Madison Reed to Franchise 'Color Bars'
Digital native, hair color brand Madison Reed is planning to franchise and aggressively expand its brick-and-mortar Madison Reed Color Bars under a new joint venture with Ann Arbor, MI-based consulting firm Franworth.
Madison Reed Color Bar franchises will mirror the company’s nine existing Color Bars operating in New York, the San Francisco Bay Area, and the Dallas-Fort Worth metroplex. Under the agreement with Franworth, San Francisco-based Madison Reed will continue to own, grow and operate Color Bars in select cities and, along with Franworth, develop best-in-class infrastructure to support future Color Bar franchisees. The company said it expects to have roughly 100 company-owned stores and 500 franchises — either sold or up-and-running — by 2024. After meeting the standard regulatory requirements, the joint venture will sell the first franchises later this year in November or December.
The partnership makes Madison Reed the first digitally native, vertical brand to use the franchise business model as a growth strategy to meet customer demand for local brick-and-mortar retail, according to a media release from the brand.
“We have been trailblazers in ‘omnichannel retail,’” said Amy Errett, chief executive officer and founder of Madison Reed, in the release. “We are excited to announce that the next channel in our growth strategy is franchising, which unlocks the ability to scale physical retail like no other. To us, being omnichannel means we have a relentless drive to meet the needs of our customers wherever they are.”
Launched in 2014, Madison Reed is known for its tech innovations, such as the first-ever chatbot to analyze selfies and suggest hair color matches, and an augmented reality tool that lets consumers virtually try on hair color shades via digital devices. The company was a finalist in CGT's 2017 "SMB Award" competition.
“The Franworth team is honored to be partnering with Madison Reed to bring its Color Bars to communities across the United States,” said John Rotche, Franworth’s CEO and founder, in the release. “Amy and her team have built an incredible brand that consumers love. We’re thrilled to have the opportunity to work with her talented team to create and build the Color Bar franchise program and expand consumer availability of Madison Reed’s renowned salon-quality hair color.”