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Why Multi-Unit Franchisees are Investing in MedSpa Franchises to Expand and Diversify their Portfolio

The conventional wisdom is right. If you’re a multi-unit operator or a business owner, it’s better to diversify and expand and spread your risk. Even nature works that way. Think of frogs, who may lay 2,000 or even 20,000 eggs. They do that because they know the odds are, most of their offspring won’t survive. Frogs hedge their bets.

Businesses leapfrog over their competition in the same way. You can sell one thing and hope the market for it always stays steady, but chances are, like anything, demand for a certain product or service will ebb and flow.

That’s why, if you’re a multi-unit operator who specializes in running successful franchises, we respectfully suggest that you consider investing in a Beverly Hills Rejuvenation Center. We have a few arguments that we’d suggest you consider.

The Current Market

The market opportunity is early in the growth cycle, and while there is a lot of room to grow, as the market matures, the opportunities will obviously diminish. Getting into this market now, while waiting for it to mature, means you’re giving up the opportunity to get a firmer foothold in the medical spa industry.

That sounds like hyperbole, but don’t take our word for it. If you do your research on the industry, it’s hard to not come away impressed. In 2010, there were 1,600 medical spas in the United States; in 2018, there were 6,582 – according to the Medical Spa State of the Industry Study in 2018-2019, put together by the American Med Spa Association and the Gordian Solutions Group.

The average medical spa revenue in 2018 was $1.5 million, up 9 percent from 2017. In other words, the current market is phenomenal, and there’s no reason to think it won’t continue to be. Even if there were to be an economic downturn at some point, many career professionals get anti-aging treatments to stay competitive. They see it as an investment in their future and not something they can afford to put off doing.

Entrepreneur Friendly Business Model

According to the aforementioned Medical Spa State of the Industry Study, 24 percent of medical spas are owned by entrepreneurs (as for the other 76 percent, most of the rest are owned by medical professionals, such as physicians and registered nurses). If you aren’t a medical professional, we can offer guidance in finding the medical professionals you need to run the day-to-day operations – and if you are a medical professional, our business model will allow you to run the day-to-day operations without consuming so much of your time that you no longer have time to see patients.

In any case, we offer a professional services environment that attracts upscale clientele. It’s entrepreneur friendly, but it’s also a model that’s attractive to professionals who want to look younger and feel better.

It’s also a business model that offers a lot of support to franchisees, from guidance with site selection and build out as well as training and marketing and ongoing support.

The Financials are Fantastic

As you’ll see if you hopefully begin the discovery process and ultimately schedule a conference call to review our Franchise Disclosure Document information in detail.

The EBITDA is, frankly, remarkable. The EBITDA, as you likely know, is the earnings before interest, tax, depreciation and amortization – especially for entrepreneurs who are not doctors. Why do entrepreneurs arguably fare even better than physicians? Doctors’ expenses are often hammered by the insurance industry. A medical spa doesn’t work with insurance (which obviously makes it attractive for medical professionals who want a business that isn’t hamstrung by the insurance industry).

If you’re an entrepreneur with one BHRC, but especially if you’re developing a market area, which would mean you would have at least three centers, you don’t have to worry about seeing your cash flow shaken up and upended by reluctant-to-pay insurers. In fact, franchises tend to see outstanding first year sales that minimizes cash infusion.

Look, running a business is hard, and there are no guarantees that any business will succeed. If you feel that you aren’t a good fit for buying a BHRC, obviously we hope you don’t consider becoming a franchisee – and that you look in an area of business where you do think you’ll thrive. But if you check a lot of the boxes (i.e., you already own a franchise or two, you’ve always wanted to develop a market area and own multiple franchises, you’re a doctor or nurse) then, obviously, we hope you will consider becoming a BHRC franchise.

Because while starting any business means taking a chance that may or may not pay off, we think sticking to conventional wisdom in this case isn’t much of a risk. Diversifying, expanding and spreading your risk means that you’re taking the less risky path. And it’s in our nature to want to avoid risk, which is why you should buy a BHRC. You’ll not only be starting in an industry that is growing by leaps and bounds, you’ll have a partner that wants you to prosper and thrive as much as you do.

If you’re interested in learning more, click here to see how you, too, can take advantage of the rapidly growing medical spa industry.

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