goGlow is disrupting the $1.8B spray-tan industry:
- Custom-built equipment
- Recurring revenue
- Incredible margins
Here we go!
Business Model
goGlow provides airbrush spray tans.
The founder, Melanie, has developed a line of natural skin care products and proprietary equipment to provide a consistent experience.
Many customers purchase a monthly subscription of $50 to $100.
Within 90 days of signing, you launch in a salon suite. This launch strategy allows you to:
- Hire your team
- Learn the business
- Build recurring revenue
At the same time, you start looking for a “flagship” retail location. This will be ~1,200 square feet in a nice strip center.
I love this strategy since it helps franchisees get the ball rolling while waiting 6 to 9 months for the retail build-out.
Earnings Potential
The 2024 FDD Item 19 provides 2023 financial statements for the three corporate locations.
The locations averaged $713k in sales with “revenue less disclosed operating expenses” of $239k (33%).
See the FDD for more information.
Payroll Model
The corporate location’s payroll is only 14% of sales, including management.
How do they keep payroll so low?
The FDD includes details on their corporate payroll model. The average hourly wage to the employer ranged from $14 to $19, but employees receive over $13 to $16 tips per hour, netting them $24 to $29 per hour in total comp.
They can teach anyone how to provide a goGlow, creating a huge labor pool without needing certifications.
Customers book a time & whoever is on schedule applies the spray tan. In other salon businesses, customers are loyal to the employees & will follow them to a competitor.
Employees also have flexible schedules & many work part-time.
To summarize: $24-29 per hour, flexible schedule, & anyone can learn it.
Start-Up Costs & Ideal Franchisees
$255k to $485k for a single location. This includes the franchise fee, flagship build-out, opening inventory, working capital & more. Item 7 of the FDD has the full breakdown.
They offer multi-unit development deals for qualified candidates.
My friend signed a 20-unit deal earlier this year to develop Philly & South Jersey.
goGlow requires female ownership. Their ideal franchisees are strong females leaving Corporate America or power couples passionate about health & beauty.
goGLOW was founded in 2011 by Melanie Richards. They started franchising in Q4 of 2023.
Check out my podcast with Melanie to hear the full story.
Next Steps
My team helps people buy their first franchise.
👉️ Complete this short form to learn more
We’ll confirm that your market is open and provide resources to help you with due diligence. You’ll also be invited to join the live group calls I host every week.
Costs you absolutely nothing.
Cheers!
Brian Beers
