A new overseas franchise model looks set to shake up the Australian hairdressing and beauty services industry.
U.S. franchise giant, Sola Salon Studios have announced expansion into Australia, and is currently in collaborative efforts with DC Strategy to find a master franchise owner.
Originally launching in Denver, Colorado almost 15 years ago, Sola® Salon Studios has carved out an impressive name for itself, with a network of over 400 franchise and company-owned stores across the U.S., Brazil and Canada.
Now serving as the largest salon studio concept in the U.S., with over 10,000 stylists and salon owners, generating close to $1B in professional services revenue, the brand is steadying its plans for further international growth.
William Edwards, Sola® Salon Studios international representative said the Australian market had firmed as an obvious choice for brand development.
“The beauty industry is a constantly growing industry; this sector is expected to increase by an annualised 1.3% over the next five years to almost $5 billion,” Edwards said.
“The beauty industry has historically been female dominated but times are changing. Men are increasingly spending more money in this category as they are becoming more concerned with their appearance, Australia has just been introduced to this new concept.”
For potential master franchisees, the opportunity presents a chance to develop the brand’s Australian operations, with the on-going support of a trusted and proven franchisor team, which Edwards said was invaluable.
“No Sola® location has ever failed,” Edwards said.
“They have revenue stability from the rental income stream; it’s a recession resistant and internet insulated industry. Sola® generates high return on invested capital, with a simple operating model requiring no on-site employees.”
“Sola® generates high return on invested capital, with a simple operating model requiring no on-site employees. Sola® has proven themselves as the leading studio concept by creating extensive cutting-edge proprietary technology applications.”
Sola® Salon Studios’ head office team will provide assistance to the Australian master franchise owner or area agreement owner that includes;
- Market analysis and sit selection assistance
- Access to design services, furniture and fixture manufacturing
- Access to world class ERP systems, training and support
- Marketing materials
- Training of franchisees and general managers
- Sharing of best practices between nationwide system of accomplished operators
- Extensive, cutting edge, proprietary technology applications
- Community focused environment while maintaining the benefits of independent sole proprietor
While industry-specific experience is not essential for this opportunity, Edwards highlighted business acumen and management expertise as the driving factors in candidate consideration.
“A successful master franchisee may exhibit the following traits; seasoned management executives with tracks records of achievement, strong marketing and sales skills and experience, understands the merits and value of a proven franchise business system, access to appropriate local real estate, possess a thorough knowledge of the local marketplace and culture,” Edwards said.
“Company categories such as restaurant developers and operators with real estate experience, hospitality or customer service based businesses and master franchisees, franchisors or multi-unit franchisees have also been successful as Sola® Salon Studios franchisees.”
The Australian expansion will be focused on high population areas such as Victoria and New South Wales, with further development slated for the Gold Coast, Brisbane and Perth.