–others want to be able to do their own thing. It really all comes down to what the rules are and what you’re OK with. Make sure you’re clear on these things and on board with them before you agree to a franchise.
The Initial Investment
It’s no secret that opening a business of any kind is going to cost money–a franchise is no different. Still, some franchises might require a specific downpayment or a set initial cost that you have to pay upfront to become a franchise owner.
Liability Coverage
When you open your own business, it’s up to you who you choose to work with for beauty liability insurance.
When you buy a franchise, you might be stuck dealing with whoever they think is best. At the end of the day, your beauty liability insurance needs to cover you, your career, and your future–so if your franchise forces a certain company that you don’t trust, it might not be the right choice to purchase a franchise.
On the other hand, if they work with an established, trusted company, that could mean great things for your salon or shop’s coverage.
This type of liability debate can be said for any other aspect of a franchise rules. If you aren’t interested in someone else dictating how you run your business, a franchise might not be the best choice for you. If you do appreciate some guidance and rules as you progress in your business, a franchise can help open a lot of doors and make some steps easier than others.
So, what’s your verdict? Is a franchise right for you? Remember, no matter what path you choose, success awaits those who work hard and put in the effort.
And if we know you, we know that’s no problem. Looking for more advice, insight, tips, and tricks? This blog is the place to be. Make sure you subscribe to Elite Beauty Society for notifications when we drop new resources, great discounts, and even exclusive industry advice.
P.S. if you’re on the lookout for amazing beauty liability insurance, look no further than our for-your-industry-by-your-industry liability insurance.
