In this FDD Talk 2016 post, you’ll learn the following:
- Section I – Background information on the Hand and Stone Massage and Facial Spa franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Hand and Stone Massage and Facial Spa franchise, based on Item 7 of the company’s 2016 FDD
- Section III – Presentation and analysis of Hand and Stone Massage and Facial Spa’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- 2015 average gross sales and number of members, grouped according to state, for the Hand and Stone Massage and Facial Spa franchised businesses that were open 24 months or more as of December 31, 2015
- 2015 actual gross sales and number of members for the one subsidiary-owned Hand and Stone Massage and Facial Spa franchised business open more than 24 months as of December 31, 2015
- 2015 average gross sales and number of members, grouped according to state, for the Hand and Stone Massage and Facial Spa franchised businesses that were open between 12 months and 24 months as of December 31, 2015
Section I – Background Information
When John Marco was volunteering as a physical therapy aide in a local hospital back in 1977, he knew his future would be in the healing business. He studied physical therapy in college and practiced as a licensed therapist for 24 years. He thought he might open his own massage spa. He couldn’t believe there were no national brands to speak of and set about to remedy that situation.
In 2004, he opened the first Hand and Stone in Toms River, NJ. When he realized he was definitely onto something, he started franchising in 2006. The number of locations has grown steadily over the last 10 years and now stands at 273, only one of which is company-owned and 19 of which are located outside the U.S. (in Canada).
Here’s how Hand and Stone is leaving a good impression with consumers in the heath and wellness scene:
Expansion in Florida
Following its record-breaking year of 2015, the chain is continuing its status as the fastest-growing massage and skin care franchise by targeting southern Florida as its next expansion hub. The demographics are really strong in Miami-Dade, Broward and Palm Beach counties and should support as many locations as they want to open there.
Women’s Soccer Star-Power
The company has a new spokesperson, and it’s Carli Lloyd. In the last World Cup tournament, Lloyd scored three goals to help the U.S. win the women’s soccer title. The company wanted a young, vibrant female athlete to be their spokesperson, and Lloyd has been using Hand and Stone for several years.
With 70% of the chain’s clientele being women, with an average age of 38, it’s a perfect fit.
The Bridal Connection
If there’s one trend that’s continued to increase in recent years, it’s brides and their friends indulging in a bit of pampering around the big day. That’s why Hand and Stone figured it was a good idea to partner exclusively with the nation’s leading bridal and special occasion company – David’s Bridal, whose market share is something like one out of every three brides, which is impressive.
Hand and Stone will be able to offer coupons and specials to brides in all David’s Bridal locations.
Part of what goes into Hand and Stone’s success is the convenience factor. They’re open 7 days a week with extended hours so customers can take advantage of the chain’s services when it best suits their schedule.
The chain is also very savvy about how it takes on new franchisees. Hand and Stone is adamant about franchisees being willing to open 5-10 locations in a given geographic area. This is important because with multiple locations, television advertising becomes possible and viewers can be sure to have a Hand and Stone location within easy driving distance.
Hand and Stone prices its services lower than what you would find at typical spas with similar offerings, often to the tune of 30% less. But that lower price tag doesn’t come with cutting corners on quality, which is a big part of the chain’s continued success.
Section II – Estimated Costs
- Please click here for detailed estimates of Hand and Stone Massage and Facial Spa franchise costs, based on Item 7 of the company’s 2016 FDD (updated).