Blue Lagoon grows to 16 salons – Tallinn opening next

Finnish beauty chain Blue Lagoon is preparing to open its first salon abroad. According to an article published by Finnish business newspaper Kauppalehti on 2 November, the chain’s Tallinn salon will open in November 2026. In Finland, growth has been driven by the franchise model introduced in 2021: 12 of the chain’s current 16 salons are run by franchisees.

Franchising becomes the chain’s main route to growth

According to Blue Lagoon’s founder and chief executive, Sini Virtanen, the idea of franchising emerged in 2021. The model was first tested in Helsinki’s Töölö district. Following the trial, the next franchised salon opened in 2022 at the Lippulaiva shopping centre in Espoo.

Of the chain’s 16 salons, four are now owned by Virtanen and 12 are run by franchisees. Franchisee-operated salons therefore account for three-quarters of the network. Franchising is no longer an isolated experiment for Blue Lagoon: measured by salon numbers, it is the chain’s main operating model.

For Finland’s franchising community, the notable development is the shift from opening company-owned salons to building a network in which franchisee-operated locations form the majority. The current split provides a clearer picture of the importance of franchising than the total number of salons alone.

Only a year separated the Töölö trial and the Lippulaiva opening. The chain has built its current network of 12 franchised salons during the development phase that began in 2021. In the Kauppalehti article, Virtanen describes the first trial as successful, prompting the model’s rollout to the next location.

Company-owned salons laid the foundations for growth

Founded in 2006, Blue Lagoon Beauty has a history that stretches well beyond its franchising phase. Virtanen’s beauty centre first exceeded €1 million in turnover in 2017. During 2018, the business expanded to the Iso Omena shopping centre in Espoo and Kolmikulma in Helsinki’s Punavuori district.

A salon opened in Turku in spring 2020. These openings preceded the 2021 franchise trial, meaning the chain already had experience of operating across several locations before introducing a franchisee-led model.

The growth timeline reveals two distinct phases: Blue Lagoon initially expanded by opening new salons, before making franchising part of its expansion strategy. Both approaches remain part of the current network, as Virtanen still owns four salons.

The chain’s story did not begin, then, with the launch of a ready-made franchise concept. Around 15 years elapsed between the company’s founding and the introduction of franchising. During that period, the business grew from its original beauty centre to several locations before building today’s franchise network.

Chain-wide and company turnover must be distinguished

According to Virtanen, turnover across the entire Blue Lagoon chain totalled €5.2 million in 2025. She estimates chain-wide turnover of around €7 million for 2026. The latter figure is therefore the chief executive’s forecast, not a completed full-year result.

Blue Lagoon Beauty Oy, the Finnish limited company, reported turnover of €3.2 million for 2025. According to the company information presented by Kauppalehti, its turnover increased by 109 per cent compared with the previous financial year. However, it recorded a loss of €78,000 for the year.

The key distinction when reading these figures is their scope. The chain’s €5.2 million turnover and Blue Lagoon Beauty Oy’s €3.2 million turnover do not cover the same operations. Nor should the company’s reported result be interpreted as the result of an individual franchisee.

The figures tell different stories about growth and profitability: the company’s turnover rose sharply, but it made a loss for the financial year. This distinction matters to anyone considering becoming a franchisee. Network size, chain-wide sales and an individual company’s financial result answer different questions, and none alone establishes the financial viability of a particular salon.

LFG Brands joins the ownership group

Blue Lagoon’s ownership base broadened in 2024 when angel investor Jenni Kynnös and entrepreneur Tytti Tamminen invested in Virtanen’s business. Kynnös is also known for her appearances on Leijonan luola, Finland’s version of Dragons’ Den.

In 2025, Kynnös and Tamminen sold their combined 24 per cent stake to LFG Brands. According to Kauppalehti, Blue Lagoon Beauty is now owned by Sini Virtanen and LFG Brands, which holds a 24 per cent stake.

LFG Brands’ portfolio also includes barber chain M Room and sugaring hair-removal specialist Poslin. Blue Lagoon has therefore gained an investor whose portfolio includes other beauty and wellbeing service chains.

The ownership change represents a separate stage in the chain’s growth story. Franchising had already been introduced in 2021, before Kynnös and Tamminen’s investment and the subsequent share sale to LFG Brands. The development of the franchise network therefore began before these ownership changes.

Tallinn marks a new chapter

The Tallinn opening, announced for November 2026, will be Blue Lagoon’s first salon outside Finland. It takes a beauty chain that has grown in its home market into a new country, at a time when franchisees operate the majority of its existing salons.

The Tallinn opening and the forecast of around €7 million in chain-wide turnover both relate to 2026, but they are different types of information: one is an announced opening, the other an estimate of full-year sales. At this stage, the key measures of growth already achieved are the current network of 16 salons and the financial figures for 2025.

Practical takeaway: When assessing a franchise opportunity, distinguish between the chain’s growth, the chain company’s finances and the projections for your own proposed location. Blue Lagoon’s figures illustrate why all three need to be examined separately.