Hand & Stone Massage and Facial Spa Franchise Costs, Fees & FDD

Year Business Began: 2004

Franchising Since: 2006

Headquarters: Trevose, Pennsylvania

Estimated Number of Units: 660

Franchise Description: The franchisor is Hand and Stone Franchise LLC. The franchise offered is for the operation of professional massage, facial, waxing, skincare, and face and body contouring/sculpting services and the sales of related retail product under the name “Hand and Stone Massage and Facial Spa.” The franchisor offers services to the general public in a member and non-member program. A Hand and Stone franchise will typically occupy 2,200-3,200 square feet in a strip mall or shopping center.
Training Overview: The franchisor will conduct an initial training program that franchisees and their designated manager must attend and complete to the franchisor’s satisfaction prior to opening. Although initial training is mandatory for the designated manager, it is also available for up to three additional assistants. Training will take place at the franchisor’s headquarters, or at another location it designates. The initial training program is approximately two weeks long and covers the business and administrative aspects of the operation of a Hand and Stone franchise, including sales and marketing, financial controls, quality standards, customer service, and record-keeping. For new locations, the franchisor will also make an initial massage protocol training program available to franchisees and their therapists, including their lead therapist. The initial massage protocol training program is approximately two days long and includes classroom instruction pertaining to all massage protocols and training techniques. Periodically the franchisor may require that previously trained and experienced franchisees, their managers, and/or employees attend refresher-training programs.

Territory Granted: Franchisees must operate their franchise at a location that the franchisor approves, and they may not relocate without written approval. The franchisor will grant franchisees a protected, non-exclusive, territory. The protected territory will surround the franchised business and not exceed 3 miles of the franchised business and not containing a population greater than 50,000 residents. The franchisor may redefine or reduce the boundaries of the protected territory based on the following changes, which may include but not be limited to demographics, population, demand for services, travel times and economic conditions. If franchisees are in full compliance with the Franchise Agreement during its term, the franchisor will not establish, or license others to establish, a Hand and Stone Massage and Facial Spa franchise within the protected territory.

Obligations and Restrictions: The day-to-day affairs of the franchised business must always be under the direct full-time supervision of the franchisee or a designated manager. Franchisees must offer the massage, facial and spa services, retail products and membership and gift card programs the franchisor specifies periodically in strict accordance with its standards and specifications. Franchisees may not sell any services or products that the franchisor has not authorized, and they must discontinue offering any services, products or programs that the franchisor may, in its sole discretion, disapprove of in writing at any time. The franchisor may also require franchisees and their principals, managers, and personnel with access to confidential information to sign nondisclosure and non-competition agreements.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees may renew for one additional term of 10 years if requirements are met.

Financial Assistance: The franchisor does not offer direct or indirect financing, nor does it guaranty a franchisee’s notes, leases or other obligations. The franchisor provides a 20% discount on the initial franchise fee for individuals honorably discharged from military service.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$39,600	$49,500
Deposits (Rent, Utilities)	$6,214	$15,176
Leasehold Improvements	$132,310	$423,538
Furniture, Fixtures & Equipment	$29,661	$98,156
Computer/POS System	$15,632	$20,068
Connectivity Fee	$3,500	$3,500
Insurance	$1,050	$5,000
Office Equipment and Supplies	$2,640	$8,000
Camera/ Music System	$9,137	$9,601
Initial Inventory	$12,722	$28,500
Other Pre-Opening Expenses (Travel, Grand Opening)	$18,729	$37,394
Signage	$8,856	$23,937
Licenses, Permits and Architectural Fees	$14,540	$31,859
Legal & Accounting	$1,300	$10,500
Additional Funds (9 months)	$25,000	$100,000
ESTIMATED TOTAL	$320,891	$864,729

 
Other Fees

Type of Fee	Amount
Royalty Fee	6% of gross sales per week
Renewal Fees	25% of current initial franchise fee.
Marketing Fund Contribution	1% of gross sales (which may be increased up to 2%).
Local Advertising Fee	4% of gross sales (with a minimum amount of $400 per week).
Audit Expenses	All costs and expenses associated with audit.
Late Fees	18% per year or the highest rate allowed by law, whichever is less.
Insufficient Funds Fee	$150
Approval of Products or Suppliers	All reasonable costs of evaluation, not to exceed $500.
Insurance Policies	Amount of unpaid premiums plus the franchisor’s reasonable expenses in obtaining the policies.
Transfer Fee	50% of the initial franchise fee at the time of transfer.
Onsite Transfer Training Fee	$2,300 plus travel expenses for trainers, subject to change.
Relocation Assistance	$1,000 - $3,000
Architectural / Design Review Fee	$0 - $1,500 (HS Design plan review; no charge if you use the designated architect)
Ongoing Training Programs (refresher)	Approximately $150 per day, plus travel and living expenses.
Additional Training	Currently $350 per day, plus expenses.
Additional Operations Assistance	Currently $350 per day, plus expenses.
Computer Software Maintenance and Support/ Cyber Insurance Fee	$726 monthly subscription and support fee, and $35 per month for cyber insurance. All fees are subject to change.
Computer Hardware and Software Upgrades	The current annual cost is approximately $1,000.
Signage Review Fee	$250
Millwork Review Fee	$350
System Modifications	All costs and expenses of modifications.
Customer Service / Customer Resolution Fees	All costs incurred in assisting the franchisee’s customers.
Indemnification	All costs including attorneys’ fees.
Liquidated Damages	See FDD.
Post-Termination and Post-Expiration Expenses	Costs and expenses associated with ceasing operations and de-identifying the franchisee from the store and the system.
Gift Card, Rewards, Referral and Membership Programs	Will vary.

The above information has been compiled from the FDD of Hand & Stone Massage and Facial Spa. Year of FDD: 2026.
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