The salon suite business is booming at $2 Billions and is projected to grow at an annual rate of 6.8% over the next five years. This growth offers franchise owners a unique opportunity to generate recurring income while empowering beauty and wellness professionals to work independently.
With more stylists, estheticians, and massage therapists, medspa, injector, skin, brow, lash and nail artists, seeking flexible workspaces, the salon suite model has proven to be both profitable and sustainable.
If you’re considering starting a salon suite franchise, this guide will walk you through the essential steps to turn your vision into reality.
Research the Salon Suite Franchise Model
Before you dive in, it’s important to understand how the salon suite model works. At its core, a salon suite franchise provides independent beauty and wellness professionals with private, customizable spaces to run their businesses.
Instead of renting a chair in a traditional salon, tenants lease individual suites where they can set their schedules, prices, and branding.
The demand for this model is rising. Service providers want more control over their businesses, and salon suites offer them the freedom and creativity they’re looking for.
As a salon suite owner, your role is to create a professional, attractive environment that meets their needs.
Start by researching market trends and existing competition in your area. Look at successful franchise brands, including boutique locations to understand what makes them thrive, including facility design and pricing strategies.
By thoroughly understanding various models, ideal locations and possible locations the brands have availability, you can determine the right franchise brand that offers the right place and position in order to stand out to attract quality tenants.
Develop a Comprehensive Business Plan
A solid business plan is your blueprint for success. It outlines your strategy, secures financing, and helps you stay on track as you grow your franchise. Here’s what your plan should include:
- Startup and ongoing costs: Factor in expenses such as leasing a property, buildout costs, furniture, utilities, and marketing.
- Revenue model: Decide how you’ll price your suites based on what the local market is offering. This is one of the biggest mistakes we’ve seen franchisees deal with. Without truly understanding what the market will pay for, it is extremely costly to come in with too high of buildout costs and not enough profit margins.
- Target market: Identify the types of professionals you want to attract—hairstylists, nail techs, massage therapists, and other wellness experts. Some salon suites even offer spaces for alternative professionals including chiropractors, holistic nutritionists, reiki, yoga, pilates instructors and even psychiatrists.
- Marketing strategy: Develop a plan to promote your suites, including online and offline campaigns to attract your ideal tenants and generate tours.
Setting clear financial goals and timelines will keep you focused. A well-structured plan also increases your chances of securing funding from banks or investors.
Secure Financing for Your Franchise
Financing is a critical step in starting a salon suite franchise. While startup costs may seem substantial, there are several options to make it manageable:
- Traditional business loans: Banks and credit unions often provide small business loans tailored to franchise owners.
- Franchise financing programs: Some franchise systems offer in-house financing or partnerships with lenders to help you get started.
- Private investors: If you have a strong business plan, you can attract investors who see the growth potential of your salon suite franchise.
Make sure you factor in the initial build-out costs and ongoing expenses like utilities, maintenance, and marketing. Seeking professional financial advice will help you choose the best funding option for your goals.
Find the Ideal Location
Location can make or break your salon suite franchise. A prime location ensures you attract the professionals who will lease your suites and, ultimately, bring in consistent revenue.
When searching for the perfect spot, consider these factors:
- High visibility: Look for areas with good foot traffic or easy accessibility, such as shopping centers or commercial hubs.
- Parking and accessibility: Ensure there’s ample parking and that the location is convenient for clients and tenants alike.
- Target demographics: Choose an area where beauty and wellness professionals are in demand, and there’s a strong market for independent service providers.
While finding the right location to close a deal with the landlord can be one of the most stressful steps in the process, it is important to do it right. The right location will set you up for success by helping you fill suites quickly and maintain long-term occupancy.
Design and Build Out Your Salon Suite Spaces
Creating well-designed, functional suites is key to attracting and retaining tenants. Beauty and wellness professionals want spaces that are practical and reflect their brands.
Focus on the following elements:
- Functional layouts: Maximize space efficiency without sacrificing comfort.
- Quality amenities: Provide essentials like salon chairs, sinks, lighting, and ventilation to meet industry standards.
- Customizable spaces: Allow tenants to personalize their suites to suit their services and branding.
A clean, modern, and professional design creates a welcoming atmosphere that tenants and their clients will appreciate, increasing your retention rate.
Build a Marketing Strategy to Attract Tenants
About three months prior to opening your salon suite location, you need to start a marketing program to build awareness and interest. Your ideal target market (beauty and wellness professionals) will need time to learn about your new franchise location coming soon, some of the benefits and differentiators from the local competition.
Here are some effective marketing strategies:
- Create a mobile friendly website: Ensure that you create a lead generating website which is optimized for local search queries to ensure professionals in your area can find you. Include high-quality images of the suites, tenant benefits, and a clear CTA like “Schedule a Salon Suite Tour Today.”
- Leverage social media: Platforms such as Instagram and Facebook are necessary to showcase your new location, including construction progress, available spaces, sharing tenant success stories, and engaging directly with potential renters.
- Partner with local beauty schools and suppliers: Partner with local beauty schools and suppliers: Build awareness through referrals and collaborations with training schools and established beauty suppliers. Host events at beauty schools to educate students, and organize community and education events at your salon suites. Partnering with suppliers to promote their products and offer giveaways creates excellent opportunities to connect with local beauty and wellness professionals.
- Offer incentives: Attract early tenants with incentives to lease early, including free rent, better prices on the best suites and referral bonuses for bringing in other professionals.
A strong marketing strategy will help you stand out, fill your suites quickly, and build a solid reputation in your area.
Ready to Launch: Setting Up for Long-Term Success
As you approach your launch, focus on finalizing the details that will ensure a smooth start and long-term success.
- Lease agreements: Make sure all legal and financial terms are clear for tenants.
- Launch event: Host an open house or ribbon-cutting event to showcase your suites and generate buzz. Invite local beauty professionals and influencers to spread the word.
- Ongoing support: Provide amenities, resources, and ongoing communication to support your tenants and keep them satisfied. A supportive environment leads to happy tenants and fewer vacancies.
Long-term success comes down to consistent improvements, listening to tenant feedback, and maintaining a professional, attractive space for independent providers.
Build Your Franchise Dream with Confidence
Starting a salon suite franchise is a rewarding opportunity to tap into a thriving and growing industry while supporting independent beauty and wellness professionals.
By following these steps—from building a business plan to designing the ideal space and marketing your suites—you can create a profitable and sustainable franchise.
At Slick Marketers, with nearly a decade of expertise, we specialize in helping salon suite franchise owners build their businesses through effective marketing strategies, professional website design, and tenant-focused campaigns.
With our expertise, you can attract the right tenants, boost occupancy rates, and grow your franchise with confidence.
Take the first step toward success today. Contact Slick Marketers to find out how we can help you turn your franchise vision into reality.