- 2023 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$38K - $178K
- Units as of 2021
1,007 11% over 3 years
Imagine owning and running a skincare and cosmetics retail business. Sound like fun? If you're passionate about fashion and beauty, opening a Merle Norman Cosmetics franchise might be perfect for you.
The Great Depression didn't deter the glamorous Merle Norman from beginning a beauty products business. In 1931, she pioneered a 'try before you buy' strategy that helped her grow even when other brands were closing shop. A few years later, she empowered other women to start their businesses by selling her products in their studios.
In 1973, Merle Norman Cosmetics began franchising. It boasts hundreds of locations across the United States and Canada.
Why You May Want to Start a Merle Norman Cosmetics Franchise
Over 80 years after its inception, Merle Norman Cosmetics still strives to offer reputable and top-of-the-line products that cater to customer needs. Today, franchisees with Merle Norman Cosmetics have opened their own exclusive cosmetics locations.
The company may use a state-of-the-art control unit to ensure the best value for franchisees. With its efficient way of developing, manufacturing, and packaging its products, franchisees have been able to keep customers coming back.
To be part of the Merle Norman Cosmetics team, you should make sure you’re financially ready for an initial investment made up of startup costs. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
What Might Make Merle Norman Cosmetics a Good Choice?
The company usually offers three main ways to open a franchise. The first way is to open a Merle Norman Cosmetics studio in a high-traffic location like a mall, standalone building, or strip center. Its franchisees may edge out the competition as they offer high-quality products in a convenient location.
Besides starting your own Merle Norman Cosmetics franchise from scratch, you may also choose to purchase an existing cosmetic studio. This could be a good way to start, as you typically get an established location and existing client base.
Finally, you may add a Merle Norman Cosmetics franchise to your existing business. The company tries to help you enhance your retail experience by offering high-demand products. A Merle Norman Cosmetics franchise may work well in conjunction with boutiques, gift shops, salons, jewelry stores, pharmacies, and beauty product retail shops.
How to Open a Merle Norman Franchise
You might start with a small studio that fits your budget in a strip center, mall, or free-standing store. Moreover, the Merle Norman Cosmetics corporate team may provide you with marketing advertisements. This may include radio advertisements, print advertisements, posters, and brochures.
The company's effective marketing strategy may be the community relation approach through special meetings, newsletters, and phone hotlines. They generally offer free samples of new products to attract more customers.
The franchisor might help you select a suitable location, negotiate the lease, and create the studio design. Your staff typically will undergo training to familiarize themselves with the wide range of products you may sell to your customers. Point-of-sale software and annual continuing education conferences may help franchisees run their business efficiently. Are you ready to find your place in this beauty empire?
About Merle Norman Cosmetics
|Franchising Since||1973 (50 years)|
|# of employees at HQ||234|
This company is offering new franchisees throughout the US.
|# of Units||1,007 (as of 2021)|
Information for Franchisees
Here's what you need to know if you're interested in opening a Merle Norman Cosmetics franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
|$37,671 - $177,888|
Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
|$100,000 - $250,000|
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
|$25,000 - $100,000|
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
|$3,500 inventory credit|
Term of Agreement
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
|Is franchise term renewable?||Yes|
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
|In-House Financing||Merle Norman Cosmetics offers in-house financing to cover the following: inventory|
|Third Party Financing||Merle Norman Cosmetics has relationships with third-party sources which offer financing to cover the following: startup costs, equipment|
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
|Classroom Training||40 hours|
Meetings & Conventions
Security & Safety Procedures
Franchisee Intranet Platform
Additional details about running this franchise.
|Is absentee ownership allowed?||Yes|
Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
|# of employees required to run||2|
Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where Merle Norman Cosmetics landed on this year's Franchise 500 Ranking versus previous years.
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