The hair franchise industry, which is worth $486 million according to market research firm IBISWorld, comprises hair salons, barbershops and hair care retailers.  As well as hairdressing and hair styling, salons might also typically provide services like hair colouring and extensions as well as sell hair care products.

These value-added services can increase per-customer spend, although their discretionary nature has left them vulnerable to Covid-19-related economic stress. Expect them to become more lucrative again as economic statistics improve in the coming months and years.

In the meantime, franchises offering the lowest prices are perhaps well placed to thrive.

Aspiring franchisees are well advised to be particularly stringent in their due diligence, because while most people pay a professional to cut their hair, competition for this reliably large demand is fierce.

Franchise industry analysis

You rarely need to be a trained hairdresser or have any experience of working in the sector to buy a hair franchise.  While TONI&GUY, for instance, prefers franchisees to have been employed by them for at least 6-12 months first, it will consider owners of other salons or businesses in other industries.

In return for their investment – as low as $75,000 for TONI&GUY – franchisees receive training and support in a range of areas, including operations, marketing, HR, business development and technical support.

TONI&GUY has won more than 100 awards, sponsored Fashion Week Australia, and offers a fixed salary plus a percentage of profits and dividends.

Just Cuts franchisees, meanwhile, can work fewer than 30 hours a week, yet more than half now own two or more salons.

On the hair retail franchise front, Hairhouse has more than 125 stores and salons nationwide, selling both hair care products and services, while Price Attack is a pure retailer with more than 6,000 product lines.