Opening any type of franchise is going to take a phenomenal amount of work, and a considerable amount of money, either in cash or by taking out loans. You will naturally want to be sure that the franchisor is one that provides its franchisees with a successful franchise experience, one that can substantiate its claims of franchisee success, while ensuring that opening your franchise goes as smoothly as possible.
Before you sign on the dotted line, make sure to vet the franchisor thoroughly. You also may want to check out the following four elements we feel will lead to a successful franchise experience for you.
Consider These 4 Things Before Purchasing a Franchise:
1. A good or reasonable track record of success.
You should look for a franchisor that has been operating as such for at least five years - and has helped several entrepreneurs start their franchise. The franchise also should be able to prove that most of its franchisees have achieved some success with their business.
For reference, Spavia Day Spa was founded in 2005 in Park Meadows, Colorado. From 2005 to 2015, various entrepreneurs from around the state approached the Langenderfers about opening their own location. Marty and Allison filed the paperwork necessary to begin franchising, believing that offering entrepreneurs a premium day spa would provide a great living for their franchisees and a real alternative to overpriced spas for communities everywhere.
Spavia now boasts 20 locations that are open and serving guests, 14 locations currently under development, and 6 more franchises that are now under contract. That’s a total of 40 Spavia Day Spa locations across the country. What’s more, the Financial Disclosure Document shows that average gross revenue for mature Spavia Day Spa locations was $1,146,544 in 2015.
2. A turn-key operating system.
You buy a franchise because you want someone else to take care of the small details and iron out the kinks in the system so that you don’t have to! If the franchise doesn’t have a solid and proven business model, what’s the point of buying that particular franchise?
As mentioned above, Spavia Day Spa has roughly forty locations open nationwide. That is only true because Spavia has a turn-key opportunity to offer - and incredibly strong operational systems in place.
3. Innovative revenue streams.
It’s rarely wise to put all of your eggs in one basket. If you open a franchise – or any business – it’s smart to make sure you can offer your customers more than one service or product so that you have different revenue streams;
- A gym may try offering personal training, healthy food, equipment, and so on.
- A yogurt shop may want to offer snacks and lunch items.
- A cleaning service could offer house-sitting, yard clean-up, or window washing.
Make sure you check to see if the day spa franchise provides you with more than one revenue stream. Spavia owners, for example, offer customers, massage and skin care services, as well as the chance to purchase retail skin care and wellness products.
4. Flexibility in ownership models.
Not every entrepreneur can dedicate all of his or her time to opening a franchise; some people simply must continue to work at their “day job” or have other time constraints. That’s why Spavia has two ownership models for our franchisees: owner-operator and semi-absentee, allowing our entrepreneurs to create a business that serves their families’ needs more easily. Don’t get us wrong: you still will need to devote considerable time to your spa. But our two ownership models offer some much-needed flexibility.
For more information on how Spavia can – and does – help our franchisees become successful, download our Insights on Success and Profitability whitepaper for more important metrics, such as potential revenue and profitability figures.