🍟 5/19/2022 – Spa Franchise Doing $2.6M in Revenue!
MEET A ZEE
Betsy Feaster: PetWellClinic & Dog Training Elite
Her and her husband Ed are both passionate dog lovers, and so they wanted their entrepreneurial ventures to revolve around pets, as well as businesses that can make an impact in their communities.
Here’s my top 3 learnings from our conversation:
1. Horizontal Integration
This is the second podcast with a multi-brand franchise owner that’s horizontally integrating in an industry.
Betsy aims to build many locations of PetWellClinic, as well as build out a few territories for Dog Training Elite.
When she does, she’ll be able to refer customers of both businesses to the other – which will lower her customer acquisition cost across the board!
2. Short Term + Long Term Pay Periods
For Betsy, PetWellClinic is a longer-term play that will take some time to develop. In the meantime to pay the bills, she’s using Dog Training Elite to generate cash flow.
As a business that doesn’t require brick & mortar locations, Dog Training Elite can be up and running far quicker, and bring in profit while she’s investing in building her PetWellClinic empire.
For a primer on Dog Training Elite, check out the edition from November.
3. What PetWellClinic is Solving For
PetWellClinic is a super interesting concept. Betsy tells a story in our convo that illustrates the current problem they’re trying to solve in pet industry:
Her dog was sick with a non-lethal stomach problem that required attention. What her dog needed was basic medication that would be akin to humans doing an over-the-counter pickup at a CVS, Walgreens, Duane Reade, etc.
But instead, her only options were:
A) Wait multiple weeks for her vet’s next open appointment
B) Sit in the emergency room of the pet hospital for TEN HOURS
Her husband waited it out in the emergency room, but ultimately this could’ve been dealt with much quicker if there was a walk-in vet clinic that was designed for quick service treatment of non-life threatening conditions for pets.
That’s exactly what PetWellClinic does for dogs and cats, as they aim to be a national brand the same way Urgent Care is for humans!
To hear our conversation in full, click here!
FRANCHISE OF THE DAY
VIO Med Spa
- Founded in 2017, franchising since 2018
- Based in Ohio; 10+ locations open at the end of 2021
- Beauty and wellness spas
Fees + Investment
- Royalty: 6%
- Brand Fund: 1.5%
- Franchise Fee: $50,000
- Initial Investment: $938,034 – $1,240,148
- The below tables are from a company owned outlet and 5 franchised outlets.
The Wolf’s Take
VIO is on the high end of the spectrum when it comes to their initial investment, but currently is showing the potential of a solid payback, with certain locations doing as high as $2.6M in revenue!
VIO Med Spa is in the Aesthetic Medicine Industry – here are some quick stats*:
- 87% of clients are female
- Average spend per visit is $459 – $465
- 66% of visits are from repeat customers
- Greatest growth potential is in anti-wrinkle products
- Average med spa revenue in 2018 was ~$1.5M in 2018
- Medical spa revenues growing 20%+ annually since 2013
- $12 billion industry in 2018, projected to be $26 Billion by 2024
- Women aged 35-54 years old make up 53% of the med spa market
- Women aged 17-34 years old make up 24% of the med spa market
*Source: American Medical Spa Association and Grandview Research State of the Industry Report, 2019
This is a high-end concept targeting consumers with disposable income. Given the stat’s above, it’s clear this business is one that helps men and women look younger as they grow older.
With that said, I’d imagine this concept could do very well in tier 1 and tier 2 cities (think: NYC, LA, Chicago, Miami, Boston, San Diego, Phoenix, etc.), as well as upscale suburban neighborhoods.
If you’re interested in the concept, checkout the franchise website!
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