Franchising in the beauty industry

Business analysts believe that the beauty salon franchise is the future of the entire beauty industry and the best solution for both aspiring entrepreneurs and experienced businessmen who are discovering beauty segment.

A franchise is the right to use someone else's brand for commercial purposes for a fee. Beauty salon franchising assumes that the franchisor (right holder) transfers to the franchisee (partner) the right to work on behalf of a cosmetics manufacturer, a large salon or a popular network. In return, the brand holder receives a lump-sum fee from the franchisee (this is the cost of the franchise itself) and monthly royalties, i.e. regular payments.

Of course, the franchise has its pros and cons.


  - The franchisee receives a ready-made brand with a loyal audience.

  - The franchisor transfers the franchise

 a huge baggage of experience and solutions.

  - The franchisor sells a ready-made business plan, which includes a well-thought-out financial part.



  - Limited freedom of creativity in the salon. Under a franchise agreement, even things like employees' clothes or posters on walls can be controlled by the franchisor.

  - The franchisee is obliged to pay royalties to the brand holder on a monthly basis, even if they suffers losses or works to zero.

  - Penalties that are assumed for violation of the terms of the franchise can be significant.

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