Considering a Woodhouse Spa Franchise? Don’t Overlook These 28 Important Franchise Fees

Detailed Information on Woodhouse Spa’s Initial Franchise Fee, Royalty Fee + 26 Other Fees (Items 5 and 6, 2025 FDD)

1.  Initial Franchise Fee:  $60,000

• You must pay Woodhouse Spa a $60,000 initial franchise fee when you sign the Franchise Agreement (“Initial Franchise Fee”). The current Initial Franchise Fee is uniform.

2.  Development Fee:  $60,000 to $90,000

• If you choose and Woodhouse Spa agrees, you may purchase multiple Spa franchises. You may purchase in a group of two or three. You will be required to sign Woodhouse Spa’s Development Agreement and agree to open your Spas upon a set schedule.

• If you sign a Development Agreement for two Spas, you must pay Woodhouse Spa a development fee of $60,000 and if you sign a Development Agreement for three Spas, you must pay Woodhouse Spa a development fee of $90,000 (“Development Fee”).

• The Development Fee is due upon signing your Development Agreement. If you sign a Development Agreement, you will be required to execute Woodhouse Spa’s then-current form of Franchise Agreement for each Spa developed under the Development Agreement.

• You will sign a Franchise Agreement concurrently with the Development Agreement for the first Spa you develop under the Development Agreement. You must pay the Initial Franchise Fee (in addition to the Development Fee) for the first Spa you develop under the Development Agreement.

• For each additional Spa you develop under the Development Agreement, you will be required to sign Woodhouse Spa’s then-current form of Franchise Agreement. No Initial Franchise Fee will be due for each additional Spa developed under the Development Agreement.

3.  Initial Training Fee:  $5,000

• You must pay Woodhouse Spa an initial training fee in the amount of $5,000 (“Initial Training Fee”) for your Operating Principal and General Manager to participate in Woodhouse Spa’s initial training program. The Initial Training Fee must be paid when you sign the Franchise Agreement, and such training must be completed before your Spa opens for business.

• In addition, you will be solely responsible for all of your and your employees’ expenses for attending Woodhouse Spa’s initial training program, including expenses like travel, lodging, meals, and wages.

4.  Site Selection Assistance:  $2,500, plus $500 per day that Woodhouse Spa is on site

• To assist you in selection of a site for your Spa, Woodhouse Spa may provide you with one site visit to conduct an evaluation for a proposed location for your Spa. However, if you request Woodhouse Spa to travel to multiple proposed locations and/or to conduct multiple on-site evaluations, you will pay Woodhouse Spa a site selection assistance fee in the amount of $2,500 plus $500 per day that Woodhouse Spa is on site (“Site Selection Assistance Fee”); for example, the Site Selection Assistance Fee would be $3,500 if Woodhouse Spa is on site for two days.

• You will also be required to pay Woodhouse Spa’s travel, meals, and living expenses. If incurred, the Site Selection Assistance Fee is due in accordance with Woodhouse Spa’s invoice prior to opening your Spa.

5.  New Location Launch Program Fee:  $10,000

• You must market and advertise your Spa for at least two months prior to opening and three months post opening by participating in Woodhouse Spa’s “New Location Launch Program.” As part of your participation in the program, you must pay Woodhouse Spa $10,000 to direct a digital marketing campaign to promote the Spa in your individual market (“New Location Launch Program Fee”).

• You must pay the New Location Launch Program Fee upon signing the Franchise Agreement.

6.  Royalty Fee:  6% of Gross Sales

• Due Date:  On or before each Tuesday for the preceding week.

• Woodhouse Spa requires you to pay the royalty fee by electronic funds transfer.

7.  Advertising Fund Contribution:  up to 2% of Gross Sales (currently 1.75% of Gross Sales)

• Due Date:  On or before each Tuesday for the preceding week.

• Woodhouse Spa requires you to pay the Advertising Fund contribution by electronic funds transfer.

8.  Local Advertising Expenditures:  1.75% of Gross Sales

• Due Date:  You must spend this minimum amount each quarter on local advertising. If you fail to do so, Woodhouse Spa may collect such unspent amounts, which is due upon invoice, and deposit such amounts into the Advertising Fund.

9.  Technology Management Fee:  then-current fee (currently $550 per month)

• Due Date:  When billed.

• This fee covers Woodhouse Spa’s internal costs associated with managing the various technical platforms and business tools as well as the licensing, development, and implementation of such systems.

• Woodhouse Spa may increase this fee as its costs to provide these technology-related services increases upon providing you with written notice.

10.  Additional Opening Assistance:  then-current fee, plus travel and living expenses

• Due Date:  When billed.

• Woodhouse Spa may provide one on-site visit in connection with the opening of your Spa without charging a fee. Woodhouse Spa may charge you a fee and require you to reimburse it for its costs of providing additional opening assistance.

11.  System Merchandise for Resale:  varies

• Due Date:  On demand.

• Woodhouse Spa may sell to you certain collateral merchandise for resale that identifies the system (for example, caps and t-shirts).

12.  Late Payments and Interest:  $100 per day and 18% per year or the maximum lawful rate

• Due Date:  On demand.

• Woodhouse Spa may impose a late fee and charge interest on all overdue amounts.

13.  Additional Training:  at Woodhouse Spa’s option, a reasonable fee based on Woodhouse Spa’s costs of providing additional training

• Due Date:  When billed.

• You must also pay the expenses of your personnel attending training.

14.  On-site Remedial Training:  the then-current per diem fee for remedial training, plus costs. Woodhouse Spa’s current per diem rate is $250.

• Due Date:  When billed.

• If you ask or if Woodhouse Spa believes it is appropriate, Woodhouse Spa will (subject to availability) provide trained representatives to conduct on-site remedial training at your Spa.

15.  Annual Convention:  up to $1,000 per person

• Due Date:  When billed.

• Woodhouse Spa may charge a fee up to $1,000 per person to attend its annual franchisee convention. If you fail to attend Woodhouse Spa’s annual franchisee convention, Woodhouse Spa may charge you a fee up to $1,000 per Spa regardless of attendance.

16.  Transfer Fee:  $10,000 or $15,000, plus Woodhouse Spa’s reasonable costs and expenses associated with the transfer including training costs, legal, and accounting fees

• Due Date:  With transfer application.

• The Transfer Fee is either $10,000 if the transferee is a current Woodhouse Spa franchisee or $15,000 if the transferee is not a current Woodhouse Spa franchisee.

• There is no fee if an individual or partnership transfers rights to a corporation controlled by the same interest holders or for a transfer of a non-controlling interest in you by a Principal not signing the Guaranty.

17.  Securities Offering Fee:  $3,000, plus Woodhouse Spa’s reasonable costs and expenses associated with the proposed offering

• Due Date:  When billed.

• Woodhouse Spa limits its review to the manner in which the offering materials treat your and Woodhouse Spa’s relationship.

18.  Renewal Fee:  $12,750

• Due Date:  Signing of renewal Franchise Agreement.

• You must give Woodhouse Spa at least 6 months and not more than 9 months notice to renew and meet other renewal conditions.

19.  Inspection and Testing:  cost of inspection, if applicable, and cost of test

• Due Date:  When billed.

• Before approving a supplier, Woodhouse Spa may require you to pay the cost of testing the supplier’s products and inspecting its facilities.

20.  Promotional Program Fee:  up to 5% of total sale value of any gift card, gift certificate, customer loyalty or retention, membership, or special promotional program sold for Promotion Program administration. Currently, Woodhouse Spa is not charging this fee, but it reserves the right to do so in the future.

• Due Date:  When billed.

• Woodhouse Spa may charge franchisee a percent of every gift card, gift certificate, customer loyalty or retention, membership, or special promotional program sold up to 5% the total value of the sale for its administration of any such program.

• Woodhouse Spa reserves the right to modify the percentages collected upon written notice to franchisee.

21.  Gift Card Liabilities:  varies

• Due Date:  On demand upon termination or expiration of your Franchise Agreement.

• On termination or expiration of the Franchise Agreement, you must pay Woodhouse Spa an amount equal to 50% the total outstanding balance of all coupons, gift cards, gift certificates, and vouchers issued by the Spa as of the date of termination or expiration.

22.  Indemnification:  varies according to loss

• Due Date:  On demand.

• You must indemnify Woodhouse Spa when certain of your actions result in loss to it.

23.  Audit Fee:  cost of audit

• Due Date:  When billed.

• Payable if an audit shows you have understated any amount owed to Woodhouse Spa by 3% or more.

24.  Insurance Fee:  a reasonable amount based on Woodhouse Spa’s expenses

• Due Date:  On demand.

• If you fail to maintain the required insurance, Woodhouse Spa may (but need not) obtain it for you. If Woodhouse Spa does, it will charge you a fee, plus its expenses.

25.  Enforcement Costs:  will vary

• Due Date:  As incurred.

• You must pay Woodhouse Spa’s costs of enforcement (including attorneys’ fees and costs) if you do not comply with the Franchise Agreement.

26.  Non-compliance Fee:  $50 per day that violation remains uncured

• Due Date:  On demand, following your failure to cure a violation of Woodhouse Spa’s standards, specifications, or procedures.

• If you fail to operate your Spa in compliance with Woodhouse Spa’s standards, specifications, or procedures, Woodhouse Spa may charge you a fee up to $50 for each day that you remain in violation following written notice of your default.

27.  Extension Fee:  $5,000 for 6-month extension

• Due Date:  As incurred.

• Payable if you request to extend your opening date or your development schedule.

28.  Liquidated Damages:  varies

• Due Date:  Within 30 days of the date of termination of the Franchise Agreement.

• If the Franchise Agreement is terminated for any reason prior to its expiration, you will pay Woodhouse Spa the following liquidated damages:

• (i) where there are less than 2 years remaining in Franchise Agreement’s term, the average royalty fee paid by you during the previous 2 years multiplied by the number of weeks remaining in Franchise Agreement’s term; (

• ii) where there are 2 or more years remaining in Franchise Agreement’s term and the Spa has operated for at least 2 years, the average royalty fee paid by franchisee during the previous 2 years multiplied by 104 weeks; and

• (iii) where there are 2 or more years remaining in the Franchise Agreement’s term and the Spa has not opened or has operated for less than 2 years, the average royalty fee paid by franchisees for the month that termination is effective multiplied by 104 weeks.

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