How Much Does It Cost to Open a Woodhouse Spas Franchise?

Opening a Woodhouse Spas franchise is an exciting opportunity for entrepreneurs passionate about luxury wellness. With over 87 locations nationwide and an impressive average gross sales of $2.4 million,** Woodhouse Spas stands out in the spa franchise industry. 

Here’s a breakdown of the costs involved in opening your own Woodhouse Spas, with insights into how the brand is working to reduce buildout costs while maintaining the luxury brand experience.

Initial Investment Breakdown

According to the 2024 Woodhouse Franchise Disclosure Document (FDD), the total investment to open a Woodhouse Spas ranges from $1,486,677 to $2,592,081*?. This wide range accounts for several factors such as location, buildout costs and the size of your spa, which typically ranges from 5,000 to 7,000 square feet.

Here’s a breakdown of some of the key costs*:

• Initial Franchise Fee: $55,000
• Site Selection Assistance Fee: $0 - $3,500
• Fixtures, Furniture, and Equipment: $318,650 - $473,650
• Computer and IT Systems and Components: $58,000 - $70,000
• Additional IT-Related Services: $1,200 - $1,800
• Technology Management Fee (For Initial 3-Month Period): $1,425
• Security Deposit and Rent: $38,750 - $73,500
• Leasehold Improvements: $758,920 - $1,419,761
• Signage: $20,000 - $27,000
• Business Licenses and Permits: $250 - $1,000
• Architectural Fees: $37,500 - $47,000
• Training Expenses: $8,000 - $10,000
• Professional Services: $3,000 - $10,000
• Insurance (For Initial 3-Month Period): $16,000 - $32,000
• Grand Opening: $15,000
• Initial Inventory: $46,000 - $92,000
• Employment Screening and Investigation Services: $607 - $2,067
• Additional Funds for Start-Up Phase (For Initial 3-Month Period): $108,375 - $257,378

*See Item 7 of the 2024 FDD for additional costs and details on costs.

Reducing Buildout Costs with Strategic Changes

Woodhouse is committed to improving the profitability and ROI for its franchisees. Ashley Chatley, the new vice president of design and construction, shared several initiatives aimed at reducing costs without compromising the luxurious experience the brand is known for.

“We are continuously looking to reduce cost and reevaluate processes to start off strong,” Chatley said. This includes assessing the real estate process, leveraging vendor relationships and building a prototype set of brand standards.

One significant way Woodhouse is reducing costs is by shifting certain construction responsibilities onto the landlord, particularly around utility requirements and HVAC systems, which can take a significant portion out of the franchise owner's buildout costs.

Woodhouse also recently hired a new architecture firm, which is working to reduce costs by as much as 20%. 

“We’ve also created a Franchise Design Committee that involves franchise owners in the design and construction process, ensuring that the space is not only cost-effective but also operationally efficient without losing the luxury experience,” said Chatley. 

Achieving High ROI

Woodhouse Spas focuses on delivering an "approachable luxury" experience, attracting clientele who are willing to spend more for a premium spa service. With guests often spending an average of $180 per visit, the investment in higher-end finishes, materials, and design translates into exceptional customer satisfaction and repeat business, making the initial investment well worth it.

“The experience and the space need to match the service, and that’s where the return on investment comes in,” said Chatley. Even as the company reduces costs, it continues to focus on providing a first-class spa environment that keeps customers coming back.

And the results speak for themselves — in 2023, the average gross sales for franchise locations were $2,411,085**, according to the Item 19 of the 2024 Woodhouse Spas FDD, with the highest location achieving $5,014,215.** The median gross sales for the same period were $2,318,130.86.**

The Bottom Line

Overall, opening a Woodhouse Spas does require a significant investment, but the brand’s ongoing efforts to reduce buildout costs and enhance franchisee support make it a competitive option in the luxury spa industry. With a strong support system and innovative cost-cutting strategies, Woodhouse is focused on improving profitability while maintaining the luxurious experience the brand is known for.

If you’re ready to make a meaningful investment in the wellness industry, Woodhouse Spas offers an opportunity to join a trusted brand with proven success.

To learn more about franchising with Woodhouse Spas, visit: https://www.ownawoodhouse.com/.

This article is not a franchise offering. A franchise offering can be made by us only in a state if we are first registered, filed, excluded, exempted, or otherwise qualified to offer franchises in that state, and only if we provide you with an appropriate franchise disclosure document. Follow-up or individualized responses to you that involve either effecting or attempting to affect the sale of a franchise will be made only if we are first in compliance with state registration or notice filing requirements, or are covered by an applicable state exclusion or exemption. Such registration or filing does not constitute approval, recommendation, or endorsement by any state. The Woodhouse SPAS, LLC, 300 Union Blvd., Suite 600, Lakewood, CO 80228, MN Registration F-9692.

*See Item 7 of the Woodhouse 2024 Franchise Disclosure Document for more information.

**The average annual gross sales in 2023 for franchised spas in the United States that were operating for all of 2023 and that submitted all sales reports was $2,411,085. Of the 71 (89%) of 80 Woodhouse Spa locations that met the 2023 Reporting Criteria, 33 (46%) met or exceeded the Average Gross Sale for 2023. Some outlets have achieved or sold this much. Your individual results may differ. There is no assurance that you’ll sell or achieve as much. See Item 19 of the Woodhouse 2024 Franchise Disclosure Document for more information.