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Expansion plans for Luminiere Skin Clinics may include India

Franchise News India:┬áCameron Fancourt, franchisor of Luminiere Skin Clinics sees the prediction of consolidation as a huge opportunity.”I think it’s a way small operators can grow their business but still be part of it, if they can’t afford the operating costs.”

Fancourt says the current legislation allows for nurses to perform injectable treatments in clinics without a doctor present. However, he adds, any change to tighten up regulations and require a doctor on the premises would have an impact on the beauty business with increased operational costs for many salons.

Fancourt ┬áprefers to refer clients to doctors to conduct the treatment off-site. But he is looking at a particular business opportunity that will add flexibility without cost, or liability. “It will be like a sub business, they cover all the professional indemnities and the liabilities are on them,” he explains.

“We’re certainly getting more enquiries for results-based treatments and there is a greater rate of return than on smaller ticket items; $1000 versus $3000 to $1200 for anti-ageing in the same time scale.”

INVESTMENT MODEL

Of course there is a greater investment required to enable salons to offer machine-based treatments and gain the ongoing returns. However Fancourt has a solution to help franchisees with upfront costs.

“We’ve worked out a model with suppliers to get finance for equipment purchase. Franchisees pay back over a two to three year period so payments come out of operating capital. We understand the pressures.”

The clinic chain typically has a high street presence, with the original outlet in Noosa situated on the street side of a local shopping centre.

“I’m keen to explore shopping centres more but there is more for landlords to do, their costs have to be more realistic,” explains Fancourt. “Our model works better on a smaller rent base.” The business has Melbourne in its sights right now.

“Our space has greater equipment costs but greater average sale, and needs fewer staff. Typically it takes a day spa six or seven rooms to generate $40,000 a month; we can do the same in three rooms with fewer staff.”

Expansion plans for this brand may include India – in a joint venture with the Indian-born Randwick franchisee who sees great potential for the clinic.

Source: franchise.

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