Franchising Today - Fall 2016 - 83

REGIS CORP.

time, Regis was opening about 50 salons annually and was
looking for a way to boost its expansion rate. "We were
looking at the business, we were seeing performance by
our franchisees and they were performing pretty well,"
Bakken explains. "We knew we had some strong brands
to expand through franchising."
The review showed Regis that franchising had the potential to protect and grow its share of the hair-styling
market. "We liked what franchising brought to the table
and we decided to move forward at that point," he says.

Providing SuPPort
The vast majority of franchisees come to Regis with no
previous salon experience. Instead, the company looks
for well-rounded people with business acumen and who
are good with people. Regis believes if it has quality franchisees in place it can train them to operate a salon. "We
need people that really understand that this is a people
business and they have to be able to deal effectively with
people," Bakken says.
Regis prides itself on its brand equity and ability to
provide significant support to its franchisees. The folks
on the company's franchise leadership team have an average of 20 years' experience in the salon business and
understand how to nurture franchise locations. "We
want to provide a real advantage to our franchisees so
they can focus on opening their store, securing strong
staff and getting their marketing in place," Bakken says.
It begins with the real estate team. Regis helps franchisees find locations and in most cases the company even
signs the lease, putting its own credit on the line. The
company's construction team then takes over. A majority of new franchisees assign Regis to work with a general contractor to build out the location, install fixtures
and deliver furniture. As the opening date approaches,
the franchisee heads to Minneapolis to complete training and orientation. Stylists also receive comprehensive
training. In the Supercuts brand, for example, stylists
receive 40 hours of initial training, with annual recertifications and seminars to follow. "Training is one way we
try to make sure we're consistent in the guest experience
we're delivering," Bakken explains.
Regis' involvement with the franchisee continues after
the grand opening. The franchise operating team continues to work with the franchisee as long as they own
the business, and another group reviews the location's
metrics on a periodic basis to ensure smooth operation.
Franchisees can also buy everything they need to run

their salon directly from Regis, though that service is optional. "A high percentage of franchisees buy something
from us and a lot of them buy everything from us," Bakken says.
Open communication is key to managing the relationship between corporation and franchisee. Regis sends
out weekly emails to owners and has an online portal
salons can access to receive the latest news and releases,
including branding guidelines and materials.
It's important to note that for all of its efforts in expanding franchising, Regis still primarily deals in corporate-owned salons. Bakken says that has actually helped
the company better understand the business and support its franchises. "We're not just in it for franchise royalties and revenues, we run stores," he explains.
The focus on growth through franchising has seen positive results over the past several years. Regis added 217
franchise salon locations in 2015 and another 229 this
year. "We expect that will continue on a similar path,"
Bakken says.

FALL 2016

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Table of Contents for the Digital Edition of Franchising Today - Fall 2016

Contents
Franchising Today - Fall 2016 - Cover1
Franchising Today - Fall 2016 - Cover2
Franchising Today - Fall 2016 - 1
Franchising Today - Fall 2016 - Contents
Franchising Today - Fall 2016 - 3
Franchising Today - Fall 2016 - 4
Franchising Today - Fall 2016 - 5
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Franchising Today - Fall 2016 - Cover3
Franchising Today - Fall 2016 - Cover4
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