Updated February 4, 2021.
Detailed Estimates of Spavia Day Spa Franchise Costs Based on Item 7 (Estimated Initial Investment) of Spavia Day Spa’s 2020 Franchise Disclosure Document
1. Initial Franchise Fee: $49,500
2. Initial Training Fee: $5,000
- Initial training is provided for up to 3 people, including your operating principal and designated manager; provided all individuals attend the same Initial Training Program. If additional initial training is required, or more people must be trained, an additional fee will be assessed.
- The estimate for the initial training expenses assumes that you and up to 1 other trainee you designate will attend and participate in Spavia’s Initial Training Program.
3. Travel and Living Expenses During Initial Training: $500 to $1,000
- This is Spavia’s estimated range of costs to cover the travel and living expenses, including airfare, transportation costs, lodging, and meals, associated with you and your designated trainees attending the portion of the Initial Training Program that is conducted at Spavia’s designated training facility (currently in Englewood, Colorado) or at another location designated by Spavia.
- The low estimate assumes that you will attend Spavia’s proprietary training program, while the high estimate assumes that a total of 3 individuals will be attending this initial training.
4. Site Selection: $0 to $2,000
5. Utility and Security Deposits: $5,000 to $35,000
- These are estimated amounts that a new franchisee can expect to expend for security deposits associated with the lease for the Premises of the Spavia Business, as well as the utilities associated with operations.
6. Business Licenses and Permits: $50 to $1,500
- You are required to obtain all business licenses, permits, certificates, or approvals before you start business. Local, municipal, county, and state regulations vary on what licenses and permits are required by you to operate.
7. Professional Fees: $2,000 to $5,000
8. Pre-Construction, Architect, Engineering: $18,750 to $21,490
9. Leasehold Improvements and Construction: $130,176 to $359,305
- You will need to construct improvements or “build out” the Premises at which you will operate your Spavia Business. Construction costs, net of average tenant allowance, for recently completed projects have ranged from $47 to $128 per square foot, depending on the size of the Premises, building type, property, and location.
- The target size of the Premises for Spavia Businesses is 2,800 square feet, which will typically accommodate around 7 treatment rooms.
10. Construction Management: $0 to $13,750
- You may elect to manage the construction of the Franchised Business yourself, but Spavia typically strongly recommends you engage a third-party provider that specializes in construction management services, including dealing with the general contractor and other parties responsible for the construction and buildout of your Premises.
- The low end of this range assumes that you will manage the construction yourself. The high end of this range assumes that you will engage a third party to provide these services and is, in part, based on estimates Spavia has received from vendors that it and its System franchisees have worked with in the past.
11. Signage and Graphics: $10,000 to $15,000
- This is the estimated range for you to purchase the necessary exterior signage to display at your Franchised Business from Spavia’s approved third-party supplier, as well as the related installation costs.
12. Equipment and Supplies: $85,000 to $95,000
- You must purchase certain of the millwork, furniture, fixtures, equipment, and other items from suppliers designated by Spavia.
- This range also includes the costs associated with acquiring all other furniture, fixtures, equipment, and supplies necessary to equip your Premises in accordance with Spavia’s System standards, and operate for a period of 3 months.
13. Technology Fee: $910
- This includes 2 payments of the Technology Fee which is paid to Spavia beginning 2 months prior to opening your Franchised Business.
14. Additional Funds for 3 Months: $45,000 to $90,000
- These amounts represent Spavia’s estimate of the amount needed to cover your expenses for the initial 3-month start-up phase of your Spavia Business. Spavia’s estimates are based on its experience, the experience of its affiliate (SL Affiliate), and its current requirements for Spavia Businesses.
- These expenses include payroll costs during the first 3 months of operation, but not any draw or salary for you. These figures also include 3-month estimates of insurance premiums, rent, the Local Advertising Requirement, and the Technology Fee payments due after opening.
- This range does not include any draw or salary for you.
15. Total Estimated Initial Investment: $351,886 to $694,455
- The figures above are only estimates. Spavia’s estimates are based on its experience, the experience of its affiliates, and its current requirements for Spavia franchises.