--- title: "A Strong Item 19 Signals Substantial Growth for Hand & Stone Franchise in 2020" url: https://burnaze.com/article/48c3d6b9-5aba-4e46-8494-2596e05d19a3 source: "1851 Franchise" original_url: https://1851franchise.com/a-strong-item-19-signals-substantial-growth-for-hand-stone-franchise-in-2020-2713225 category: "Spa & massage" industry: "Beauty & Wellness" segment: "Spa & massage" published: 2020-06-03T18:13:58.000Z modified: 2026-11-01T01:49:23.170Z image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/59e9693a01fe3d2e392df550a00dccf69508.jpg --- # A Strong Item 19 Signals Substantial Growth for Hand & Stone Franchise in 2020 **TL;DR:** Hand & Stone Franchise released its 2020 FDD, outlining key metrics and terms for franchise investors, and is poised for substantial growth in 2020. The franchise opened 51 new locations in 2019, bringing its total unit count to 453. *originally published in 1851 Franchise on 2020-06-03. [Read the original](https://1851franchise.com/a-strong-item-19-signals-substantial-growth-for-hand-stone-franchise-in-2020-2713225).* ## Key facts - Hand & Stone opened 51 new locations in 2019 - Average gross sales for franchises open 2+ years was $3,667,575 - The brand offers massages at a reduced price point ## Story In the 16 years since the spa and massage franchise was founded, Hand & Stone Massage and Facial Spa has had no trouble finding eager franchisees to expand the brand’s footprint in markets across the U.S. and Canada. In 2019 alone, the franchise opened 51 new locations, bringing its total unit count to 453. Based on the success the owners of those locations have enjoyed, the franchise is poised to see even more growth in 2020. Hand & Stone recently released its 2020 Franchise Disclosure Document, or FDD, which outlines the entire franchise proposition for owners. An FDD provides franchise investors with key metrics, terms and obligations that may not be disclosed elsewhere. For well-positioned franchises, it can also be an invaluable sales tool. Hand & Stone’s FDD is likely to convert more than a few curious investors into new franchise owners. Particularly compelling is the document’s Item 19*, which outlines the previous year’s financial performance. ## Financial performance data As outlined in Item 19 of Hand & Stone’s FDD, the high-end average gross sales for franchises open for 12–23 months was $1,508,576. For franchises open two years or longer, high-end average gross sales was a whopping $3,667,575. According to Bob McQuillan, Hand & Stone’s VP of franchise development, those numbers prove what most investors already suspect: that Hand & Stone occupies a uniquely profitable niche within the health and wellness segment. “When a prospective franchisee looks at our system, they see very quickly that we offer something special,” McQuillan said. “They see a model that attracts loyal customers and promotes more frequent repeat business than you would see at traditional spas or physical therapy businesses. The Item 19 puts numbers behind those insights and shows our prospects that they are right — that Hand & Stone is everything it seems to be and more.” ## Market positioning strategy Todd Leff, the brand’s CEO, says Hand & Stone carved out that lucrative positioning by aligning an unmet demand for hassle-free and inexpensive spa services with an abundant supply of massage therapists who were previously competing for a shallow pool of jobs at luxury spas. “We knew that there was a growing demand, particularly among millennial consumers, for inexpensive spa services. They don’t want to pay for high-end luxury spas or have to visit physical therapists to get a decent massage. What we quickly found as we designed our model, was that there are so many talented massage therapists who were previously competing for a very few employment options, and they were eager for an opportunity like the one we developed,” Leff explained. By offering massages at a vastly reduced price point compared to traditional spas and by eliminating appointment requirements, Hand & Stone has opened up spa services to a wide new base of eager consumers, in turn creating new employment options for talented massage therapists. That model has been paying off for Hand & Stone franchisees for years, and the numbers in the franchise’s Item 19 bear that out. As the franchise continues to seek qualified new franchisees in markets across the U.S. and Canada — McQuillan said the brand is targeting Indiana, Nebraska, Georgia, Illinois, Massachusetts, Nevada, Alabama, Oklahoma, Kansas, Minnesota, New Mexico, Arizona, Tennessee, Michigan, South Carolina and Western Canada for development in 2020 — the Item 19 will surely be a key selling point for savvy investors. *The information provided in Item 19 is based on certain historical data provided by our Franchisees and our subsidiary owned outlets. Hand and Stone Franchise Corp. has not audited or independently verified this information. We do not make any promises or representations that you will attain the same level of sales or profitability. We recommend you conduct your own independent investigation and consult an attorney or financial advisor. ## Entities - 1851 Franchise (publication) - unit expansion (topic) - franchise growth (topic) - Beauty & Wellness (sector) - canada (location) - United States (location) - Hand & Stone (company) - financial performance (topic) - Todd Leff (person) - fd disclosure (topic) --- Originally reported by 1851 Franchise (https://1851franchise.com/a-strong-item-19-signals-substantial-growth-for-hand-stone-franchise-in-2020-2713225). Summarized by Burnaze (https://burnaze.com/article/48c3d6b9-5aba-4e46-8494-2596e05d19a3).