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Franchising excels in the US
Date Added: 2009-07-28
Today there are encouraging signs for the industry as I have just read news in Franchise International of a hair salon group seeking to expand in the USA.
Great Clips, a USA-based hair salon franchise, is looking to open 44 new franchise locations in the Birmingham region of America.
A quick bit of internet research showed that the haircutting industry in the USA (including barbers) is estimated at around $50 billlion.
Wow! That suggests that whilst we have a global recession, the hair and beauty industry is more resilient than other industries. The so-called ``'lipstick effect`' means that women will continue to go for hair and beauty treats that make them feel good. Also, the salon franchise sector is a thriving part of this industry. This is evident from salon giants such as Toni&Guy and the success of events such as the Sapphires (Salon Awards for Franchising Intelligence)
Great Clips is now seeking suitable franchise owner candidates to own and operate these new salons. The company currently has eight salons operating in the Birmingham region and a further 2,700 franchises located across the USA and Canada, making it the largest single-brand salon in North America.
Franchising is a great way to grant the independent operator the right to distribute products, techniques and trademark from the franchisor for a percentage of the profit. The business model really came into prominence in the 1930’s and according to the International Franchise Association approximately 4% of all businesses in the United States are franchises.
What do you know about franchising? Would you consider it for your business?
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