What an awesome franchise business model:
- Scalable
- Innovative
- Recurring revenue
- Low start-up costs
Say hello to HelloSugar
(For non-waxers like me: “sugaring” is less painful than traditional waxing)
Their motto is: “It hurts less here”
Less pain = more recurring customers = 💰
Business Model
A traditional salon takes 9 to 12 months to find, construct & open. You’re betting ~$400k, signing a big lease, and investing a year of your life. All while praying it’ll be a successful location
It’s a huge risk
Brigham Dallas, the founder, came up with a better plan to flip the model upside:
- Start-up for ~$100k
- Train your team
- Build your customer base
You start by renting a single room in a salon suite. A salon suite rents rooms to beauty professionals
Transition into a flagship location within 2 years. This approach dramatically lowers the risk.
If the location rocks, you start looking for a permanent flagship location. If not, you relocate to another neighborhood.
Scalable
Brigham operates 15 locations in Phoenix.
He has multiple District Managers & a CEO who runs the day-to-day. As a franchisee, you could build the same type of business.
There are no receptionists. Customers check in on iPad. Estheticians are paid on commission. This structure lowers your guaranteed payroll & increases margins.
Brigham shares more details about his corporate operation on my podcast from last year.
How much money can you make?
The Item 19 of their 2024 FDD is one of the BEST I’ve ever seen
Providing a table breaking down major expenses for every corporate (affiliate) and franchise location open in 2023.
Flagships:
Corporate & Franchisee Suites
Sales are lower (remember these operated out of a salon suite)
They are showing everything, including some locations that lost money.
Many brands would be afraid to show this — but it’s a reality. Unfortunately, I have multiple stores that lose money.
It’s rare to see this level of transparency in FDDs
Start-Up Costs & Ideal Franchisee
They have multiple options based on your budget & goals
- Flagship $269k to $615k
- Just suites (flagship later): $96k to $120k
- Suite while flagship developed: $304k to $673k
Many franchisees are 25-40 years old, husband & wife teams who love customer service.
They have 100+ units open
Next Steps
I help people buy their first franchise. We arm you with due diligence tools & checklists.
Interested to learn more?
1) We’ll check if your market is open
2) Introduce you to the Hello Sugar team
3) Join my free franchise-buying community
4) Hop on group coaching calls every week with me
100% free to you
Cheers!
Brian
