Toni & Guy Makes Big Bucks With Franchising Model

Real Business:

“McDonalds was the first franchise on the high street. We were the second,” says founder Toni Mascolo.

Mascolo’s international hairdressing brand boasts 405 salons across the globe. Only 12 of these are proprietary, the others are all franchises.

“We’ve got shares in every Toni & Guy franchise,” says Mascolo. “And we take a royalty from them. The overall turnover of the franchise business is £135m, and we’re still expanding.”

Mascolo launched the first franchise in the early eighties. It was a shrewd business decision: rather than allow the hairdressers he’d trained and nurtured to start up on their own and become competitors, he gave them the option to extend the brand. “You can’t open a franchise unless you’ve been with the company for four or five years,” explains Mascolo. “Then we have a team of nine developers that works with each individual to create the franchise business.”

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