Hand & Stone Massage and Facial Spa: The History and Story Behind the Brand

As the original story goes, John Marco had fully developed his spa brand—including a business plan and interest from outside investors—but could not decide on a name.

“After weeks of trying to find the right name, I promised my 14-year-old son Nicolas and 16-year-old daughter Tara that I would buy one of them a car if they could come up with the perfect name,” said Marco. “Sure enough, later that night, Nicolas thought up ‘Hand & Stone’ and the rest is history. It was a costly offer, as both of them received a car in the end!”

With nearly 25 years of experience working as a physical therapist, Hand & Stone Massage and Facial Spa founder John Marco was no stranger to the health and beauty industry.

Founder background

“I’ve always been entrepreneurial,” said Marco. “When I was 18 years old, I sold vacuum cleaners door-to-door. Once I began my career as a physical therapist, I saw the fragmentation of the massage industry firsthand and it became clear that there was a lack of accessible retail massage spa locations. Virtually all of the massage therapists in the early 2000s were working at luxury spas or were running a private practice. It wasn’t until I discovered the membership model that my eyes were opened to the potential for change.****”

With spa concepts needing to innovate in order to survive in the over-serviced health and beauty segment, Hand & Stone Massage and Facial Spa has become a trailblazer in the space by offering consumers a luxury experience for a fraction of the cost. With flexible memberships and a wide variety of massage services, Hand & Stone began catering to the middle market rather than the upper echelon and has found a niche few others have been able to break into.

“Our plan was to take the same spa services and atmosphere that were previously reserved for the ‘rich and famous’ and bring them to the average customer with more affordability and convenience,” said Hand & Stone President and CEO Todd Leff.

Early success

The first Hand & Stone location opened in Toms River, New Jersey in November 2004 to immediate success. In 2005, almost a year to the day after the first location, Hand & Stone opened its second spa in Spring Lake, New Jersey. As Hand & Stone Massage and Facial Spa perfected its business model, streamlined the day-to-day operations and grew its customer base, Marco decided it was time to expand the brand through franchising in 2006.

From the beginning, Hand & Stone offered clients the luxurious atmosphere of a day spa, along with a variety of niche massage services, such as hot stone massage. Since these massage services often required the spas to have sinks, it provided the brand with another prime opportunity in 2008—facial services.

“We have separated ourselves from the crowd as being the original spa concept to offer massage, facials and hair removal services all under one roof,” said Bob McQuillan, Vice President of Franchise Development at Hand & Stone. “While the Hand & Stone name is synonymous with high-quality, affordable massages, our focus on these ancillary offerings has catapulted us to a place in which approximately one-third of our revenue is derived from facial services.****”

It wasn’t just the diverse services that brought in the customers—the brand’s leadership team soon realized that Hand & Stone was also in the gift business as well. “Gift card sales are a major part of our business today,” said Marco. “We’ll have a dad come in to buy a gift card for Mother’s Day and then mom comes in and buy a gift card for Father’s Day. This gives us a very broad base of business and a variety of revenue streams.”

Since day one, the Hand & Stone brand has prioritized franchisee success and prided itself on an extensive start-up and ongoing support infrastructure. “Our original concept was based on being the best in the industry,” said Marco. “We understood it from a franchisee perspective.”

“At first, we offered franchises exclusively to regional developers, selling access to an entire state or territory and partnering with them on the ground floor,” said Marco. “After expanding through nine states, we decided to transition into direct franchising which is what has allowed us to grow to where we are today.”

Franchise model

Hand & Stone was recently ranked No.8 on Forbes' Best Franchises to Buy list for 2019 in the high investment category. In addition to a flexible work-life balance and recurring revenue streams, Hand & Stone offers franchisees unparalleled franchisee support.

“Our management team and staff have over 300 years of franchising experience,” said McQuillan. “We have an in-house, full-service advertising agency that supports all franchisees every step of the way. If a franchisee is getting ready for an opening, they have one specific person working on their business. Our agency supports all designs and organizes a complete media schedule.”

Newly signed franchisees work with a built-in consulting arm that focuses on purchasing, real estate and construction needs. After the opening, franchisees can look forward to classroom and on-site training, ongoing operational support, as well as creative and development support.

This support has positioned Hand & Stone franchisees for massive success, with many franchise owners expanding to more than one location based on the success of the first.

“If you look at how Hand & Stone performs, and the success rate of our business, it’s easy to see that the business model is working,” said McQuillan. “But it’s our franchisees who are the key component in making sure we’re able to reach our full potential.”

In addition to being a haven for relaxation in the community, Hand & Stone has an ongoing commitment to giving back that starts at the corporate level. From supporting causes like Habitat for Humanity and Blessings in a Backpack, the massage and facial spa franchise is no stranger to philanthropy and encourages its franchisees to participate in local charity events.

Future growth

With a wide array of open markets available, Marco is confident that Hand & Stone Massage and Facial Spa is still in the early stages of growth. “Our growth is very calculated, as we want to be able to offer the highest level of support to each and every franchise owner that signs on,” he said. “We currently open approximately 60 spas per year which leads the industry and contributes to steady growth.”

Marco retired in 2015, handing over the reins to President and CEO, Todd Leff. “When I first started the company I wore a lot of hats,” said Marco. “When Todd originally came on board in 2009, we were only had 26 open locations across 11 states and Canada, and it was important that I brought someone in with franchise experience who could help the company grow. Now, Hand & Stone has over 400 franchise spa locations, and when it was time to hand over the role of president, Todd was a perfect choice.”

Throughout the years, the Hand & Stone team has done an amazing job of broadening the scope of services and growing the company while making sure to stay true to the mission of providing affordable and high-quality massages, facials and hair removal services.

With the $18 billion massage therapy industry constantly changing, Hand & Stone is making sure to adapt through ongoing efforts to incorporate new products and technologies as additional revenue streams for franchisees and an improved experience for guests.

Throughout its history, Hand & Stone Massage and Facial Spa has brought luxury spa services to the masses The combination of Hand & Stone’s niche services, luxurious atmosphere, membership model and proven franchise model has created a dedicated customer base and positioned the leading massage and facial spa brand for continued success in the decades to come.

To continue growing its national footprint, Hand & Stone is looking to partner with interested entrepreneurs in the Pittsburgh area. Start-up costs to open a Hand & Stone franchise range from $532,563 to $618,327with a franchise fee of $42,500. To receive a breakdown of fees, estimated initial investment costs, contracts, corporate financial statements, and other valuable information are included in the Franchise Disclosure Document (FDD), visit ***