Excellent semi-absentee/investment opportunity (only 6 hours a week) to own a salon suites management company. High-end facility and upfit, suites are rented by independent stylists. Owner function is similar to that of a property manager/landlord/real estate investor (through long-term lease). Minimal time requirement per week. Onsite facility ambassadors take care of day-to-day. Excellent chance to own upscale salon suites at a fraction of the upfit cost.
Salon Suites are ideally set up for social distancing as each stylist has their own, separate suite. The Company has currently leases 17 suites, with an annual run rate of $161,000 of revenue. Costs are approximately $94,500 per year, which translates into ~$66,500 bottom line. There are still 13 suites available to rent.
Fully furnished in upscale appointments. The space is divided into 30 salon suites, each with their own locking door and equipped with a sink. Common area amenities include waiting area, processing/coloring area, breakroom, WiFi, towel service and more. 10 years remaining on lease term/options. $8.74 psf comparable at $35 psf.
Significant opportunity for an owner with available time to recruit additional stylists to occupy the remaining open suites -- which would almost all be incremental contribution straight to the bottom line.
Salon suites are a relatively new concept, creating an upscale mini salon that allows individual beauty professionals to own their own salon without all the risks, expense and overhead related to traditional salons. A google search shows one 3 miles away and another 8 miles away. According to IBIS World Reports, consumers have favored professional salon products and services, such as hair coloring services, over less costly alternatives sold at drugstores and supermarkets. Industry revenue is expected to have increased at an annualized rate of 2.3% to $46.3 billion over the five years to 2018, with a rise of 1.7% in 2018 alone. Over the five years to 2023, the industry is forecast to continue performing steadily, with revenue expected to increase at an annualized rate of 1.4% to $49.6 billion. Per capita disposable income and consumer confidence are anticipated to continue rising, providing consumers with more discretionary income for luxury and price-premium services at hair salons and barber shops. With increased discretionary funds, consumers are expected to seek salon services instead of less expensive drug store products.
Focus on financial wealth management practice.
Will train for 4 weeks @ no cost. Suites are rented by individual salon owners providing an array of beauty/personal care services.