- Hairdressers, nail salons, and beauty salons in South Africa are fairly reliable businesses to buy.
- Many of the well-known names in this industry, found in malls, are franchises and are available for purchase as turnkey businesses.
- While popular brands can cost over R 2 million, if you’re looking to start a hair or beauty franchise in South Africa, there are some smaller options available for less.
- Here’s how much it costs to open a Sorbet, Dream Nails and other hair and beauty salons in South Africa in 2021.
- For more stories go to www.BusinessInsider.co.za.
Although the hair and beauty industry was hit during the hard Covid-19 lockdown in South Africa, this sector has always been one of the most exciting to acquire as a potential franchisee.
Many of South Africa’s leading nail bars and beauty salons are franchises available for purchase, including the famous Sorbet brand and its various spinoffs. And with turnkey business solutions available to buy the box, sometimes with little direct experience in the beauty industry required, it is possible to run your own successful branding business in this industry in a matter of weeks.
While some of the established beauty store brands are reasonably expensive, smaller nail bars and similar franchises are available for less. If you want to run your own Sorbet, Legends Barbershop, Perfect 10, NUDO Hair, or Dream Nails salon, here’s how much you can expect to pay.
Perfect 10 Nail & Body Studio
Perfect 10 is a nail and body company launched in 2003 as a competitively priced alternative in the industry. Imbalie Beauty Group bought the company in 2010, and since then it has grown to include more than two dozen franchises across South Africa. These studios offer a range of products and treatments focused primarily on hair removal, skin care, and other beauty procedures.
Franchisors are looking for people they describe as âpioneersâ to get started in the business as franchisees. A standard 65 square meter Perfect 10 lounge costs around R 1 million, depending on the size and nature of the store. This includes a franchise fee of 100,000 Rand, but excludes VAT, security deposit and recommended working capital.
NUDO hair laboratory
NUDO Hair Lab was launched in 2015 as Hollywood Hair, followed by the NUDO Hair Lab brand two years later. The business started out in Pretoria, but owners are looking to franchise their product with turnkey hairstyling studios available for purchase.
A new NUDO franchise costs between R 2-3 million, depending on the size and location of the store. On average, the cost of establishing a new branch is R 2.99 million. Franchisees are also required to pay a 10% monthly fee for advertising, marketing and management.
Barber of Legends
Legends Barbershop is a business that started in Eldorado Park as a sidewalk barber operation. Today it has 15 outlets across South Africa, four of which are franchise stores. They mainly focus on haircuts, design and styling, as well as other traditional barber-related services.
Buying a new Legends Barbershop requires an initial deposit of R 100.00, and they estimate the total setup fee to be around R 1.35 million. Franchisees then have to pay a 10% monthly fee and 2% monthly marketing fee.
Dream Nails is a 35-year-old beauty franchise that claims to empower women “to express their creativity with the latest nail trends in their own way.” The nail franchise now has a large store footprint across South Africa and is looking for more people to expand its network.
They are looking for people with an entrepreneurial flair with a hands-on approach to business – and although qualifications in the beauty, marketing or business world are advantageous, they are not a must.
Buying a turnkey Dream Nails business requires an initial license fee of R100,000 and a marketing and management fee of 6% of monthly revenue. A new 55 square meter nail salon costs around R600,000 to set up. With inventory, franchise fees, and other expenses, franchisees can expect to pay around R765,800, excluding VAT, rental and working capital.
Sorbet is a health and beauty business that the founders explicitly built with franchise in mind – and it has grown into one of South Africa’s hottest franchises. The company was started 16 years ago and currently has 220 salons across the country.
Five different store formats are available for purchase: Full Sorbet Lounges, Nail Bar, Sorbet Man, Dry Bar and Candi & Co.
The exact amount you will pay for a Sorbet franchise depends on the format you purchase, but a new salon of around 90 square meters typically requires a cash amount of R 2 million, of which R 1 million must be unencumbered cash. . This includes store design and layout, graphics and signage, as well as a franchise fee of R125,000.
Given the large footprint of franchisees, there are sometimes established Sorbet stores available for purchase.