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On a webinar facilitated by 1851 Franchise, executives from Hand & Stone, Benetrends Financial and Keyser explored why now is the right time to get started as a franchisee in order to be better positioned on the other side of the coronavirus crisis.
Franchise brands across the globe are collectively feeling the impact of the coronavirus crisis. Regardless of industry or segment, brands have been forced to pivot their operations and find new ways of doing business seemingly overnight. However, just because brick and mortar locations are temporarily closed doesn’t mean now is the time to stop searching for a business ownership opportunity. In fact, industry experts say that it is a better time than ever to start preparing for that transition or portfolio expansion.
On a webinar hosted by 1851 Franchise, Benetrends Financial’s Chief Development Officer, Eric Schechterman, explained why waiting until the other side of the crisis to invest in a franchise puts candidates interested in expanding with a brand like Hand & Stone Massage and Facial Spa behind.
“I will absolutely say now is the time,” said Schechterman. “If you wait until you can say, ‘Okay, it looks like everything’s good,’ you’re going to have existing Hand & Stone owners that just bought up four or five locations that aren’t there for you anymore. There will be many businesses looking to do the same with other franchise brands. Now, there will be an entire industry of people that want to put their fate in their own hands.”
The possibility of new or existing franchisees buying up territory at a rapid rate isn’t the only reason to invest in Hand & Stone right now. Real estate also plays an important role. Signing on to become a franchisee enables candidates to begin the hunt for the right location so that leases can be signed and spas can be built out to open up nine or so months down the line. The current economic shift also puts tenants at an advantage with landlords and creates a positive environment for small business loans.
“As we transition out of this pandemic, we fully anticipate a shift in commercial real estate much like what we saw back in 2012 when it became a tenant market,” said Kris Smith, Vice President of Real Estate Development for Hand & Stone. “The ability to find the ‘A’ real estate at a more affordable cost is something we are absolutely anticipating. We’ve never really struggled to find real estate opportunities for Hand & Stone. We’ve always been welcomed by the real estate investment trust companies of the world and local landlords because they love our brand and the type of clientele we’re bringing into their centers. Basically, they love that we’re a clean and quiet tenant. We anticipate that to certainly continue.”
With spas closed, franchise brands like Hand & Stone are using this time to enhance their already strong franchisee support systems.
“From a franchisor’s perspective, the support you’ve always given to your system is more imperative than ever,” said Rocco Fiorentino, Franchise Practice Lead at Keyser. “[Franchise brands are] all learning how to do business in a different way. So, that’s going to change the way we operate in the future. It will make us smarter and much more efficient.”
In addition to improving efficiencies, the other side of the coronavirus crisis is also going to provide prospective franchisees with something that’s been missing in the massage industry for a few years: a strong labor pool.
“A franchise like ours now has an unbelievable opportunity from a personnel perspective,” said Bob McQuillan, Vice President of Franchise Development for Hand & Stone. “Every business has a challenge, and over the last three or four years, the main challenge for us has been finding great labor because there were not many people unemployed. Now, this will likely offer us something we haven’t had in a while, which is a surplus of massage therapists and estheticians to draw from.”
By preparing for the future now, prospective business owners have the opportunity to get ahead of the game. And according to McQuillan, Hand & Stone is ripe for success. “When we come out of this, we feel there is no end in sight for this company,” he said. “So really, it’s tough to say it, but now is the time.”
To watch the full webinar, click here.
The total cost to open a Hand & Stone Massage and Facial Spa ranges from $532,563 to $618,327, including the franchise fee. For more information on available franchise opportunities with Hand & Stone Massage and Facial Spa, visit https://handandstonefranchise.com/.
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Cassie has over five years of digital and traditional media experience. She joined NLA after working as a television news producer in both Milwaukee and Chicago, and now specializes in aligning strategies across the board for her clients, ultimately building buzz and telling compelling stories through content marketing, social media, digital campaigns and traditional PR.
Cassie has a Bachelor of Arts in Broadcast and Electronic Communications from Marquette University. In her spare time, Cassie enjoys traveling and exploring what new cities have to offer in addition to spending time with her friends and family.
