Hand and Stone Massage and Facial Spa
Formerly known as Hand & Stone Massage and Facial Spa
Bottom line
- Total investment $579K – $872K including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.4M/year (median $1.3M).
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 194 loans (below the industry average).
- System growing at 19.1% CAGR over 3 years with 595 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Hand and Stone Massage and Facial Spa unit return on the cash you put in?
Unlevered ROIC · per unit
41%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Hand and Stone Massage and Facial Spa units return on equity?
Equity IRR · 5-yr
27.5%
3.37× MOIC
Year-1 DSCR
2.96×
EBITDA ÷ debt service
Equity required
$11.9M
on $24.1M purchase
Total debt
$12.2M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate full-service massage and facial spa locations, managing staff scheduling, client booking systems, and service delivery across massage therapy, facials, and spa treatments. Day-to-day operations include front-desk management, therapist/esthetician supervision, inventory/supply management, marketing, and customer retention in a service-intensive, labor-dependent business model.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 8 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Moderate-to-cautious risk profile: Material litigation history, missing profitability transparency, going concern flag, and high capital requirements warrant deep due diligence before committing $600k+.
Score breakdown · what drove the 44 / 100 rating
- 01HIGH2017 litigation settled with franchisor buying back franchise for $380k and assuming $280k debt—signals severe unit-level performance issues and potential systemic problems
- 02MEDNet income not disclosed in FDD—inability to verify profitability claims; average revenue of $1.4M means little without expense breakdown
- 03HIGHGoing Concern = False—franchisor may have liquidity or operational sustainability concerns that could impact support and franchise viability
- 04MINOR10.1% YoY unit growth masks potential churn; 595 units is mid-sized and growth rate is modest for a maturing brand (2007 founding)
- 05MEDHigh initial investment ($578k-$871k) paired with undisclosed net income creates ROI uncertainty; royalty escalation to 6% increases year-2+ burden
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
98 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Hand and Stone Massage and Facial Spa · FDD (2025) PDF