Hand and Stone Massage and Facial SpaFranchise Cost, Revenue & Review 2026
Formerly known as Hand & Stone Massage and Facial Spa
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Hand and Stone Massage and Facial Spa franchise requires a total initial investment of $579K – $872K, including a $50K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.4M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $579K – $872K
- 71st pct Healthcare
- Avg gross sales
- $1.4M
- 36th pct Healthcare
- Royalty
- 5.0%
- 5th pct Healthcare
- Units
- 595
- 75th pct Healthcare
- SBA default
- N/A
Quick verdict · Healthcare · color = vs category peers
Green = >15% above Healthcare avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
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).
- Verdict A (Top Quintile) with a risk score of 5/100.
- 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
- Legal entity
- Hand and Stone Franchise LLC
- Parent company
- HS Parent Inc.
- Ultimate parent
- Harvest Partners LP
- Predecessor
- and Our Business Activities
- Prior franchisor entity
- Incorporated in
- NJ
- HQ
- 1210 Northbrook Drive, Suite 150, Trevose, Pennsylvania 19053
- Auditor
- RSM US LLP
- Audited financials
- Franchisor revenue
- $119.2M
- vs $122.2M prior year
Affiliated brands
- of the Master Franchisee
Other brands the franchisor or its parent operates (Item 1).
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.
- CEO
- John Teza
- Headquarters
- PA
- Founded
- 2005
- FDD year
- 2025
- States available
- 37
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $78K | $144K |
| Equipment, build-out, other | $452K | $678K |
| Total initial investment | $579K | $872K |
Source: Hand and Stone Massage and Facial Spa 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$269K
19.0% margin
Unlevered ROIC
32%
EBITDA / total invested capital
Payback
3.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $579K – $872K
- Below avg, review vs category
- Liquid capital req'd
- $78K – $144K
- Below avg, review vs category
- Franchise fee
- $26K – $50K
- Better than avg vs category
- Royalty
- 5.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $691 |
| Transfer fee | $25K |
| Renewal fee | $5K |
| Inventory (initial) | $12K – $26K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $1.4M
- Per unit, per year
- Median gross sales
- $1.3M
- Item 19 type
- gross_sales
- Sample size
- 517 units
- vs category median 12 · large
- Range (low → high)
- $285K→$4.4M
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Transparency
- 5 / 5
- vs category median 4 / 5 · above
Compared against 201 Healthcare brands
vs Healthcare averages
How Hand and Stone Massage and Facial Spa Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 595
- Opened
- 55
- Last reporting year
- Closed
- 2
- Turnover rate
- 0.3%
- Company-owned
- 15
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (yr3)
- +10.1%
- Net unit change last year
- 3-yr CAGR
- +19.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 53
- Closed (3yr)
- 14
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 18
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 0.8%
- Franchisor-initiated terminations
- Ceased ops
- 2.8%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 37 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 194
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
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+.
Litigation (Item 3)
1 case reference(s): 0 pending, 1 settled.
Largest disclosed settlement: $380,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · RSM US LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 5 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Drive-time |
| Protected territory | Yes |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Pennsylvania |
| Litigation count | 1 |
View Item 3 litigation summary
1 case reference(s): 0 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 57 hrs
- On-the-job training
- 85 hrs
- Training location
- On-site and corporate
- Site selection
- joint
- POS system
- Zenoti POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Zenoti POS
Item 20 · call current owners
Franchisee Contacts
573 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hand and Stone Massage and Facial Spa · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hand and Stone Massage and Facial Spa franchise?
The total investment to open a Hand and Stone Massage and Facial Spa franchise ranges from $579K – $872K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Hand and Stone Massage and Facial Spa franchise owners earn?
According to Item 19 of the Hand and Stone Massage and Facial Spa FDD, the average gross sales per unit is $1.4M. The median is $1.3M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Hand and Stone Massage and Facial Spa's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Hand and Stone Massage and Facial Spa (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Hand and Stone Massage and Facial Spa franchise locations are there?
As of their most recent FDD filing, Hand and Stone Massage and Facial Spa has 595 total units in the United States, including 487 franchised units and 15 company-owned units. 55 new units were opened in the latest reporting year.
Is Hand and Stone Massage and Facial Spa a good franchise to buy?
FranchiseVerdict rates Hand and Stone Massage and Facial Spa as a A-grade franchise with a risk score of 5 out of 100, 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
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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.