goGlow: Disrupting The Spray Industry

goGlow wants to disrupt the $1.8B spray-tan industry.

Franchisees can capitalize on:

• Incredible margins (~35%)

• Custom-built equipment

• Genius labor model

• Recurring revenue

Here we go 👇️ 

Business Model

goGlow provides airbrush spray tans.

The founder, Melanie, has developed a line of natural skin care products and proprietary equipment to provide a consistent experience.

Many customers purchase a monthly subscription of $50 to $100.

Within 90 days of signing, you launch in a salon suite.

This launch strategy allows you to:

• Hire your team

• Learn the business

• Build recurring revenue

At the same time, you start looking for a "flagship" retail location. This will be ~1,200 square feet in a nice strip center.

It'll take you 6 to 9 months to find & build out the salon. The good news is you're building the business in the suite during this time.

I love this strategy.

How Much Money Can I Make?

The 2023 FDD Item 19 provides 2022 P&Ls for the three corporate locations.

The locations averaged $485k in sales with "revenue less disclosed operating expenses" of $236k (35%).

The best did $949k sales & $409k.

COGS only 13.8%

Payroll is only 17.5%, including the management

Genius Labor Model

Payroll costs are normally around 25% for most businesses.

How do they keep payroll so low at only 17%?

The FDD includes details on their corporate labor model. The average hourly wage to the employer is only $12.47, but employees receive over $18 tips per hour, netting them $31 per hour in total comp.

They can teach anyone how to provide a goGlow. This creates a huge labor pool with no certifications needed.

Customers book a time & whoever is on schedule applies the spray tan. In other salon businesses, customers are loyal to the employees & will follow them to a competitor.

Employees also have flexible schedules & many work part-time.

To summarize: $31 per hour, flexible schedule, and anyone can learn how to do it.

Start-Up Costs & Ideal Franchisees

$232k to $398k for a single location. This includes the franchise fee, flagship build-out, opening inventory, working capital & more. Item 7 of the FDD has the full breakdown.

They offer multi-unit development deals for qualified candidates.

goGlow requires female ownership. Their ideal franchisees are strong females leaving Corporate America or power couples passionate about health & beauty.

Background

goGLOW was founded in 2011 by Melanie Richards.

They started franchising in Q4 of 2023. Today they have 4 corporate locations and 3 franchisees, including a former C-Suite exec from European Wax Center.

Check out my podcast with Melanie to hear the full story.

Next Steps

My team helps people buy their first franchise.

Want to learn more?

👉️ Reply with your name, phone # & zip code

We'll confirm your market is open & provide resources to help you with due diligence.

Costs you absolutely nothing.

Cheers!

Brian Beers