In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Spavia Day Spa franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Spavia Day Spa franchise, based on Item 7 of the company’s 2021 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Spavia Day Spa franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned Spavia Day Spa outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Spavia Day Spa’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 average, median, high, and low monthly gross sales for (i) the 18 franchised Spavia Day Spas that were open and operating for more than 48 months as of December 31, 2020; (ii) the 15 franchised Spavia Day Spas that were open between 24 and 48 months as of December 31, 2020; and (iii) the 7 franchised Spavia Day Spas that were open and operating between 13 and 24 months as of December 31, 2020 (each, a “Disclosed Day Spa”)

• 2020 annual gross sales generated by each of the individual Disclosed Day Spas, along with (i) the percentage of those annual gross sales that was generated by members for each Disclosed Day Spa, and (ii) the average gross sales generated by each Disclosed Day Spa per “Guest Visit” (by a member or non-member)

Section I – Background Information

15 Things You Need to Know About the Spavia Day Spa Franchise

Every Location Participated in Charity Effort

1.  At the end of December 2021, Spavia reported that there was 100% participation from all of its locations in that year’s Spavia Cares efforts. Spavia Day Spa’s core value and mission statement is to make a positive difference and give back to local communities. In 2020, the Spavia community donated spa treatments to first responders and healthcare workers who were serving their communities amid the ongoing COVID-19 national emergency. In the fall of 2021, in efforts to give back to local communities with Spavia Cares, there was a 100% participation from all 52 open locations.

2.  The National Team held a give back program where locations could donate a percentage of proceeds to local charities from the sales of two treatments followed by a corporate match. Locations also gave back through hosting fundraisers and volunteering to organizations across a broad spectrum of categories. Donations and volunteering went to organizations such as supporting community development, education, health, human and civil rights, and animal welfare.

3.  Allison Langenderfer, founder of Spavia, said, “Making a positive difference in our communities is vitally important to making change. It starts in our community, it starts with us. There is nothing better than to be a part of doing good for others. It is so beautiful to see such dedicated owners and teams supporting their communities.”

4.  Spavia Maple Grove had the highest donation among the locations that participated in the Spavia give back program. Their team donated to Maria’s Voice, a local nonprofit that was formed to honor the life of Maria Pew whose life was taken by domestic violence in April 2020.

5.  “Thinking back to when I first heard of Maria’s story in the height of the pandemic, how eye-opening it was that this happened in our own backyard here in Maple Grove. I started following Maria’s Voice. I learned the sad truth that this is much more prevalent in our society than I could have ever imagined,” said Cristina Nolte, owner of the Maple Grove Spavia in Minnesota.

6.  Nolte continued, “At Spavia, it is important to give back to our communities and help others. It is core to our values and mission statement as a company so I knew that we wanted to help but was not sure exactly how. After working with the founders of Maria’s Voice, we decided that we can help by becoming an empowered partner of Maria’s Voice, making educational materials available to our employees and by raising general awareness to all those in our network and community.”

Partners with Clean Republic to Keep Guests and Staff Healthy

7.  In early January 2021, Spavia announced that the company has taken a serious initiative to ensure the cleanliness of its spas with the use of the best eco-friendly cleaning products available from Clean Republic. Each of Spavia’s Guest Advisors, Massage Therapists, and Estheticians follows a strict, consistent sanitizing protocol to maintain the highest standards in delivering a clean and safe environment. Spavia’s mission is to support the well-being of its guests and to make them feel safe and comfortable when visiting Spavia Day Spa.

8.  Clean Republic is a transparent and reliable brand offering less toxic, natural, and effective cleaning solutions. Clean Republic’s EPA-approved and hospital-grade disinfectant + sanitizer has also been registered and approved to join the fight in stopping the spread of COVID-19. That’s why Spavia uses it to clean its spas.

9.  Clean Republic products are free of harmful chemicals unlike many other brands containing dangerous chemicals. The formula only contains salt, water, and electricity, creating a naturally-produced chemical compound: hypochlorous acid. Hypochlorous acid is an infection-fighting compound found naturally in human white blood cells and works to fight off bacteria and viruses. Clean Republic offers cleaning products for the home and disinfectants for commercial use that can be safely used on any surface and leaves zero chemical residue behind.

10.  Clean Republic is increasing production to support the reopening of businesses, spas, and schools that are working diligently to maintain clean, safe environments. The company’s goal to offer products and resources to help businesses develop strategic and safe cleaning plans is one of the many reasons why Spavia has proudly partnered with the brand.

11.  Here are just a few of Spavia’s many sanitizing protocols that are meticulously followed by its team to ensure the safety of guests:

• Massage Therapists, Estheticians, and Guest Advisors are required upon arrival to sanitize their hands and record their temperature.
• All team members are required to wash their hands with antibacterial soap when arriving at the spa, in between treatments, and after any interaction with a guest or other team member.
• All treatment rooms, the reception, retreat rooms, restrooms, and changing areas are sanitized between each guest by spraying Clean Republic in the air and on any possible touch points and wiping down any handles touched.

12.  For guests’ convenience, Spavia also has sanitation stations in its spa boutique area, changing area, retreat area, and is happy to provide masks or gloves if needed. Clean Republic’s powerful, multi-action products and Spavia’s cleaning protocols and processes are a simple solution for maintaining a healthy spa environment so guests can relax, recenter, and renew.

Company History

13.  Spavia was founded in 2005 by Allison Langenderfer and her husband Marty in Ann Arbor, Michigan. The Lagenderfers wanted to start a high-quality spa that offered affordable services. They chose the name “Spavia” because it reflected the products and services they offered to deliver results to help their guests relax, recenter, and renew. “Via” in many languages means route or pathway and the Lagenderfers’ interpretation of Spavia is the route or journey to wellness.

14.  In 2007, the Lagenderfers started franchising the Spavia concept. The brand has grown steadily over the past decade and there are now Spavia locations in more than a dozen states. The Lagenderfers continue to own and operate Spavia, with Allison Lagenderfer serving as president and Marty Lagenderfer serving as CEO.

Entrepreneur’s Franchise 500

15.  Spavia ranked No. 347 on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of Spavia Day Spa franchise costs, based on Item 7 of the company’s 2021 FDD.

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

• Detailed information on Spavia Day Spa’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  24
• Outlets at the End of the Year:  35
• Net Change:  +11

2019

• Outlets at the Start of the Year:  35
• Outlets at the End of the Year:  45
• Net Change:  +10

2020

• Outlets at the Start of the Year:  45
• Outlets at the End of the Year:  50
• Net Change:  +5

Company-Owned

2018

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2019

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  0
• Net Change:  -1

2020

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

Part 1 – Average Monthly Gross Sales Generated Amongst Each of 3 Subsets of Disclosed Day Spas

• Part 1 of this Item 19 discloses the average monthly revenue generated by the following subsets of Day Spas that are operated in a substantially similar manner to the Franchised Business being offered in the Disclosure Document: (i) the 18 franchised Day Spas that were open and operating for more than 48 months as of December 31, 2020; (ii) the 15 franchised Day Spas that were open between 24 and 48 months as of December 31, 2020; and (iii) the 7 franchised Day Spas that were open and operating between 13 and 24 months as of December 31, 2020 (each, a “Disclosed Day Spa”).

• In Part I, Spavia discloses information related to the average and median monthly Gross Sales generated amongst each of the 3 subsets of franchised Day Spas over the 2020 calendar year (the “Measurement Period”), as well as the high and low Gross Sales reported over the Measurement Period within each such subset.

Number of Months in Operation as of December 31, 2020:  Between 13 and 24 Months

• Number of Day Spas Comprising the Group:  7
• Average Monthly Gross Sales:  $38,758.49
• Median Monthly Gross Sales:  $31,528.54
• High Monthly Gross Sales:  $85,182.53
• Low Monthly Gross Sales:  $17,317.23
• Number That Met or Exceeded Average:  2 (or 29%)

Number of Months in Operation as of December 31, 2020:  Between 24 and 48 Months

• Number of Day Spas Comprising the Group:  15
• Average Monthly Gross Sales:  $44,871.54
• Median Monthly Gross Sales:  $43,486.06
• High Monthly Gross Sales:  $88,105.42
• Low Monthly Gross Sales:  $22,592.60
• Number That Met or Exceeded Average:  11 (or 53%)

Number of Months in Operation as of December 31, 2020:  48 Months or Longer

• Number of Day Spas Comprising the Group:  18
• Average Monthly Gross Sales:  $70,500.51
• Median Monthly Gross Sales:  $66,331.20
• High Monthly Gross Sales:  $102,596.02
• Low Monthly Gross Sales:  $39,497.79
• Number That Met or Exceeded Average:  8 (or 44%)

• The term “Gross Sales” for each Disclosed Day Spa means the total revenue generated from the sale of Approved Services and Approved Products at that Day Spa over the applicable Measurement Period.

Part 2 – Gross Sales (Annual) Generated, Along With Percentage of That Revenue Generated From Members and Average Revenue Generated Per Guest (Member or Non-Member) Visit to Day Spa, Over the Measurement Period

• In Part 2, Spavia discloses the total Gross Sales generated over the Measurement Period by each of the individual Disclosed Day Spas, along with (i) the percentage of those annual Gross Sales that was generated by members for each Disclosed Day Spa, and (ii) the average Gross Sales generated by each Disclosed Day Spa per “Guest Visit” (by a Member or Non-Member), over the Measurement Period.

• In addition, Part 2 provides the overall average amongst each of the 3 subsets of the Disclosed Day Spas for each of the data points disclosed for each individual franchised Day Spa in Part 2.

Disclosed Day Spas Open for Between 13 and 24 Months as of December 31, 2020

Location #1

• Gross Sales Generated Over Measurement Period:  $174,904.04
• Percentage of Gross Sales Generated by Members:  17.65%
• Average Revenue Per Guest Visit:  $76.51

Location #2

• Gross Sales Generated Over Measurement Period:  $210,817.13
• Percentage of Gross Sales Generated by Members:  20.29%
• Average Revenue Per Guest Visit:  $93.08

Location #3

• Gross Sales Generated Over Measurement Period:  $252,788.55
• Percentage of Gross Sales Generated by Members:  37.30%
• Average Revenue Per Guest Visit:  $94.36

Location #4

• Gross Sales Generated Over Measurement Period:  $303,724.96
• Percentage of Gross Sales Generated by Members:  29.46%
• Average Revenue Per Guest Visit:  $92.26

Location #5

• Gross Sales Generated Over Measurement Period:  $359,850.31
• Percentage of Gross Sales Generated by Members:  38.59%
• Average Revenue Per Guest Visit:  $103.08

Location #6

• Gross Sales Generated Over Measurement Period:  $525,821.83
• Percentage of Gross Sales Generated by Members:  28.32%
• Average Revenue Per Guest Visit:  $80.27

Location #7

• Gross Sales Generated Over Measurement Period:  $871,701.20
• Percentage of Gross Sales Generated by Members:  48.55%
• Average Revenue Per Guest Visit:  $89.13

Average Amongst Subset

• Gross Sales Generated Over Measurement Period:  $385,658.29
• Percentage of Gross Sales Generated by Members:  31.45%
• Average Revenue Per Guest Visit:  $89.81

Disclosed Day Spas Open for Between 24 and 48 Months as of December 31, 2020

Location #1

• Gross Sales Generated Over Measurement Period:  $366,569.52
• Percentage of Gross Sales Generated by Members:  40.47%
• Average Revenue Per Guest Visit:  $81.64

Location #2

• Gross Sales Generated Over Measurement Period:  $313,840.19
• Percentage of Gross Sales Generated by Members:  46.02%
• Average Revenue Per Guest Visit:  $105.49

Location #3

• Gross Sales Generated Over Measurement Period:  $220,751.45
• Percentage of Gross Sales Generated by Members:  42.96%
• Average Revenue Per Guest Visit:  $89.88

Location #4

• Gross Sales Generated Over Measurement Period:  $529,671.52
• Percentage of Gross Sales Generated by Members:  51.03%
• Average Revenue Per Guest Visit:  $123.01

Location #5

• Gross Sales Generated Over Measurement Period:  $518,049.01
• Percentage of Gross Sales Generated by Members:  45.42%
• Average Revenue Per Guest Visit:  $106.33

Location #6

• Gross Sales Generated Over Measurement Period:  $476,275.75
• Percentage of Gross Sales Generated by Members:  45.68%
• Average Revenue Per Guest Visit:  $118.27

Location #7

• Gross Sales Generated Over Measurement Period:  $200,321.04
• Percentage of Gross Sales Generated by Members:  32.04%
• Average Revenue Per Guest Visit:  $104.23

Location #8

• Gross Sales Generated Over Measurement Period:  $365,937.68
• Percentage of Gross Sales Generated by Members:  43.49%
• Average Revenue Per Guest Visit:  $96.68

Location #9

• Gross Sales Generated Over Measurement Period:  $443,557.80
• Percentage of Gross Sales Generated by Members:  56.78%
• Average Revenue Per Guest Visit:  $106.91

Location #10

• Gross Sales Generated Over Measurement Period:  $334,842.25
• Percentage of Gross Sales Generated by Members:  53.15%
• Average Revenue Per Guest Visit:  $105.13

Location #11

• Gross Sales Generated Over Measurement Period:  $427,782.09
• Percentage of Gross Sales Generated by Members:  44.95%
• Average Revenue Per Guest Visit:  $110.31

Location #12

• Gross Sales Generated Over Measurement Period:  $491,714.28
• Percentage of Gross Sales Generated by Members:  46.29%
• Average Revenue Per Guest Visit:  $83.74

Location #13

• Gross Sales Generated Over Measurement Period:  $898,675.29
• Percentage of Gross Sales Generated by Members:  46.02%
• Average Revenue Per Guest Visit:  $94.58

Location #14

• Gross Sales Generated Over Measurement Period:  $418,204.94
• Percentage of Gross Sales Generated by Members:  48.57%
• Average Revenue Per Guest Visit:  $86.46

Location #15

• Gross Sales Generated Over Measurement Period:  $487,866.57
• Percentage of Gross Sales Generated by Members:  52.56%
• Average Revenue Per Guest Visit:  $84.06

Average Amongst Subset

• Gross Sales Generated Over Measurement Period:  $432,937.29
• Percentage of Gross Sales Generated by Members:  46%
• Average Revenue Per Guest Visit:  $99.78

Disclosed Day Spas Open for 48 Months or Longer as of December 31, 2020

Location #1

• Gross Sales Generated Over Measurement Period:  $516,368.73
• Percentage of Gross Sales Generated by Members:  57.04%
• Average Revenue Per Guest Visit:  $98.34

Location #2

• Gross Sales Generated Over Measurement Period:  $609,955.28
• Percentage of Gross Sales Generated by Members:  47.36%
• Average Revenue Per Guest Visit:  $101.27

Location #3

• Gross Sales Generated Over Measurement Period:  $479,161.02
• Percentage of Gross Sales Generated by Members:  42.95%
• Average Revenue Per Guest Visit:  $67.11

Location #4

• Gross Sales Generated Over Measurement Period:  $627,259.57
• Percentage of Gross Sales Generated by Members:  49.02%
• Average Revenue Per Guest Visit:  $118.35

Location #5

• Gross Sales Generated Over Measurement Period:  $747,326.26
• Percentage of Gross Sales Generated by Members:  57.81%
• Average Revenue Per Guest Visit:  $108.01

Location #6

• Gross Sales Generated Over Measurement Period:  $474,342.07
• Percentage of Gross Sales Generated by Members:  54.09%
• Average Revenue Per Guest Visit:  $63.78

Location #7

• Gross Sales Generated Over Measurement Period:  $816,581.73
• Percentage of Gross Sales Generated by Members:  61.03%
• Average Revenue Per Guest Visit:  $98.22

Location #8

• Gross Sales Generated Over Measurement Period:  $1,031,355.85
• Percentage of Gross Sales Generated by Members:  51.17%
• Average Revenue Per Guest Visit:  $98.51

Location #9

• Gross Sales Generated Over Measurement Period:  $669,385.16
• Percentage of Gross Sales Generated by Members:  34.77%
• Average Revenue Per Guest Visit:  $87.27

Location #10

• Gross Sales Generated Over Measurement Period:  $595,273.31
• Percentage of Gross Sales Generated by Members:  46.42%
• Average Revenue Per Guest Visit:  $107.80

Location #11

• Gross Sales Generated Over Measurement Period:  $842,065.38
• Percentage of Gross Sales Generated by Members:  49.90%
• Average Revenue Per Guest Visit:  $91.36

Location #12

• Gross Sales Generated Over Measurement Period:  $396,294.53
• Percentage of Gross Sales Generated by Members:  41.98%
• Average Revenue Per Guest Visit:  $112.17

Location #13

• Gross Sales Generated Over Measurement Period:  $802,298.76
• Percentage of Gross Sales Generated by Members:  59.33%
• Average Revenue Per Guest Visit:  $113.82

Location #14

• Gross Sales Generated Over Measurement Period:  $748,288.30
• Percentage of Gross Sales Generated by Members:  62.09%
• Average Revenue Per Guest Visit:  $105.35

Location #15

• Gross Sales Generated Over Measurement Period:  $638,086.18
• Percentage of Gross Sales Generated by Members:  50.77%
• Average Revenue Per Guest Visit:  $105.17

Location #16

• Gross Sales Generated Over Measurement Period:  $1,070,418.45
• Percentage of Gross Sales Generated by Members:  69.64%
• Average Revenue Per Guest Visit:  $115.38

Location #17

• Gross Sales Generated Over Measurement Period:  $682,720.94
• Percentage of Gross Sales Generated by Members:  59.82%
• Average Revenue Per Guest Visit:  $79.93

Location #18

• Gross Sales Generated Over Measurement Period:  $959,196.31
• Percentage of Gross Sales Generated by Members:  65.27%
• Average Revenue Per Guest Visit:  $94.27

Average Amongst Subset

• Gross Sales Generated Over Measurement Period:  $705,909.98
• Percentage of Gross Sales Generated by Members:  53.0%
• Average Revenue Per Guest Visit:  $98.12

• The figures and information presented in this Item 19 are based on the actual and historical performance of the Disclosed Day Spas, and such information was either (a) reported to Spavia by the owners of each Disclosed Day Spa, and/or (b) pulled from reports generated by the System’s POS System utilized at each Disclosed Day Spa.

• This Item 19 excludes: (i) the 6 franchised Day Spas that were not open and operating for at least 13 months as of December 31, 2020; and (ii) 4 Day Spas – 2 that were open between 24 and 48 months as of expiration of the Measurement Period, and 2 that were open between 13 and 24 months as of expiration of that Measurement Period – that were prohibited from providing the Approved Services from their respective premises (located in the State of California or New York) for 4 or more months during the Measurement Period due to COVID-19 and corresponding state government orders prohibiting Day Spa operations.

• Some outlets have sold these amounts. Your individual results may differ. There is no assurance that you’ll sell or earn as much.

• Spavia does not include any disclosures related to the operating costs and expenses that each Disclosed Day Spa incurred in connection with their respective operations over the Measurement Period or otherwise. Operating costs and expenses may vary substantially from business to business.

• Your results may vary upon the location of your Franchised Business. Your results may also vary because you will be establishing and operating a start-up business, including any legal, accounting, or other professional work that you might wish to obtain in connection with your purchase of a franchise.

• Expenses and costs, as well as the actual accounting and operational methods employed by a franchisee, may significantly impact profits realized in any particular operation.

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