Tanning Salon Franchise

Discussion in 'Growing and Managing a Business' started by feeny12, Oct 23, 2008.

  1. feeny12

    feeny12
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    I am planning to open a tanning salon and I am having problems with my business plan, bank loan, and finding reputable vendors. A friend suggested that I consider buying a tanning salon franchise from a company called Image Sun Tanning Salons.

    I do like thier look, a lot, and all of the franchisees I spoke with said very positive things about the company. They all really liked the President of the company a lot. They went on and on about how far ahead of the industry he was and what a great organization he has built. Well my question is, is it worth the small percentage of royalties that I pay to be part of a franchise? Do any of you own franchise businesses? What are the pros and cons to being part of a franchise network? Any advice would be greatly appreciated.
     
  2. pendelton

    pendelton
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    feeny12, welcome to the forum. Thanks for joining up and jumping in.

    And now, to the show. :)

    The major pro is that the support through the franchises is usually great, they want you to succeed so you can make them more money. The major con is that inability to do somethings, such as operating the way you want, or using a different product than they want.

    Franchises have all the materials ready made for marketing, and, sometimes, a branded name in the area.

    Some areas will also charge you an extra fee or tax if you are a franchise.

    One option is to start as a franchise, but make sure you read the contracts, and then after you have a local name for yourself, drop the franchise and make it your own.
     
  3. Fergal

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    Hi Feeny, welcome to Business Advice Forum and thanks for joining.

    You've already made the most important step in evaluating a franchise opportunity, by contacting existing franchisees. Did you ask the franchisees specific questions or simply general questions regarding what they thought of the franchise model?

    Have you looked at the legal agreement to determine how you would get out of the franchise if things didn't work out?
     
  4. feeny12

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    Thanks so much for your comments. I am going to review the agreement thouroughly this weekend.
     
  5. pendelton

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    Cool, good luck to you feeny.

    Remember to stay active and keep us informed on how your adventure is going.
     
  6. feeny12

    feeny12
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    Image Sun Tanning Salon Franchise

    I spent the weekend reviewing the Franchise Agreement with a family member who is an attorney. He said all the documents look fine and are pretty much standard franchise stuff. He also said that Image Sun is listed on the SBA's Franchise Registry which is a very good sign. This means that the Federal Governments SBA program has Approved Image Sun as a Prefferred Franchise. According to him, this gives Image Sun, as a Franchisor, very strong credentials.

    At this point, I think I am going to take their invitation to come meet with the corporate staff at their offices in Michigan and learn more about their franchise program. You too can check them out at imagesun.com

    Thanks for your help.
     
  7. Fergal

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    Feeny you're lucky to have an attorney in the family to give you such valuable advice. Meeting the company will give you a good feel for what they are like and help you decide if you wish to work with them in the future. Their website does look quite professional, which is a good sign.

    Have you considered exactly what benefits you will get from the franchise over and above doing it yourself? This will help you to evaluate if the franchise is worth the fees they are charging.

    You might also consider the implications of the restrictions that the franchise will place on your business. For example, if they do not allow you to sell certain types of products you might want to factor an associated loss of revenue into your decision making.
     
  8. feeny12

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    Discover Day

    Instead of going to Michigan for a Discover Day at the Corporate office I chose to do a Virtual Online Discover Day instead. I just didn't want to spend a thousand dollars to fly thire. The online presentation was pretty neet. It was an online presentation that I went through while speaking with them on the phone at the same time. This company realy has their act together. I spoke directly to the President and Founder Anthony Bonanni and boy is he passionate about his brand. You could just feel his energy. I even called some more of the Image Sun Franchsees and again they all said great things about the company. I am so excited to join, I hope they accept me.

    Thanks for your help and if you are interested yourselve just go to www.imagesun.com
     
  9. pendelton

    pendelton
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    Sounds like you are making a good choice.

    How long have some of the franchisees been in business?
     
  10. Fergal

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    Glad to hear that it is working out for you Feeny, please keep us updated as to what you decide to do and how it works out for you.
     
  11. mtigue

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    Picking a franchise is kind of like getting married. You want to make sure you personally are a good fit for the franchise and that the franchise is a good fit for you. I think attending forum or seminar on franchises might be a good first step. I recommend The Michigan Franchise Forum. All their offerings are free. (michiganfranchiseforum.com)
     
  12. Fergal

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    That's a good analogy, and if it goes wrong it could cost you as much as a divorce.
     
  13. flintheart

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    I agreed with the suggestion and to make yourself updated about the franchise business, you can take help from franchise consultants. They will analyze the whole business and will suggest whether it can be franchised or not. Also, with the help of them you can prepare franchise agreements to make the things accurate and perfect.
     
  14. CloptonCapital

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    Tanning seems like a simple enough business that you shouldn't need a franchise. What problems are you having with getting financing?
     

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