Editorial

Expertly Saying “Go Away” to the Gray

What would happen if you took the Franchise business model and applied it to the beauty industry? You’d have a network of salons with highly skilled beauty professionals working in an upscale environment, providing services to ecstatic, repeat clients at value prices. That’s the idea chairman and co-founder Larry Feldman had when he came up with the concept for HCX Salons International, a company specializing in hair coloring, which he founded in 2000.

Feldman had significant and lengthy franchise experience prior to HCX. He serves as president and CEO of Subway Development Corp. of Washington, the first and largest area developer of Subway® Restaurants in the US, with more than 800 franchised stores on the east coast, and has more than 25 years of franchise development and management experience.

The leap from Fast Food to beauty services was not a big one. “This is one of the hottest consumer markets today,” says Feldman. “Over one out of every two women has color-treated hair. The possibilities for growth in the hair color industry are staggering and a franchise concept specializing in hair color has not existed in a nation of 275 million consumers – until now.” Hair color is the most profitable salon service, according to Hair Color and Design Magazine, and is expected to grow at a near double digit rate for the next five years.

HCX, located in Ft. Lauderdale, FL, began Franchising in 2001 and has opened 29 salons in eight states and DC and has an additional 28 territories under development in 23 states. They expect to have 50 salons open by the end of the year and 5,000 salons by 2010.

What sets HCX colorists apart from others is that they receive the most advanced color training in the industry. They are truly experts in all aspects of hair color, giving the client everything from dazzling, rich color to highlights to complex color corrections.

The colorists provide in-depth color consultations which match a client’s hair color to their skin tone, lifestyle and personality – really making the hair come alive. And they do it all at a very affordable price ($20 for single process color as compared to average costs of more than double at other salons).

Professional coloring at value prices is not the only innovation at HCX salons. They also offer cyber imaging (complimentary with service), letting the client “try out” various cuts, color and highlights, using their picture on a computer screen. “Our state of the art equipment and software takes the guesswork out of the equation,” says Craig Fleming, president and CEO. “The client can see how a cut or color will look before making a commitment.”

Another innovation is customer profile cards that electronically store all color formulations and hair cut details. These are issued to each guest, ensuring that the quality and consistency of services at one salon will be provided at any salon visited nationwide. Salons are open seven days a week and also offer after work hours for the busy consumer. And, while the salons specialize in hair color, expertly trained stylists also cut and style hair.

Clientele for a new salon is virtually assured when you consider the population: graying baby boomers (men and women) who want to look their best and also retain their business edge by appearing more youthful, twenty and thirty-somethings who see color and highlights as normal aspects of grooming, and teens who use color as a form of self-expression. Customers return every six weeks on average. When you factor in those estimated 61% o Americans who use home color products due to cost – you see a huge potential market.

HCX is poised for tremendous growth, supported by the same operational system used to grow Subway. “The typical franchisee in the HCX system is a business professional, usually with previous franchise experience,” says Fleming. “HCX uses development agents who manage an entire territory and work directly with the franchisees in their territory. Besides guiding them through the start up process, the development agent is a continuing resource, helping the franchisee obtain quick and continued profitability.”

In some cases, the business partner is paired with a licensed beauty professional, who becomes the hands-on manager of the salon or of the territory. Franchisees receive extensive training, both at the corporate office and at the salon prior to opening. The hair color used is Wella’s European line of products and Wella experts also provide in-salon training. Franchisees receive franchisor assistance on every aspect of the operation, from site selection and build out to marketing and personnel management.

And speaking of site selection, HCX salons are positioned in prime, heavy-trafficked areas. The salons typically run 1,200 to 1,400 sq. ft. and are appointed with the most up-to-date equipment and a marble and wood décor that compliments the spacious, open atmosphere.

Finally, there are some additional perks provided by HCX to help the franchisee achieve success. They have sophisticated and proprietary web based technology to allow an owner to track and monitor the business from anywhere in the world. Salon employees are paid a competitive salary and receive health insurance, a benefit uncommon in the beauty industry. Ongoing education is available to employees who want to achieve greater career success. They even have a unique savings program that helps employees interested in opening their own HCX salon. As Fleming says, “We’re an entrepreneur business so we wanted to make that same career path available to our colorists and stylists.”

“Our business is very simple,” says Fleming. “We look to give the highest quality hair coloring service done by the best-trained people in the hair care industry.”