The Investment Potential of Franchising in the Spa Industry
Whether you’re a long-term employee looking for a change, a serial entrepreneur doing your research, or an investor group considering new business avenues, consider the spa industry: as a rapidly-growing sector of the U.S. economy creating jobs above the rate of current economic growth, it is a true engine of commerce.
Spa franchising is one entry point into the highly lucrative spa services sector, and as a spa franchisee, you’ll receive the support to help establish your business, even if you have no previous industry experience.
Marilyn Monroe™; Rights of Publicity and Persona Rights: The Estate of Marilyn Monroe LLC. Photo by Milton H. Greene © 2016 Joshua Greene marilynmonroe.com
Benefits to Investing In a Spa Franchise
Reap the Benefits of a Growing Sector of the U.S. Economy
According to the International SPA Association. the U.S. spa and salon services industry includes about 1.2 million facilities with combined annual revenue of about $48 billion. Perhaps more importantly, year-over-year growth between 2011 and 2014 increased at a rate of 6.3 percent—far outpacing overall economic growth of 4.7 percent.
For the savvy investor, this means that spa franchising (with its potential for continual revenue and location growth) can indeed be a lucrative pursuit. Benefits to investors aren’t just for the individual behind the franchise, though: spa franchising also benefits local communities through job growth.
Support U.S. Jobs Growth
During the Great Recession of 2000 (and the ten years that followed it), the Professional Beauty Association notes that “the nation’s private sector shed 3.2 million jobs–a decline of 3 percent. In contrast, employment-based salons and spas added 70,000 jobs during the same 10-year period…represent[ing] an increase of 17 percent.”
This history of job creation didn’t end in 2010, though; the industry continues to show that it is poised to grow well into the future.
In a 2015 industry study commissioned by the Professional Beauty Association (PBA), researchers note that “according to the Bureau of Labor Statistics, the number of personal appearance jobs is projected to increase 14 percent between 2012 and 2022, slightly above the rate of growth of total U.S. employment (11 percent) during the same period.”
Spa franchises rely on spa managers, estheticians, nail technicians, nail artists, masseuses, and guest service coordinators alike as their primary customer service providers, generating repeat customers (and higher profits) with the customer experiences they create.
In essence, creating these jobs through a spa investment means you’re not only helping to drive job growth—you’re also investing in your own business success by investing in your people.
The Return on Your Investment
Spa franchising is a mutually beneficial investment: in exchange for the capital you deploy in a Marilyn Monroe Spas franchise, you receive the resources and guidance of a management team with over thirty years of industry experience, sales, marketing and operations leadership groomed by Fortune 500 tenure, and the security of a stable business model.
- Real Estate: Marilyn Monroe Spa franchisees have access to one of the world’s top real estate firms, Newmark Grubb Knight Frank (NGKF), whose National Franchise Practice assists our franchisees in selecting premium real estate opportunities.
With a presence in every major market across the United States, NGKF conducts site selection and lease negotiation services with the confidence of years of industry experience.
- Sales and Marketing: With the established and iconic Marilyn Monroe Spas brand behind you, marketing efforts become much easier from the get-go. From the availability of pre-established product lines and spa packages to the visual design of the Marilyn Monroe Spas Large Format and Small Format spaces, our marketing and sales infrastructure helps both new and experienced franchisees launch their locations with a running start.
- Training: Marilyn Monroe Spas training programs comprise three key areas: startup, train-the-trainer, and ongoing support.
Geared towards franchisees new to Marilyn Monroe Spas, startup training includes basics like site selection, lease negotiation, layout and design assistance, equipment acquisition, and more—plus the operational and hands-on basics of running a Marilyn Monroe Spas location.
Our Train-the-Trainer programs involve seasoned Marilyn Monroe Spas franchisees and corporate trainers alike to instruct franchisees in key operational, financial, sales, and marketing skill areas unique to the beauty industry.
Of course, ongoing support is available through the lifetime of your franchise ownership, and includes sales, financial, marketing, real estate and development areas—plus education on new product lines, service packages, and customer service techniques our corporate team pioneers.
Whether you’re a business investor or a first-time franchisee, one thing is clear: spa franchising is worth a closer look. If you’d like to learn more about what investing in the spa industry can do for you, contact us today for an appointment.