Franchise Information
  Tribune, October 1, 2006

Getting under people’s skin
Scottsdale-based clinic franchises sell at $75,000 each
By Tony Natale, Editor

CARL MUDD

Family
: Children Rachael, 15 and Carl Jr., 16
Resides In : Phoenix
Business: Founder and CEO of Dermacare Laser & Skin Care Clinics®, a franchiser
with corporate headquarters at 4835 E. Cactus Road, Scottsdale
Key Achievement : In 2001, started a skin care franchise company with seven employees
and an inital investment of $500,000 that today has 33 employees, 50 franchise clinics and
gross revenue of more than $25 million
Success Philosophy: Maser the technology, marketing and complex legal aspects of the
growing skin care industry, then build a company that will endure. The company goal
is to serve 500 clinics nationwide and internationally.
Information: 602.451.2100
Website: www.dermacareusa.com,www.dermacare.com

Carl Mudd, 46, felt sure he had a winner.

But it would take another three years of hard work, research and plain determination he was absolutely certain.

That was in 2001, when Mudd started Dermacare Laser & Skin Care Clinics, a Scottsdale based company that today sells franchises starting at $75,000 primarily to physician-backed treatment clinics.

“Five years ago, the skin care industry began to grow,” said Mudd, who attended Corona del Sol High School in Scottsdale. “But, I still had to explore a lot or areas, including technology, marketing and the complex laws dealing with skin care treatments and products.”

Mudd, a former real estate agents who sold residential properties in the Valley as well as in Southern California, opened a small office on Tatum and Shea boulevards in Scottsdale where had and six others gradually gathered information about the growing industry.

“I learned there were many class action lawsuits against laser manufacturers,” said Mudd. “I also had to examine more than sixty marketing programs to discover what would work to bring in clients.”

He also began lobbying to upgrade the laws in Arizona, making them more demanding on potential skin care clinic owners.

Finally, Mudd’s initial work paid off.

He moved to an 8,000-square-foot office at 4835 E. Cactus Rd, Scottsdale where he and 32 other employees today process a steadily growing list of franchises. His company has sold franchises to 50 clients so far - all either directly owned by physicians who deal with customers and patients.

They include seven in the Valley, each located in office complexes in Scottsdale, Chandler, Tempe, Mesa, Gilbert and Ahwatukee.

Four more clinics are planned to open soon in Phoenix, Surprise, Litchfield Park and Queen Creek.

Franchises have also been sold to skin care clinics in 15 other states and future planes included franchises internationally.

“You wont find any of our franchise clinics in shopping malls,” Mudd said.

Since the company opened, his clients have performed more than 30,000 procedures, including lasers used to reduce sun spots, wrinkles, hair and vein removal, acne scar reduction and tattoo removal, Mudd said.

His firm also works directly with cosmetic manufacturers to provide six pharmaceutical products that are available only to physicians at reduced prices.

Skin care clinic owners, meanwhile, must invest a substantial additional amount after purchasing the $75,000 franchise, which is geographically restricted to avoid cluttering of clinics.

For example, high-tech equipment, including lasers and laser equipment, cost as much as $250,000.

In addition, an estimated $250,000 is needed for marketing and other expenses, for an initial basic investment of $575,000.

“However, it’s easy for a physician to enter this field,” said Mudd. “They usually can easily borrow the money or they already have it.”

Mudd said his company is the only franchise supplier in the nation that requires a “physician-based” clinic as well as safety and training for clinic employees.

There are two training centers in Ahwatukee and Scottsdale.

“The industry is growing because of several factors,” said Mudd. “For one thing, baby boomers are moving toward aesthetic skin care. And, more and more younger people, including teenagers, are being treated for things like acne scars.

“There is growing demand, too, for tattoo removal using lasers.”

Mudd said a recent AARP survey of 800 Americans turning 60 found that 77 percent were satisfied with their lives and 80 percent have no plans to stop working and are focused on staying fit.

He said they represent part of the growing market demand for nonsurgical skin treatment.

Mudd’s ultimate financial goal is to reach $100 million in gross revenue by 2010.



For Franchise Information call: 877-700-0788