There are so many reasons why opening your own hair salon is a smart move. Not only do salons tend to do well through economic downturns, wanting to look good never goes out of style, so the consumer demand for hair care is constant and ongoing. Plus, in an ever-changing world where technological advancements are threatening many service industries, hair care is the one industry that won’t ever be outdone or replaced by a digital alternative.
For entrepreneurs who care deeply about their business and are committed to providing communities with excellent value and quality customer service, Lemon Tree is an
worth looking into.
Self Start-Up Vs.
Local business owners and entrepreneurs are often tempted to start from scratch. When you’re starting a business on your own, though, costs add up quickly. From the get-go, you’ve got business licenses and sales permits to line up, the location to arrange, and the salon equipment, including initial inventory, to acquire. Don’t forget the consulting fees and insurance costs, as well as the sales and marketing software packages to help drive traffic through your doors.
Ongoing costs must be calculated as well, which would include employee wages, taxes, utilities, processing fees, and repairs and maintenance expenses. By the time it’s all said and done, you might have easily sunk $250,000 into this venture. Still, the work has only just begun, and there’s a long, turbulent road ahead.
Such is the nature of business though, right? Sure, but there may be a simpler way.
Are Hair Salon Franchises Profitable?
Owning a hair salon franchise may sound fun and enticing, but what do the industry numbers look like? Before diving in, you probably want to make sure it's a reasonable financial decision. Well, lucky for you, the numbers are favorable! For an average US salon, annual revenue is around $245,000. With a Lemon Tree salon, 50% of Franchise Owners made over $378,000, while the top 10% of Franchise Owners made over $496,000 in 2022.
One of the benefits of owning your own franchise or business is having control over the amount of work and effort you put into the job. The more hustling and grinding you do, the more growth and profit you can see! We would certainly say that hair salon franchises are profitable based on the numbers above. And because Lemon Tree is an affordable franchise with our low investment price and flexible scalability options, you can work towards success and see a profit even faster.
Partnering with an already thriving franchise opens up so many possibilities for you. As an entrepreneur, it allows you to reap multiple built-in benefits and increase your chances of success.
Expedited process leading up to your grand opening
Receive excellent training from seasoned industry experts
Launch with the selling power of a known brand
Receive ongoing assistance from a team of people who genuinely care about your journey
Why Lemon Tree?
Some beauty franchises require up to $320,000 to get up and running. [ref] The max cost to start a Lemon Tree salon is $100,000 less than that and can be launched with as little as $164,694*. Being able to start a profitable, cost-effective business does so much to help the Franchise Owner make a strong start. It means you’re that much closer to recovering the investment and can finance the start-up costs more readily.
Here at Lemon Tree, we want to help you. Whether it’s your first time owning a business or your tenth time, you don’t have to go it alone. Lemon Tree is an affordable franchise that has already crunched the numbers and put the pillars of success in place for you.
Here are the benefits we can offer you:
A semi-absentee option that allows you to manage stores partially from behind the scenes, so you don’t have to miss out on the moments that matter most.
An incredibly low investment cost ranging between $164,694- $234,939* that covers initial start-up expenses like leasehold improvements, initial supplies and inventory, marketing assistance, training needs and more.
Peace of mind knowing you’re in an industry with steady and reliable demand, making it resilient to economic fluctuations.
Support and training from our team to ensure your salon is recognized and well-received within your community.
Help in finding the best location for your salon with local brokers from your area.
Connections with general contractors to help you open quickly and affordably.
National partnerships to ensure you have an effective launch and achieve economies of sale.
A business model that has proven to be successful for over four decades.
Once you’ve decided to jump on board, we’ll invite you out to corporate headquarters in New Jersey where you’ll interact with the president and other team members. You’ll be able to visit a salon and see it in action and, once you’re ready, we’ll come out to check in on your progress at your location before opening day.
Our affordable Franchise Owners aren’t required to have any kind of hair salon experience. We’re really hoping to find business-minded investors who can commit to offering their community exceptional service while upholding our high standards.
*Numbers obtained from our 2023 FDD
We want to be completely transparent about what your money is being used for, so let’s take a look at each of the individual costs that make up your investment. The initial investment for a Lemon Tree salon ranges between $164,694- $234,939*. Actual costs will be determined largely by the particular market you’re in.
Initial Franchise Fee
This is like an entry fee. It’s the price you pay to unlock the affordable franchise opportunity, giving you access to the franchisor’s proprietary business systems and intellectual property. No matter what market you’re in, the initial franchise fee is the same for everyone.
Your Training Expenses
We train all our Franchise Owners individually, making sure they have all the tools they need to run a successful business.
$1,000 - $2,000
You’ll need to lease a space for your new Lemon Tree salon, which means you’ll need to place down some deposits. No worries--we’ve already budgeted these costs into your investment.
$4,500 - $9,500
Leasehold Improvements, Construction and/or Remodeling
After you have chosen a spot, these costs will cover any renovations needed (or simply desired) for your new salon space.
$49,000 - $84,000
Furniture, Fixtures and Equipment
This amount will cover all furniture, equipment and fixtures to get your Lemon Tree salon up and running.
$21,000 - $25,000
Exterior & Interior Signage
Your salon needs beautiful and enticing signage to draw customers to your business and provide them with a pleasing environment once they’re inside. This cost will take care of those expenses.
$7,000 - $10,000
Business Licenses and Permits
We’ll make sure you’re ready to officially and legally operate your salon.
$800 - $2,295
We’ll provide a fully functional operating system so you can schedule customer appointments, keep track of regular clients, manage stylists and employees, and handle any other administrative operations you may need.
$1,000 - $2,000
Once you receive your official Lemon Tree e-mail address, you’ll know you’re in business.
$12 - $144
Initial Inventory to Begin Operating
This expense will cover all supplies needed to make your salon functional. Materials like styling tools, shampoos and conditioners, and dyes all fall under this umbrella.
$4,000 - $5,000
Security and Surveillance System
It’s incredibly important to us that you and your new business stay safe, so we’ve factored the cost of a security system into your investment.
$750 - $1,000
This fee helps pay for those who work hard to help you get your business up and running.
$3,500 - $5,000
Operating Expenses / Additional Funds (4 months)
This fund will help carry you through the crucial months when your salon gains traction in your community. As your salon earns a client rapport, these funds will become less and less necessary to lean on.
$30,000 - $40,000
*Numbers obtained from our 2023 FDD
What Are The Financial Requirements?
To qualify as an applicant for our affordable franchise, you must have $100,000* in liquid capital and a total net worth of at least $240,000*. As mentioned previously, we don’t require franchise applicants to have any sort of hair salon experience, but we are looking for business-minded investors who are passionate about contributing to their communities.
Is Buying a Hair Salon a Good Investment?
To give a quick answer, yes! We think buying a hair salon is absolutely a good investment! Hair and skin grooming services are necessary for many people, making the hair salon industry stable and valuable for all communities. People will always require hair and skin services, so hair salons aren't going out of fashion any time soon. Additionally, getting services and treatments for hair and skin provides significant stress relief for many people. So even if the times get tough, people will always need hair salon services to help them feel relaxed and comforted.
Because the Lemon Tree franchise has a tried-and-true business model, there is much less risk in opening an affordable franchise with us than doing it all by yourself. You will never feel alone in starting your salon franchise with Lemon Tree because we provide support every step of the way! Our salons are also full-service and for the whole family, meaning you can offer a wide range of services for a wide range of individuals. Overall, hair salons are an excellent investment and can provide significant value to you and your community.
So Much Potential
When you own an
like Lemon Tree, you have the potential to see some impressive returns. The hair care industry has seen significant and steady growth over the past decade, so introducing our beauty franchise into your market also means tapping into a growing industry.
Based on the total gross sales for all our Lemon Tree salons, the top 10% of revenues were somewhere around $599,235*. The top 50% of revenues were around $417,162*. With this information, there’s proven potential to earn back your investment and then some!
Our Development Manager will be happy to look through our Franchise Disclosure Document (FDD) as you go through our education process. Once you understand the economics, you’ll be able to build a business plan that fits your longstanding goals.
*Numbers obtained from our 2023 FDD
Other Affordable Franchise Benefits
doesn’t just mean reaping financial benefits. In tapping into such an in-demand, client-driven industry, you have the potential to strengthen the local economy and contribute valuable services to those within your community. The sense of fulfillment that comes with enriching the lives of others, especially the lives of those in your community, is priceless!
As a family-friendly business, we’d love to welcome you to our hair salon franchise family. Contact us today!
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