Hand & Stone Massage and Facial Spa is launching a new conversion incentive program for franchise owners to encourage growth through acquisition.
The program rewards existing Hand & Stone operators who expand their footprint by acquiring independent and non-branded spas by offering a $25,000 capital contribution, issued upon completion of the acquisition.
Franchise owners who expand through acquisition and conversion will also benefit from a 50% reduction in the initial franchise fee, paying just $17,500 instead of the $35,000 fee required to open an additional unit.
This incentive program comes on the heels of several conversions that the Hand & Stone brand has completed over the past couple of years and is designed in part to promote that growth strategy, which minimizes build-out expenses.
Hand & Stone has developed a financing arrangement with Firstrust Bank to assist franchise owners in the Mid-Atlantic and Northeast regions in securing funding for new conversions through a favorable, SBA-backed loan program.
Kris Smith, Hand & Stone vice president of real estate development said, "We see this as an opportunity to grow the brand’s footprint by promoting the acquisition and conversion of existing spas into Hand & Stone locations. Acquisitions provide Hand & Stone franchise owners with an existing customer base, as well as a team of massage therapists and estheticians already in place. Looking ahead, we hope to finalize five to 10 conversions by the end of 2021. We look forward to continuing this exciting growth initiative in the future and positioning more of our franchise partners for scalability and success."