6 Essential Steps for Opening a Sun-Kissed Tanning Salon Franchise

More than 1 million UK adults visit a tanning salon every day. While small, independent salons service most of these customers, there's a gaping hole in the market for a well-branded business that customers trust and can find anywhere in the country. Today, we suggest 6 top tips to consider when launching your own tanning salon franchise. Then we take a more in depth look at how taking the franchise route compares to starting an independent start up business.

Whilst starting from scratch is the better option for individuals who want complete control over their business, franchising offers some significant advantages. If you start a tanning salon franchise, it’s less risky and more likely to succeed than an independent startup.

In fact, only 7 percent of new franchise owners fail within the first three years in comparison to 90 percent of new startups. Also, what with UK franchisees reporting 93 percent profitability and six in 10 of franchised units turning over more than £250,000(The British Franchise Association/ Natwest Franchise Survey 2018), starting a tanning salon franchise could be an exciting and lucrative new business venture.

>> Read more:

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Our essential steps

1. Do your research Before you do anything else, it's necessary to research the options available to you thoroughly. This means looking at every tanning salon franchise on the market and finding out as much as possible about each opportunity. To do so, you can search online, in trade publications, or attend franchise exhibitions. Talk to those in the industry and find out what they've got to say about each option, too.

   2. Contact those franchises you’re interested in Once you’ve performed a considerable amount of research, it’s time to narrow your prospects down to a shortlist. In some ways, this will occur naturally. Some franchises will be too expensive or won’t have territories available in your region. These can be immediately discounted. Others you may have to think long and hard about. Ask yourself: What do you want from your franchisor? Do you need comprehensive training? Do you need to be supplied with equipment? How established do you want the brand to be? Having answered these questions and narrowed down your options, you can begin contacting those franchisors who seem right for you.

   3. Perform due diligence Once you’ve declared your interest in a franchise, the franchisor should send you more detailed information about the business. This will help you perform your due diligence – the process by which you establish whether a company makes for a financially viable investment. This requires you to consider the business' profit-making potential, examine the financial projections for the first few years of business, and look at existing competition in the industry.

   4. Discuss your future with the franchisor If your due diligence checks out and it seems that your chosen franchise is a financially viable business, you're going to need to arrange to meet the franchisor in person. This is a crucial moment, as you'll have to develop a close working relationship with them as you grow your business. In smaller, younger franchises, the franchise management team may consist of just a couple of individuals, in larger, more established franchises it’s likely to be a big team. Whatever the size of the management team, it's vital that you're made to feel welcome and that you think they'll provide a high standard of support.

   5. Talk with existing franchisees At this stage, before you go any further, it’s a good idea to speak with existing franchisees about their experience of working with the franchisor. As a potential new franchisee, you will have been on the receiving end of the franchisor’s sales pitch. This doesn’t mean that what they’ve told you isn’t true, but it’s important to remember that it’s their job to attract new franchisees to the organisation and to win you over. Consequently, it's always sensible to corroborate the information the franchisor has provided you with existing franchisees. Any franchisor worth their salt will give you a list of franchisees and their contact information, so this process should be relatively easy.

   6. Draft your business plan The final stage of preparation before signing the franchise agreement is to draft your business plan. The business plan is used to apply for finance and guide you through the early stages of your business’ development. It should give you something to work towards and help you understand where you can expect your business to be in 6 months, a year, and then two years’ time. The franchisor should have a great deal of experience drafting such a document and will be able to assist you in doing so.

   Starting a tanning salon- is the franchise route better?

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In the introduction we touched on the differences between buying into a tanning salon franchise or starting your own tanning salon business from scratch. We’re now going to explore the topic even further so you can decide if the franchise route is definitely for you. Then we’ll provide examples of tanning salon franchises you can consider investing in.

Starting an independent tanning salon business

If you’re considering starting your own tanning salon, there are two main ways to go about doing so. The first is to follow the independent route. • This involves either looking for an existing tanning business that's willing to sell up or finding suitable business premises and building your business from scratch. • While both of these options are entirely achievable, they require a great deal of hard work and good fortune. There’s no one to help and support you through this challenging process, so it’s necessary to go it alone and hope you have the expertise and experience required to make your business a success.

Using franchising to start your own tanning salon

• The second possible route for would-be tanning shop owners is to set up a business in partnership with a franchise. Opening a franchised business ensures you receive the support you need to thrive. • One of the main advantages of franchising is the high-quality support systems most experienced franchisors can put in place to ensure their franchisees have the best possible chance of success. • As a prospective business owner, you may not feel completely confident in your ability to run a company, or you may think that your expertise is strong in some areas but not in others. By providing you with the guidance and assistance you need, franchises give you the chance to run your own business and fulfil your ambitions. • However, running a franchise requires a great deal of commitment and hard work. Before you open your business, there's a lengthy preparation process to go through.

The Tanning Shop

It’s all well and good knowing the information you need to start a tanning franchise in practice, but information is more useful when it’s put into the context of a real franchise.

The Tanning Shop is one of the UK's most successful tanning franchises and has a growing presence on high streets around the country. To get a better understanding of the costs involved in staring a tanning salon franchise, let’s consider a break down of those associated with the Tanning Shop.

To open a franchise unit, a total investment of approximately £80,000 is required. This is broken down into £7500 in initial franchise fee, £30,000 in store fit out, £100,000 in equipment purchase, £3,000 in external signage, £3,000 in legal and £6,500 in working capital. 70 percent of the equipment purchase is funded by the franchisor.

In return, franchisees are enrolled in an extensive training programme and receive help selecting and launching their new business. The dedicated franchise management team also provides ongoing support and training. You can express your interest by heading to The Tanning Shop website.

Guinot

Although not strictly a tanning salon franchise, Guinot is one of the leading beauty products suppliers across the globe. And the good news is that it’s looking for UK franchisees via Point Franchise.

What can you expect when you visit a Guinot store?

Guinot offers more than just a basic makeup range. As well as facial beauty products, the brand’s product range includes body beauty accessories, sun care, hair removal, and men’s care. On top of this, its stores have skin-care accredited specialists who offer personalised beauty consultations, training and prescriptions to clients.

What training can franchisees expect when they join the brand?

The brand is dedicated to its franchisees feeling completely confident running their own franchise location. Therefore, it has developed an extensive training programme which covers things like brand knowledge, day-to-day processes and salon software. Even when the business is up and running, franchisees can receive ongoing support from the head office, as well as attend refresher seminars.

How much does it cost to invest in a Guinot franchise?

Interested applicants will need to make a minimum investment between £87,000 and £125,000.

Starting a tanning salon franchise- is it for me?

If you are eager to enter the tanning industry and aren’t sure which route to take, this article should have made the decision slightly easier. There are clear benefits of taking the franchise route, but this isn’t to say that franchising is right for everyone. Make sure to research the opportunity in depth and check that it suits your requirements and budget. If you follow our six essential steps you should be on the right track. While we don’t offer any tanning salon franchise opportunities, you might like to read more about mobile beautician business ideas(/article-mobile-beautician-business-ideas), the best salon franchise opportunities(/article-the-best-salon-franchise-opportunities) or the best hair and beauty franchises in the UK.