Franchise Webinar
Franchise Facts
- The word franchise comes from the French verb franchir, meaning “to free,” itself from franc meaning “free.”
- In the 1300’s The word evolved into the right or license granted to an individual or group to market a companies goods or services in a particular territory.
- It is estimated that the franchise industry accounts for approximately 50% of all retail sales in the US
- A new franchise business is opened every eight minutes of every business day.
- Approximately one out of every seven businesses in the US is a franchise business
- Owning a franchise is one of the many ways people achieve their version of the American dream.
Resources
About Us
- Founded by Jeff Hengst
- Established in 2007 in Seattle, WA
- Over 15 years of experience
- Relaxing Couple’s Spa Treatment
Services
- Massage for Couples
- Room Service with a food menu
- Access to food delivery from restaurants in the surrounding area
- Dining experience complete with place settings, tea service, and a fridge with complimentary ice and water as well as an ice bucket for any additional champagne beverages
- Access to amenities such as bathtub, shower for two, sauna, and day bed
- Bath bombs. bath salts, a bottle of wine, and snacks are available
Industry Statistics
- Global Spa Services Market projects that the market would reach 154.6 billion by 2022
- The chaotic lifestyle of urban areas, a rise in inbound and outbound tourism for wellness purposes, and the demand for emerging factors are some of the leading factors for spa market growth
- The Spa revenue in the USA was at a whopping $18.3 billion in 2018
Startup Costs
| Type of Expenditure | Amount (Low) | Amount (High) |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Leasehold Improvements | $75,000 | $200,000 |
| Travel & Living Expenses While Training | $4,8000 | $6,000 |
| Permits & Licensing | $500 | $1,000 |
| Rent & Security Deposit | $10,000 | $15,000 |
| Furniture, Fixtures, Equipment | $180,000 | $240,000 |
| POS & Computer System | $1,500 | $3,000 |
| Opening Inventory & Supplies | $2,000 | $4,000 |
| Signage | $3,000 | $5,000 |
| Attorney Fees | $2,500 | $4,000 |
| Insurance (3 Months) | $400 | $600 |
| Additional Funds (3 Months) | $20,000 | $45,000 |
| Total Estimated Initial Investment | $334,700 | $558,600 |
Little Red Day Spa has designed their facility to be both affordable and capable of garnering a quick return on investment. This graphic is a breakdown of the prominent expenses included in your initial investment, with estimates varying depending on your location.
Why Us?
- Exponential business growth
- Competitive franchise and royalty-free
- Access to a 154.6 billion dollar market
- Proven business model
- Marketing and build-out support
- Negotiable franchise terms
Training
- 80 hours of training
- Introduction to Little Red Day Spa
- In-depth understanding of Little Red Day Spa services
- Bookkeeping payroll
- Inventory Ordering
- Pricing and Services menu
- Regulatory Compliance
| Subject | Hours of Classroom Training | Hours of On-the-Job Training |
|---|---|---|
| Introduction to Little Red Day Spa | 4 Hours | 4 Hours |
| Understanding Little Red Day Spa & Its Services | 2 Hours | 2 Hours |
| Permits & Coding Compliance | 2 Hours | 2 Hours |
| Store Build Out | 4 Hours | 10 Hours |
| Pricing & Service Menu | 4 Hours | 4 Hours |
| Regulatory Compliance | 2 Hours | 2 Hours |
| Inventory Ordering | 2 Hours | 2 Hours |
| Bookkeeping & Payroll | 2 Hours | 4 Hours |
| Do's & Don'ts | 2 Hours | 4 Hours |
| Marketing & Advertising | 2 Hours | 4 Hours |
| Totals | 36 Hours | 44 Hours |
Ongoing Costs
Royalty Fee
5% of weekly gross sales.
Transfer Fee.
30% of the then current franchise fee, or 5% of the sale price; whichever is greater.
Local Advertising Fee
1% of gross sales.
National Advertising Fee
None; however, we require the right to reserve up to 2% of gross sales, within a 30 day written notice.
Renewal Fee
20% of then current franchise fee.
Road to Franchising
Franchising a business means you’re investing in a proven business model that has already refined itself to bypass the common struggles of business ownership. That’s why it’s highly recommended to enter the industry through franchising a proven brand like Little Red Day Spa.
If becoming the owner of an innovative and profitable business seems appealing to you, then isn’t it time for you to follow these easy steps?
Introductory Call
Webinar Presentation
FDD Review
Discovery Day
Franchise Rewarded
Discovery Day
- We assist in connecting you with vendors for equipment, services, supplies, and ingredients
- Continuous assistance with daily operations, marketing, advertising, menu development, and staffing
- Access to a stream of comprehensive information including print and media advertising.
