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Below is an in-depth analysis and side-by-side comparison of Merle Norman Cosmetics vs Famous Toastery including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $39,471 - $180,888 | $600,500 - $1,024,500 |
Franchise Fee | N/A | $40,000 |
Royalty Fee | 0 | 5% |
Advertising Fee | - | 1%-2% |
Year Founded | 1931 | 2005 |
Year Franchised | 1989 | 2013 |
Term Of Agreement | Open-ended | 10 Years |
Term Of Agreement | Open-ended | 10 Years |
Renewal Fee | - | 0 |
Business Experience Requirements |
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Experience | - | - |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | -/Yes |
Start-up Costs | No/Yes | -/Yes |
Equipment | Yes/No | -/Yes |
Inventory | Yes/No | -/Yes |
Receivables | No/No | -/Yes |
Payroll | No/No | -/Yes |
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 | On-The-Job Training: 744 hours Classroom Training: 32 hours |
Support | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Proprietary Software Franchisee Intranet Platform | Newsletter Meetings/Conventions Grand Opening Security/Safety Procedures Field Operations Site Selection |
Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media Email marketing | Ad Templates Regional Advertising Social media SEO Website development Email marketing Loyalty program/app |
Operations |
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 | Yes |
Canada Expansion | No | - |
International Expansion | Yes | - |
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.