Atlanta Journal Constitution:
Sure, a $15,000 hot tub sounds nice. But to build a franchising business around it in this economy?
Why not, says Biolab, the Lawrenceville pool chemicals company that’s launching a high-end franchsing concept called “wknd.â€Pronounced “weekend,†the company’s $600,000 Suwanee concept store is built around fancy spas and back yard gear in a high-end retail environment outfitted with breezy summer photos and siding that could come straight off a suburban home.
“We want to evoke that feeling of the back yard,†said R. Scott Sutton, director of franchising for BioLab.
While plenty of people are putting off big luxury purchases, others are looking to improve their homes to enjoy stay-at-home vacations and make everyday leisure less expensive, Sutton said.
While franchising hasn’t yet caught on in the pool and spa industry the way it has in other businesses, Biolab’s idea may be a reasonable play, said Loren Brown of P.K. Data, a Duluth research company that provides market data to the pool and spa industry.
“There is ample research to show that owners of these products will typically prefer a retail store dedicated to pools/hot tubs over a big-box, discount type store due to the expertise provided,†Brown said.
If it works, the concept could be a boon for BioLab, Sutton said, because franchise agreements run 10 years while deals to provide the company’s pool suppliers to independent dealers run just one.
Franchising would not only secure long-term supply deals, but also ongoing royalty revenues, he said.