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

Year Business Began: 2004

Franchising Since: 2006

Headquarters: Trevose, Pennsylvania

Estimated Number of Units: 605

Franchise Description: The franchisor is Hand and Stone Franchise LLC. The franchise offered is for the operation of massage, facial, waxing services, and the sale of related retail products 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.
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. 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 territory. The protected territory will surround the franchised business and be an eight-minute drive time around the specific location. However, in highly dense areas such as “downtown” areas and cities, the protected territory will be less than an eight-minute drive time. The franchisor may also 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.

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	$26,000	$49,500
Deposits (Rent, Utilities)	$8,793	$18,820
Leasehold Improvements	$335,388	$416,605
Furniture, Fixtures & Equipment	$45,841	$78,613
Computer/POS System	$7,726	$18,783
Connectivity Fee	$2,500	$2,500
Insurance	$1,406	$3,594
Office Equipment and Supplies	$3,447	$10,268
Camera/ Music System	$9,281	$17,255
Initial Inventory	$12,317	$25,847
Other Pre-Opening Expenses (Travel, Grand Opening)	$19,662	$24,521
Signage	$12,816	$25,311
Licenses, Permits and Architectural Fees	$13,555	$25,677
Legal & Accounting	$2,275	$9,879
Additional Funds (9 months)	$77,500	$144,429
ESTIMATED TOTAL	$578,507	$871,602

 
Other Fees

Type of Fee	Amount
Royalty Fee	5% of gross sales for the first 52 weeks of operation, then 6% of gross sales thereafter.
Renewal Fees	25% of current initial franchise fee.
Marketing Fund Contribution	1% of gross sales.
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	$1,850 plus travel expenses for trainers, subject to change.
System Modifications	All costs and expenses of modifications.
Relocation Assistance	$1,000 - $3,000.
Architectural Fee	$10,500 - $12,500
Customer Service	All costs incurred in assisting the franchisee’s customers.
Ongoing Training Programs	Franchisees must pay their expenses as well as their employees’ expenses in attending as well as any reasonable program fees. Refresher training will be approximately $150 per day.
Additional Training	Rates as published in the manual; currently, $350 per day and the franchisee’s expenses as well as their employees’ expenses in attending.
Additional Operations Assistance	Rates as published in the manual, currently, $350 per day, plus the franchisor’s expenses.
Customer Resolution Fees	Reasonable costs the franchisor incurs for responding to a customer complaint, which varies.
Indemnification	All costs including attorneys’ fees.
Computer Software Maintenance and Support/ Cyber Insurance Fee	$691 monthly subscription and support fee, and $35 per month for cyber insurance.  All fees are subject to change.
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 and Rewards Program and Membership Program	Will vary.
Computer Hardware and Software Upgrades	The current annual cost is approximately $1,000.
Signage Review Fee	$250
Millwork Review Fee	$350

The above information has been compiled from the FDD of Hand & Stone Massage and Facial Spa. Year of FDD: 2025.
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