LOS ANGELES — Kalologie is coming to a location near you.
After opening its third corporate-owned unit in Studio City, Calif., last week, the Los Angeles-based hybrid skin care retailer and medical spa is changing its expansion formula. Starting next month, Kalologie will be selling franchises to doctors across the country eyeing opportunities outside of traditional medicine.
"That is a way for us to grow the brand and have a national presence and be really confident that each location is being run with the utmost medical supervision," said Tracy Brennan, who founded Kalologie on Robertson Boulevard in January 2004. Her goal is to sell 20 Kalologie franchises and open 10 within in a year and, by the middle of 2010, have sold 140 franchises and opened 100. Kalologie raised $2.2 million late last year from venture firm St. Cloud Capital in Los Angeles to finance franchise operations. Still, Brennan, her husband, William Brennan, and Kalologie's medical directors, father and daughter Drs. Marvin and Vicki Rappaport, remain the company's principal stakeholders.
Franchises will be placed in major urban centers and later spread to secondary markets. Brennan explained prime locales are shopping destinations such as Robertson Boulevard, where there is steady foot traffic in an upscale neighborhood. She will avoid sterile medical buildings, but mall spots could be necessary in some cities.
Franchise locations are expected to average 1,500 to 1,800 square feet, divided between retail space and approximately four treatment rooms. Kalologie's franchise fee is $75,000 for one location, but it estimates the initial total franchise investment will begin at $280,000.
Brennan noted dermatologists and plastic surgeons are likely franchisees. However, other physicians, including family practitioners and obstetrician gynecologists, could be candidates as well. Selling franchises only to doctors helps give Kalologie instant credibility in new markets, where Kalologie's concept may seem unfamiliar. Additionally, there has been a push for medical supervision at medi-spas and at least one state, Florida, requires a doctor to oversee the staff.
And, Brennan stressed doctors are hungry for alternatives to the conventional medical system. "There are so many doctors who are frustrated and would like to move into the arena of aesthetic services, but don't know how," she said, adding that Kalologie will provide extensive training and leverage its growing size to get rates from vendors not available to single locations.
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