The hype, the celebrities, and the glamour of the beauty industry makes it very attractive to any individual with a creative streak. For this reason, this industry is recession proof and it can survive through good times and bad. Venturing into this industry has many benefits; it provides opportunities for a flexible and rewarding life for anyone with an artistic background or with a strong interest in creativity.
For those who decide they want to run their own business within the industry, the initial start-up process can be quite challenging, even with extensive previous experience.
Note that the risks associated with starting a new business are enormous, so for some, franchising offers a better alternative to bypass the initial start-up phase; the business will already have a proven track record and established operating procedures that have been shown to work.
As we all know, beauty and skincare is very personal and consumers prefer to build trust in a brand before adopting it into their daily routine. This is a process that takes time and requires that a business has some proven record of integrity. If you are looking to start a business but you cannot boast of substantial capital outlay, it can be an alternative option to leverage a company-owned franchise like MAC Cosmetics.
A good number of MAC Cosmetics stores are franchises. The company owns over a thousand franchised shops apart from their own independent stores. MAC is an abbreviation for Make-up Art Cosmetics. It is a cosmetics manufacturer founded in Toronto in 1984 by Frank Toskan and Frank Angelo.
The company is headquartered in New York City and became part of the Estée Lauder Companies in 1998. By the 1990s, the brand had more than a hundred stores worldwide, earning 200 million francs. Note that the development of the brand internationally, the opening of new points of sale, and the adaptation of product lines tailored to each continent, left little time for the founders to create new products.
In 1994, the Estée Lauder Companies took control of 51% of shares of MAC Cosmetics and began managing the business end while the two founders retained creative control. In 1997, co-founder Frank Angelo died of cardiac arrest during surgery at the age of 49. At that time, MAC had revenue of US $250 million, which doubled ten years later.
Estée Lauder Inc. completed the acquisition in 1998, and Frank Toskan chose to sell his remaining shares shortly thereafter before leaving the company at the end of the same year. MAC Cosmetics is named one of the top three global makeup brands, with an annual turnover of over $1 billion, and 500 independent stores, with over thirty stores in France.
All MAC cosmetics stores are run by professional makeup artists. With so many thousands of franchised stores worldwide, MAC cosmetics has proven to be the world’s leading professional makeup authority because of their unrivaled expertise in makeup artistry. MAC is an official makeup brand, used to create makeup for movie actors.
The most popular products by the brand are Studio Fix Fluid and Ruby Woo Lipstick. If you intend to be a part of this growing MAC cosmetics franchise company, you will have to consider some things.
The very first thing you should consider is its profitability. You should be able to determine how much percentage you will be earning during a considerable period of time. You should also consider your investment and make sure that you have enough amount of money to even start a MAC cosmetics franchise
Financial Requirements of Starting a MAC Cosmetics Franchise
It is imperative to note that MAC Cosmetics does not make available crucial information relating to its franchise, especially on the Internet. Instead, all interested entrepreneurs are advised to contact the company directly and also stick to their non-disclosure arrangement.
How to Acquire a MAC Cosmetics Franchise
MAC Cosmetics are currently accepting franchise application. The company receives approximately 20,000 franchise inquiries per year. Over the past five years, they have selected an average of 75 to 80 new franchise operators per year based on their global goals for worldwide expansion in specifically targeted markets.
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Submit your information
The first step with acquiring a MAC Cosmetics Franchise is to visit the company’s website and submit your request and information. You will get a call from one of the company’s representatives and have the opportunity to speak to one of the current owners. The company will also give you details on their free one-hour webinar presentation.
Hire a Franchise Consultant
Regardless of the amount of information available online, the company believes is a good idea to enlist the help of a franchise consultant to help guide you through the process. Just like a real estate agent is a good ally when acquiring a home, a franchise consultant has industry-specific knowledge and can relate possibly complicated topics (including aspects of franchise agreements and disclosure documents) to you in a more understandable way.
Attend a ‘discovery day’
A discovery day is an in-depth meeting between the company and their potential franchisees. Note that it can take place at a local outlet of the franchise, but will most likely happen at the company’s corporate office.
The franchisees in attendance will enjoy presentations about what MAC Cosmetics can offer in terms of support, and can ask questions. If done at the corporate office, a tour of the different departments and introductions to franchisee training and support personnel are common.
Speak to other franchisees
Also, within the FDD provided by the company is a listing of all current franchisees in their system. Take your time to find a few that are close to you and pay them a visit. Are they satisfied with the MAC Cosmetics support? Is the reality of running the business in line with prior expectations (financially and otherwise)? There’s no better teacher than someone in the middle of franchise ownership.
Find a suitable location
MAC Cosmetics delineates certain parameters for your territory in the FDD and franchise agreement. In addition, the company also helps with site selection. In fact, MAC Cosmetics will have to approve your location before you can move forward.
- Sign the agreement
Unlike most franchisors, MAC Cosmetics may offer you a chance to negotiate terms in the agreement. However, just like it was stated above, it is imperative to seek counsel from a lawyer or a franchise consultant to find the best solutions for your particular situation. But just keep it in mind that MAC Cosmetics success in the industry is based upon a proven system and consistency of the brand.
Obtain all necessary permits and insurance
Regulations tend to vary by state, city, county, etc. Nonetheless, MAC Cosmetics will offer you background knowledge of the permits and insurance needed to operate their business system. However, it’s a good idea to check with local authorities to ensure compliance.
Hire staff and attend training
One of the most enticing aspects of franchising to those wanting to open a business is the training component. MAC Cosmetics offers training twice a week, in a combination of classroom and practical experiences, to at least the franchisee and another manager. A copy of the franchise operations manual is also typically presented at this time.
Open your franchise business
Before opening, you need to alert potential customers to their new marketplace option. MAC Cosmetics defines a strategic process for signage, ads, and other initiatives to be performed. Estimates for these initiatives will usually be a part of the start-up costs quoted in the FDD.
Today MAC cosmetics continue to expand to new territories offering franchise to new aspiring franchisees seeking global business investment with a profitable return. The Return on Investment and success is guaranteed. If you intend to be part of this global success of MAC cosmetics, then here is your unique opportunity. MAC cosmetics is currently accepting franchise application from qualified entrepreneurs and business merchants