Why Multi-Unit Franchisees are Buying Botox Businesses

Here at Beverly Hills Rejuvenation Center, we pride ourselves on being on top of trends. It’s more than a source of pride. It’s a big part of our business model. When you specialize in helping people look and feel better, you need to understand what treatments the public wants.

We’ve noticed another recent trend for entrepreneurs and investment groups. Multi-unit franchisees have been increasingly purchasing Botox businesses.

Why is that? We have a few theories.

The Botox Industry is Growing

No entrepreneur wants to put capital into a losing proposition, but it’s especially risky for a multi-unit franchisee to take on a dying franchise. One sick brand can offset the gains a company is making on its other businesses. In the case of anti-aging centers and medical spas, the industry has been posting double-digit revenue gains since 2010. This is according to the American Medical Spa Association’s 2017 Medical Spa State of the Industry Report. It’s a $4 billion industry that is expected to hit $6 billion by 2026. A medical spa, such as Beverly Hills Rejuvenation Center, is the sort of investment that is going to energize and strengthen a multi-franchise operation.

A Botox Business is Profitable

The profit margin of a typical, stand-alone medical spa or Botox business is about 10 or 15 percent, according to AmericanSpa.com. That may not sound like much until you consider the average profit margin for other industries. For restaurants, the average profit margin is three to five percent. Where a medical spa’s profit margins really start to look amazing is when it can be paired with another franchise. For instance, if a medical spa is located on the same property as a hotel franchise, suddenly it’s the hotel franchise paying the bills for the overhead, such as the rent and utilities. In that case, the profit margin is often around 40 percent.

There are other options if that doesn’t work for you. If you own a restaurant or a clothing store, and there’s no attaching a medical spa to either brand, you can share expenses across multiple brands. If you own several franchises in one geographic location, you might share human resources. That means you have people working at multiple brick and mortar locations.

A Medical Spa is Easy to Manage

You’d be surprised by how easy it is for a multi-unit franchisee to oversee a medical spa, like BHRC. This is because you’re hiring a practicing physician who is properly trained in all your services. By hiring capable staff, you reduce your involvement in day-to-day affairs.

However, it’s important to understand that, given the regulations that need to be followed, a Botox business isn’t an easy operation to get off the ground. That said, the more successful your company is, and the more support you can provide, the easier it gets. If this is an additional franchise, it’s going to be even easier. After all, the more people you trust in your business, the more likely you’re working with a well-oiled machine.

We’ve seen a trend of multi-unit franchisees moving to medical spas and Botox businesses. Are you interested in learning more about opening your own Botox business? It’s easy to find out how you can get you can get started in the rapidly growing medical spa industry. Reach out to Beverly Hills Rejuvenation Center today.

Beverly Hills Rejuvenation Center
Original Post Date: 
July 22, 2019
Date Last Updated: 
October 23, 2021


* location individually licensed, privately owned & operated

Ready to Start your own
medical spa franchise?

Take the first step. Contact us to find out more today!

Ready to Start
your own
medical spa