Hand & Stone Massage and Facial Spa, the 475-plus-unit massage and facial spa franchise with a mission to bring affordable massage and facial services to everyday consumers, is launching a new conversion incentive program for franchise owners.
The program rewards existing Hand & Stone operators who expand their footprint by acquiring independent and non-branded spas by offering a $25,000 capital contribution, issued upon completion of the acquisition. Franchise owners who expand through acquisition and conversion will also benefit from a 50% reduction in the initial franchise fee, paying just $17,500 instead of the $35,000 fee required to open an additional unit.
“We see this as an opportunity to grow the brand’s footprint by promoting the acquisition and conversion of existing spas into Hand & Stone locations,” said Hand & Stone Vice President of Real Estate Development Kris Smith.
Smith notes that this program provides a lucrative opportunity for top existing Hand & Stone operators to expand their portfolios. “Acquisitions provide Hand & Stone franchise owners with an existing customer base, as well as a team of massage therapists and estheticians already in place,” he said.
Hand & Stone has also developed a financing arrangement with Firstrust Bank to assist franchise owners in the Mid-Atlantic and Northeast regions in securing funding for new conversions through a favorable, SBA-backed loan program.
According to Smith, the conversion process can result in a 40 to 60% reduction in the build-out timeline, though the precise savings vary depending on the work required to bring the spa to compliance with Hand & Stone’s guidelines.
The conversion process also minimizes build-out expenses. Smith says Hand & Stone sees a significant reduction in construction costs when converting an existing spa compared to building a new one.
This incentive program comes on the heels of several conversions that the Hand & Stone brand has completed over the past couple of years and is designed in part to promote that growth strategy.
Smith said, “Looking ahead, we hope to finalize 5 to 10 conversions by the end of 2021. We look forward to continuing this exciting growth initiative in the future and positioning more of our franchise partners for scalability and success.”
For more information about Hand & Stone’s new conversion incentive program, please contact Kris Smith at firstname.lastname@example.org.