Do you want to open a nail salon business by buying Miniluxe franchise? If YES, here is how much it cost to open a Miniluxe franchise successfully. MiniLuxe, the pioneer in ultra-hygienic nail and waxing lounges, has expanded its concept nationally through a franchise program since 2011.
The management and investors behind the concept include: the former Chairman of UBS Financial Services and the Homeland Security Advisory Council, the former President of McDonald’s Business Development and Managing Director of McDonald’s Ventures, a World Economic Forum Global Leader and the former CEO of The Thomson Corporation.
For quite a few years, the nail salon industry had remained relatively stagnant and lacked innovation. Many treated the service as a low-involvement utility; a necessity in order to appear presentable and well-groomed. Customers generally selected providers along functional criteria such as the cost and proximity of service – branding did not play a big part.
However, in this age, with MiniLuxe hoping to change the game, things are beginning to brighten up. MiniLuxe is a nail salon concept aiming to “Starbuck” the $9 billion dollar nail salon industry by changing the largely fragmented market of low-cost providers and delivering top-quality service with integrity and consistency.
The first store was established in Newton Centre, Massachusetts in mid-2007. Since then, MiniLuxe has opened a new location each year, including one on Boston’s trendy Newbury Street and one in the upscale community of Lexington, Massachusetts.
The MiniLuxe brand thrives on a number of factors. One of the most important is being the chain’s dedication to hygiene. To make sure the MiniLuxe concept was solid and the services industry-leading, the company assembled a special group of advisors that spans from top podiatrist Dr. Carolyn Siegal to renowned physician Dr. Mehmet Oz to top beauty editors.
Have it in mind that every store features a clean lab equipped with hospital grade autoclaves and supporting sterilization equipment. With both a podiatrist and a physician on the company’s advisory staff, Miniluxe practices are already reshaping the industry.
Early feedback from potential MiniLuxe franchise owners highlights the quality business model and advantageous timing of the launch. Would-be affiliates with diverse backgrounds express they are looking for a business that works when times are good or bad.
Currently, MiniLuxe has taken advantage of mobile technology in order to maximize in-store labour utilization. One solution in the works is an on-demand mobile-app based booking service through which clients are able to make appointments directly through their phones.
On the back end, the system can easily assess customer demand and immediately adjust technician compensation to incentivize greater or fewer nail technicians to come into work. By matching demand with available labour in real time, the company can ensure that the customer is always satisfied without incurring the costly burden over-staffing.
Financial Requirements of Opening a Miniluxe Franchise
- Cash Required: $100,000
- Net Worth Required: $500,000
- Total Investment: $250,000 – $350,000
Steps on How to Open a Miniluxe Franchise
If you are thinking about joining Miniluxe franchise, you’ll need to prepare yourself for the long and complicated process ahead. The following tips should help you navigate the world of Miniluxe franchising efficiently.
1. Talk to as many people as possible
When it comes to making informed decisions about Miniluxe, there’s no better source of information than those who are already involved with Miniluxe. This means that you should talk to both franchisors and franchisees before you come to any decision.
Even though Miniluxe will usually give you an honest account of what you can expect as a franchisee, their approach will naturally be little more sales driven. After all, they want you to sign up with their franchise.
After you must have spoken to the team, meeting with existing franchisees is an ideal way of fact-checking what you were told and this allows you to see the franchise opportunity from a different perspective. All franchisors should be willing to give you the contact details of their franchisees – anyone who doesn’t is likely to be hiding something.
2. Enlist the help of legal and financial professionals
Agreeably, franchising is a relatively simple concept, but the legal and financial frameworks used to support the business model are often complicated and convoluted. It simply means that all potential franchisees should enlist the help of legal and financial professionals when starting out on their franchising journey. Unless you are trained and qualified in one of these fields, you’re taking a significant risk if you choose to do it alone.
Note that a lawyer or legal representative who has experience of the franchising sector will be able to read over the large number of legal contracts to define the relationship between you and Miniluxe. In the same vein, an accountant will help you run over the numbers and establish whether your financial projections are accurate and reasonable. This is particularly important when it comes to preparing a comprehensive business plan.
3. Prepare a detailed business plan
To properly demonstrate to yourself and others that investing in a particular franchise is financially viable, you’ll need to draft a business plan. However, Miniluxe will help you create this document, since the company typically have acquired a great deal of experience. Nonetheless, as the business plan will be used to apply for finance, you need to ensure that you fully understand and support the proposed direction for your Miniluxe franchise.
4. Consider your options when it comes to financing
Finally, you will have to consider how you are going to finance your franchise. In some cases, the decision is made for you. Occasionally, franchisees have access to sufficient funds to finance the environment themselves. More often than not, franchisees can rely on their family and friends to support them by topping up their resources. This can be a great way to raise a little extra capital when the investment amount is just out of reach.
Conclusion
Due to the strong alignment between MiniLuxe’s operating model and business model, the company has fared very well and experienced impressive growth. Top line revenue for the company has almost double over the years, and all 8 Boston-based locations have already achieved store-level profitability.
On average, the network of stores has generated 20% same-store year over year sales growth, which is high by industry standards. Most recently, MiniLuxe has recently expanded into Dallas, a new market that is yielding fantastic results to date.