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Create
A NEW LIFESTYLE
H E A LT H & W E L L N E S S
YO U R F I N A N C I A L F U T U R E
handandstonefranchise.com
simple premise
S TA R T WITH A
Hand & Stone starts with a simple
premise: bring top quality spa services
including therapeutic massage, facials
and hair removal to the middle market
at a price that is 30% less than traditional
day spas and with hours and locations
that are more convenient.
facials + Our membership model allows for
predictable and recurring cash flow.
massage +
Clients are able to experience a
massage or facial each month at
discounted pricing and are eligible
hair removal
for other discounts on products
and gift cards.
an energized growing market
massage & skin care spa enhancements
Therapeutic Massage • Hot Stone Aromatherapy • Peppermint Scalp Massage
Himalayan Salt Stone • Couples Massage Hot Towel Foot Treatment • Peels • NuFACE
Facials • Skin Care Services Microcurrent • LED Skin Phototherapy
Face & Body Hair Removal Decompression Therapy & Much More!
industry
H and & Stone has brought what was
previously considered luxury services
to t he mass market and has helped fuel the
explosive growth of an entire industry.
It’s not just a luxury either – sixty-six percent
of massage consumers had a massage for
Relaxtion/Stress Reduction in 2018.* And
Hand & Stone is more than just massage,
we are a full service day spa that also
capitalizes on facials and hair removal
services. Between July 2018 and July 2019,
surveys indicate that roughly 48 million
adult Americans (21 percent) had a massage
at least once.
508
453
405
346
303
PROJECTED
260
194
143
97
67
41
25 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
CONSISTENT GROWTH YEAR OVER YEAR
2009 ( N U M B E R O F H A N D & S T O N E L O C AT I O N S )
71% female 29% male
5.62 %
32.58% 31.46% 22.47%
7.8 %
relaxation stress relief pain relief
other improved
skin
*2019 Massage Profession Research Report **AMTA Consumer Surveys 2019, YouGov survey 2019
Carli Lloyd
US Women’s National
Soccer Team
meet Todd Leff
PRESIDENT & CEO
the
Todd is a 25 year franchise industry
veteran who brings to Hand & Stone
franchise leadership experience having
successfully grown other national fran-
ceo
chise brands. Pictured above with Hand
& Stone’s spokesperson, Carli Lloyd, US
Women’s National Soccer Team and
Hand & Stone Member since 2012.
role of the Hand & Stone has a plan.
franchisee
If you follow the plan exactly
as they say and it's working
for other people, then it really
comes down to your own busi-
ness management skills and
A
s a franchisee of Hand and Stone, no organizational skills.
spa experience is necessary. Our proven – Rob Luce, North Carolina
model, comprehensive training and your
staff of licensed professionals allow you, the
franchisee, the ability to focus on the four main
objectives to grow your first Hand & Stone and
set the course for your future openings.
Managing Marketing & Advertising –
and motivating Collaborative Approach
your team (with our professional in-house
agency HSM Advertising) Before saying yes to Hand &
Stone ownership, my mind-
Recruitment – set was to find a franchise
Putting a face on Financial model I liked in a local area
your franchise Management that would allow me to ex-
pand with new nearby loca-
tions. After 12 years of salon
Eric Danver franchise ownership, I knew
Multi-Unit Owner what franchise opportunities
16 Spas I was searching for and real-
ly enjoyed the Hand & Stone
franchising model. I wanted
a company that was success-
ful in multiple states where I
could leverage that success
and expand a brand locally
in Michigan. I found that with
Hand & Stone.
– Sumit Bansal, Michigan
Kassie & Tyler Haston
Owners of Avon, IN
we are here to
support you
DESIGN &
CONSTRUCTION
FINANCING
EDUCATION
& TRAINING
YOU FIELD
OPER
ATIO
REAL NS
ESTATE
MARKETING &
RECRUITING ADVERTISING
#1 IN CATEGORY 2017: RANKED #6 RANKED #8
Fastest Growing by Unit
investment
Your initial investment and the costs necessary to begin operating
a single Hand & Stone Massage and Facial Spa could range from
$567, 626–$674-476.*
BREAKDOWN OF INITIAL INVESTMENT
ITEM 7 to the FDD - Full Description can be found in
Item 7 of the Franchise Disclosure Document
fees
Type of Expenditure LOW HIGH
Franchise Fee $42,500 $42,500
Real Estate Deposit $12,750 $18,010
Initial Franchise Fee (single unit)
$42,500
Utility Deposits $500 $500
Leasehold Improvements $282,100 $319,800
Furniture, Fixtures & Equipment $82,781 $103,861
Each Additional Franchise Fee
$32,500
Computer/POS System $15,050 $16,149
Connectivity Fee $2,500 $2,500
Insurance $1,500 $2,500
financial
Office Equipment and Supplies $10,455 $11,095
Camera/Music System $8,346 $8,853
profile
Initial Inventory $10,299 $13,618
Travel Expenses $1,000 $2,000 (Single Unit)
Signage $9,345 $10,290
Grand Opening Advertising
Licenses / Drawings
$5,000
$9,000
$10,000
$15,500
$750k
NET WORTH
Legal & Accounting $4,500 $6,300
Additional Funds $70,000 $90,000 $150k
TOTAL $567,626 $674,476 LIQUID WORTH
ongoing fees
6% ROYALTY
5% FIRST 52 WEEKS
6% THEREAFTER
4% LOCAL SPA ADVERTISING
1% NATIONAL ADVERTISING
*All fees, estimated initial investment costs, contracts, corporate financial statements, and other valuable information are included in the Franchise Disclosure Document (FDD).
18'-7 1/2" 5'-0" 12'-0"
8'-3" 5'-5 1/4" 17'-1 3/4"
REF
EMPLOYEE BREAK
LOCKERS ROOM
CLOSET
CLOSET EMPLOYEE
LOCKERS
MOP SINK
CPU SHELF COUPLES AND WATER
MASSAGE REST BREAK HEATER
13'-8"
6'-7"
ROOM ROOM
16'-0 1/2"
WASHER
AND DRYER
18'-0"
MOP SINK
AND WATER LINEN
REF
HEATER STORAGE
TRANSITION AREA
REST
6'-7"
ROOM
CPU SHELF WASHER
AND DRYER
CLOSET
8'-0"
4'-0"
MASSAGE
LINEN
ROOM
STORAGE
CLOSET
8'-0"
MASSAGE
ROOM
MASSAGE MASSAGE
ROOM ROOM MASSAGE
ROOM
8'-0"
12'-0"
COUPLES
MASSAGE
MASSAGE
12'-0"
ROOM
8'-0"
8'-0"
MASSAGE CLOSET
ROOM
MASSAGE
ROOM
8'-6"
7'-6"
FACIAL FACIAL
12'-0"
ROOM ROOM MASSAGE
ROOM
12'-0" 4'-8 1/4" 14'-4"
9'-0" 9'-0" 5'-0" 12'-0"
MASSAGE
ROOM
8'-0"
MASSAGE
FACIAL ROOM
7'-6"
ROOM
4'-2"
8'-6"
8'-1" 8'-1"
9'-0"
FACIAL
REST REST ROOM
6'-8"
ROOM ROOM
10'-8 1/2"
7'-6"
FACIAL OFFICE
8'-6"
TRANSITION AREA
ROOM DATA
WATER
COOLER
DATA
WAVE
WALL
WATER
COOLER
WAITING
RETAIL
WAVE ISLAND
WALL
WATER
17'-11"
WALL
18'-5 3/4"
RETAIL
16'-7"
ISLAND
OFFICE
WATER
WALL LOBBY
13'-5 1/2"
WAITING
MERCHANDISING LOBBY MERCHANDISING
UNIT UNIT
RECEPTION
29'-0 1/4" 7'-2 1/2" RECEPTION
10 ROOM SPA
2,867 SF
31'-8 3/4"
2018 PROTOTYPE
8 ROOM SPA
2,472 SF
GREENFIELD, WI HS DESIGN, LLC
HAND AND STONE FRANCHISE
CORPORATION
1210 NORTHBROOK DRIVE
SUITE 150
TREVOSE, PA 19053
spa design
CHERRY HILL, NJ
GREENSBORO, NC
OPENED: 2014 • ROOMS: 9
OPENED: 2010 • ROOMS: 7
OPENED: 2009 • ROOMS: 12
2,700 SQ. FT.
HOUSTON-CREEKSIDE, TX
10 ROOM SPA
current landscape
Operating in these Canadian Provinces:
SASKATCHEWAN & ONTARIO
Operating Spas in these States
and Canadian Provinces
Future Opporunities for
Hand & Stone locations
CONTACT HAND & STONE FRANCHISE DEVELOPMENT FOR MARKET OPPORTUNITIES
H AN D & S TO N E U S SA L E S A N D ME MB E R G ROW TH
500,000 471,704 499.3
45O,OOO
417,OOO
4OO,OOO 389
351,492
35O,OOO
313.9
3OO,OOO 286,050
25O,OOO 249.5
219,775
2OO,OOO 165,O44 187.8
15O,OOO 129.5
111,958
1OO,OOO 74,299
87.4
56.O
41,569
5O,OOO 31.8
19,O27 17.3
2O1O 2O11 2O12 2O13 2O14 2O15 2O16 2O17 2O18 2O19
OPEN SPAS 42 67 97 144 197 256 308 356 405 453
MEMBERS SALES (millions)
marketing
PAY-PER-CLICK
H
and & Stone’s full-service, in-house advertising agency
SEO
packs a powerful punch when it comes to supporting and
delivering the marketing needs of the franchise system.
We are with you every step of the way from pre-opening to
your entire Grand Opening process to helping you build your
social media campaign and local advertising using strategic
planning in your market. PRINT
TV
planning
We review your goals and develop a comprehensive customized
plan to help you realize your maximum profit potential. We also
focus on holidays, events and promotions that target your audience.
creative & graphic design services
We are the experts at not only creating the content and promotions
that drive your marketing, but also maintaining the look and feel
that defines our brand.
RADIO
branding
Building a strong brand - both nationally and locally - promotes
DIGITAL
recognition, helps set you apart from the competition, lets customers MARKETING
know what to expect, generates referrals and represents your
promise to your customer.
digital marketing
ANALYTICS
Internet and email deliver faster, more versatile and streamlined
marketing messages to our consumers and potentially reach a
wider audience. One of the main benefits is the ease in which
results can be tracked and monitored. You will get on-line access to
real-time advertising results that you can review with your account
social
media
executive.
reputation
management
PARTNERS WITH
Carli Lloyd
National
Spokesperson
2016-2020 2019-2020F A Q
Is spa experience necessary to How long does it take to open?
own a Hand & Stone Location? From our initial conversation to your Grand
No spa experience is necessary! We look for Opening, the process takes approximately 7
motivated individuals with a sales/manage- to 10 months. Selecting Real Estate and permit
ment background who can: train and motivate approval can have an effect on this time line.
staff, make marketing decision, manage finan-
cials and be the face of their franchise. What ongoing fees will I have
after opening my spa?
6% (Gross Sales) – 5% Royalty for the first 52
How much money do I need to weeks of your Franchise Agreement; 6% (Gross
open a franchise? Sales) Royalty each year afterwards
To ensure that you are able to obtain the nec- 4% (Gross Sales)Local Advertising
essary financing that you will need to move for- 1% (Gross Sales)National Advertising
ward, we require that you have a minimum of
$150,000 liquid assets (cash and marketable Do you require franchisees to
securities) and a minimum of a $750,000 net be hands on operators?
worth. This requirement may be higher if con- Hand & Stone does require a hands-on opera-
struction costs are higher than normal in cer- tor. The number of hours each franchisee ded-
tain areas, or if a candidate wishes to purchase icates to the spa will vary but at minimum our
multiple franchise licenses. franchisees are required to work 35 hours a
week on the business.
How much can I make as a What initial training is available
Hand & Stone franchisee? How to me as a franchisee?
long will it take to break-even? Franchisees attend Hand & Stone University
The Federal Trade Commission requires that for a full 5-day (in classroom) training program
we provide that information in a very specific prior to opening your business (approximately
format as part of our Franchise Disclosure Doc- 6 to 8 weeks prior to opening). This class is
ument (FDD). You will receive that document open to managers as well, with no additional
from your development representative. Our Item fees. In addition, each franchisee will work in
19 includes gross sales averages for our entire a live spa, learning how to open, close, daily
network as well as average member counts for functions, etc. During your pre-opening week,
our spa locations across the country. You will our Operations Manager will be on site at your
also have the opportunity to speak with our ex- location to help set up the business, train their
isting Franchisees through Validation Calls to staff on the POS system, how to sell member-
discuss their individual unit economics. ships, gift cards and products.® MASSAGE AND FACIAL SPA handandstonefranchise.com
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