Industry Overview
Franchise North America offers Hair & Tanning Salon franchises in all regions of the United States. We only offer those franchises for sale that meet our high internal standards of excellence, integrity, and quality.
The hair care industry is highly fragmented, dominated by single unit, independent operators. Major products are hair cutting, hair coloring, nail care, skin care, and merchandise sales. A typical salon offers haircutting and styling, coloring, shampooing, and permanents. Some salons also offer nail care, facial treatments, makeup, bikini waxing, massage, tanning, and other types of spa treatments, but the lower volume of demand for such specialty services often makes them uneconomical.
Sales of hair care products are an important revenue source for many salons, providing from 5 to 40 percent of revenue. Gross margins are higher for hair care products than for services. The average salon occupies about 1,500 square feet and is located in a mall.
Demand is partly driven by demographics and partly by population growth. The profitability of individual companies depends on technical expertise and marketing skills. Big companies have few advantages over small ones, which is why the industry remains fragmented. Small companies can compete successfully through technical superiority or favorable location. The industry is highly labor-intensive; average annual revenue per employee is just $35,000.
Facts about Hair & Tanning Salon franchises
- In the US, about 80,000 hair care salons (75,000 beauty salons; 5,000 barber shops) generate combined annual sales of $16 billion
- The 50 largest hair salon companies hold just 15 percent of the market
- The large majority of salons are independently owned. A large salon has annual revenue of about $300,000 and ten employees
- Each year, only about 10 percent of the American public visits an indoor tanning facility
- There is a growing body of well-conducted, validated scientific research shows that moderate exposure to sunlight is the only way for the body to manufacture the vitamin D necessary for producing activated vitamin D
Lifestyle Considerations
- Most hair and tanning concepts do not require industry experience; most want business people who can drive and motivate managers and employees
- Many concepts want owners with outgoing, hospitality-focused personalities
- These concepts adopt very well to absentee owner models once a location has established itself
- Successful franchise owners typically own and operate multiple units of a particular concept