Salon Suite Franchise Review: Is This $2.5M Deal Worth It?

In this episode, the hosts dive into a salon suite franchise deal in the beauty industry — and why they ultimately gave it a thumbs down. Thank you to special guest @ConnorGroce for being featured on this episode. To connect with Connor head to: https://www.connorgroce.com/ Business Listing - https://www.bizbuysell.com/business-opportunity/roi-immediately-3-salon-suite-franchises-in-the-ny-tri-state-area/2349645/ Sponsors: 🔹 Inzo Technologies - Get a complimentary IT audit for your acquisition with Nick Akers at Inzotechnologies.com. 🔹 Capital Pad - The marketplace for buying small businesses and raising capital. Learn more at CapitalPad.com. 🌐 Website: https://www.acquanon.com/ 🐦 Twitter: https://twitter.com/acquanon ✉️ Subscribe to our Newsletter and get more deals like this every week: https://www.acquanon.com/newsletter 🔔 Subscribe to Acquisitions Anonymous: https://www.youtube.com/@AcquisitionsAnonymousPodcast?sub_confirmation=1 🎧 Listen to our full episodes on your favorite podcast platforms: https://www.acquanon.com/episodes Episode Description: In this episode, the Acquanon team reviews a deal for three salon suite franchises located across the New York Tri-State area. While the concept of a passive, real estate-light business in the beauty industry sounds appealing, the hosts dig deeper into the financials, occupancy risks, personal guarantees on leases, and the high asking price. They break down why the deal, despite some attractive aspects, ultimately didn't meet their investment criteria. Key Highlights: - Overview of the salon suite franchise model - Why occupancy is critical to profitability - Risks of relying on weekly-paying, potentially flaky tenants - The hidden dangers of personal guarantees on leases - Why the asking price relative to cash flow made the deal unattractive - Discussion about franchisor support (or lack thereof) - How fixed costs create revenue durability risks