How do I check a hair replacement studio’s recurring clients before buying?

Most of a hair system studio’s steady income comes from clients who return to have their systems maintained, refitted or replaced. That is good for a buyer only if it is real and likely to continue after the sale. Do not rely on a description of loyal clients. Ask to see what the records show, and ask your accountant to help you read them.

Visit records

Ask for appointment history that shows how often each client comes in and how long they have been coming. Client names may need to be hidden at first, so ask how the seller will share them and when. Look for a steady rhythm of returning clients rather than a few large spikes. Ask what happened to clients who stopped coming.

Prepaid plans and memberships

If clients pay ahead for a package of visits or a maintenance plan, the studio still owes them the service. Ask for a list of what each client paid, what has been delivered and what remains. Ask your lawyer whether the buyer takes these on and how the contract should say so. That wording, and any effect on the purchase terms, is for your lawyer.

Orders in production

Custom hair systems take time to make. Ask for each order in production, the date it was placed, the supplier and the expected arrival. Ask what happens if a piece arrives late or wrong. A long list of unfilled orders can be a sign of strong demand, or of a supplier that cannot keep up. Find out which.

One supplier, one technician

Ask how much of the stock comes from a single supplier and whether the studio has any written arrangement with it. Ask how many clients are tied to one technician. If a skilled stylist leaves with the owner, the repeat business may leave too. Compare this with our page on who owns the clients when you buy a hair salon.