Hand & Stone Massage and Facial Spa Launches New Incentives to Encourage Growth Through Acquisition

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.

Financing and conversions

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.

Growth strategy

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.”