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Beauty Salon Franchise & Business Opportunities

Beauty Salon Industry

General Beauty Salon Industry

The beauty salon industry encompasses businesses and franchises that offer a wide range of cosmetic services, the most popular services including hair, nail, and makeup. More often than not, salons will primarily advertise one type of service, such as manicures and pedicures, but also offer other additional services such as hair removal. This variety of services that individual salons offer can help broaden their clientele and increase revenue. Generally, beauty salons are geared towards women and therefore exclude other appearance oriented service businesses like barbershops. Furthermore, while some salons do offer additional massage services, they are separate from spas or massage centers that only offer these types of services. This industry is highly dependent on special occasions, such as weddings and prom, and garners significant revenue from these types of events.

Beauty Industry Trends

As the COVID-19 pandemic shut down all nonessential businesses, businesses in the beauty and health industry were not left unscathed. As these nonessential businesses were allowed to resume business with reopening of the economy, stringent health guidelines regarding masks and social distancing limited the amount of customers that these businesses could serve, a blow to already razor thin margins. But before the pandemic, a growing economy and rise in discretionary spending allowed for this industry to expand magnificently, with more consumers opting to choose high-end, quality services for more money than try to save money on these types of luxury services. Furthermore, trends in “self-care” and the rising prominence of the health and wellness industry generated renewed interest in these types of services. As the pandemic subsides, the economy begins to recover, and household income levels continue to rise, the industry is expected to rebound.

Key Beauty Industry Numbers

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Paid-in-Full Rate

The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.

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Charged Off Rate

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.

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SBA Loan Success Ratio

For every 9 SBA loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.

*SBA Loan Data from 2010-2019

*Non-Franchise Businesses taken into account: 11,687

Beauty Salon Industry Trends

Before the pandemic, the rising self-care movement and advent of new beauty technologies such as keratin treatments and acrylic nails strongly bolstered the beauty salon industry. This was only furthered with the capitalization of social media avenues and “influencers”, which some beauty salons used to promote their business. However, the pandemic hit this industry hard, especially when nonessential businesses were forced to close. As a result, many operators in this industry were forced to leave. On top of this, the economic hardship brought on by the pandemic led to reductions in discretionary and luxury spending, something that the beauty salon industry was highly dependent on. Until the economy makes a full recovery, this trend will likely continue but nonetheless signs of a strengthening economy promise recovery for beauty salons.

Average Health & Beauty Franchise Industry Percentage Fees

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Royalty Fee
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Marketing Fee

Standard Health & Beauty Franchise Industry Investment

$ 0 K

This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 98 franchise concept investment breakdowns in order to calculate this figure.

0 %
Paid-in-Full Rate

The Paid-in-Full Rate is when the SBA loan is fully paid off by the franchisee including interest, indicating financial strength.

0 %
Charged Off Rate

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the franchisee.

0 :1
SBA Loan Success Ratio

For every 16 SBA franchise loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted. 

*SBA Loan Data from 2010-2019

*Franchise Businesses taken into account: 3,275

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