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Open a Tanning Salon Business
Benefits of franchising with
The Original Island Sun Tanning Since 1987
Call (609) 827-2645
In two words, value and support
US: 1) Equipment and beds: We are closely associated with a tanning bed repossession company. All repossessed beds and recoveries go directly to our franchisees for a fraction of the price of a new bed. While other salons are paying $35,000+ per bed, you are only paying 20-40%. Our franchisees also get a list when a repo takes place so they can upgrade equipment if they desire. For new equipment we have long-term contracts with manufacturers where you buy all beds directly and get our discounts without any kickbacks to us.
Them: 1) These franchises require you to buy new equipment directly from them. They charge an up-charge or get manufacture kickback. This keeps the prices high and volume low.
US: 1) Tanning Bulbs: We have long-term contracts with manufacturers where you buy all bulbs directly and get our discounts without any kick backs to us. We are getting at least a 40% discount from retail and in some cases more.
Them: 1) These franchises require you to buy new bulbs directly from them. They charge an up-charge or get manufacture kickback. You must buy from them! This keeps the price per visit high with low volume in sales.
US: 1) Lotions: We have long-term contracts with manufacturers where you buy all lotions directly and get our discounts without any kick backs to us. We buy in volume and get at least 50% off wholesale salon cost. We also have a contract with a chemist who makes lotions and DHA for airbrush tanning exclusive for us that no other salon can make or buy.
Them: 1) These franchises require you to buy new lotions directly from them. They charge an up-charge or manufacture kickback. You are limited to what you sell and the prices are 30-50% more then Island Sun.
US: 1) Employees and support: We have nine local salons who can help. Also, most importantly we are local franchisers. We live in this community and not in a corporate site in Hollywood or Chicago.
Them: 1) These franchises depend on local (fly-in) management. Try to call the owner and see if you can get them.
General Benefits of Franchising:
Benefits of Franchising
Franchising's primary benefit is risk minimization. Starting a new business is risky. Most studies show that over 90 percent fail within three years. The primary reason that the failure rate is so high is because the owners have to go through the learning curve of operating that specific type business. Franchising reduces that curve substantially.
Another reason to buy a franchise is that a franchise investment can be thoroughly researched before any significant expenditures are made. Existing franchisees offer a wealth of information about the business so that new franchisees can try the business on before they buy to make sure it's a good fit for them.
Franchisers sell a defined, proven business format or method of operation, offering a product or service that has sold successfully. An independent business is based on both an untried idea and operation.
The experience of the franchiser's management team increases the potential for success. This experience is often conveyed through formal instruction and on-the-job training.
Franchisees can often buy lower-cost goods and supplies through the franchiser, resulting from the group purchasing power of all the franchises.
Established franchisers offer national or regional name recognition. While this may not be true with a new franchiser, the benefit of starting with one is the potential to grow as its business and name recognition grow.
Franchising provides a uniform system of operation, so that consumers receive uniform quality, efficiently and cost-effectively. A uniform system brings with it the advantages of mass purchasing power, brand identification, and customer loyalty, capitalizing on the proven format.
A franchiser also provides management assistance, including accounting procedures, personnel and facility management. An individual with experience in these areas may not be familiar with how to apply them in a new business. The franchiser helps a franchisee overcome this lack of experience.
Franchisors help franchisees develop a business plan. Many elements of the plan are standard operating procedures established by the franchisor. The most difficult part of a new business is its start-up, since even experienced managers lack the knowledge to set up a new business.
One of the biggest benefits to franchising is marketing. The franchiser can prepare and pay for the development of professional advertising campaigns. Regional or national marketing done by the franchiser benefits all franchisees. In addition, the franchiser can provide advice about how to develop effective marketing programs for a local area through a cooperative marketing fund, to which the franchisees contribute a percentage of their gross income.
It's possible to receive assistance in financing a new franchise through the franchiser, who often makes arrangements with a lending institution to lend money to a franchisee. The franchisee must still accept responsibility for the loan, but the franchiser's involvement usually increases the likelihood that a loan will be approved.
A franchiser also provides training for the franchisee. This is especially important if the concept is complex. The best training combines classroom or one-on-one training at the franchiser's facility with field training at the franchisee's place of business.
Finally, franchising has found a solid economic niche that caters to specialized needs. Many American consumers no longer want a muffler installed by a service station, a hamburger from a diner, a pizza from someone who won't deliver it within 30 minutes or their hair cut by a local barber. Specialists, it seems, "do it better," and the franchise industry is only too willing help.
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