The Top 5 Reasons To Invest in Hand & Stone Massage and Facial Spa

Since starting in 2004, Hand & Stone Massage and Facial Spa, the 450+ spa and massage franchise, has brought luxury spa services to the masses and fueled the growth of the entire beauty segment. The spa franchise has made a name for itself through offering a family-friendly and differentiated business model, strong support infrastructure and a variety of different revenue streams for franchisees including massage, facial and hair removal services.

Hand & Stone has grown immensely since its founding, now operating across the U.S. and Canada. In addition to an impressive footprint, the dominant player in the massage and wellness space recently earned a place on Forbes’ annual “Best Franchises To Buy” list, taking the No. 8 spot in the high-investment category for 2019.

Here are the top five reasons to invest in a Hand & Stone franchise.

Membership-Based Model and Access to Multiple Revenue Streams

Unlike its competitors, Hand & Stone’s services extend far beyond just massages and therefore offer franchisees access to multiple revenue streams. While the brand still offers six types of massages seven days per week, Hand & Stone also provides nine different kinds of facials as well as hair removal services and products.

“We’ve really differentiated ourselves with facial services and hair removal,” said VP of Development Bob McQuillan. “If you look at our brand versus other top brands, it’s clear that we’re the leader in highest average revenues—we sell more skincare products and facial services than any other brand in the industry. These services include L.E.D. photo skin therapy, microcurrent technology, dermalinfusion, as well as multiple product lines with Clarity Rx and Dermalogica. We’ve really carved ourselves a niche within the skincare segment.”

Hand & Stone Massage & Facial Spa ensures that each franchisee is set up for success with the implementation of a membership-based model. This model helps drive continuous growth, momentum and recurring revenue for each franchisee which ultimately leads to winning business.

“We continue to launch new and innovative luxury services on both the massage and facials side of the business regularly,” said McQuillan. “For massage, we recently launched paraffin hand and foot treatments and a fantastic new Himalayan Salt Stone Massage. We are continuously looking for exceptional services that we can bring to the middle market at an affordable price.”

In-Depth Franchisee Support System and Infrastructure

Hand & Stone has always prioritized the success of its franchisees. McQuillan and the corporate team are familiar with the hurdles new franchise owners must overcome when figuring out how to operate and drive business to their retail location, train their staff and oversee the financials.

“There are so many unknown factors, especially in the beginning, so supporting our franchisees is essential to both their and our success,” said McQuillan. “Hand and Stone’s in-house marketing agency and support during the real estate acquisition and negotiation process are two key areas where the brand makes a difference for its owners. Everything in the opening process is hands-on, for and with our franchisees.”

In addition to the in-house agency, Hand & Stone awards accreditation so that the company can provide credit hours to the estheticians and massage therapists. Hand & Stone features a robust training regimen for their core employees so that they can renew and stay certified in their respective fields. The credit system built-in for education is unique in the massage segment and lends a large amount of credibility to the franchisees.

A Strong and Differentiated Business Model

“In the health and wellness industry where all ships are rising with the tide, our business model is sound,” McQuillan said. “Now, more than ever, people are taking better care of themselves. By offering consumers a luxury experience for a fraction of the cost, flexible memberships and a wide variety of services, Hand & Stone caters to the middle market rather than the upper echelon and has found a niche few others have been able to break into. Hand and Stone’s quality, affordability and convenience of service are some of the most compelling reasons to become a member as well as a franchisee.”

Created around the concept that luxury spa services should be available to the masses at a competitive price point, Hand & Stone has created a differentiated, membership-based business model within the $18 billion massage therapy industry. As members, customers commit to one service per month at a reduced rate, up to 35% off Hand & Stone’s already reasonably priced services, plus additional discounts on products and gift cards. These strategies create a predictable customer base and a recurring revenue model as a result.

Since spa concepts need to innovate in order to survive in the overserved segment, Hand & Stone has also differentiated itself in the space by exploring innovative techniques and providing customers with services utilizing the latest facial technology.

Family-Oriented Business Model for Franchisees

Hand & Stone offers a new challenge for franchisees who are tired of the corporate lifestyle and are eager for an opportunity to spend more time with the family.

“At Hand & Stone Massage and Facial Spa, we have a large number of married teams who are thrilled to involve their families in the business,” said McQuillan. “As a co-owner of two Hand & Stone spas with my wife, I can speak on the subject from both a personal and business level. The people who work in health and wellness, specifically Hand & Stone, are naturally kind and customer service-oriented which creates an incredible, family-friendly work environment. There is nothing better than bringing in my daughters to work and both the customers and the staff are so friendly and positive that I am happy to have my family around.”

According to McQuillan, since Hand & Stone’s family-oriented approach starts at the very top—with many of the corporate team members doubling as franchisees—it creates an internal business family where franchisee candidates feel comfortable investing in the company and involving their own families.

One of the Fastest-Growing Wellness Spas in the Country

“We’re building 60 to 70 locations per year,” said McQuillian. “Our membership-based recurring revenue model fuels scalability and speed of growth, which makes our brand very attractive. Back in 2010, we had only 28 locations; now almost ten years later, we have over 450 locations.”

Additionally, Hand & Stone has shown significant growth in 2019 and has licensed 55 new franchise locations across the U.S. The brand is also looking to build on that momentum in 2020 by actively targeting San Diego, Louisville, Tucson, Nevada, Boston, Kansas City, Georgia, San Antonia, Pittsburgh and Greater Indiana for development.

As service-based health and wellness concepts continue to thrive, Hand & Stone’s franchising opportunity stands out in the crowded segment thanks to multiple revenue streams, exceptional support, innovative technology and a family-driven business.

Start-up costs to open a Hand & Stone franchise range from $532,563 to $618,327with a franchise fee of $42,500. To receive a breakdown of fees, estimated initial investment costs, contracts, corporate financial statements, and other valuable information are included in the Franchise Disclosure Document (FDD), visit https://handandstonefranchise.com/.