Thinking of buying a laser clinic franchise?
Many skin care and beauty clinics were hit hard by the COVID 19 lockdowns across the country. Now, as restrictions are relaxed and clientele is returning, we are seeing increased enquiry for franchises in the laser treatment and beauty sector.
Who doesn’t want to stay looking good? The ‘repeat sale’ aspect of the beauty and laser industry is one of its top features. Once a client has had a good experience they become quite ‘sticky’ and loyal to a particular clinic. This strengthens the top line and adds to the value of the business.
But there are a number of factors to consider before you sign up:
As the cost of equipment is quite high, we often see a joint venture model proposed. If this is the case, be clear on what proportions the JV will be.
Check if there are management fees charged? If so, how much and what is included?
What level are royalty fees and national marketing fund levies?
Check what if any medical registrations are required
What has the performance of other clinics been?
Check the split of income from various treatments, to check for dependency on any one service
What is the policy regarding ‘prepaid packs’ of services for client treatments
What will the rent be and understand any rent reviews
What marketing and promotional assistance is provided for the opening and launch?
What local area marketing plans are recommended, based on proven track record?
Is there a requirement to work in the business or does the model work for investors?
What is the typical payback on the original investment (ROI?)
Be sure you get a Pre purchase Review before you commit.
As you can see, there are quite a number of issues to deal with for a laser clinic. And the purchase price is usually quite significant, so consider this decision carefully.
Let me know if you need a hand
Peter