With over 100 units already committed, business is booming for the wellness industry disruptor, and entrepreneurs are taking notice.
Heyday, the brand that’s transforming the $7 billion skincare services industry, is reinventing skincare by meeting the demands of today’s consumer. It’s also meeting the demands of franchisees, creating a unique opportunity for entrepreneurs in the wellness space.
The numbers speak for themselves. In its first year alone, Heyday has signed 115 franchise agreements for new locations across the country with countless more on the way in 2022, accomplishments that are on par with those of a five-year franchisor. With a goal to award 142 total units before the end of 2022 and open at least 300 locations by 2026, Heyday has big plans and a bright future, and franchisees are taking notice.
Here are just some of the reasons prospective owners are lining up to buy a Heyday franchise.
Heyday Is Viable In Any Market
Heyday started in New York City and later expanded to Los Angeles. But the concept is hardly limited to the country’s largest metropolitan areas. The brand’s first franchise unit opened in Bethesda, Maryland, in 2021.
“Our Bethesda franchise is proving to be everything that we expected it to be — that our franchise partners deserve it to be — and more,” said Dennis Campbell, vice president of franchise development at Heyday. “Suburbia has a massive appetite for this kind of service.”
With over 500 defined prime territories across the country, Heyday’s opportunity for growth is limitless.
“There is no competitor today that is trying to build the same business that we are,” said Arielle Mortimer, Heyday’s chief operating officer. “There is demand there. People are really starting to gravitate towards and prioritize skincare as wellness and as self-care. Because of all the white space, we have amazing territory opportunities for our franchise partners to be first to market.”
The Membership Model Brings Recurring Business
Heyday’s major-market locations enjoy the benefits of walk-in traffic. But a Heyday doesn’t have to be on Fifth Avenue to thrive. Because of its membership-based model, Heyday locations are viable wherever the demand exists. Memberships make up 50% of Heyday’s revenue. And as more people begin to prioritize skincare as part of their general wellness routine, Heyday is poised to make facials more accessible than ever with its membership-based services.
The brand also goes to great lengths to set its franchisees up for success by helping them cultivate a viable customer base before opening. It conducts pre-sales and actively engages with the local community to offer a heavily discounted first-time facial, with the aim that after a client experiences the service, they’ll recognize the value and purchase a monthly membership.
“This is not a ‘turn the open-for-business light on and rely on walk-ins’ business,” Campbell said. “Everything we do is very calculated. It's membership-based. It's habit-forming. It’s very intentional.”
Heyday Estheticians See Less Turnover Than Most Competitors
Hiring and retention are major challenges, especially during the era of The Great Resignation. But Heyday isn’t feeling this impact nearly as much as others in the wellness space or those in other industries, because their employees are trained estheticians who don’t want just another job - they want a career. And they’re finding it at Heyday.
“We’re a neck-up service, which is kind of the gold star of where estheticians want to go and hang their hat,” Campbell said. “It's just an amazing environment for your staff to come to work every day, and our franchisees empower their staff and make them feel like they’re a part of something bigger.”
Because of this, Heyday’s average turnover is just 15%, much lower than the industry average of 35%.
Esthetics is one of the fastest-growing fields in America, as the employment of skincare specialists is projected to grow 29% this decade, much faster than the average for all occupations. With enrollments in esthetician schools rising in many markets, the supply of qualified skin experts appears to mirror the demand generated by Heyday’s meteoric growth.
The Initial Investment Goes A Long Way
Startup costs to open a Heyday range from $768,300 to $1,012,300. But there’s more to these numbers than meets the eye.
These startup costs are based on early Heyday locations that were opened in two of the most expensive markets in the country, New York and Los Angeles. The reality is that startup costs for franchisees will be relative to the market in which the owner will operate, meaning the potential costs may be on the lower end of the spectrum depending on real estate options. There is also the opportunity to offset startup costs with the potential for attractive top-line revenue, operating profit and overall scalability.
“If you look at our top-line revenue sales* versus any other concept out there in the health and wellness space, they're not even close,” Campbell said. “Of the best-in-class health and wellness concepts — massage, lashes, boutique fitness — Heyday is going to be the dominant player in the space.”
Heyday hasn’t just taken the facial out of the spa and created a monthly habit among its members - it has also built a unique and proprietary business model that’s allowing franchisees to carve out a niche in the wellness space.
Multiple Revenue Streams Prove Heyday Is More Than Just Facials
Its multiple revenue streams is perhaps the most significant way in which Heyday positions itself against other service-based opportunities in the health and wellness space. Heyday is more than just a monthly facial — it’s a skincare lifestyle that extends beyond the one-on-one interaction with the esthetician, and even beyond the walls of the brick-and-mortar location.
The membership model begins with labor as a service — that’s the monthly facial. This is where most health and wellness service providers’ revenue stops. But Heyday also offers franchise owners revenue streams via enhancements, product sales, and e-commerce.
Enhancements include LED light therapy, gua sha, microdermabrasion, and chemical peels, which are additional services that live within that 50-minute facial - so estheticians don't need extra time to do these enhancements. They are upsells that are wrapped within the base facial product.
Heyday also provides skincare products both in-store and online. “We provide members with a home routine, and they are able to buy products so they can really approach their skincare in a completely different way,” Campbell said. These product sales create yet another revenue stream for franchise owners, and with 55% of consumers across the retail spectrum visiting a store before buying online, the e-commerce extension of the Heyday business allows for increased revenue opportunities once the consumer has left the store.
“It's a very unique differentiator,” Campbell said. “We’re not just a one-trick pony. There are so many different opportunities to provide value to the clients and the members of Heyday.”
It’s just another reason why prospective franchise owners are lining up to buy a Heyday franchise in 2022.
Heyday’s startup costs range between $768,300 to $1,012,300, depending on which market the store is located. Other factors like design, configuration and labor costs will also impact the total investment. Click here to see the full cost breakdown.