Franchise vs. Independent: Why Franchise Salons Lead the Way

Date: August 28, 2023

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The Indian salon industry is huge and full of opportunities. It is so huge that its value was $3.5 billion in 2015, growing by 20% annually. It is currently estimated to be more than $100 billion. If you want to make money in this huge entrepreneurial industry, one question is likely to cross your mind: Should you choose a franchise salon or an independent salon option?

It is a critical decision that can make or break your success. The “Franchise” business model is the better option when choosing between two business models. Let us talk about it in this blog, but some of you may be unfamiliar with franchise business terminology. No worries! 

If you are not aware, you should know that a franchise is a business arrangement in which a company (the franchisor) grants permission to another business (the franchisee) to use its brand name, business model, and other intellectual property in exchange for a fee. However, under ownership, you need to build from scratch. And there are many other pros and cons, so it is natural to have confusion about them.

Now let’s move on to the core topic of this blog post, where we will navigate through the intricacies of the salon industry. Furthermore, you will get to know why franchise salons often emerge as the frontrunners. Let’s embark on this insightful journey.

The Factor of Competitiveness in the Salon Industry

The salon industry is a dynamic and ever-evolving space where trends change as quickly as the seasons. Understanding the industry’s landscape and its rapid growth is essential. In a nutshell, You must know that the salon industry is a rewarding but highly competitive one in India. With so many salons to choose from, it can be difficult for independent salons to stand out and attract customers. So, you will feel the heat right from the beginning. In such a crowded field, most people looking to make a name for themselves would welcome any help they could get. Now, let us look at the potential obstacles to your success in the salon industry.  

 Challenges of Independent Salons

Running an independent salon can be a rewarding but challenging endeavor. We dissect the hurdles independent salon owners frequently encounter, including:

  • Building a Brand from Scratch: Building a brand from scratch is no easy feat. It takes time, effort, and dedication to create a brand that is both memorable and meaningful. Independent salon owners must carefully consider their target market, unique selling proposition, and overall brand message. They must also create a strong visual identity that reflects their brand values.
  • Limited Resources and Support: Independent salon owners often have to wear many hats. They are responsible for everything from marketing and advertising to staffing and customer service. This can be a lot to handle, especially if the salon is just starting out. Independent salon owners may need to rely on outside resources, such as mentors or business coaches, to help them navigate the challenges of running a salon.
  • Marketing and Advertising Difficulties: The beauty industry is a crowded market, and it can be difficult for independent salons to stand out from the competition. Independent salon owners need to develop effective marketing and advertising strategies to reach their target market. They may also need to invest in online marketing, such as search engine optimization (SEO) and pay-per-click (PPC) advertising. For more information on  marketing and advertising ideas in the salon domain, check out this blog on Broadly, 
  • Staffing and Training Issues: The beauty industry is facing a shortage of skilled professionals. This can make it difficult for independent salon owners to find and retain qualified staff. Independent salon owners may need to offer competitive salaries and benefits to attract top talent. They may also need to invest in training and development programs to keep their staff up-to-date on the latest trends and techniques.

The Franchise Advantage

So, what exactly is the franchise advantage when it comes to running a salon? We break down the concept of franchise salons and shine a light on why they often lead the way. Explore the key benefits of choosing a franchise, such as:

  • Brand Recognition and Trust: Franchise salons benefit from the brand recognition and trust that their parent company has built over time. Orane is a famous brand in beauty training with 15 years of experience. Such goodwill can be a huge advantage when it comes to attracting new customers.
  • Established Business Model: Franchise salons have access to an established business model that has been proven to be successful. This can save franchisees time and money, as they don’t have to reinvent the wheel.
  • Training and Support: Your franchisees need training and support, and the franchisor will help you. This can be invaluable for new business owners, as it can help them avoid common mistakes and succeed in their business.
  • Marketing Resources: Franchises have access to marketing resources that independent salons don’t. This can include things like advertising campaigns, website design, and social media marketing.
  • Standardized Quality: Franchisors have strict quality standards that all their salons must meet. This ensures that customers can expect the same high level of service at every franchise salon.

Overall, franchising can be a great way to start a business. By choosing a franchise, you can benefit from the brand recognition, business model, training, support, marketing resources, and standardized quality that a franchise can provide.

Financial Considerations

You will surely want to take financial factors into consideration when evaluating the options of an owned salon vs. a franchised one. Here is the comparison: 

  1. Starting cost: If you talk about a small, unorganized salon, maybe you can open up a salon at a lower cost. However, the cost is expensive if you talk about a proper setup that includes hiring top-quality staff, administration, and marketing. However, the initial investment required to open a franchise salon is typically much lower than the cost of opening an independent salon (in the range of INR 20 lakh to INR 40 lakh). This is because the franchise owner provides the majority of the necessary equipment, supplies, and marketing materials.
  2. Operating cost: It is also lower for franchise salons, generally in the INR 4 to 7 lakh range. This is because the franchisor often negotiates discounts on supplies and services. In addition, franchisees typically benefit from economies of scale, which can lead to lower costs for things like advertising and marketing.
  3. Revenue potential: It is higher for franchise salons than owned ones. This is because they benefit from the franchisor’s brand recognition and reputation. In addition, Franchisees typically have access to a larger customer base than independent salon owners.
  4. The Return on Investment (ROI): It is typically higher for franchise salons after the usual breakeven period of 18 to 24 months. This is because they have a lower initial investment, operating costs, and revenue potential.

Overall, franchising is the clear winner when it comes to financial considerations. Franchise salons require a lower initial investment, have lower operating costs, have higher revenue potential, and offer a higher ROI than independent salons. If you’re considering opening a salon, franchising is the best option.

Lifestyle Benefits

Beyond the numbers, owning a salon is about lifestyle, too. Discover the intangible benefits of owning a franchise salon, including:

  • Work-life balance: Franchise owners have the flexibility to set their own hours and work from home, which can help them achieve a better work-life balance.
  • Reduced stress: Franchise owners can rely on the support of a larger organization, which can help them manage their business with peace of mind.
  • Opportunities for growth: Franchise owners have the opportunity to grow their businesses, which can lead to increased income and financial security.

Owning a franchise salon can be a great way to achieve financial success and a better lifestyle.

Orane Salon Franchise: A Smart Investment

Investing in an Orane Salon franchise might be your smartest move if you’re considering entering the beauty and wellness industry. Here’s why:

  1. Proven Success: Orane Salon is part of the OXL Group, led by entrepreneur Mr. Dinesh Sood. With an extensive range of cutting-edge services and a global reputation, Orane Salon offers a proven path to success.
  2. Brand Recognition: Benefit from established brand recognition and trust. Orane Salon is a crown jewel in the Indian salon industry.
  3. Comprehensive Services: From facials and clean-ups to hair treatments and make-up, Orane Salon offers a wide range of services that cater to diverse beauty needs.
  4. Financial Viability: An Orane Salon franchise is a financially viable venture with affordable rates, globally comparable infrastructure, and established quality benchmarks.
  5. Industry Experience: Orane Salon boasts one of the largest teams of staff with extensive industry experience, ensuring top-grade services for your customers.
  6. Supportive Infrastructure: The franchise comes with a dedicated call center for appointments and service-related matters, offering a smooth operational experience.

Wrapping Up 

In conclusion, the choice between franchise and independent salon ownership is pivotal. With the Indian salon industry thriving, franchising emerges as the smarter investment. This content piece sheds light on various aspects, like the challenges of opening and running a beauty salon and the beauty franchise model’s advantages and opportunities with Orane. If you are interested in investing in an Orane Salon franchise, please call 07341171097.


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