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Considering a Hand and Stone Massage and Facial Spa Franchise? Don’t Overlook These 22 Important Franchise Fees

by Franchise Chatter on August 5, 2017

in Franchise Fees, Massage Franchise



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Don't Invest in a Franchise Until You Check Out This List

If you are considering a Hand and Stone Massage and Facial Spa franchise, don’t get blindsided by these 22 important franchise fees (from the initial franchise fee, to the royalty fee, to 20 other fees found in Items 5 and 6 of Hand and Stone Massage and Facial Spa’s 2017 FDD).

1.  Initial Franchise Fee:  $29,000 to $39,000



  • The initial franchise fee for your first Hand and Stone Massage and Facial Spa franchise is $39,000, and $29,000 for each additional franchise.
  • The initial franchise fee is paid in a lump sum when you sign the Franchise Agreement and it is not refundable under any conditions.
  • The initial franchise fee is payment, in part, for expenses incurred by Hand and Stone in furnishing assistance and services to you as stated in the Franchise Agreement and for costs incurred by it, including general sales and marketing expenses, training, legal, accounting, and other professional fees.
  • Hand and Stone participates in the International Franchise Association’s VetFran Program and provides for a discounted initial franchise fee for individuals honorably discharged from military service.
  • Currently, Hand and Stone provides a 20% discount off the initial franchise fee in connection with its participation in the VetFran program. This discount may be changed or discontinued at Hand and Stone’s discretion.

2.  Initial Purchases:  $25,000 to $30,000

  • Before you open your Hand and Stone Massage and Facial Spa franchise, you must purchase certain furniture, fixtures, and equipment from Hand and Stone. Hand and Stone estimates that these items will cost between $25,000 and $30,000 and it is not refundable under any conditions.

3.  Grand Opening Advertising:  $5,000 to $10,000

  • You must give to Hand and Stone the money to be spent on your grand opening advertising campaign. Hand and Stone’s subsidiary, Advertising Agency, will conduct the grand opening advertising campaign on your behalf.
  • The cost of the grand opening advertising campaign is between $5,000 and $10,000. This is not refundable.
  • There are no other payments to or purchases from Hand and Stone or its affiliates that you must make before your Hand and Stone Massage and Facial Spa franchise opens for business.

4.  Royalty Fee:  5% of Gross Sales for the first 52 weeks of operation, then 6% of Gross Sales thereafter

  • Due Date:  Weekly.

5.  Renewal Fees:  $3,000

  • Due Date:  Before renewal.
  • You must satisfy all renewal requirements; payable before renewal of the Agreement.

6.  Marketing Fund Contribution:  1% of Gross Sales

  • Due Date:  Weekly, with the Royalty Fee.

7.  Local Advertising Fee:  4% of Gross Sales (with a minimum amount of $350 per week)



  • Due Date:  Weekly, with the Royalty Fee.

8.  Audit Expenses:  all costs and expenses associated with audit

  • Due Date:  Upon demand.
  • Audit costs payable only if the audit shows an understatement in amounts due of at least 3%.

9.  Late Fees:  18% per year or the highest rate allowed by law, whichever is less

  • Due Date:  Upon demand.
  • Applies to all overdue Royalty Fees, Marketing Fund Contributions, Local Advertising Fees, and other amounts due to Hand and Stone.
  • Also applies to any understatement in amounts due revealed by an audit.

10.  Approval of Products or Suppliers:  all reasonable costs of evaluation, not to exceed $500

  • Due Date:  Time of evaluation.
  • Applies to new suppliers you wish to purchase from or products you wish to purchase that Hand and Stone has not previously approved.

11.  Insurance Policies:  amount of unpaid premiums, plus Hand and Stone’s reasonable expenses in obtaining the policies

  • Due Date:  Upon demand.
  • Payable only if you fail to maintain required insurance coverage and Hand and Stone obtains coverage for you.

12.  Transfer Fee:  50% of the initial franchise fee at the time of transfer

  • Due Date:  At the time of transfer.
  • Does not apply to an assignment to a Controlled Entity under Section 18.3 of the Franchise Agreement.

13.  System Modifications:  all costs and expenses of modifications



  • Due Date:  As required.
  • If Hand and Stone decides to modify the System by requiring new equipment, fixtures, software, trademarks, etc., you must make the modifications at your expense.

14.  Relocation Assistance:  costs of providing relocation assistance; approximately $1,000 to $3,000

  • Due Date:  Time of assistance.
  • Hand and Stone charges you for relocation assistance if you request it and Hand and Stone agrees to provide it.

15.  Customer Service:  all costs incurred in assisting your customers

  • Due Date:  Upon demand.
  • You must reimburse Hand and Stone if it determines it is necessary for it to provide service directly to your customers.

16.  Ongoing Training Programs:  you must pay your expenses as well as your employees’ expenses in attending, as well as any reasonable program fees. Refresher training will be approximately $150 per day.

  • Due Date:  Time of program.
  • Attendance will not be required more than two times per year and collectively will not exceed seven days in any year.
  • You must pay travel costs and living expenses.
  • Hand and Stone may charge a reasonable fee for these ongoing training programs.

17.  Additional Training:  rates as published in the Manual; currently, $350 per day, plus your expenses as well as your employees’ expenses in attending

  • Due Date:  Time of service.
  • Hand and Stone provides approximately two weeks of pre-opening training for you and three additional assistants, and provides your Therapists with an initial massage protocol training program lasting approximately two days.
  • You pay for additional training if you request it. You are also responsible for travel and living costs.

18.  Additional Operations Assistance:  rates as published in the Manual; currently, $350 per day, plus Hand and Stone’s expenses

  • Due Date:  Time of assistance.
  • Hand and Stone provides approximately five days of assistance around the beginning of operations. You pay for additional assistance if you request it.

19.  Indemnification:  all costs including attorneys’ fees

  • Due Date:  Upon demand.
  • You must defend lawsuits at your cost and hold Hand and Stone harmless against lawsuits arising from your operation of the Franchised Business.

20.  Computer Software Maintenance and Support/Cyber Insurance Fee:  $285 per month for ongoing support and $15 per month for cyber insurance, subject to change

  • Due Date:  Upon demand.
  • You must pay an ongoing monthly software support and maintenance fee for the Harms software to Hand and Stone and it will provide the support and maintenance.
  • You must pay for cyber insurance coverage Hand and Stone provides or secure your own policy.

21.  Post-Termination and Post-Expiration Expenses:  costs and expenses associated with ceasing operations and de-identifying yourself from the Store and Hand and Stone’s System

  • Due Date:  As incurred.

22.  Gift Card and Rewards Program and Membership Program:  will vary

  • Due Date:  Will vary.
  • You must participate in Hand and Stone’s gift card program, Rewards Program, and membership program.
  • Gift cards are available for sale through Hand and Stone’s website and at all Hand and Stone Massage and Facial Spas in the System.
  • Gift cards, Rewards Points, and membership benefits may be redeemed at any Hand and Stone Massage and Facial Spa in the System, regardless of where they were purchased.

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