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Aesthetics
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It’s important to note that franchising is not just for those new to owning a business. The challenges to businesses across the UK have never been more acutely exposed than now, in what might be termed a ‘post pandemic world’. Many business owners will be looking for new opportunities and re-evaluating their own position after the hardship brought about by this protracted period of lockdown. With more support such as that outlined above, locally based aesthetic businesses could benefit from rebranding their own clinic to that of a reputable high-profile brand. In this situation, the business would remain under the same ownership, but with the advantage of the franchisor’s brand profile and access to expanded business opportunities enabling the franchisee to build upon the hard work that has already taken place.
The franchise structure
Joining a Franchise Franchising professional Mark Lemmon explains the benefits becoming part of a franchise can bring your business Individuals planning to start a business often ask me to explain the merits of franchising. My answer is the same every time: as a business model, a franchise providing the backing of a big brand can be a viable option for all aesthetic businesses. Here I will explain the benefits of franchising, and how it can offer huge opportunities for those operating in the industry.
The benefits of joining a franchise So why join a franchise? Well, there are numerous advantages for business owners. The first of which is simply that joining a franchise network doesn’t carry the same risks (or fears) associated with going at it alone. This is because the franchisor has a proven business model in the industry that will help the franchisee to avoid the common pitfalls of running a business, thereby affording it a greater chance of success. I readily accept that franchising is not a suitable route for everyone, but when you consider the high failure rate of all new
business ventures started in good times and bad it is worthy of consideration. Figures show that 50% of new businesses fail within the first five years of trading, while 95% of franchise brands succeed.1 As a general rule, sourcing business finance for a start-up is easier for franchisees because banks, lending institutions and private investors are more disposed to invest in a business with a recognisable and reputable brand, proven track record, successful operating systems and an established customer base.2 Franchisors will also usually offer training schemes, sales and financial management support, access to suppliers and other business contacts and will provide advice and guidance on advertising, marketing and PR, all of which may well be included in the price of the franchise fee (although you should always check this). These factors are also very helpful for medical professionals, who might not be well-versed in the business side of running a business.
I recommend business owners considering the franchising business model seek the following structure from a franchisor having carefully evaluated its reputation, business ethics and core values. This is of paramount importance in the aesthetics specialty. Guidance in site selection Business planning and assessing the financial viability of a location is key when preparing to start a business and is often a big cause of problems once opened. Franchisors have proven experience of building a business viability model that can be applied to any town and location supported by information on the demand for the services that can be offered in that area. Before any new business operation is opened, each area’s risk can be minimised through this use of experience often learnt over many decades. The territory is part of any standard franchise agreement, and the size of that territory will be fairly determined by size, demographics and density of population.3 Given the considerable investment a franchise represents, it should be clear if a protected territory is part of any franchise agreement, which may vary in size due to the density of population. That ‘territory’ will reflect the geographical area that is available to the franchisee and with it the right demographics and population to support the goals of the business. Tailored training plans Training is a key feature of any franchise agreement, but of course some franchisers might offer better training than others, so it’s important to look into this before committing.
Reproduced from Aesthetics | Volume 8/Issue 7 - June 2021
