When looking for a franchise to open, you have to consider where that franchise is on the risk factor. There’s not just one single factor, but rather it’s the sum of all risk factors you have to consider. Once you look at some of these factors, you can better measure the risk associated with the franchises you are contemplating.
Fads & Crazes
If it’s been around for more than a couple years and has an established market, it’s not as high a risk as those start-up franchises that open and sell products and services that are a temporary craze. It’s never a good idea to jump on any bandwagon that seems like a passing fad.
The blowout bar concept started in the hair care industry in 2008 and has grown to over a $40 billion a year global business. The Cherry Blow Dry Bar franchise offers a solid business model and operating method, backing their franchise with training and solid support.
Seasonality & Regional Limitations
Some franchises don’t “fit” in a certain region or it’s a seasonal product. Like opening a bathing suit & beach attire boutique in Fairbanks, AK. Sure, everyone needs a bathing suit at some point, but is it enough to keep you in business year-round?
Seasonality poses a risk if you’re not prepared for it. Labor losses in the winter months for a lawn care business in Chicago can impact cash flow during the slow months.
Luckily, Cherry Blow Dry Bar fits in every region, and is a value to customers year-round! Our franchises are available in most markets across the United States, and there are global options as well. Offering a unique membership model at affordable prices for premium express services including blowouts, hair extensions, lash extensions, makeup services, and hair treatments are always in demand.
Government Regulations
Since our franchise doesn’t offer cannabis and related products, controversial chemicals, or products that can be harmful to the environment, the potential threat of government regulations isn’t prevalent.
Resistant to Recession
Another aspect you will want to consider is how well your business will hold up under different economic conditions. For example, if unemployment were to increase, what services might those consumers be less likely to use.
Although some businesses, such as health care, funeral parlors, and education, are highly resistant to a recession, the beauty industry is actually very resistant in times of recession as well. In fact, the beauty industry is one of the most resilient industries, alongside a few other service-based categories. Looking back, it’s actually one of the few categories that thrived in the 2008 recession!
Most women don’t cut back on their staple appearance appointments, but rather stretch out their color appointments and instead indulge in blowouts to keep their hair looking fresh. Hair coloring, specialized treatments, and even hair cutting may take a hit when consumers are cutting back on the “luxury” hair services.
Affordable services and memberships offered by Cherry help sustain clientele to those women looking to maintain their appearance for any work or personal life events…etc.
Our membership options are also affordable and are cost-effective when trying to stay within a budget.
Financial risks
Capital risks are involved when the franchisor doesn’t have proper resources aligned to meet its growth plans. At Cherry, we will meet with you and go over the financial statements in our franchise disclosure document (FDD) for you to gain an understanding of how well-capitalized our franchise is.
Under our new ownership of franchise veterans Fred Vicario and Steve Vicario, the blowout category has been reinvented to meet the growing demand for the best level of hairstyling, while also providing a business opportunity to entrepreneurs interested in the booming industry.
If you’re interested in seeing if a Cherry Blow Dry Bar franchise is right for you, Contact Us and a representative will be in touch. If you’d like to see the minimum requirements and have other questions answered before speaking with a representative, visit our FAQ page first.