Editor’s note: This article was first published in September 2010 and describes the Spanish franchise market at that moment; the most profitable sectors, Naturhouse’s 1,200 centres in Spain and the cuts to renewable-energy subsidies reflect that time, and some franchises named may no longer operate.
Taking another look at the franchise sector as a business option, and after talking to various franchisees and to sales directors who supply franchises, they all agree on one thing. The most profitable franchises right now are those devoted to body image and personal care, and above all those focused on the women’s market, without ignoring men.
When we talk about body image and personal care, we mean hair removal, diet and nutrition, photoepilation (light-based hair removal) and the latest novelty offered by the expanding franchise Lipocero: fat removal without surgery, something that has caught consumers’ attention.
They are also the ones paying back the invested capital the fastest (fast payback), so here is a summary of the ones we found most striking and with the greatest capacity for expansion, especially in Spain.
Another franchise worth mentioning is Naturhouse, which already has 1,200 centres in Spain.
There is a short explanation for why these franchises are doing well. The women’s market has always been a high-spending one, and women look after themselves whatever the times. As the director of Bye Bye Pelos puts it, women have always removed body hair and are not going to stop now, just as they are not going to stop taking care of themselves.
Natural medicine and herbalists’ shops are also in strong demand. Some time ago we recommended a franchise in the renewable energy sector, but because of the cuts in subsidies for that sector it may not be the most advisable choice “for now”.
We will keep analysing the franchise market.
Further reading: Advantages and disadvantages of buying a franchise
Featured image: Mark Wallace, CC BY 2.0, via Flickr.
