Woodhouse Spas, the nearly 90-unit luxury day spa franchise, offers an attractive investment opportunity for entrepreneurs. With a strong due diligence process focused on mutual evaluation, the brand is committed to transparency with its prospective owners and works to identify individuals who will build a true partnership.

A key component of this transparency is its Franchise Disclosure Document. The FDD offers a valuable look behind the scenes of the investment, and it’s a crucial road map.

“The FDD is designed to be a comprehensive guide, allowing prospective franchisees to really understand the investment and the support system we have in place,” said John Pantera, vice president of franchise development at Radiance HoldingsWoodhouse Spas’ parent company. “While it can seem like a lot to take in, we’ve structured our FDD to be as straightforward as possible, avoiding legal jargon where we can to make it as easy as possible for investors to focus on the core information.”

Woodhouse Spas FDD: The Essentials

Pantera recommends investors focus on four essential sections of the FDD. While there is valuable information throughout, these sections answer the big questions prospective owners have surrounding costs and profits.

Item 5 — Initial Franchise Fee: This section outlines how much it costs to secure a territory and become a Woodhouse Spas franchisee.

The initial franchise fee for Woodhouse Spas is $60,000. This is due when the franchisee signs the franchise agreement.

Item 6 — Ongoing Fees: This section outlines royalties, technology fees, marketing contributions and other costs associated with the ongoing support franchisees receive after signing the agreement and opening their spa.

Type of FeeAmount
Royalty Fee6% of gross sales/week
Advertising Fund ContributionUp to 2% of gross sales/week
Local Advertising Expenditures1.75% of gross sales/quarter
Technology Management FeeThen-current fee (currently $550/month)
Annual ConventionUp to $1,000 per person

Item 7 — Estimated Initial Investment: This section outlines the costs generally associated with opening a spa. While the ranges are good-faith estimates, there is no guarantee that the actual costs will stay within the provided ranges.

Type of Expenditure

Minimum

Maximum

Initial Franchise Fee

$60,000

$60,000

Professional Services

$3,000

$10,000

Site Evaluation Services

$2,000

$3,500

Site Selection Assistance Fee

$0

$3,500

Security Deposit & Rent

$28,750

$105,500

Architectural Fees

$37,500

$47,000

Leasehold Improvements

$759,000

$1,420,000

Fixtures, Furniture & Equipment

$319,300

$575,000

Signage

$20,000

$27,000

Initial Inventory

$44,432

$50,612

Computer/IT Systems & Components

$59,000

$76,400

Additional IT Related Services

$1,200

$1,800

Business Licenses & Permits

$250

$1,000

Initial Training Fee

$5,000

$5,000

Training Expenses

$3,000

$5,000

Insurance (3 Months)

$16,000

$32,000

Grand Opening

$5,000

$5,000

New Location Launch Program

$10,000

$10,000

Employment Screening & Investigation Services

$607

$2,067

Additional Funds (3 Months)

$108,400

$258,000

Total Estimated Initial Investment

$1,482,439

$2,697,879

Item 19 — Financial Performance Representations: This section provides real-world revenue data to help candidates understand their potential earnings and make an informed decision.

Franchised Spas Average and Median Gross Sales for 2022, 2023 and 2024

 

Average
2022

Average
2023

Average
2024

Median
2022

Median
2023

Median
2024

Q1

$411,297

$477,739

$486,343

$402,272

$474,608

$463,511

Q2

$522,615

$587,210

$614,501

$508,065

$569,632

$572,665

Q3

$428,759

$488,336

$512,785

$399,006

$463,856

$517,442

Q4

$723,997

$857,798

$892,603

$668,744

$818,505

$871,227

Full Year

$2,086,667

$2,411,085

$2,506,231

$1,991,105

$2,318,130

$2,457,840

Other Items to Consider

Item 2 — Business Experience: This section lists the leaders within the franchise system and outlines their previous professional experience. This provides additional context to the support and expertise available to franchisees after they invest.

Woodhouse Spas’ current C-suite team includes:

Franchise prospects may also find information about vice presidents and directors in this section.

Item 3 — Litigation: This section provides information regarding any litigation for the franchise. 

Item 4 — Bankruptcy: This section provides information regarding any bankruptcy associated with the franchise.

Item 13 — Trademarks: Woodhouse franchisees operate under the Woodhouse Spas Marks. This section outlines these and other Marks that Woodhouse Spas owns.

Item 17 — Renewal, Termination, Transfer and Dispute Resolution: This section gives key information regarding the franchise agreement and any special scenarios, including termination by the franchisee, termination by the franchisor, with or without cause, and more.

Transparency and Simplicity Throughout the Process

Woodhouse Spas’ commitment to clarity doesn’t stop at the numbers or use of clear, straightforward language. At the end of the FDD, prospective franchisees can see a copy of the full franchise agreement — the exact document they would sign should they choose to invest. This allows prospective owners and their attorneys to review the legal contract ahead of time and ensure they feel fully prepared to make the investment.

“We believe in transparency throughout the franchise journey,” Pantera said. “The FDD is a critical tool for building that trust. It’s not just a legal requirement. It’s our way of showing franchisees what they can expect and supporting them in making an informed decision about their future with Woodhouse Spas.”

To find out more information on costs to buy this franchise, please visit https://1851franchise.com/woodhouse-spas.  

Woodhouse Spas, the nearly 90-unit luxury day spa franchise, offers an attractive investment opportunity for entrepreneurs. With a strong due diligence process focused on mutual evaluation, the brand is committed to transparency with its prospective owners and works to identify individuals who will build a true partnership.

A key component of this transparency is its Franchise Disclosure Document. The FDD offers a valuable look behind the scenes of the investment, and it’s a crucial road map.

“The FDD is designed to be a comprehensive guide, allowing prospective franchisees to really understand the investment and the support system we have in place,” said John Pantera, vice president of franchise development at Radiance HoldingsWoodhouse Spas’ parent company. “While it can seem like a lot to take in, we’ve structured our FDD to be as straightforward as possible, avoiding legal jargon where we can to make it as easy as possible for investors to focus on the core information.”

Woodhouse Spas FDD: The Essentials

Pantera recommends investors focus on four essential sections of the FDD. While there is valuable information throughout, these sections answer the big questions prospective owners have surrounding costs and profits.

Item 5 — Initial Franchise Fee: This section outlines how much it costs to secure a territory and become a Woodhouse Spas franchisee.

The initial franchise fee for Woodhouse Spas is $60,000. This is due when the franchisee signs the franchise agreement.

Item 6 — Ongoing Fees: This section outlines royalties, technology fees, marketing contributions and other costs associated with the ongoing support franchisees receive after signing the agreement and opening their spa.

Type of FeeAmount
Royalty Fee6% of gross sales/week
Advertising Fund ContributionUp to 2% of gross sales/week
Local Advertising Expenditures1.75% of gross sales/quarter
Technology Management FeeThen-current fee (currently $550/month)
Annual ConventionUp to $1,000 per person

Item 7 — Estimated Initial Investment: This section outlines the costs generally associated with opening a spa. While the ranges are good-faith estimates, there is no guarantee that the actual costs will stay within the provided ranges.

Type of Expenditure

Minimum

Maximum

Initial Franchise Fee

$60,000

$60,000

Professional Services

$3,000

$10,000

Site Evaluation Services

$2,000

$3,500

Site Selection Assistance Fee

$0

$3,500

Security Deposit & Rent

$28,750

$105,500

Architectural Fees

$37,500

$47,000

Leasehold Improvements

$759,000

$1,420,000

Fixtures, Furniture & Equipment

$319,300

$575,000

Signage

$20,000

$27,000

Initial Inventory

$44,432

$50,612

Computer/IT Systems & Components

$59,000

$76,400

Additional IT Related Services

$1,200

$1,800

Business Licenses & Permits

$250

$1,000

Initial Training Fee

$5,000

$5,000

Training Expenses

$3,000

$5,000

Insurance (3 Months)

$16,000

$32,000

Grand Opening

$5,000

$5,000

New Location Launch Program

$10,000

$10,000

Employment Screening & Investigation Services

$607

$2,067

Additional Funds (3 Months)

$108,400

$258,000

Total Estimated Initial Investment

$1,482,439

$2,697,879

Item 19 — Financial Performance Representations: This section provides real-world revenue data to help candidates understand their potential earnings and make an informed decision.

Franchised Spas Average and Median Gross Sales for 2022, 2023 and 2024

 

Average
2022

Average
2023

Average
2024

Median
2022

Median
2023

Median
2024

Q1

$411,297

$477,739

$486,343

$402,272

$474,608

$463,511

Q2

$522,615

$587,210

$614,501

$508,065

$569,632

$572,665

Q3

$428,759

$488,336

$512,785

$399,006

$463,856

$517,442

Q4

$723,997

$857,798

$892,603

$668,744

$818,505

$871,227

Full Year

$2,086,667

$2,411,085

$2,506,231

$1,991,105

$2,318,130

$2,457,840

Other Items to Consider

Item 2 — Business Experience: This section lists the leaders within the franchise system and outlines their previous professional experience. This provides additional context to the support and expertise available to franchisees after they invest.

Woodhouse Spas’ current C-suite team includes:

Franchise prospects may also find information about vice presidents and directors in this section.

Item 3 — Litigation: This section provides information regarding any litigation for the franchise. 

Item 4 — Bankruptcy: This section provides information regarding any bankruptcy associated with the franchise.

Item 13 — Trademarks: Woodhouse franchisees operate under the Woodhouse Spas Marks. This section outlines these and other Marks that Woodhouse Spas owns.

Item 17 — Renewal, Termination, Transfer and Dispute Resolution: This section gives key information regarding the franchise agreement and any special scenarios, including termination by the franchisee, termination by the franchisor, with or without cause, and more.

Transparency and Simplicity Throughout the Process

Woodhouse Spas’ commitment to clarity doesn’t stop at the numbers or use of clear, straightforward language. At the end of the FDD, prospective franchisees can see a copy of the full franchise agreement — the exact document they would sign should they choose to invest. This allows prospective owners and their attorneys to review the legal contract ahead of time and ensure they feel fully prepared to make the investment.

“We believe in transparency throughout the franchise journey,” Pantera said. “The FDD is a critical tool for building that trust. It’s not just a legal requirement. It’s our way of showing franchisees what they can expect and supporting them in making an informed decision about their future with Woodhouse Spas.”

To find out more information on costs to buy this franchise, please visit https://1851franchise.com/woodhouse-spas.  

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Morgan Wood

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