Health and beauty franchises have soared in popularity in recent years. From hair and nail salons to spas and tanning studios, it seems that every shopping center has at least one outlet in the beauty sector.

For individuals seeking to cash in on America’s multi-billion-dollar beauty industry, buying a franchise may seem like the logical choice. A franchise offers instant brand recognition, proven operating systems and procedures, and the support of a franchisor that (generally speaking) has already found success in the industry. However, buying a franchise also comes with certain pitfalls, and entrepreneurs considering beauty franchises must carefully consider the risks before signing a long-term franchise agreement.

Risks Involved with Beauty Franchises

All franchise opportunities carry financial risks, and beauty franchises are no exception. Since most beauty franchises involve hands-on interactions with customers, they present certain additional legal risks as well. Some of the top risks for individuals contemplating beauty franchises are:

  • The Initial Investment – A typical storefront beauty franchise will require payment of an “initial franchise fee” to the franchisor as well as an upfront investment in real estate, equipment and products, and all of the other necessities for operating a brick-and-mortar business. Beauty franchise owners may also need surplus capital to cover employee compensation and operating costs as the business gets up and running.
  • Ongoing Payment Obligations – In most beauty franchises (and most franchises in general), franchisees’ obligations to pay royalties and marketing fund contributions begin on day one. These obligations continue throughout the term of the franchise agreement, and in some cases even apply after termination.
  • Limited Termination Rights – Speaking of termination, most beauty franchisees have only limited rights to terminate if their business turns out to be unsuccessful, if they have any termination rights at all.
  • Competitive Restrictions – Upon termination, beauty franchise owners will commonly be subject to “non-competition covenants” that prohibit them from operating competing businesses in their former franchised territories. This could mean being forced to meet the franchisor’s requirements for renewal, or else pursuing a completely different business opportunity when your franchise expires.
  • Civil Liability – Finally, what happens if a customer gets injured on your premises? You might get sued, and you will need to make sure that you have taken appropriate measures to limit your liability as much as possible.

Beauty Franchise Opportunities

A random search of leading beauty franchises identified online brings up the following:

  • My Salon Suite – A beauty franchise that follows the FLAIR principles of Fun, Love, Creativity, Inspiration, and Entrepreneurship.
  • Seva Beauty – A top-ranking beauty franchise offering a wide range of spa services and products.
  • Spavia Day Spa – A growing luxury day spa franchise opportunity.
  • Sport Clips – A top-ranked hair cutting and barber shop franchise that is among the fastest-growing brands in the industry.
  • Waxing the City – A beauty franchise offering “head-to-toe” waxing services for women and men.

Mitigating Risk for Your Beauty Franchise

While it is not possible for franchisees to avoid these risks altogether, there are steps franchisees can take – before and after opening for business – to mitigate the risks of a business failure or lawsuit leading to bankruptcy. These steps include:

Contact National Franchise Lawyer Jeffrey M. Goldstein

If you are considering a beauty franchise, contact the Goldstein Law Firm. With more than 30 years of franchise law experience, franchise lawyer Jeffrey M. Goldstein represents new and existing franchisees nationwide. To learn more information about our flat-fee franchise reviews or to get started with a free consultation, call (202) 293-3947 or inquire online today.

Disclaimer: The identification of any franchise or company on this website is not an endorsement of any aspect of that entity in any regard, nor should it be taken as one.

Lawyer USA

Super Lawyers

Lawyer USA

Complex Commercial Litigation Law Firm of the Year – USA

Lawyer USA

Complex Commercial Distribution Litigation Representative

Lawyer USA

Antitrust & Franchise Law Firm of the Year – Washington DC

Lawyer USA

Best Franchise Lawyer of the Year – New York

Lawyer USA

Best for Franchise Disputes – USA

Lawyer USA

Complex Commercial Litigation Law (Franchisees and Dealers) 2021 – USA

Lawyer USA

Antitrust and Franchise Law Firm of the Year in DC

Lawyer USA

Leading Professionals in Law

Lawyer USA

Franchise Law
in the District of Columbia

Lawyer USA

Franchise Law Firm
of the Year – USA

Lawyer International

Lawyer International
Legal 100
2018

Lawyer International

Lawyer International
Legal 100
2019

ACQ5 LAW AWARDS 2019

US (New York)
Franchise Lawyer
of the Year
ACQ5 GLOBAL AWARDS 2019, JEFF GOLDSTEIN, GOLDSTEIN LAW FIRM, PLLC

ACQ5 LAW AWARDS 2019

US (New York)
Franchise Law Firm
of the Year
ACQ5 GLOBAL AWARDS 2019, GOLDSTEIN LAW FIRM, PLLC

Lawyers of Distinction logo

2020 Power Lawyers

Esteemed Lawyers of America Logo

Esteemed Law Firm Complex Litigation

Global Law Experts Logo

Recommended Firm in Franchise Litigation

Who's Who Attorney Logo

Top Attorney USA – Litigation

Avvo Franchise Lawyer Symbol

Superior Attorney in Franchising

Avvo Franchise Lawyer Symbol

Superior Attorney in Antitrust

Finance Monthly Global Award Winner Logo

Franchise Law Firm of the Year

Lead Counsel logo

Chosen Law Firm for Commercial Litigation

BBB of Washington DC

A+ Rated

Washington DC Chamber of Commerce

Verified Member

Lawyers of Distinction logo

Franchise Law Firm of the Year

ISSUU

Best Law Firm for Franchise Disputes in 2017

Law Awards Finanace Monthly

Franchise Law Firm of the Year - 2017

Top Franchise Litigator for Franchisees and Dealers

Top Franchise Litigator for Franchisees and Dealers

2017 Finance Monthly Award

2017 Finance Monthly Award

ACQ5 LAW AWARDS 2018

Franchise Law Firm
of the Year
ACQ5 LAW AWARDS 2018

ACQ5 LAW AWARDS 2019

Franchise Law Firm
of the Year
ACQ5 LAW AWARDS 2019

Franchise Law Firm of the Year

Franchise Law Firm of the Year

Franchise Law Firm of the Year

Franchise Law Firm of the Year
Global Awards 2017

Global Law Experts

Franchise Law Firm
of the Year
in New York – 2019

Finance Monthly Law Awards - 2018

Finance Monthly Law Awards - 2018

Franchise Law Firm of the Year

Franchise Law Firm
of the Year
Global Awards 2018

Contact Us

Goldstein Law Firm, PLLC

1629 K St. NW, Suite 300,
Washington, DC 20006

Phone: 202-293-3947
Fax: 202-315-2514

Free Consultation

Downtown Chicago Office

30 South Wacker Drive 22nd Floor #3341,
Chicago, IL 60606

Phone: 312-382-8327

Free Consultation

Free Consultation