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The Top Reasons to Avoid Buying a Salon Suite Franchise

People go to the salon not because of its name, but to a particular high-skilled specialist

Franchise fees range from $45,000 to $70,000

The franchise fee only provides right to use franchise name in advertising and outside building

The Initial Inventory Fee competes with your tenants who are also selling products

Franchisors collect 5% to 7% of your gross collected revenues, every year, regardless of your profits

Franchisors provide absolutely nothing for the fees which they are collecting from clients

Franchises charge a host of additional fees including:

$2000 per location site evaluation for each site evaluated; this can run up to $10,000.

Location Compliance Fee-A whopping $6,000 location compliance fee is charged for the franchisor to look/evaluate your space.

Initial Inventory Fee-Some franchises require you to purchase a set inventory of products with fees running between $5,000 to $20,000.

Architectural Fee-This fee can run between $15,000 to $30,000.

Salon suite franchises can take $60,000 in fees and revenue per year without providing any substantial support or benefits. Over just a ten-year period, the lost revenue resulting from selecting the franchise option could result in a $600,000 loss or more.

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