Woodhouse Spa Franchise Costs $1.5M– $3.2M (+ 2024 Profits)

The Woodhouse Spa, a premier spa franchise, was founded in 2001 in Victoria, Texas. It has since evolved into a leader in the luxury spa industry, known for its unique approach to mood care and wellness. The franchise headquarters are located in Lakewood, Colorado.

Since its inception, Woodhouse has expanded its reach considerably, beginning to offer franchising opportunities in 2003. Woodhouse Spa distinguishes itself from other spa franchises by offering a holistic wellness experience that goes beyond traditional spa services.

It incorporates a unique concept of mood care into every aspect of its operation, from the design of its spas to the specific treatments offered. This approach is designed to ensure that guests not only receive physical rejuvenation but also achieve a balanced and enhanced mood state that extends beyond their visit.

Type of Expenditure	Amount
Initial Franchise Fee	$55,000
Fixtures, Furniture and Equipment	$293,600 to $484,190
Computer and IT Systems and Components	$56,000 to $70,000
Additional IT Related Services	$2,625 to $3,225
Security Deposit and Rent	$37,500 to $78,750
Leasehold Improvements	$820,893 to $2,206,877
Signage	$10,000 to $20,000
Business Licenses and Permits	$250 to $1,000
Space Planning and Architectural Fees	$29,000 to $40,000
Training Expenses	$8,000 to $10,000
Professional Services	$3,000 to $10,000
Insurance (For Initial 3-Month Period)	$16,000 to $32,000
Grand Opening	$15,000
Initial Inventory	$79,306 to $81,806
Additional Funds for the start-up phase (For Initial 3-Month Period)	$50,000 to $100,000
Employment Screening and Investigation Services	$595 to $2,055
Total	$1,477,000 to $3,210,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

The Initial Franchise Fee is $55,000.

Royalty Fee

The Royalty Fee is 6% of Gross Sales.

Marketing/Advertising Fee

The Marketing/Advertising Fee consists of up to 2% of Gross Sales for the Advertising Fund (currently 1.75% of Gross Sales) and 1.75% of Gross Sales for local advertising expenditures.

National Brand Fund or Brand Fund Payment

Contributions to the national marketing fund are included in the Marketing/Advertising Fees, specifically up to 2% of Gross Sales for the Advertising Fund.

Technology Fee

The Technology Fee is $475 per month.

Transfer Fees

The Transfer Fee is either $10,000 if the transferee is an existing franchisee or $15,000 if not, plus reasonable costs and expenses associated with the transfer including training costs, and legal and accounting fees.

Renewal Fees

The Renewal Fee is $12,750.

Franchise pros and cons

The Pros:

• Diverse income streams: multiple income sources, including spa treatments, premium retail products and gift cards. 
• Comprehensive franchise support: franchisees are supported by a dedicated team of professionals, from signing the franchise agreement to the grand opening. The franchisor constantly researches new technology, products and treatments to help franchisees stay ahead of the competition. 
• Customised services: franchisees offer personalized services depending on the client’s needs. The franchisor’s signature services, such as Minkyti Facial, Hand Retreat manicure, Seaweed Leaf pedicure and Four-Handed Massage, aren’t available anywhere else. 
• Financial support: Woodhouse Spa has relations with third-party financial sources to help franchisees cover the startup costs, franchise fees, equipment, inventory, payroll and accounts receivable. 
• Exclusive territory protection: franchisees operate within fixed locations without competition from other Woodhouse Spa studios. 

The Cons:

• No absentee ownership: franchisees must be involved in the day-to-day studio operations. 
• Can’t run part-time: Woodhouse Franchise is neither a part-time investment opportunity nor a side hustle. 
• Minimum employee requirement: 30 employees are required to operate an active Woodhouse Spa studio.
• Can’t operate from home/as a mobile unit: the business cannot be run from home and the franchisees must operate from a retail facility, warehouse, or office space. 
• Competition: from other massage and spa franchises such as Massage Envy, Massage Heights, The Now Massage, Restore Hyper Wellness or Elements Massage to name a few.

How to open a woodhouse spa franchise

Opening a Woodhouse Spa franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Woodhouse Spa franchise.

1: Initial Inquiry and Information Gathering

• Contact the Franchise Team: Reach out to Woodhouse Spa’s franchise development team to express interest and receive preliminary franchise information.
• Review Franchise Disclosure Document (FDD): Obtain and carefully review the FDD provided by Woodhouse Spa, which outlines important legal, financial, and operational information about the franchise.

2: Meet with Franchise Representatives

• Discovery Day: Attend a Discovery Day event at Woodhouse Spa’s headquarters in Lakewood, Colorado. This is an opportunity to meet the franchise team, understand the brand, and get a first-hand look at the spa operations.
• Interviews and Evaluations: Engage in discussions and interviews with key franchise staff to assess compatibility and mutual expectations.

3: Financial Review and Approval

• Financial Qualifications: Demonstrate financial capability, including minimum liquid assets and net worth requirements, as specified by Woodhouse Spa.
• Approval Process: Undergo a thorough review by the franchise approval team, which may include background checks and financial audits.

4: Signing the Franchise Agreement

• Agreement Review: Go over the franchise agreement with legal and financial advisors to understand all obligations and rights.
• Sign the Agreement: Once all parties agree, sign the franchise agreement to officially become a Woodhouse Spa franchisee.

5: Location Selection and Spa Design

• Site Approval: Select a suitable location for your spa, subject to approval by the Woodhouse Spa franchise team.
• Design and Construction: Follow the guidelines provided by Woodhouse for spa design, layout, and construction, ensuring the location meets brand standards.

6: Training and Operational Setup

• Comprehensive Training: Participate in a comprehensive training program covering all aspects of running a Woodhouse Spa, including service protocols, product knowledge, and business management.
• Operational Support: Set up spa operations with the support of the Woodhouse Spa team, including access to proprietary software and marketing materials.

Disclaimer

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