Tag: studio franchise model

  • Exciting Business Model Updates: Unlock Your Growth Potential

    We’re thrilled to share important updates to our evolving Studio business model, designed to help you grow your business, elevate your Brand presence, and deliver an exceptional 5-Star Client experience. This Frequently Asked Questions (FAQ) document outlines everything you need to know about the future of our Studio Franchise Program and the new definition of a By Appointment Only (BAO) space, so you can determine how either program might align with your growth strategy at J.Hilburn.

    This is more than a program update—it’s a powerful opportunity to scale your business, enhance client engagement, and shape the next phase of our collective Brand success.

    Watch the 5/28/25 Webinar:

    Download the 5/28/25 presentation slide deck:

    What’s Covered in This FAQ

    • J.Hilburn’s Business Model Evolution
    • Studio Franchise Model Update
    • The Future of Dallas Corporate Studio
    • By Appointment Only Space Update
    • Enhancing Our 5-Star Client Experience

    Topic 1: Business Model Evolution

    Q1: What’s changing with the business model?

    A: We will continue to support our current Independent Stylist model (Standard plan) while bringing two business models into compliance. All current and future Stylist Studios will transition to operate as Franchises. By Appointment Only spaces will be formally defined and available as a part of the Standard plan.

    A: Franchise details and agreements will be shared in July/August 2025. You’ll have three months to review and decide on your next steps before signing the necessary documents.

    A: August 1, 2025, marks the conclusion of the 2024 Bridge Program. However, the Studio Franchise requirement and the requirement that all Stylists selling out of Studio be on the Studio Plan will go into effect three months after the Franchise documents are delivered, not on August 1.

    Topic 2: Studio Franchise Model

    Q1: What’s the purpose of the Franchise model?

    A: To create a scalable, consistent, and compliant business model that upholds our Brand Guidelines while also increasing Brand awareness and visibility in key markets.

    A: Studios will maintain their Client-facing look and feel, but will now:

    • Operate as Franchises.
    • Require minimum operating hours.
    • Have Territory protection for J.Hilburn’s physical Studio spaces.

    A: Any approved Stylist. Ownership requires forming an LLC.

    A: Co-ownership with other Stylists is not permitted. You may have non-Stylist financial partners, but you must retain majority voting rights.

    A: There are two existing Studios that will be grandfathered and will not have to update their operating structure. These two studios are Houston and The Star.

    A: Studio Franchises will pay a franchise fee. The fee is yet to be decided and will cover service costs only; the fee will not be a profit center for J.Hilburn.

    A: It’s a program that provides a process and Head Office support from application to grand opening of your first studio. It allows you to focus on selling — our SWAT team will help you create your studio.

    • A detailed design of your Studio including specific guidance on materials, fixtures and branding elements to bring it to life.
    • Guidance in selecting a General Contractor, creating a project plan with milestones, and step-by-step support in managing your Studio build.
    • Assistance merchandising your Studio, help to establish a presence within the community, and holding a Grand Opening Event with onsite support to get you off on the right foot with proven operational and outreach tactics to increase traffic and grow your business.

    A: Yes. Franchise territories will protect you from other Studios or BAO spaces opening nearby.

    A: Yes—up to three, with a minimum weekly in-person presence of 15 hours per location.

    A: Yes, to ensure a consistent, professional, and 5-Star Client experience. More details are coming soon.

    A: Once we’ve adopted the Franchise program, only Stylists on the Studio Plan may sell from Studios, with one transitional exception … the Dallas Corporate Studio. Please see further details in Section 3.

    A: If you own a Studio today, you will have the same 3-month decision window to opt into the Studio Plan if you wish to continue operations as a Studio. However, should you decide to stay on the Standard plan, you have two options:

    1. If the space meets Brand Guidelines for a BAO location, you may opt to convert it to a BAO space. However, going forward, only 2 Stylists may operate in a BAO space during any Certificate period.
    2. If you decide to remain on the Standard Plan and will not convert to a BAO location, you will be provided a 6-month window to close the location. During this time, it may operate as a Studio to give you time to prepare. Please note that if you make this decision, it is final. You may not change your decision and opt into the Studio Plan with that location at a later date.

    A: No. Studios may be subleased and assets transferred with approval, but Clients cannot be sold; they will remain under J.Hilburn’s reassignment rights.

    A: Please discuss transfers with J.Hilburn first, and also consult your own legal counsel. There is an inherent risk in buying another person’s legal entity.

    A: Any approved Stylist may move out of the Standard Plan and their genealogy to become a Studio owner. If this happens, J.Hilburn will continue to offer the Mentor Bonus program, which provides a financial bridge to your upline should you decide to make that change.

    A: A Stylist may transition to working from a Studio by following specific procedures, depending on the situation.

    • An approved Stylist on the Standard Plan may elect to “flatten” their downline to allow them to become a Studio seller with no penalty.
    • A Stylist who wishes to become a Studio seller for someone outside of their genealogy will still have to abide by Section 2.5.3 of the current Stylist Agreement Line Switching policy. A Stylist must follow the 6-month rule of leaving the business before coming back to the business as a Studio seller.

    A: Yes. However, if you decide to move back to the Standard Plan, you will have to follow the 6-month rule of leaving the business, as mentioned above, before you can resume selling. You will transition into a Direct-to-Company relationship when you do so.

    Topic 3: The Future of the Dallas Corporate Studio

    Q1: What’s the plan for the Corporate Studio at Inwood Village?

    A: J.Hilburn will not renew the lease beyond June 2026. The landlord will ultimately decide if J.Hilburn is able to continue in the current space.

    A: No, we don’t own the space. However, we are accepting applications to assume the lease, and we will negotiate a fair price for the current Studio assets (furniture, garments, etc.) with the incoming Studio owner if he/she chooses to do so.

    A: J.Hilburn will not decide on the Stylist owner for the Corporate Studio. We may approve multiple applications for the location, and approved Stylists can negotiate directly with the landlord, as lease terms will likely be the deciding factor. In the end, the approved Stylist and the landlord will decide if there are amenable terms to move forward.

    A: We cannot provide an exact date; however, we can offer guidance. Any applicant may decide to assume the current lease before it ends in June 2026. The earliest date this can occur will be the “Decision Date,” which is three months after the Franchise project is delivered.

    A: Should a Stylist assume the lease for the Inwood Village location before the lease ends, the Studio will transition to a Franchise with a Studio owner and their selling team if their team members choose to be on the Studio Plan. Once this happens, current Stylists on the Standard Plan will no longer be able to sell from that location.

    Topic 4: BAO (By-Appointment-Only) Spaces

    Q1: Are there changes to non-Studio spaces?

    A: Yes, in the past, we have had many concepts for non-retail physical spaces, such as Showrooms, Store-in-a-Store, Pop-Ups, and Office Spaces. We’re creating a new category: By Appointment Only (BAO) spaces and defining Brand Guidelines for these non-Studio physical spaces.

    A: Yes, as long as it meets BAO Brand Guidelines. BAOs are private, unbranded spaces for appointments only, not retail locations.

    A: Yes. The BAO guidelines apply only to non-primary residences.

    A: Yes, for one-year terms, with Brand Guideline Certification checks every four months.

    A: Yes, up to two Stylists during any Certification period.

    A: You’ll have a six-month transition period to close your BAO if it falls inside a Studio territory.

    A: Three months after the Franchise documents are delivered. During that time, our Studio Operations team will support you to achieve the Brand Guidelines of a BAO space.

    A: J.Hilburn is committed to working with each location that requires adjustments to meet the Brand Guidelines and formulating a path to compliance where possible. However, if you are unable to meet the Brand Guidelines, your BAO location will have to close.

    A: Yes, however, each Pop-up and Trunk Show must be approved by J.Hilburn four (4) weeks before the event. Both Pop-Ups and Trunk Shows are temporary setups and cannot last longer than seven (7) consecutive days. Also, these events can have temporary signage approved by J.Hilburn.

    Topic 5: Enhancing Our 5-Star Client Experience

    Q1: What does this mean?

    A: We’re modernizing our approach to allow Clients to shop where they prefer and ensuring every visit to a J.Hilburn Studio delivers a seamless, Brand-aligned experience.

    A: Yes. Clients can shop at any J.Hilburn Studio and work with any Studio Stylist present to place an order without going through a formal reassignment process or notifying the Home Office.

    A: Yes. Clients can visit any J.Hilburn Studio or reach out to their Assigned Stylist for assistance with returns, alterations, or remakes, regardless of who placed the original order.

    A: No. Each Client will retain their current Assigned Stylist. Shopping with a different Studio Stylist will not result in a reassignment or change.

    A: Yes, Stylists on the Studio plan can look up a Client using the Client’s phone number. They will then request access and the Client will receive a text message to confirm their access approval. Once access is granted, the Studio Stylist will be able to view the Client’s complete profile, including order history and fit information. Within the Client’s profile, the Stylist can:

    • Create a new order.
    • Update Client information.
    • Copy existing fit profiles or add new ones (no edit).
    • Service an existing order.

    A: Clients must confirm access via a text message authorization. A non-assigned Stylist can take no action without this confirmation.

    A: Yes. Assigned Stylists will be alerted via email if a non-assigned Stylist accesses or creates activity on their Client’s profile, resulting in an order or a follow-up change to an order already placed.

    A: The Stylist who makes the sale (i.e., places the order) receives 100% of the commission. If there’s a return, remake, or alteration, the selling Stylist takes any commission adjustment.

    A: Per the Stylist Agreement, poaching is prohibited. Our compliance team monitors for poaching.

    Appendix: Studio versus BAO Space Comparison

    Category

    Studios

    By-Appointment-Only

    Client Access

    Open for scheduled & walk-in appointments

    Strictly by appointment only 

    No walk-ins allowed.

    Advertising & Promotion

    Permitted within Brand Guidelines

    Paid ads, Google listings, and tagging space allowed

    Not permitted 

    No Google listings, social media tags, or paid ads promoting space

    Events Promotion

    Permitted

    Not Permitted

    Marketing Support

    Offered

    Not Offered

    Branding Support

    Offered

    Not Offered

    Printed Material

    Permitted

    Limited to individual Stylist promotion 

    No direct location promotion

    Branding & Signage

    Signage permitted within Brand Guidelines 

    Plaques and window displays allowed

    No signage is permitted 

    The J.Hilburn Branding cannot be displayed externally 

    No permanent Branding can be installed in the space

    Permanent Signage

    Permitted

    Not Permitted

    Movable Signage (inside the space)

    Permitted

    Permitted, but cannot be shared on social channels

    Door/Window Signage

    Permitted

    Not Permitted

    Signage inside a shared Office Space

    N/A

    Not Permitted

    Business Care with Location Address

    Permitted

    Not Permitted

    Promotional Display (movable, for inside use)

    Permitted

    Permitted, but cannot be shared on social channels

    Online Listings (Google/Yelp/Social Media)

    Permitted

    Can list location on Google, Yelp, and business directories

    Not permitted

    The space cannot be listed as a business online

    Social Media Promotion

    Allowed to promote space and services

    Can tag location, use hashtags, and post event promos

    Limited to personal stylist promotion

    No direct location promotion, but can say what city/town they are in

    Live Feeds

    Permitted

    Not Permitted

    Reels

    Permitted

    Not Permitted

    Social Media Posts

    Permitted

    Limited to personal Stylist promotion

    No direct location promotion

    J.Hilburn branding must not be displayed

    Paid Ads

    Permitted

    Not Permitted

    Walk-In Clients Allowed

    Yes, walk-in Clients are allowed

    No, unscheduled Client visits are not allowed

    Co-Branding with Other Businesses

    Not permitted

    The space must exclusively represent J.Hilburn

    Not permitted

    No cross-selling, collaborations, or co-branding

    Exclusive J.Hilburn Use

    Yes, it must be exclusive to J.Hilburn

    Yes, it must be exclusive to J.Hilburn

    Order Placement Method

    Orders must be placed through the J.Hilburn system

    Orders must be placed through the J.Hilburn system

    Physical Location Type

    Designated retail space within Brand compliance

    Private office, no public-facing Branding

    Approval & Renewal Process

    Annual renewal required per Studio Plan

    Annual renewal required with recertification every 4 months

    Renewal is not guaranteed if a Studio opens and the BAO is within the Franchise’s radius

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