In this FDD Talk post, you’ll learn the following:
- Section I – Background information on The Woodhouse Day Spa franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for The Woodhouse Day Spa franchise, based on Item 7 of the company’s 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for The Woodhouse Day Spa franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of The Woodhouse Day Spa’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- 2016 average gross sales; cost of goods sold; gross profit; sales, general, and administrative expenses; EBITDA; other expenses; and net income for the 2 company-owned Woodhouse Day Spas in the San Antonio, Texas market that were open and operating for at least 12 months before December 31, 2016, and that the franchisor’s affiliate operated during the entire period of its fiscal year ended December 31, 2016
- 2016 average, median, high, and low gross sales for (a) the 8 franchised Spas that were in operation for between 12 full calendar months and 23 full calendar months as of December 31, 2016 and (b) the 30 franchised Spas that were in operation for at least 24 full calendar months as of December 31, 2016
Section I – Background Information
11 Things You Need to Know About The Woodhouse Day Spa Franchise
First Standalone Location to Open in Early 2018
1. At the end of June, The Woodhouse Day Spa announced that it was constructing its first standalone location in Liberty Township, Ohio. According to franchise owner Chris Mann, the new location is scheduled to open in February 2018. Mann, who owns two other Woodhouse Day Spa locations in the area, said, “We are the first standalone Woodhouse Day Spa in the country so there is really nothing like this anywhere.”
2. He added that the services that will be available at the new location will be similar to the ones at his other two spas, including massages, facials, manicures, pedicures, body treatments, aromatherapy baths, and waxing.
3. This particular spa will feature Victorian décor, 15 private guest treatment rooms, men’s and women’s quiet rooms, duet massage rooms, bath and massage room, a manicure/pedicure room, and more. Mann said that he hopes “the larger size of this spa will allow [him] to accommodate larger groups, celebrations, and corporate events.”
4. The Woodhouse Day Spa opened several new locations in 2017. At the end of March, a spa was opened in the Village at Leesburg in Virginia. Beth and Donald Weeks, owners of the Leesburg location, held a grand opening celebration on March 31 and named Loudoun Child Advocacy, a program of Loudoun Abused Women’s Shelter, as their event’s beneficiary.
5. Over the summer, the second Woodhouse Day Spa location in the Nashville, Tennessee area opened at the Aertson Midtown mixed-use development. Calina Burns, regional director for Tennessee and franchise owner of The Woodhouse Day Spa in Franklin and Chattanooga, said, “Following great success at our Franklin location, we look forward to filling the evident void in this market.” The Aerston Midtown spa is owned and operated by Kim Stevens-Trull and Carl Stevens.
6. In August, North American Properties announced that The Woodhouse Day Spa was going to fill the last space at the Avalon mixed-use development in Alpharetta, Georgia. The spa is scheduled to open this spring. The Avalon spa is the second Atlanta area location for the brand.
7. The Hotel at Avalon will partner with The Woodhouse Day Spa to create a “Sleep Beautiful” package, which includes a guestroom at the hotel, a late afternoon appointment for The Soma treatment, and relaxing evening turndown service with a special aromatherapy gift.
Online Shop Selling Hand Selected, Unique Items
8. In addition to its spa services, The Woodhouse Day Spa has an online store where it sells its own branded items as well as hand selected, unique items through the Woodhouse Vintage Market. Some of Woodhouse’s signature products include stemless wine glasses with the Woodhouse logo, branded Nike short sleeve and long sleeve shirts, branded burlap tote bag, and custom aromatherapy blends and bath oils. Woodhouse also sells other brands’ pajamas and neck pillows.
9. The first Woodhouse Day Spa was opened in 2001 by Jeni Garrett in Victoria, Texas. Garrett was only 21 years old when she opened the first location, but had always had an interest in business. Garrett and her future husband purchased a 1906 landmark home in Victoria that was built by a railroad conductor whose last name was Woodhouse, which is where the company gets its name from.
10. The Woodhouse Day Spa began franchising in 2003 and today, there are over 50 locations across the United States. Each Woodhouse Day Spa location offers a variety of spa services including massages, waxing, facials, body scrubs, wraps, manicures, and pedicures.
Entrepreneur’s Franchise 500
11. The Woodhouse Day Spa has ranked on Entrepreneur’s annual Franchise 500 list four times in the past 10 years. The company’s highest rank was No. 374 in 2015, while its lowest rank was No. 492 in 2018.
Section II – Estimated Costs
- Please click here for detailed estimates of The Woodhouse Day 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 The Woodhouse Day 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
Part 1 – Analysis of Average Sales and Certain Average Costs and Expenses for Company-Owned Woodhouse Day Spas
- Part 1 of this Financial Performance Representation analyzes average sales and certain average costs and expenses for company-owned Woodhouse Day Spas.
- The analysis was based on the operating results of the 2 company-owned Woodhouse Day Spas in the San Antonio, Texas market that were open and operating for at least 12 months before December 31, 2016, and that the franchisor’s affiliate operated during the entire period of its fiscal year ended December 31, 2016 (“Company-Owned Spas”).
- There are 2 company-owned Woodhouse Day Spas located within hotels in the San Antonio, Texas market that are not included in this analysis since they are not standard in-line Spa locations and are targeted toward guests of the hotels in which they are located as opposed to the general public.
- Two previously company-owned Spas in Victoria, Texas were sold to a franchisee in May 2016 and are now operated as franchised Spas. Those Spas in Victoria, Texas are not included in Part 1 of this Financial Performance Representation.
- The Company-Owned Spas offer substantially the same products and services that your Spa will offer. Each of the Company-Owned Spas used a uniform accounting system, and the data was prepared on a basis consistent with generally accepted accounting principles during the applicable period. The Company-Owned Spas averaged 10 years in operation. The information has not been audited.
Average Sales, Costs, and Expenses for the Two Company-Owned Spas (Calendar Year 2016)