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FDD Talk 2017: What You Need to Know About the Hand and Stone Massage and Facial Spa Franchise Opportunity (Financial Performance Analysis, Costs and Fees)

by Franchise Chatter on August 9, 2017

in FDD Talk 2017: Service Franchises, Franchise Earnings, Massage Franchise



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In this FDD Talk 2017 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, based on Item 7 of the company’s 2017 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Hand and Stone Massage and Facial Spa franchise, based on Items 5 and 6 of the company’s 2017 FDD
  • Section IV – Presentation and analysis of Hand and Stone Massage and Facial Spa’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
  • 2016 average gross sales and number of members for the Hand and Stone Massage and Facial Spa franchised businesses that were open 24 months or more as of December 31, 2016
  • 2016 annual 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, 2016
  • 2016 average gross sales and number of members for the Hand and Stone Massage and Facial Spa franchised businesses that were open between 12 and 24 months as of December 31, 2016
  • 2016 average gross sales for the Hand and Stone Massage and Facial Spa franchised businesses that were open greater than 12 months as of December 31, 2016, by year of opening (2008 to 2015)
  • 2016 average facial sales for the Hand and Stone Massage and Facial Spa franchised businesses that were open greater than 12 months as of December 31, 2016, by year of opening (2008 to 2015)
  • 2016 annual facial sales for the one subsidiary-owned Hand and Stone Massage and Facial Spa franchised business that opened in 2010
  • 2016 average size, first year gross rent, and tenant improvement allowance for the Hand and Stone Massage and Facial Spa franchised businesses that opened in 2016

Section I – Background Information

15 Things You Need to Know About the Hand and Stone Massage and Facial Spa Franchise

Celebrated Record Growth in 2016



1.  To kick off 2017, Hand and Stone Massage and Facial Spa released a press statement detailing its successes throughout 2016, including the addition of 52 new locations including five in previously untapped major markets, the opening of its 300th spa, and a nationwide increase of its member base by 38 percent.

2.  When speaking of the company’s growth, Todd Leff, CEO of Hand and Stone, said, “Our outstanding franchisees, the passion of our therapists and staff, combined with our full menu of options for massage and facials have positioned Hand and Stone to continue growing quicker than we ever could have imagined.”

3.  In 2016, the company achieved $250 million in system wide sales, up from $182 million in 2015. At the time of the press release, Hand and Stone said that it plans to open 65 new locations across the U.S. and Canada in 2017 and also hopes to enter three to five new markets.

Partnership with NuFACE

4.  At the beginning of March, Hand and Stone Massage and Facial Spa announced a new partnership with NuFACE, pioneers of innovative anti-aging devices that are clinically proven to improve facial contour, enhance skin tone, and achieve smoother skin.

5.  On March 2 of this year, 138 participating Hand and Stone locations began offering microcurrent treatments with the NuFACE Trinity Facial Toning Device, which provides a “five-minute facial lift” by stimulating and toning the muscles beneath the skin tissue.



6.  Lisa Rossmann, Director of Esthetics at Hand and Stone, said that the partnership with NuFACE shows Hand and Stone’s “continued commitment to offering the best services and products for [its] clients.”

7.  Customers can add the NuFACE treatment to any Hand and Stone Classic Facial, Exceptional Facial, or Exceptional Exfoliation services including Microderm Peel and LED Phototherapy. It is also being offered as a stand-alone 30-minute treatment and facial series involving cleansing, exfoliation, treatment mask, and quick lift.

8.  In addition to the in-spa NuFACE treatments, select Hand and Stone locations will carry the NuFACE mini, a small and portable facial toning device that uses the same microcurrent technology as the devices used in the spas.

New Company Headquarters

9.  At the end of February 2016, Hand and Stone Massage and Facial Spa celebrated the opening of its new headquarters in Trevose, Pennsylvania with an open house and ribbon cutting ceremony. The move to the new headquarters followed a successful year of growth for Hand and Stone in 2015.

10.  At the time of the headquarters’ opening, Hand and Stone announced plans to hire 10 new corporate employees as part of the brand’s continued growth.



11.  The new 7,200 square foot space was designed by Mike Howley, partner at XL Builders in Wayne, Pennsylvania and includes a 935 square foot training facility outfitted as a spa, 15 offices, 27 workstations, and two large conference rooms. Hand and Stone invited franchisees, partners, and the media to its headquarters for the ribbon cutting event.

Company History

12.  Hand and Stone Massage and Facial Spa was founded in 2004 by John Marco in Toms River, New Jersey. After 25 years of working as a physical therapist for other people, Marco wanted to start his own business and create his own services and specialties. Marco opened a second location a year later and began franchising in 2006.

13.  By 2009, the company had grown to 28 locations and Marco brought in Todd Leff to serve as CEO. Leff is instrumental to the company’s growth and today, there are over 320 locations in the U.S. and Canada.

Entrepreneur’s Franchise 500

14.  Hand and Stone Massage and Facial Spa first appeared on Entrepreneur’s annual Franchise 500 list in 2013 and has ranked on the list every year since. The company’s highest rank was No. 66 in 2017, while its lowest rank was No. 411 in 2014.

15.  Hand and Stone also ranked on Entrepreneur’s 2017 Top Global Franchises list at No. 197 and on the magazine’s 2016 Fastest Growing Franchises list at No. 48.

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 2017 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

  • Please click here for detailed information on Hand and Stone Massage and Facial Spa’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.

Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis

  • This Item presents certain historical data as provided by Hand and Stone franchisees and a subsidiary-owned outlet.
  • The following information is for the period January 1, 2016 through December 31, 2016.
  • As of December 31, 2016, Hand and Stone had 286 United States franchisees (including a subsidiary-operated business) and 22 franchise locations in Canada.
  • The following tables present the Average Gross Sales submitted to the franchisor by 233 United States franchisees and a subsidiary-operated business in Hamilton, New Jersey, which are substantially similar to those being offered through the Franchise Disclosure Document and were open and operating for at least 12 months as of December 31, 2016.
  • Tables 1 through 4a exclude United States franchisees that were not open more than 12 months as of December 31, 2016 and 22 franchises located in Canada.

Table 1 – Average Gross Sales Information for Franchised Businesses Open 24 Months or More (Calendar Year 2016)



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