Hand And Stone Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Hand And Stone franchise requires a total initial investment of $321K – $865K, including a $40K – $50K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.3M[2]. SBA 7(a) loans show a 2.2% charge-off rate across 101 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $321K – $865K
- 34th pct Personal Care…
- Avg gross sales
- $1.3M
- 36th pct Personal Care…
- Royalty
- 6.0%
- 10th pct Personal Care…
- Units
- 615
- 55th pct Personal Care…
- SBA charge-off
- 2.2%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = favorable by >10% vs Personal Care & Beauty avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $321K – $865K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.3M/year (median $1.2M).
- Verdict A (Strongest tier), verdict score 65/100 (higher is better). SBA loan charge-off rate of 2.2% across 101 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Hand and Stone Franchise LLC
- Parent company
- HS Parent Inc.
- Ultimate parent
- HP H&S Parent Holdings, LP (controlled by investment funds affiliated with Harvest Partners LP)
- Predecessor
- Hand and Stone Franchise Corp.
- Prior franchisor entity
- CEO title
- Interim Chief Executive Officer and Chairman of the Board
- Todd Leff
- Incorporated in
- New Jersey
- HQ
- 1210 Northbrook Drive, Trevose, Pennsylvania 19053
- Franchisor revenue
- $125.7M
- vs $122.2M prior year
Overview
About
Massage, facial, waxing, skincare, and body contouring/sculpting spa services and related retail products, operated in strip malls/shopping centers.
- CEO
- Todd Leff
- Headquarters
- Pennsylvania
- Founded
- 2005
- FDD year
- 2025
- States available
- 14
Can you afford it, and what does the money buy?
Entry cost runs 13% above the typical personal care & beauty franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $25K | $100K |
| Equipment, build-out, other | $256K | $725K |
| Total initial investment | $321K | $865K |
Source: Hand And Stone 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $321K – $865K
- Top 40% of category vs category
- Liquid capital req'd
- $25K – $100K
- Top 40% of category vs category
- Franchise fee
- $40K – $50K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $726 |
| Transfer fee | $25K |
| Renewal fee | $12K |
| Inventory (initial) | $13K – $29K |
What do units actually make?
Average unit sales run 75% above the personal care & beauty norm.
Source: FDD 2025 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$307K
23.0% margin
Unlevered ROIC
47%
EBITDA / total invested capital
Payback
26 mo
cash-on-cash, unlevered
Financial Performance
- Avg gross sales
- $1.3M
- Per unit, per year
- Median gross sales
- $1.2M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical
- Sample size
- 570 units
- vs category median 33 · large
- Range (low → high)
- $146K→$4.4M
- Cohort dispersion (min → max)
- Quartile band
- $627K→$2.3M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
Compared against 200 Personal Care & Beauty brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.3M/year in gross sales. Revenue-to-investment ratio: 2.3x.
Fee burden
6.0% royalty + 1.0% ad fund.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Personal Care & Beauty averages
How Hand And Stone Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 615
- Opened
- N/A
- Last reporting year
- Closed
- N/A
- Turnover rate
- 0.7%
- Company-owned
- 15
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 25
- Closed (3yr)
- 0
- Terminated (3yr)
- 4
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 33
- Reacquired (3yr)
- 0
- Franchisor bought back
No multi-year history disclosed and no opening/closing activity in the last reporting year.
Item 12 · 14 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
14
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 101
- Loan volume
- $36.2M
- Median loan
- $350K
- 50th percentile
- Charge-off rate
- 2.2%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 97.8%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 36
- Defaults
- 2
- Typical loan rate
- 5.8%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 8121
- Jobs supported
- 2,028
- 6.1 per loan
- Lender concentration
- 22%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Vintage analysis
Hand And Stone charge-off rate by loan vintage
Top lenders financing Hand And Stone franchisees
Showing 3 of 36 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
SBA loans charge off at 2.2% — 86% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
One arbitration (Muti et al.) settled in 2018 with franchisor repurchasing the franchise for $380,000 plus assumption of $280,000 debt. One franchisor-initiated crossclaim (2025) against a franchisee in Texas state court to enforce indemnification obligations.
Largest disclosed settlement: $380,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Territory population | 50,000 |
| Hire a manager? | Allowed |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Philadelphia, Pennsylvania |
| Governing law | Pennsylvania |
| Litigation count | 2 |
View Item 3 litigation summary
One arbitration (Muti et al.) settled in 2018 with franchisor repurchasing the franchise for $380,000 plus assumption of $280,000 debt. One franchisor-initiated crossclaim (2025) against a franchisee in Texas state court to enforce indemnification obligations.
Items 10, 11
Training & Operations
- Classroom training
- 56 hrs
- On-the-job training
- 85 hrs
- Training location
- Trevose, Pennsylvania (headquarters) and franchisee's location
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- Franchisee proposes site; franchisor approves within Designated Area
- Franchisor financing
- Not offered
- Item 10
- POS system
- Zenoti
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Zenoti
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hand And Stone franchise?
The total investment to open a Hand And Stone franchise ranges from $321K – $865K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Hand And Stone franchise owners earn?
According to Item 19 of the Hand And Stone FDD, the average gross sales per unit is $1.3M. The median is $1.2M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Hand And Stone's franchise failure rate?
Based on SBA 7(a) loan data, Hand And Stone has a charge-off rate of 2.2% across 101 loans, meaning 2.2% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Hand And Stone franchise locations are there?
As of their most recent FDD filing, Hand And Stone has 615 total units in the United States.
Is Hand And Stone a good franchise to buy?
FranchiseVerdict rates Hand And Stone as a A-grade franchise with a verdict score of 65 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.