Plenty of parking, reasonable rent, excellent visibility and a high traffic area are all qualities that we look for when selecting the ideal salon location. But before you sign that lease – the following information may help you save up to $50,000 and help you to select the prime location of your new business.
The Size of Your Business in Square Feet
How much space do you need to accommodate all the equipment, products and services you plan to feature?
For each tanning unit you should allow approximately 125-150 square feet of space. The beds/booths actually occupy only 60-100 square feet of space per unit, however, you must also allow for common areas such as hallways, lobby, retail, storage, laundry, office, etc.
While this is not an exact science, using the 125-150 square feet per unit estimate may help you to choose the right sized location and prevent you from overpaying for unused or unnecessary space.
Example: (10) bed salon= 1250-1500 square feet of space
This formula can also be applied to the services of spray tanning, massage, etc.
Electrical Power
Most “standard” retail space (1000-1500 sq. ft.) is equipped with a 100 AMP/single phase electrical service. However, tanning salons of (10) units or more typically require 200-400 AMPS/3 phase.
If you find a location that already has a 200 AMP/3-Phase electrical service (or better), you may have just saved yourself $5,000-$20,000 in electrical upgrades. Upgrading an electrical service is neither cheap nor easy – so the more power readily available the better for you.
We highly suggest that before signing a lease you get this information in writing from the landlord.
Air Conditioning
The average commercial space (1000-1500 sq. ft.) usually comes standard with 1-3 Tons of A/C.
Salons with ten beds/booths require 10 Tons (1 ton per unit average) of A/C depending on the equipment mix, ceiling heights, air flow, etc.
Since A/C runs about $1,000 - $2,000 per ton to install, you can quickly estimate the savings if you find a location already equipped with extra A/C.
General Build Out Expense = Free Rent + Allowances
When you lease your new location you will be making major improvements to a piece of real estate that you do not own. Some possible improvements could be to walls, floors, ceilings, bathrooms, etc.
Most landlords are more than accommodating when it comes to providing quality tenants with cash, credits and allowances to help cover the costs associated with improvements and upgrades you will be making to their property.
You should negotiate this up-front before signing your lease, and you should have solid figures to show the landlord the costs you will incur to improve the property.
You may be able to negotiate a flat rate (dollars per square foot) to help you cover costs. In some situations, you may also be able to get several months of free rent as a trade-off. Sometimes, it’s a combination of free rent and build-out allowances. Done correctly, this can be a win-win for both parties.
Your Four Seasons representative can provide assistance and help answer your questions.
