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Below is an in-depth analysis and side-by-side comparison of The Yellow Balloon vs Merle Norman Cosmetics including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $55,000 - $103,500 | $39,471 - $180,888 |
Franchise Fee | $25,000 | N/A |
Royalty Fee | 4% | 0 |
Advertising Fee | - | - |
Year Founded | 1983 | 1931 |
Year Franchised | 2000 | 1989 |
Term Of Agreement | 5 years | Open-ended |
Term Of Agreement | 5 years | Open-ended |
Renewal Fee | $2.5K | - |
Business Experience Requirements |
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Experience | - | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | Yes/No | No/No |
Start-up Costs | No/No | No/Yes |
Equipment | No/No | Yes/No |
Inventory | No/No | Yes/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | - | Field training classes, field visits, advanced home office training and point-of-sale software training Classroom Training: 40 hours Additional Training: Online training |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Proprietary Software Franchisee Intranet Platform |
Marketing | Co-op advertising, Ad slicks, National media, Regional advertising | Co-op Advertising Ad Templates National Media Regional Advertising Social media Email marketing |
Operations |
Number of employees needed to run franchised unit: 6 Absentee ownership of franchise is allowed. |
Number of employees needed to run franchised unit: 2 Absentee ownership of franchisee is allowed.
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Expansion Plans |
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US Expansion | - | Yes |
Canada Expansion | No | No |
International Expansion | No | Yes |
Nadia Pidgeon opened her first The Yellow Balloon children's hair salon in 1976 near UCLA and a second location five years later near Universal Studios, serving the children of celebrities, like Warren Beatty, and child stars, like the Olsen Twins. The company began franchising in 2000.
Each The Yellow Balloon salon caters to kids, featuring mini-arcades and toy boxes, and offering young customers balloons, cookies and popcorn. To commemorate a baby's first haircut, parents are given a framed photo, certificate and lock of hair. Adults can also have their hair cut at The Yellow Balloon.
Even before she opened her first studio in Santa Monica in 1931, Merle Norman's philosophy of "Try Before You Buy" was being carried out as she offered free samples of her products to neighbors, hoping they'd discover the benefits and return as paying customers. And return they did. Many even opened their own studios and the company now has studios throughout the United States and Canada. Carrying on the Merle Norman tradition, franchisees now offer skin care, from cleansers and toners to sun defense, and a full line of cosmetics.