FDD Talk Daily: Gross Sales of Hand and Stone Massage and Facial Spa Franchised Businesses Open 12 Months or More

Highlights of Hand and Stone Massage and Facial Spa’s Item 19 Financial Performance Representations (2012 FDD)

• The franchise offered is for the operation of massage, facial, and waxing services, and the sale of related retail products under the name Hand and Stone Massage and Facial Spa. These businesses offer services to the general public in a member and non-member program.

• The total investment necessary to begin operation of a Hand and Stone Massage and Facial Spa franchised business is $320,797 to $438,919. This includes $69,000 to $79,000 that must be paid to the franchisor and/or its affiliate.

• The following section presents the Gross Sales information submitted to the franchisor by 38 United States franchisees, including affiliate-operated businesses in Toms River and Hamilton, New Jersey, which are substantially similar to those being offered through the franchise disclosure document and were open and operating for at least twelve months as of December 31, 2011.

• The franchisor has not audited the information submitted by its franchisees, nor independently verified this information.

• As of December 31, 2011, Hand and Stone had 64 United States franchisees, (including 2 affiliate-operated businesses). This section excludes 26 United States franchisees that were not open more than 12 months as of the end of 2011, and three franchisees located in Canada.

• The results are presented in 2 sections. The first section presents the Gross Sales for franchised businesses open more than 24 months as of December 31, 2011, and the second section presents the Gross Sales for franchised businesses open between 12 months and 24 months as of December 31, 2011.

• The following information is for the period from January 1, 2011 to December 31, 2011.

• The 38 franchised businesses presented below range in size from 6 to 13 treatment rooms per location.

Section 1 – Gross Sales for Hand and Stone Massage and Facial Spa Franchised Businesses Open 24 Months or More

• Gross Sales means the aggregate of all revenue from the sale of products, gift cards, barter or exchange, complimentary services, and services from all sources in connection with the franchised business, whether for check, cash, credit, or otherwise, including all proceeds from any business interruption insurance, but excluding tips received by massage therapists and estheticians, any sales and equivalent taxes that you collect and pay to any governmental taxing authority, and the value of any allowance issued or granted to any of your customers that you credit in full or partial satisfaction of the price of any products and services offered by the franchised business.