If you’re looking for a satisfying career in an opulent, comforting environment, a spa franchise could be the move for you. As health and wellness has gone mainstream, it has only improved the prospects for the spa franchise industry. A spa break – whether it's a weekend escape or an afternoon's pampering – is one of the most popular ways for busy people to finally relax and let go.
And while the pamper-experience has traditionally focused on the female market, the tides are turning. The gender mix for wellness services is heading towards 50-50, allowing for even more market expansion.
Spa franchises offer a variety of indulgent experiences for individuals, couples, and groups. Commonly falling under the heading of health and wellness, these franchises provide a wide array of services for their clients to look and feel their best.
Some common spa franchise areas include:
- Massage therapy
- Facials and other skin care
- Tanning
- Nail care
- Wellness classes such as yoga, meditation, and Pilates
- Beauty and cosmetic services (such as lash care)
According to Global Wellness Institute data, the overall UK health and wellness industry is worth over €23 billion annually. Further, based on 2021 data, the industry growth rate is 10% and is expected to continue at this pace as the recovery from COVID continues.
Advantages of a Spa Franchise over Independent Operation
People buy into franchises for many different reasons. Suppose you are enthusiastic about owning your own business, but can’t quite come up with a business idea of your own.
Or, maybe, you know exactly what you want to do, but the idea of doing all of the legwork in setting of a business – such as brand development, writing a business plan, learning the rules and regulations of the industry, finding how to supplement your existing skills in the area, figuring out marketing, etc. – makes your head spin.
For either case, franchising may be the best method for making your dreams come true.
When you invest in a franchise, you take on the methods of a business that (1) understands its established target market, and (2) has proven itself profitable and sustainable. These are two of the primary reasons many people find the prospect of a driving franchise very attractive.
Independent companies that go into business without the support of an established partner often struggle to penetrate the market. They often misunderstand what their customers want and how to fulfill that desire. It can take a long time, along with trial and error, for an independent company to get their service offering right.
On the other hand, franchises tend to enjoy more immediate success because the parent company has done their market research. The franchisor has spent time developing their services and products to meet the standards expected by their customers.
When you invest in a franchise, you inherit not only the immediately recognizable branding of the parent company but the tried-and-tested business model focused on a client base who already know and trust their service model. In addition, the franchisor, typically, already has an existing supply chain and vendors that already know what the business needs. You also take on the parent company’s hard-earned reputation—and reputations are hard to build in the marketplace.
It should also be noted that some prospective franchisees are worried about not having the skills needed. Not a problem.
In franchising, your franchise parent company typically provides a training package for you and your employees to ensure that you can maintain their hard-earned reputation. In addition to training, many franchise partners offer a range of business support functions, including HR assistance and help in your business and employment regulation compliance.
Furthermore, franchisors tend to set their franchises up in territories they have faith the business will succeed in. After all, their ultimate success is dependent on the success of their franchisees.
What You Should Seek When Choosing a Spa Franchise
When deciding which franchise to invest in, you should compare how much and what types of support the franchisors offer on an initial and ongoing basis. The most common services offered by the franchisor include but are not limited to the following:
- A well-known brand name
- Use of operating manual
- Training
- Assistance in choosing and developing the franchise location
- Grant of a territory with a level of competitive protection
- Advertising and marketing strategy guidance
- Advice and business support from headquarters
With a recognisable brand name and logo, high-quality signage, and other support materials provided by the franchisor, you will be able to focus your efforts on the everyday aspects of running the business. This includes staffing and managing the company and ordering supplies, and selling and passing on the service.
It’s important to remember that even with the guidance and support, franchises are still independently-owned businesses. Therefore, whether your franchise is a success or failure is based entirely on you and your ability to run the company.
Money Matters: Franchising vs Independent Businesses
If you need help coming up with your start-up funds, becoming a franchise owner can potentially serve you well in this area. Investing in a franchise is often considered a safer option than creating an independent business from the ground up.
Traditionally, franchises have been more likely to appeal positively to banks and moneylenders and draw the necessary capital to start the business since franchises have a more demonstrated history of feasibility and market sustainability. Conversely, independent companies often find it a challenge to obtain loans with sensible borrowing rates since they have no evidence that their business will reach potential. This lack of faith from lenders has the potential to jeopardise their company from the start.
Having enough money before you start is important. The first couple of years of any business can bring challenges, placing most independent businesses at imminent financial risk. Without the ability to generate enough revenue to cover initial and operating expenses, independent business owners will likely find the venture unviable. In fact, more than half of all independent start-up companies go out of business within the first two years in the UK.