Health and Beauty Franchising USA 5#5 March 2017

FranchisingFeature health & beauty

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looking good makes for good looking business the trending

of spas in franchising tips for starting a business with your spouse Franchising USA

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HEALTH & BEAUTY

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With advancements in technology, easier access to information and a better understanding of healthcare, wellness and health are at the forefront of people’s priorities.

More and more Americans understand

the importance of maintaining a healthy lifestyle and the overall impact it has on their livelihood.

Health and wellness may be a lifestyle practice for many; it has also become a more powerful marketing tool and business opportunity for others.

“Health and wellness may be a lifestyle practice for many; it has also become a more powerful marketing tool and business opportunity for others.”

Franchisors have jumped on this bandwagon and see the profit pour in.

For some investors, it’s about pursuing a passion for a healthy lifestyle; for other franchisors it’s about focusing in on a large target audience that will create success.

America in Numbers The health market is extremely prevalent in the American Economy, for many different reasons but particularly when it comes to weight loss concerns. According to the National Health and Nutritional Examination Survey of 2010, 2 in 3 adults in America are considered overweight or obese.

Those who are considered overweight or obese have an increase risk for type 2 diabetes, heart disease, high blood pressure and a host of other health care problems, which impacts the health care system.

Investing in a health and wellness industry would be beneficial to a lot of Americans who are struggling with their weight

while also helping alleviate the strains on hospitals and doctors.

In fact, the Centres for Disease Control and Prevention stated the USA is currently experiencing an obesity epidemic, meaning a large portion of the population is directly affected by this health crisis and need support.

For those who are passionate and altruistic, and are interested in helping the greater good, a franchising investment in the Health and Wellness industry could not only be helpful to the overall population, but also extremely beneficial considering the high number of people at risk.

Western society is also facing an aging population, with baby Boomers hitting senior years. They too are more interested in the state of their health. People are living longer due to proper health care, advancements in medicine and education.

This portion of the population opens another consumer base that would allow for profit and success in the franchising business.

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Fads The Health and Beauty industry is constantly growing and ever changing so it’s a competitive and fast paced industry.

That being said, people are willing to invest in almost all and every quick fix health regiment, as well as willing to reach into their pocket for fitness and nutrition routine to obtain a healthier lifestyle. So the consumer market is always available, but a company has to be one step ahead of its competition at all times.

Health trends could make or break a market and you don’t want to be left behind. A franchise is a safer bet because a team of researchers is available and provide tremendous support to their franchisees.

“The ability to snap and post immediately has made people picture obsessed and therefore more concerned about their outward appearance.”

Power of the Selfie The ever growing popularity of social media and technology has made access at the tips of most people’s fingers. The ability to snap and post immediately has made people picture obsessed and therefore more concerned about their outward appearance.

The idea that an online posting could reach anyone and everyone, influences people to try and obtain a certain standard. That online ideal includes a healthy lifestyle, a slim figure and perfect complexion.

Social media is free advertisement for The Health and Beauty market, with celebrities tweeting about their experiences with certain products to kids creating popular hashtags about how they stay fit and healthy, opens up a whole other world of

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free marketing for franchisors interested in this industry.

Those considering a Health and Beauty

market should research how a company is trending in the social media and its

popularity in these marketing venues.

That being said, a lot of health care

products have become online niches,

without locations. People have become

susceptible to sitting behind a computer screen and ordering the next popular item to help them lose weight fast or

become healthy immediately. Some online

markets may create direct competitions for franchisors in the field. Before considering a certain franchise, investors should

investigate whether or not an online option is available to keep interest and step ahead of the game.

Franchisees can remain aware of their competition but rest easy knowing they are ahead of the game with a team of marketers and researchers that provide a successful outcome. For those interested in the Health and Wellness franchise industry, it is suggested that you ask about the roles and availability of the support team.

That being said people are getting back to basics. Younger consumers are recognizing some diet fads are neither healthy, nor safe and they are simply eating well and exercising. Though that may read as a simple concept, we all need a little help once and awhile. Gyms, exercise equipment and fitness courses allow support those interested in living an easy and healthy lifestyle.

Some gyms are franchises that provide easy access to clients, with classes on nutrition and fitness regiments. In fact, it is estimated that 45 million adults in the country have a gym membership. Some avail of these services, while other pay the monthly fee and give away free money.

A person with a passion for fitness and exercise could greatly appreciate a gym franchise and should consider what services and products are available at each facility. Consumers prefer a one stop shop that provides plenty of options.

A lot of online markets are recognizing a trend away from diets and towards healthy

“Consumers like the idea of eating well, without all the work. We want to be healthy, but we don’t want to put in the effort.”

and “clean” foods. They provide meals that are wholesome and delivered, with weekly plans that make healthy eating more accessible and easy. Consumers like the idea of eating well, without all the work.

We want to be healthy, but we don’t want to put in the effort.

A franchise that provides healthy food services, especially with an online presence is a great investment and one with more options and products would provide more success due the high competition of the industry. A consideration for longevity should be considered because this could just be another health fad that could fizzle out.

The Health and Beauty industry is not only detrimental to the future of America, it is also appealing to a widespread population. It’s well marketed, always popular and successful. Though it has a tough competitive market, investing in a franchise will receive a support system and a leg up on competitors.

ABOUT THE AUTHOR: After receiving an English Degree, followed by a Journalism Diploma, Gina Gill

became a freelance journalist in 2008.

She has worked as a reporter and in

communications, focusing on social media.

She currently works as a community

information officer with Epilepsy Society, while pursuing her writing career at the same time.

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Bob McQuillan, Vice President of Hand & Stone Massage and Facial Spa Franchise Development

The Trending of Spas in Franchising Recently, franchised spas are trending and it’s not difficult to understand why.

No spa experience is necessary to become a franchise owner, and it’s a sound and easy business model to follow. In the past five years, the spa industry has seen unprecedented growth, and the growth track is building, which is great for investors.

I’ve gathered a list of benefits that have contributed the trending of spas in franchising.

Bob McQuillan

Franchise spas are a fast growing sector of the health and wellness industry and have steadily become affordable and accessible modes of selfcare for middle market consumers.

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Huge amount of opportunity for spa growth Currently, there is a tremendous opportunity for spa franchise growth and brand development. Business is looking up! Annual research on financial signals in the spa industry predicts strong success for its future based on its 5 years of growth in revenue, according to a report commissioned by the International SPA Association (ISPA) released in September 2016.

We’re just massaging the surface at this point, so let’s get into the deep tissue of the issue of spa growth. In addition to forecasting gains in the spa industry, the annual ISPA study showed spa revenue increased by 5% to $16.3 billion from $15.5 billion between 2014 to 2015, attributed to the impressive increase in spa visits. The report estimates spa visits increased 2.1% to 179 million in 2015 from 176 million in 2014, while average revenues for each visit also rose 2.9% to $91 in 2015 from $88 the previous year.

The study also showed how the industry itself was a positive addition to the US economy in 2015 through increases of fulltime spa employees and new spa locations.

Consumers are equating beauty with wellness According to the Global Wellness Summit 8 Wellness Trends for 2017 - and Beyond report, wellness is giving the idea of beauty a makeover as consumers’ overall attitudes about beauty change and they

demand to both feel and look good. And why shouldn’t they want both?

Consumers are trying to achieve authentic beauty and well-being by focusing on the source of beauty through self-care methods like meditation, yoga, anti-aging and skin care products, clean eating, and exercise. A standout finding of the report was the trend of people being more in tune with what they use on their skin.

According to a 2015 skin care market report from MarketResearch.com, skin care in the US is a fast growing segment and is set to slightly exceed $10 million by 2018. People are becoming mindful of the benefits of skin care at a younger age, and the demand remains steady from aging consumers.

As consumer ideas about beauty and aging change, spas are moving to accommodate the demand for services. In response, some massage franchise spas provide related wellness services for beauty and relaxation like skin care, facials, and hair removal. In addition to in-house services, many massage franchises offer skin care products for at-home use that clear skin or smooth away signs of skin aging.

“Spa services are not just luxury indulgences anymore. Rather, they are now a part of a regular consumer’s journey to achieving health and wellness through self care.” mom in search of a self-care break from the kids? Spa services are becoming more accessible to people of all walks of life at massage and facial franchises.

The Global Wellness Summit report mentions an increase in the number of cost accessible services and products focusing on well-being, including those available at affordable spa franchises. Franchises are making massage and facial services available at lower price points that fit middle class consumer budgets.

Increasing affordability and accessibility of spa services

The report also discusses a global shift towards the idea of “fairness” and how that idea is pushing the industry of wellness to grow its reach to general consumers rather than just the wealthy. Spa services are not just luxury indulgences anymore.

Rather, they are now a part of a regular consumer’s journey to achieving health and wellness through self care. You can become a key part of that journey as a franchisee in the growing spa industry!

What type of client do you picture when you think of a spa consumer? Do you see a C-suite executive relaxing or a busy soccer

To recap, there is a huge amount of opportunity for franchise spa growth as spa services become more accessible

to mid-market consumers who are in tune with wellness and beauty. I’ve seen the effects of these industry trends first hand, and that’s why I encourage anyone interested in business ownership to consider spa franchising.

Bob McQuillan brings a unique perspective to the franchise industry.

He’s not only the Vice President of Hand & Stone Massage and Facial Spa Franchise Development, but also an owner of three Hand & Stone locations with his wife Denise. Tasked with developing and expanding the franchise, Bob is one of the earliest points of contact with future owners.

He conducts one-on-one webinars with qualified candidates to answer questions about the small business process. Bob is committed to working with wellqualified franchise owners to ensure their financial success in the growing health and wellness industry with Hand & Stone’s recurring revenue business model. handandstonefranchise.com

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Clea n Juice

Millennial Couple Turns Hobby into a Business Phenomenon Franchising USA

While the concept of juicing has been around since the 1970s, its explosion over the past decade was sparked by a greater understanding of the health benefits of drinking smoothies and juice from fresh vegetables and fruits.

Health-minded people have gravitated so strongly to juicing for a variety of reasons including to cleanse, detox, absorb essential vitamins in a delicious, flavorful way, and conveniently fuel up on-the-go.

While the highest concentrations of juice bars are typically in New York and Los

“We originally hoped to award five to ten units in our first year of franchising, but if we keep at our current pace we will be close to 100.”

- Landon Eckles the flexibility to be actively involved in their children’s lives without the constraints of Landon’s business travel.

Angeles, their popularity is also growing throughout the rest of the county. Kat and Landon Eckles, a millennial couple from North Carolina, took their passion for juicing and turned it into business phenomenon. In 2014, they decided to create and launch Clean Juice, the first and only USDA-certified organic juice bar franchise.

Kat Eckles, a self-proclaimed recovering junk food addict, discovered a strong interest in wellness in 2007, after the birth of their first child. She dedicated herself to learning everything she could about nutrition, taking particular interest in the benefits of enjoying a diet focused on fresh, organic vegetables and fruit.

Kat and Landon Eckles – 30 and 31 years old, respectively – are not your traditional millennial couple. At a relatively young age, they’ve turned the success of their one, local juice bar into a thriving franchised business, all while raising their five children.

With her drive to maintain and share a healthy lifestyle and her husband’s business background, the couple created a business focused on their passion, creating a juice bar that provides its customers easy, on-the-go access to organic foods.

Certified organic produce was a nonnegotiable for them.

In fact, their plans to raise a big, healthy family were a driving factor behind Landon Eckles’ decision to leave his position as a managing partner with a real estate development firm to establish the juice concept with his wife. They wanted

In two short years, they’ve grown beyond the original location to four corporate stores, and they’re poised for massive growth, with close to 50 signed agreements to open additional locations across the country.

The couple originally wanted to bring the joys of juicing to the south and middle America, while staying away from the already saturated New York and Los Angeles markets. However, as the brand expands, New York and Los Angeles are viable and exciting markets for Clean Juice to enter into.

The franchise’s flagship store opened in June of 2015 – on the couple’s wedding anniversary – in the Lake Norman area of Charlotte, North Carolina. They launched this first location after a year of research and development, turning their vision and ideas into a business model that became an instant hit among health-conscious consumers in the Tar Heel State.

The couple’s strong faith is a part of the Clean Juice brand, as they’ve incorporated their favorite bible verse, “Dear Friend, I hope all is well with you, and that you are as healthy in body as you are strong in spirit,” into their overall franchise model.

They make sure the overall experience customers get from a visit to Clean Juice

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Clea n Juice

is unique, as they focus on a vibrant, positive experience. They believe strongly in transparency, providing consumers with the full details of what goes into their juice.

“More and more people are beginning to understand how important it is for produce to be organic, especially in juices,” said Kat Eckles. Landon and Kat Eckles actually looked extensively at purchasing a franchise before they decided to open their own concept. “I searched high and low for a juice and smoothie bar that I believed actually did it right and just could not find one”, said Kat Eckles. Landon Eckles adds, “We were down to the wire, and Kat looked at me and said ‘OK, we can do this, but I probably just won’t drink anything from our store’. At that moment I knew that we had to do our own thing.”

This also alerted him of what was missing in the marketplace, which they contribute as a big factor to their early success in franchising. The couple also claims, “Being the only certified organic concept sets us apart, but beyond that people fall in love with our brand and the experience.”

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“We’ve built an incredible team around us that are as focused and as passionate as we are about propelling the brand forward. We know that the best is yet to come and are all very excited about what the future holds.”

- Landon Eckles Most of Clean Juice’s new franchise leads come from customers who enjoyed the experience enough to want to become a part of the business. Other prospective franchisees are attracted to Clean Juice’s status as the only USDA-certified organic juice bar. While many of their guests are fellow millennials, many of their franchise leads have come from parents of millennials. “Their children find our product and fall in love with it, and they present the opportunity to their parents, who get the concept and want to jump in,” said Landon Eckles. “We originally hoped to award five to ten units in our first year of franchising, but if we keep at our current pace we will be close to 100.”

The couple is most proud of the way they’ve been able to do the business their own way. “Working hand in hand and

building this brand as a couple has easily been the most rewarding part of the whole experience,” said Kat Eckles, “and now, being able to take the fun and fulfillment that Landon and I have building a business together and offering it to other spouses and families to do the same is just the icing on the cake.”

These millennials took a very nontraditional career path and while following their passion, have already achieved a tremendous success. “We’ve built an incredible team around us that are as focused and as passionate as we are about propelling the brand forward”, says Landon Eckles. “We know that the best is yet to come and are all very excited about what the future holds.” www.cleanjuicebar.com

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Chris Conner, President, Franchise Marketing Systems

Looking Good Makes for Good Looking Business Whether we want to admit it or not, we all have some degree of vanity that controls our day to day activities and lives. Some more than others, this vanity drives our spending and financial decisions to an extent as well.

What is interesting to review is spending on health and beauty even in times where many people are struggling to pay their mortgage like 2008 through 2011 still stays relative constant.

Looking good possibly trumps putting a roof over our head or eating in some cases.

Recently, the market has been on an upswing and health and beauty have followed suit with a massive surge in growth across the board. This growth has translated to investment and innovation in technology, small business, franchising and other business markets. With Franchise Marketing Systems, we have the luxury of being able to see firsthand these trends and exciting market segments take shape. Certainly 2016 has been a great year for health and beauty and 2017 looks to continue that trend of experiential-driven growth.

What are the trends in health and beauty?

1. People want community. We saw this with the amazing advent of CrossFit. The volume of injuries seemed to those of us not in a program that this was just a bad idea, but people enjoyed intense workouts, positive physical results and most of all a community of people who all joined together to beat themselves up. This now is transitioning to a softer, more sustainable workout in Yoga. Possibly Tom Brady’s participation in yoga has helped, but the gains in this market segment are astounding with over $17 billion spent on yoga services and products in the U.S. during 2016 alone.

Again, there is this sense of community that the health and fitness segment haven’t had with your traditional gym in the

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“In the end, don’t get lost in the fluffy, fun ideas that tend to come with the health and beauty market. Continue to focus on bottom line profits, cash flow and revenue growth.” past. In fact, I remember entire years at my gym where I never interacted with a single person, but in a yoga class people become family and truly indulge in relationships with one another.

Franchise brands such as Purre Barre, SoulCycle and Orange Theory get this and have capitalized on the trend of community fitness.

2. People want natural. Never before in the history of food labels has there been so much attention to the ingredients in our food, vitamins, supplements and other “Stuff” we just ate in years past. Restaurants and food retailers are being forced by today’s knowledgeable consumer who asks the hard questions and spends good money on products that have organic, natural and healthy ingredients. Terms like “Farm to Table” are commonplace and the average 5 year old knows what a “GMO” is. If you are serving a food product or selling something people eat, it’s time to get organic and find ways to get rid of ingredients that people can’t pronounce with 14 letters in their name.

3. Everyone’s talking about Weed. You can’t pick up a magazine, go to a franchise show or watch the news without something coming up about Cannabis. Afterall, it probably is the most fun health subject to talk about.

With more and more of America transitioning to a Weed-friendly business environment, the business community is going Cannabicrazy and opening businesses to serve this market as quickly as possible. A warning for weedpreneurs is that technically Cannabis is still a federally illegal drug which makes business practices tricky and cumbersome and potentially could

land you in jail with a wrong move.

4. Medically Supervised Beauty is In. Whether it is medical weight loss, skin treatments, laser work, Skin Tightening or other procedures, more people are willing to pay for these things in a spa-like environment. With the out of control insurance world, this is very appealing to medical professionals who are looking for ways to add cash flow to shrinking practices. Businesses such as MediSpas, Weight Loss Centers and even I.V. bars have all made great headway as businesses and franchises throughout global marketplace.

The Advice If you are in Health and Beauty, pay attention to the trends and be “in” with the current market trends. Unfortunately, health and beauty customers can also be a bit fickle and unpredictable. One diet may be all the rage one day and then totally out of favor the next, like what happened to the Atkins Diet? Be on top of research, pay attention to thought leaders in the industry and be willing to invest in new innovative technology.

Understand your customer and have messaging/branding that speaks to the right person the right way. Health and Beauty is a sensitive category and you as a business owner need to have empathy for the consumer to not only know what drives their demand and buying decisions, but also to speak with them in a way that they will listen. For example, don’t tell the housewife she is looking heavy and needs to workout ASAP. Pun intended, the “beauty” of the health and beauty market is that you have the liberty to really play with your brand message and get as creative as any business with allow.

Chris Conner

People generally are looking for you to strike an emotional chord in them, they want to be inspired and feel like they are part of something bigger.

Take for example Lulu Lemon’s manifesto to their customer; it is too long to restate here, but one line caught my attention: “A daily hit of athletic-induced endorphins gives you the power to make better decisions, helps you be at peace with yourself, and offsets stress.” Now if that doesn’t get you wanting to buy some tight yoga pants, I don’t know what will.

In the end, don’t get lost in the fluffy, fun ideas that tend to come with the health and beauty market. Continue to focus on bottom line profits, cash flow and revenue growth. Put a dollar figure on everything you are doing and plan to do, both revenue and expenses and make sure that there is profit behind every business decision you make.

Chris Conner is the President of Franchise Marketing Systems and has spent the last decade in the franchise industry working with several hundred different franchise systems in management, franchise sales and franchise development work.

His experience ranges across all fields of franchise expertise with a focus in franchise marketing and franchise sales but includes work in franchise strategic planning, franchise research and franchise operations consulting. www.franchisemarketingsystems.com

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Kat Eckles, Co-Founder, Clean Juice

Tips for Starting a Business with Your Spouse

Starting a business presents a set of challenges most people never experience in their career. Leading a growing company requires you to play roles you never anticipated and understand aspects of the business you never imagined.

Even rarer still is doing all of this when

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your business partner is also your spouse.

For many couples, this idea may seem too crazy to work, but for the right ones, it can lead to a level of personal and professional fulfillment you can’t find anywhere else.

It’s not always easy, but there are a few tips you can follow to make your unique situation successful.

Establish a Healthy Foundation A firm foundation – in both your personal and professional life – is essential to your success. Without it, everything else is almost irrelevant and something along the way will suffer. The process of building a business from the ground up can be all-consuming, so you need to make every

effort to ensure that your marriage, family and mindset are as healthy as possible.

Without this first step in place, you almost guarantee failure.

Play to Each Other’s Strengths In every personality test that my husband Landon and I took, we both scored very high in the ‘dominance’ category. If you and your spouse are considering going into business together, there’s a strong chance this applies to you as well. Couples that both have this ‘High A’ personality have a good chance of success, but this combination can create a highly competitive atmosphere and lead to butting heads.

“One of the most fulfilling parts of being in business together is getting to see a side of your spouse that you may not normally see.”

Find Your Connection Outside of Work & Family Landon and I just had our fifth child and our business is growing by the day; needless to say, we are very busy. It would be so easy to spend all of our time talking about and connecting over just these two things, but it’s important to have something that fulfills you as a couple beyond work and family. For us it is our faith – we make sure to pray together, go to church together, meet with our small group, volunteer together, and just use each other as confidants regarding our own walk with God. Maybe your connection isn’t faith, but hobby – yoga, a softball league, music or whatever you are passionate about. It’s important to invest time in something outside of work and family to make sure that your relationship is well-rounded and more than just a business partnership.

Understand the Time Commitment Will Cause You To Miss Out, Occasionally

We dealt with some of this early on and

took a step back to really think about our roles within the company. It was easy for

me to see that Landon should be the CEO. His presence is undeniable and he can

command a room and lead and mentor

others better than anyone I’ve ever seen.

The vision for the company was mine and

the clarity with which I saw the big picture and the future of the company was an

obvious indicator that I should be the one

creating the roadmap. Once we talked this through and acknowledged each other’s

strengths, it was easy for us to allow the

other one to lead aspects of the business we’re best suited for.

When you make the decision to build a business, you have to know it’s going to be an abnormally large part of your life. A common saying in business circles is that entrepreneurs work 80 hours a week to avoid working a 9 to 5. It’s truer than you might think, and with that intense drive to make your business successful, other areas of your life are going to get less attention.

You need to accept that it’s probably not the season to worry about your golf game, planning that college reunion trip or knowing who won “The Bachelor.”

This commitment of time may not last forever, but it’s inevitable in the early stages of building a business. If you have kids, much of your remaining focus must be on them. Once you factor in making sure your marriage or relationship is healthy, there may not be much time left for social or leisure activities. If you love

Kat and Landon Eckles

what you do as much as we do, this is an easy trade-off to make.

Be Each Other’s Biggest Cheerleader One of the most fulfilling parts of being in business together is getting to see a side of your spouse that you may not normally see. Most couples don’t get to truly comprehend how good their partner is at their job, and you should never miss the opportunity to let them know when they do something awesome. I try to let Landon know every time he kills it in a meeting or provides great guidance to another member of our team, and he tells me many times a week how valuable my strategy, vision and opinion is. Knowing that your partner has full confidence in you is only going to make you lead better, discern clearer and grow stronger.

It won’t always be easy, but sharing the difficult challenges of entrepreneurship with your spouse provides an opportunity to for true partnership in all parts of your life. It can be difficult to find the right balance, but once you do, you’ll find fulfillment in your career that most people never get to experience.

Kat Eckles is the co-founder of Clean Juice. A self-proclaimed recovering Taco Bell addict, Kat found her passion for all things wellness in 2007 after having her first daughter. She graduated from Wilmington University with a B.S. in Psychology and will finish a health coach certification from the Institute of Integrative Nutrition later in 2017. www.cleanjuicebar.com

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