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Hand & Stone Franchise Costs $609K (2023 Profit Stats)

This article was updated with the 2023 Franchise Disclosure Document

With 501 locations in the US alone, Hand & Stone has expanded massively over the past few years and now is one the leading spa massage franchise. There’s a good reason for that: it can be a very profitable franchise for anyone who decides to invest.

Indeed, the average Hand & Stone Massage & Facial Spa franchise makes $1,320,000 in revenue per year. In comparison, as the franchisee it would cost you only $609,000 to open a new location. This seems like a great franchise investment!

How much does it really cost to open a new Hand & Stone franchise? How much profits can you really make as a franchisee? Is this a good investment? Let’s dive in!

Key stats

Franchise fee$49,500
Royalty fee6.00%
Marketing fee5.00%
Investment (mid-point)$609,000
Revenue per unit$1,321,000
Revenue per sq. ft.[franchise_value_revenue_per_sq_ft]
Sales to investment ratio12.0x
Minimum net worth$750,000
Minimum liquid capital$150,000
Source: FDD 2023
a financial plan for a franchise
a financial plan for a franchise

About Hand & Stone Massage and Facial Spa

Hand & Stone Massage and Facial Spa is an American chain of franchised massage spas.

It was founded by John Marco in 2004 in Toms River, New Jersey and is a subsidiary of HS Parent Inc., with headquarters in Trevose, Pennsylvania.

Hand & Stone Massage and Facial Spa offers various massages such as Swedish massage, hot stone massage, couple massage and skincare services such as classic and back facials.

The company began franchising in 2006 and currently has more than 539 units globally of which 489 are in the US.

Hand & Stone franchise pros and cons

The Pros:

  • Real estate and site selection: Hand & Stone Massage and Facial Spa has an in-house real estate team to help its franchisees with site selection and identify the right location in terms of traffic and demographic patterns. Also, it provides them with design layouts and construction help for their salons, as well as lease negotiations.
  • Training and education: The brand offers its franchisees 85 hours of online and 56 hours of classroom training. Franchisees are trained about a successful grand opening, recruiting and training their staff and operating and managing their salons successfully.
  • Marketing and advertising: The brand has an in-house marketing agency to help its franchisees with their creative development, media placement, website and email management, television, marketing materials and ongoing promotional and sales guidance.
  • Financing: The franchisor provides its franchisees with financing assistance to cover franchise fees. In addition, it provides them with third-party financing to fund their startup costs, equipment, inventory and payroll.
  • Exclusive territory protection: Hand & Stone Massage and Facial Spa grants its franchisees the right to operate in an exclusive market area. Under the agreement, the franchisor does not grant any other franchises or operate competing channels or brands in the designated area.
  • Extensive and ongoing support: The brand provides its franchisees with extensive corporate support to build and grow their salons. Franchisees get professional management advice, resources, networks, webinars, conventions, growth insights and field operations.

The cons:

  • Not a home-based business: The franchise cannot be operated from a home or mobile unit. Franchisees need to have an office space, retail facility or warehouse.
  • No absentee ownership: The Hand & Stone Massage and Facial Spa is not a passive investment opportunity. Franchisees must actively participate in the day-to-day management and operations of their salons.
  • Not a part-time business. The franchise cannot be run part-time or as a side business. Franchisees should follow the franchisor’s official working hours.

Hand & Stone franchise costs

You would have to invest $609,000 to open a Hand & Stone Massage and Facial Spa franchise business.

This is an average; indeed, it varies based on many factors, such as the location of your franchised business, its size, and other factors.

In addition to the initial franchise fee of $49,500, which you must pay to the franchisor, you would also pay for the leasehold improvements, furniture and fixtures, signage, equipment, insurance, etc.

Startup costs

Here’s the full breakdown of costs:

Type of ExpenditureAmount
Initial franchise fee$47,500
Leasehold improvements$299,082 – $358,164
Furniture, fixtures and equipment$35,803 – $58,508
Signage$10,124- $19,839
Insurance$1,500 – $2,500
Working capital (3 months)$70,000 – $90,000
Other$62,782 – $114,800
Total$526,791 – $691,311
Source: Franchise Disclosure Document (2023)
a financial plan for a franchise
a financial plan for a franchise

Hand & Stone franchise fees

The initial franchise fee for a Hand & Stone Massage and Facial Spa franchise is $49,500. In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 6.00% of revenues.

Hand & Stone franchise revenue

On average, a Hand & Stone Massage and Facial Spa franchise made $1,321,000 in revenue per year in 2022.

This is the average sales per franchised business for 452 of the 487 franchised businesses that were open for all of 2022. This is a significant increase vs. 2021 (+9.8%, or $1,203,000 for 423 franchised businesses).

In terms of square feet, a Hand & Stone salon is typically 2,200 – 3,200 sq. ft. in size: that’s $446 revenue per square foot per year, higher than salon franchises ($270).

a financial plan for a franchise
a financial plan for a franchise

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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