Oxygen bar businesses seem to be thriving. Everyone we talk to is busy. So it should be of little surprise that we get inquiries about an oxygen bar franchise.
I am not personally against a franchised business. However, it is not necessarily the best model for an oxygen bar. Let me explain.
To begin with, a lot of people who call us really do not understand the implications of a franchise agreement. They want to get into this business and do not have any other frame of reference in regard to business models. So, they ask about a “franchise”.
What they really want is a turn-key solution. They are looking for a business in a box.
Others actually want a distributorship but again call it a franchise.
If you bought an oxygen bar franchise, someone would be expecting you to pay a franchise fee in addition to the cost of the equipment. It cost the company money to set up the franchise system and they want to get their investment back.
In addition, the franchise agreement generally has restrictive covenants that keep you paying fees or forcing you to buy supplies from one supplier.
I know, you think that an oxygen bar franchise will give you everything you need to start and create a profitable business. I have some bad news and good news for you.
First the bad news. The closest thing that I have seen to advertising help is one company that throws some posters in the box with your equipment. But the equipment is very expensive. Perhaps two to three times more than it should be. Instead of paying literally thousands more for your equipment you would be better off using your startup money running ads.
But there is good news. You don’t need a franchise agreement. Here is what you need. This will be true no matter where you get your equipment from.
1. You need a reliable oxygen bar that does not cost a fortune to buy. If you cannot buy a system that can support up to six users at once for less than $3,000, you are paying too much.
2. A long warranty. One company gives you up to three years on parts and labor on everything including the oxygen concentrator. It is not an accident that it is the same company we use for our equipment.
3. Honest advice. It is nice to have someone you can call up and run your ideas against and hear someone tell you exactly what they think. They are not worrying about losing an ongoing franchise fee. I have told people in the past, after hearing what they want to do, to not buy the equipment as they would certainly fail.
I don’t care what your product or service is. Unless you are selling umbrellas in a rain storm you need some marketing and advertising savvy. You can learn from mistakes but expensive mistakes will put you out of business.
After all, isn’t the point of all of this to own your own business and not rent another company’s name and reputation.
Also, in the oxygen bar business name and reputation will not bring in customers.
One of the oldest and most reputable companies is Airheads, Inc. They have been around for more than 15 years, do event for Fortune 100 companies and have even been featured on well-known television programs. But their name will not help you sell and event or get someone to use your services.
You will need to establish yourself on your own.
When the all is said and done you do not want all of your hard work to do nothing more than enhance the reputation of someone else’s company. Haven’t you been doing that most of your life?
I am sure that franchises have their place and people do establish profitable businesses with them. But the people who make the big money are those who create their own brand. That is a fact.
If you want to be in the oxygen bar business without a franchise system holding you down, give us a call. We are oxygen bar business advisors. We sell system and supplies and want you to succeed. That is how we make money. We don’t need a warehouse filled with used, almost new equipment.
Call us at 888-622-7662 with your ideas and questions. The advice is free and we love to talk about oxygen bars.