How much does it cost to open a Hand and Stone Massage and Facial Spa franchise?

The total initial investment for a Hand and Stone Massage and Facial Spa franchise ranges from $578,507 to $871,602. This includes the franchise fee of $49,500, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a Hand and Stone Massage and Facial Spa franchise?

Hand and Stone Massage and Facial Spa franchisees pay a 6.0% royalty fee and a 1.0% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

How much money can you make with a Hand and Stone Massage and Facial Spa franchise?

Based on Item 19 financial performance data, the median Hand and Stone Massage and Facial Spa franchise generates $2,038,640 in annual revenue. Estimated owner profit is approximately $-203,864.

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Wellness & Spa 595 Units

Hand and Stone Massage and Facial Spa Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$578,507 – $871,602

Franchise Fee

$49,500

Royalty Rate

6.0%

Initial Investment Range

Low: $578,507 High: $871,602

The total initial investment to open a Hand and Stone Massage and Facial Spa franchise ranges from $578,507 to $871,602, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $49,500.

Midpoint estimate: $725,054

Franchise Fee

$49,500

One-time initial fee

The Hand and Stone Massage and Facial Spa franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Hand and Stone Massage and Facial Spa brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

6.0%

of gross revenue

Ad/Marketing Fund

1.0%

of gross revenue

Total Ongoing Fee Burden: 7.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
Royalty Fee	5.0	PCT	5% for first 52 weeks of operation, then increases to 6% of Gross Sales thereafter. Potential credits available: 1% credit if 700 active members attained within first year, or 2% credit if 1000 active members attained within first year (not cumulative, only during first 52 weeks)
Royalty Fee	6.0	PCT	Applies after first 52 weeks of operation. This is the ongoing standard rate.
Marketing Fund Contribution	1.0	PCT	Currently 1% of Gross Sales. Franchisor retains right to increase by 1% to up to 2% of Gross Sales upon notice. Paid weekly with Royalty Fee.
Local Advertising Fee	4.0	PCT	4% of Gross Sales with minimum of $400 per week. Paid weekly with Royalty Fee.
Computer Software Maintenance and Support/Cyber Insurance Fee	726.0	FIXED	$691 monthly subscription and support fee for Zenoti POS and related software, plus $35 per month for cyber insurance. Franchisor retains right to increase subscription fee by no more than 5% each year.
Renewal Fees	25.0	PCT	25% of then-current Initial Franchise Fee, payable before renewal. Must satisfy all renewal requirements.
Transfer Fee	50.0	PCT	50% of initial franchise fee at time of transfer. Does not apply to assignment to a Controlled Entity.
Audit Expenses	N/A	VARIABLE	Audit costs payable only if the audit shows an understatement in amounts due of at least 3%. Due upon demand.
Late Fees	18.0	PCT	18% per year or the highest rate allowed by law, whichever is less. Applies to all overdue Royalty Fees, Marketing Fund Contributions, Local Advertising Fees and other amounts due. Also applies to understatements revealed by audit. Due upon demand.
Insufficient Funds Fee	150.0	FIXED	Due upon demand if there are insufficient funds in bank account to cover payments including Royalty Fees, Marketing Fund Contributions, and/or Local Advertising Fees.
Approval of Products or Suppliers	N/A	VARIABLE	Not to exceed $500. Applies to new suppliers or products not previously approved. Due at time of evaluation.
Insurance Policies	N/A	VARIABLE	Payable only if franchisee fails to maintain required insurance coverage and franchisor obtains coverage. Due upon demand.
Onsite Transfer Training Fee	1850.0	FIXED	$1,850 plus travel expenses for trainers (subject to change). Includes onsite training for new franchisees buying existing spa. To be paid by transferee at time of transfer.
System Modifications	N/A	VARIABLE	If franchisor modifies System requiring new equipment, fixtures, software, trademarks, etc., franchisee must make modifications at their expense. Due as required.
Relocation Assistance	N/A	VARIABLE	$1,000-$3,000. Charged if franchisee requests relocation assistance and franchisor agrees to provide it. Due at time of assistance.
Architectural Fee	N/A	VARIABLE	$10,500-$12,500 if using franchisor's in-house design company for architectural drawings and design services. If using approved architect, franchisor charges up to $1,500 to review plans. Due upon demand.
Customer Service	N/A	VARIABLE	Franchisee must reimburse all costs and expenses franchisor incurs in addressing customer complaints, including cost of refunds, gift cards or other value provided. Due upon demand.
Ongoing Training Programs	150.0	FIXED	Approximately $150 per day for refresher training. Franchisee pays expenses for self and employees, travel and living expenses, plus reasonable program fees. Attendance not required more than twice per year, collectively not exceeding 7 days annually. Due at time of program.
Additional Training	350.0	FIXED	Currently $350 per day as published in Manual. Franchisee pays for additional training if requested, plus expenses for self and employees and travel/living costs. Due at time of service.
Additional Operations Assistance	350.0	FIXED	Currently $350 per day plus franchisor expenses as published in Manual. Franchisee pays for additional assistance if requested. Due at time of assistance.
Customer Resolution Fees	N/A	VARIABLE	Payable if customer contacts franchisor with complaint and franchisor provides gift card, refund, or other value as part of resolution. Amount varies. Due upon demand.
Indemnification	N/A	VARIABLE	Franchisee must defend lawsuits at their cost and hold franchisor harmless against lawsuits arising from operation of franchised business. Due upon demand.
Liquidated Damages	N/A	VARIABLE	Payable if franchisor terminates agreement for cause. Due within 15 days after effective termination date. Only covers damages from loss of Royalty Fee cash flow, not other damages.
Post-Termination and Post-Expiration Expenses	N/A	VARIABLE	Franchisee responsible for costs to de-identify from Hand and Stone System upon termination, rescission, expiration, non-renewal, and/or transfer. Due as incurred.
Gift Card and Rewards Program and Membership Program	N/A	VARIABLE	Must participate in gift card program, Rewards Program and membership program. Gift cards, Rewards Points and membership benefits may be redeemed at any Hand and Stone location regardless of where purchased. Amount varies.
Computer hardware and software upgrades	1000.0	FIXED	Current annual cost approximately $1,000. Must update or upgrade computer hardware and software as necessary. Timing will vary.
Signage Review Fee	250.0	FIXED	If franchisee sources signage from third-party other than franchisor, must pay for franchisor review to ensure supplier and signage meet standards. Due as incurred.
Millwork Review Fee	350.0	FIXED	If franchisee sources millwork from third-party other than franchisor, must pay for franchisor review to ensure supplier and millwork meet standards. Due as incurred.

What You Get

Financial Performance (Item 19)

Median Revenue

$2,038,640

per year, per location

Mean Revenue

$1,443,261

per year, per location

Profitability Estimate

Estimated Owner Profit

$-203,864

per year

Profit Margin

-10.0%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): -3.6 years

Based on midpoint investment of $725,054 and estimated annual owner profit of $-203,864.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.6%

Low risk — below industry average

Net Unit Growth

+119 units

From 2022 to 2024

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
2022	461	+35	-6	—	487
2023	487	+43	-2	—	527
2024	527	+55	—	—	580

Is a Hand and Stone Massage and Facial Spa Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Hand and Stone Massage and Facial Spa franchise opportunity:

Overall Score

97/100

Strong opportunity

Est. Payback Period

N/A

Risk Level

Low

0.6% annual closure rate

Hand and Stone Massage and Facial Spa scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $2,038,640 and a combined fee burden of 7.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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