Spavia Day Spa Franchise Prices, Charges, Revenues, Income (2023 Assessment)

On this unique Franchise Chatter FDD Speak submit, you’ll study the next:

Part I – Estimated preliminary funding (franchise prices) for a Spavia Day Spa franchise, primarily based on Merchandise 7 of the corporate’s 2022 FDD

Part II – Preliminary franchise price, royalty price, and advertising and marketing price for a Spavia Day Spa franchise, primarily based on Gadgets 5 and 6 of the corporate’s 2022 FDD

Part III – Variety of franchised and company-owned Spavia Day Spa shops in the beginning of the yr and the top of the yr for 2019, 2020, and 2021, primarily based on Merchandise 20 of the corporate’s 2022 FDD

Part IV – Information updates on the Spavia Day Spa franchise alternative

Part V – Presentation and evaluation of Spavia Day Spa’s monetary efficiency representations (common revenues and/or earnings), primarily based on Merchandise 19 of the corporate’s 2022 FDD, together with data on the:

• 2021 common, median, excessive, and low month-to-month product sales for (i) the 35 Spavia Day Spa franchised places that had been open and working for greater than 36 months as of December 31, 2021; and (ii) the 15 Spavia Day Spa franchised places that had been open between 13 and 36 months as of December 31, 2021

• 2021 annual product sales for every of (i) the 35 Spavia Day Spa franchised places that had been open and working for greater than 36 months as of December 31, 2021; and (ii) the 15 Spavia Day Spa franchised places that had been open between 13 and 36 months as of December 31, 2021

• 2021 common product sales, price of products bought, gross revenue, occupancy prices (hire, utilities, and repairs and upkeep), different reported working bills, royalty price, fund contribution, expertise price, whole bills, and gross revenue much less whole bills for (i) the 23 Spavia Day Spa franchised places that had been open and working for greater than 36 months as of December 31, 2021 and offered Spavia with the knowledge wanted to compile the disclosure; and (ii) the 5 Spavia Day Spa franchised places that had been open between 13 and 36 months as of December 31, 2021 and offered Spavia with the knowledge wanted to compile the disclosure

Part VI – Key ratios, comparables, computations, and analyses for the Spavia Day Spa franchise alternative (unique content material for Platinum subscribers)

Part I – Spavia Day Spa Franchise Prices

• Preliminary Franchise Charge:  $49,500
• Preliminary Coaching Charge:  $5,000
• Journey and Dwelling Bills Throughout Preliminary Coaching:  $500 to $1,000
• Web site Choice:  $0 to $2,000
• Safety Deposits for Lease and Utilities:  $5,000 to $15,000
• Enterprise Licenses and Permits:  $50 to $1,000
• Skilled Charges:  $2,000 to $5,000
• Pre-Development, Architect, Engineering:  $18,750 to $24,240
• Leasehold Enhancements:  $95,750 to $306,000
• Development Administration (Third Celebration):  $0 to $13,750
• Signage and Graphics:  $8,000 to $12,000
• Tools and Provides:  $70,000 to $100,500
• Expertise Charge(s) Payable Previous to Opening:  $910
• Further Funds for 3 Months:  $40,000 to $60,000
• Complete Estimated Spavia Day Spa Franchise Prices:  $295,460 to $595,900

Part II – Spavia Day Spa’s Preliminary Franchise Charge, Royalty Charge, and Advertising Charge

• Preliminary Franchise Charge:  $49,500
• Royalty Charge:  6% of Gross Gross sales
• Native Promoting Requirement:  $50,000 throughout the first 12 months of operation, with not less than $15,000 to $20,000 (as Spavia designates) expended inside your first 3 months of operation (your “Preliminary Advertising Spend”). There’s additionally a Native Promoting Requirement if Minimal Efficiency Requirements will not be met.
• Fund Contributions:  1% of Gross Gross sales (your “Fund Contribution”)
• Promoting Cooperative Charge:  presently, Spavia has not established any such Cooperatives or required its System franchisees to take part in the identical

Part III – Variety of Franchised and Firm-Owned Spavia Day Spa Retailers

Franchised

2019

• Retailers on the Begin of the 12 months:  35
• Retailers on the Finish of the 12 months:  45
• Internet Change:  +10

2020

• Retailers on the Begin of the 12 months:  45
• Retailers on the Finish of the 12 months:  50
• Internet Change:  +5

2021

• Retailers on the Begin of the 12 months:  50
• Retailers on the Finish of the 12 months:  52
• Internet Change:  +2

Firm-Owned

2019

• Retailers on the Begin of the 12 months:  1
• Retailers on the Finish of the 12 months:  0
• Internet Change:  -1

2020

• Retailers on the Begin of the 12 months:  0
• Retailers on the Finish of the 12 months:  0
• Internet Change:  0

2021

• Retailers on the Begin of the 12 months:  0
• Retailers on the Finish of the 12 months:  0
• Internet Change:  0

Part IV – Information Updates on the Spavia Day Spa Franchise

Part V – Monetary Efficiency Representations (Common Revenues and/or Income) for the Spavia Day Spa Franchise (Merchandise 19, 2022 FDD)

• As of December 31, 2021, there have been 52 franchised places (every, a “Franchised Location”) and 0 affiliate-owned places in operation. This Monetary Efficiency Illustration excludes monetary data in reference to the 2 Franchised Places that opened through the 2021 calendar yr (the “Measurement Interval”).

Half 1 – Common, Median, Excessive, and Low Month-to-month Gross Gross sales Generated Amongst Every of Two Subsets of Franchised Places

• Half 1 of this Merchandise discloses the common, median, excessive, and low month-to-month Gross Gross sales generated by the next subsets of Franchised Places which can be operated in a considerably comparable method to the Franchised Enterprise being supplied within the Disclosure Doc over the 2021 calendar yr (the “Measurement Interval”): (i) the 35 Franchised Places that had been open and working for greater than 36 months as of December 31, 2021; and (ii) the 15 Franchised Places that had been open between 13 and 36 months as of December 31, 2021.

36 Months or Longer

• Variety of Franchised Places Comprising the Group:  35
• Common:  $74,918.83
• Median:  $70,707.78
• Excessive:  $136,703.58
• Low:  $33,415.18
• Quantity That Met or Exceeded Common:  16 (46%)

Between 13 and 36 Months

• Variety of Franchised Places Comprising the Group:  15
• Common:  $54,242.10
• Median:  $42,207.40
• Excessive:  $118,940.34
• Low:  $23,683.41
• Quantity That Met or Exceeded Common:  5 (33%)

Half 2 – Complete Common and Median Gross Gross sales Generated by the Two Subsets of Franchised Places Over the Measurement Interval

• In Half 2 of this Merchandise, Spavia discloses the entire Gross Gross sales generated over the Measurement Interval by every of the Franchised Places separated in the identical two teams as Half 1. Half 2 additionally discloses the common and median whole Gross Gross sales generated by the Franchised Places over the Measurement Interval.

Franchised Places Open Between 13 and 36 Months as of the Expiration of the Measurement Interval – Gross Gross sales Generated Over Measurement Interval

• Franchised Location 1:  $1,427,284.13
• Franchised Location 2:  $1,289,840.66
• Franchised Location 3:  $869,699.85
• Franchised Location 4:  $845,702.73
• Franchised Location 5:  $820,780.02
• Franchised Location 6:  $568,070.57
• Franchised Location 7:  $556,210.00
• Franchised Location 8:  $506,488.83
• Franchised Location 9:  $482,309.65
• Franchised Location 10:  $452,918.99
• Franchised Location 11:  $430,892.29
• Franchised Location 12:  $419,858.26
• Franchised Location 13:  $418,570.56
• Franchised Location 14:  $390,750.53
• Franchised Location 15:  $284,200.94
• Common:  $650,905.20
• Median:  $506,488.83

Franchised Places Open Extra Than 36 Months as of the Expiration of the Measurement Interval – Gross Gross sales Generated Over Measurement Interval

• Franchised Location 1:  $1,640,442.90
• Franchised Location 2:  $1,496,143.50
• Franchised Location 3:  $1,401,258.39
• Franchised Location 4:  $1,275,080.30
• Franchised Location 5:  $1,255,625.60
• Franchised Location 6:  $1,247,594.40
• Franchised Location 7:  $1,243,308.73
• Franchised Location 8:  $1,169,919.65
• Franchised Location 9:  $1,129,890.73
• Franchised Location 10:  $1,106,706.30
• Franchised Location 11:  $1,073,338.29
• Franchised Location 12:  $1,041,728.33
• Franchised Location 13:  $949,776.80
• Franchised Location 14:  $941,789.08
• Franchised Location 15:  $923,543.44
• Franchised Location 16:  $922,515.08
• Franchised Location 17:  $854,164.96
• Franchised Location 18:  $848,493.32
• Franchised Location 19:  $831,603.21
• Franchised Location 20:  $798,190.91
• Franchised Location 21:  $795,487.18
• Franchised Location 22:  $774,607.12
• Franchised Location 23:  $772,312.50
• Franchised Location 24:  $713,464.71
• Franchised Location 25:  $688,130.61
• Franchised Location 26:  $676,639.06
• Franchised Location 27:  $632,644.17
• Franchised Location 28:  $632,179.44
• Franchised Location 29:  $576,245.67
• Franchised Location 30:  $554,024.91
• Franchised Location 31:  $548,299.79
• Franchised Location 32:  $548,047.51
• Franchised Location 33:  $513,535.03
• Franchised Location 34:  $488,195.09
• Franchised Location 35:  $400,982.12
• Common:  $899,025.97
• Median:  $848,493.32

Half 3A – Common Gross Gross sales, Gross Revenue, Occupancy Price, and Different Reported Operational Bills for Franchised Places Open Extra Than 36 Months as of the Finish of the Measurement Interval

• Half 3A of this Merchandise discloses the common, median, excessive, and low Gross Gross sales, Gross Revenue, Price of Items Bought, and different bills by the Franchised Places that had been open greater than 36 months firstly of the Measurement Interval.

• Half 3A excludes (i) the 2 Franchised Places that opened through the Measurement Interval, and (ii) 12 Franchised Places that failed to offer Spavia with the knowledge wanted to compile this disclosure.

• Common Gross Gross sales:  $1,005,309 (100.0%)
• Common Price of Items Bought:  $379,858 (37.8%)
• Common Gross Revenue:  $625,452 (62.2%)
• Common Occupancy Prices (Hire, Utilities, Repairs and Upkeep):  $148,482 (14.8%)
• Common Different Reported Working Bills:  $180,536 (18.0%)
• Common Royalty Charge:  $60,319 (6.0%)
• Common Fund Contribution:  $10,053 (1.0%)
• Common Expertise Charge:  $5,460 (0.5%)
• Common Complete Bills:  $404,849 (40.3%)
• Common Gross Revenue Much less Complete Bills:  $220,602 (21.9%)

Half 3B – Common Gross Gross sales, Gross Revenue, Occupancy Price, and Different Reported Operational Bills for Franchised Places Open Between 13 and 36 Months as of the Finish of the Measurement Interval

• Half 3B of this Merchandise discloses the common, median, excessive, and low Gross Gross sales, Gross Revenue, Price of Items Bought, and different bills by the Franchised Places that had been open between 13-36 months firstly of the Measurement Interval.

• Half 3B excludes (i) the 2 Franchised Places that opened through the Measurement Interval, and (ii) 10 Franchised Places that failed to offer Spavia with the knowledge wanted to compile this disclosure.

• Common Gross Gross sales:  $995,135 (100.0%)
• Common Price of Items Bought:  $404,138 (40.6%)
• Common Gross Revenue:  $475,349 (47.8%) (Observe: There’s something incorrect with this determine as a result of gross revenue ought to equal product sales much less price of products bought.)
• Common Occupancy Prices (Hire, Utilities, Repairs and Upkeep):  $131,460 (13.2%)
• Common Different Reported Working Bills:  $188,457 (18.9%)
• Common Royalty Charge:  $59,708 (6.0%)
• Common Fund Contribution:  $9,951 (1.0%)
• Common Expertise Charge:  $5,460 (0.5%)
• Common Complete Bills:  $395,036 (39.7%)
• Common Gross Revenue Much less Complete Bills:  $80,312 (8.1%)

• The figures and data introduced on this Merchandise 19 are primarily based on the precise and historic efficiency of the Franchised Places, and such data was both (a) reported to Spavia by the house owners of every Franchised Location, and/or (b) pulled from studies generated by the System’s POS System utilized at every Franchised Location.

• Some shops have bought these quantities. Your particular person outcomes might differ. There isn’t a assurance that you just’ll promote or earn as a lot.

• The time period “Gross Gross sales” for every Franchised Location means the entire income generated from the sale of Accepted Companies and Accepted Merchandise at that Franchised Location over the relevant Measurement Interval.

• The time period “Price of Items Bought” consists of (i) the payroll to staff respectively categorized as specialists, therapeutic massage therapists, and estheticians of that Spavia Enterprise, together with associated payroll taxes and employees’ compensation insurance coverage; (ii) different bills relating on to therapy of visitors; and (iii) the price of merchandise procured on the market.

• Gross Revenue is calculated by taking the Gross Gross sales and subtracting the Price of Items Bought.

• The time period “Occupancy Prices” means the quantity expended by that location through the Measurement Interval in hire, CAM, utilities, restore and upkeep, and different quantities underneath the lease for Premises of that location.

• The time period “Different Reported Working Bills” consists of the prices and bills related to: (i) promoting/promotional advertising and marketing of a Spavia Enterprise; (ii) insurance coverage (together with medical insurance); (iii) web and different telecommunications; (iv) workplace bills and provides; (v) non-office provides; (vi) recruiting bills; (vii) sure taxes and licenses; (viii) service provider processing charges; and (ix) Expertise Charges and Fund Contributions.

• The Royalty Charge was calculated by taking the Gross Gross sales and multiplying that quantity by 0.06 since a franchisee’s required Royalty Charge is 6% of Gross Gross sales.

• The Fund Contribution was calculated by taking the Gross Gross sales and multiplying that quantity by 0.01 since a franchisee’s required Fund Contribution is 1% of Gross Gross sales.

• The Expertise Charge was calculated by taking the month-to-month Expertise Charge of $455/month and multiplying that quantity by twelve.

• Complete Bills is calculated by including the Occupancy Prices, Different Reported Working Bills, Royalty Charge, Fund Contribution. and Expertise Charge.

• Complete Revenue Much less Complete Bills is calculated by taking the Complete Revenue and subtracting the Complete Bills.

Part VI – Spavia Day Spa Franchise Ratios, Comparables, Computations, and Analyses (Unique Content material for Platinum Subscribers) ⬇️