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Franchising can be a great way to grow a hairdressing business. It involves a business owner (the franchisor) providing franchisees with a tried-and-tested business model and the rights to use the franchisor’s branding. In exchange, franchisees pay an initial fee and ongoing royalties for the duration of the franchise agreement. This article will explain how hairdressing business owners can use franchising to grow their brands.
Hairdressing Franchises
The way you scale your business can determine its success. The hairdressing industry provides an excellent basis for developing a concept into a lucrative business. Franchising is one method of growing a salon-based business. Many popular hairdressing businesses in the UK operate as franchises, including Toni & Guy. Hairdressing franchise opportunities are attractive to budding entrepreneurs, especially due to the high competition within the beauty industry.
Franchisors provide a blueprint for a business that franchisees then replicate. This means they will not need to grow their hairdressing business from the ground up. Instead, you will give them solid building blocks to jumpstart their journey. For example, your franchisees will benefit from your previous experience and industry knowledge. They will use your proven business model to develop their own independent business, operating under your brand’s umbrella.
This handbook covers all the essential topics you need to know about franchising your business.
The Steps to Set Up a Hairdressing Franchise
1. Business Health Check
The first step in setting up a franchise is to conduct a health check on your business to assess whether it is fit for franchising. Franchising will only be suitable for some hairdressing businesses. For this reason, you should consider the following aspects:
- if there is market demand for your brand’s services in other locations;
- whether you have a proven and profitable business model; and
- whether others will be able to replicate your business model.
If you can answer yes to all three, your business might be in a good position to franchise.
2. The Franchise Agreement
A franchise agreement forms the basis of the franchisor’s relationship with each franchisee. It is a legally binding contract that allows the franchisee to operate a business using an established brand. The agreement outlines terms, obligations and expectations for both parties. You must have a drafted franchise agreement in place to franchise your business.
Another key document is the franchise operations manual. This is a comprehensive manual you will give to new franchisees. Within it, you will explain how they will run their business, detailing the systems and processes they will follow to deliver their services to clients. This document is not legally binding but acts as a guide to support franchisees.
At this stage, you should seek professional advice from a lawyer. They can help you navigate the franchising process and draft vital contracts. They can also help you protect your brand, for example, by registering your intellectual property.
3. The Training Package
The next step involves preparing a training package. This package is a vital part of the franchisee onboarding process. It will provide new franchisees with all the skills and knowledge they need to run a business unit.
To develop an effective training course, you must identify the essential skills and knowledge required to operate a franchise under your brand successfully. Perhaps you need to deliver specific training on the following:
- customer service;
- hairdressing skills; and
- delivering additional services.
You may also need to provide training on recruitment, leadership and employment procedures.
Then, you need to create the franchisee training modules and materials that integrate necessary learning opportunities. Beyond initial training, consider how you will provide ongoing training and support mechanisms throughout the franchise arrangement.
4. Find Franchisees by Advertising Franchise Opportunities
The final step to franchising a hairdressing business is to find and recruit franchisees. You must conduct due diligence, ensuring that each prospective franchisee is suitable for the role. Consider aspects such as:
- qualifications and experience;
- previous experience in the hair and beauty industry; and
- practical leadership skills.
Once you find a suitable candidate, give them time to read the franchise agreement and ask you questions before they sign. You will officially be a franchisor once they sign the agreement. You will be responsible for developing your brand and supporting your franchisees in running their businesses.
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Key Takeaways
Franchising your hairdressing business can be an excellent strategy to grow your business. If you have a successful business, many potential franchisees will likely be eager to replicate your model. However, prior to doing so, it is imperative that you:
- check that your hairdressing business is suitable for franchising;
- draft a franchise agreement (seek legal advice for help with preparing a robust agreement);
- write a franchise operations manual;
- develop a comprehensive training package and mechanisms for ongoing support; and
- find potential franchisees.
If you need legal assistance while franchising your hairdressing business, our experienced franchise lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
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