Hair Care Franchise: The Lemon Tree offers entrepreneurs a solid opportunity in tough times

In these uncertain economic times, entrepreneurs from all walks of life are finding financial stability and freedom with The Lemon Tree family hair salon franchise. And many of them have no haircutting experience.

"The Lemon Tree truly is a recession friendly business at which anyone can be successful," says Deena Yaris, president and owner of the 70-store chain. "Our ownership base includes hairdressers as well as people who know nothing about cutting hair or people who have never owned a business. We have husband-wife teams, single women, experienced hairdressers and single men. In each case, they have survived and thrived despite the economic downturn."

If the success of current franchisees and increased interest from prospective owners is any indication, Yaris is correct in her estimation.

"More than for financial reasons, it's given me the opportunity to stay home and raise my four children," says Patty Pisani, co-owner of four Lemon Tree Franchises on Long Island, N.Y. "It's a great franchise. There's a lot of support and we show strength in numbers. We're like one, big family."

While hairdressers own the majority of shops, single owners with no hairdressing experience own a large number of locations as well. They typically manage the business and hire hairdressers to cut, style and color hair.

Single owners are the next largest segment of franchisees, followed closely by husband-wife teams, and husband-wife-hairdresser partnerships. Regardless of the ownership makeup, franchisees are buying multiple locations and growing their customer base as people search for affordable ways to look good.

A prime example of franchisee success can be found in Yaris. She bought her first Lemon Tree in 1981, and added three additional franchises between 1982 and 1984. In 1998, she purchased the entire corporation from Founder Joan Cable. She has expanded the system into Pennsylvania, New Jersey and Connecticut, and increased sales largely through promotional specials and focused advertising campaigns. Negotiations are currently underway to expand the system throughout Florida.

John L. Wagner, The Lemon Tree's long-time executive vice president, has a few explanations for the success of The Lemon Tree. First, Lemon Tree salons provide high-quality, necessary services at affordable prices. Second, franchisees receive intense training and ongoing support-so much, in fact, that no prior salon experience is necessary. Finally, the Franchise is affordable and profitable. Franchisees can open a salon for a total of $45,000-$55,000, which includes a franchisee fee of $15,000, equipment, signage, inventory and initial lease expenses. Lemon Tree offers financing for half of the fee and equipment, which brings the initial cost down to the $25,000 to $35,000 range.

"It's affordable," concludes Wagner. "It's not like other franchises that cost upwards of $150,000. Who has that kind of money? Certainly not the average person who has a dream of owning their own business. Early on we developed a commitment to providing affordability to both customers and franchisees. We remained committed to that philosophy today."

The Lemon Tree is a subsidiary of Joan M. Cables La Femmina Beauty Salons Inc., based in a newly purchased building in Levittown, N.Y. Founded in 1974 by Joan M. Cable, the chain has grown from one salon in Bethpage, N.Y., to a 70-store chain with locations in New York, New Jersey, Connecticut and Pennsylvania. Cable revolutionized the salon industry by offering high-quality and affordable services for men, women and children, seven days a week. In 1998, long-time franchisee Deena Yaris purchased the company. She plans to expand the chain nationwide.