Heyday Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$966,000

-

$1,231,000

LOCATIONS

18

Jennifer

Updated

May 2, 2024

Is

Heyday

a franchise?

Yes,
Heyday
currently
accepts
franchise
applications

Heyday is a renowned skincare and wellness franchise that has made a significant impact in the beauty industry since its inception. Founded in 2015 by Adam Ross and Michael Pollak, Heyday has its headquarters in New York City, USA.

The franchise began franchising in 2018, giving entrepreneurs the opportunity to bring Heyday's innovative and customer-centric approach to skincare to communities across the country.At Heyday, the primary focus is on offering customized facial treatments and a curated selection of skincare products.

What makes Heyday truly unique is its dedication to making professional skincare services more accessible by blending technology and expert human touch, ensuring that clients receive personalized care. With its commitment to exceptional service, Heyday continues to thrive as a leading franchise in the ever-evolving wellness and beauty industry.

How many

Heyday

franchises

are there?

In 2022, there were
18
outlets in
the United
States, of which
8
are franchises, and
10
are corporate-owned.

What are the

Heyday

franchise

fees?

Advertising fee

5% plus $7,000 per month

Initial Franchise Fee

The initial franchise fee for this agreement is $60,000. This fee, required upon signing the Franchise Agreement, is non-refundable under any circumstances.

Royalty Fee

Franchisees must pay a royalty equal to seven percent (7%) of the Shop's Gross Revenue each calendar week.

Technology Fee

This fee, not to exceed two percent (2%) of the Shop's weekly Gross Revenue, covers costs for technology products or services related to the franchise system. The current charge to franchisees is $800 each week.

Ongoing Marketing Investment

This fee ranges from $7,000 to $20,000 per month in the initial 18 months after the shop opens, and from $5,000 to $15,000 per month thereafter.

Local Marketing Requirement

Franchisees must spend at least 3% of their Shop's projected annual Gross Revenue on local marketing.

Development Fee

In case of multi-unit development, an up-front area development fee is charged for the right to develop two or more franchise units. The fee varies, with $500,000 plus $25,000 for each subsequent shop beyond the 20th.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Heyday

franchise?

It costs between
$966,000
and
$1,231,000
to start a
Heyday
franchise.
Type of Expenditure Amount (Low) Amount (High)
Initial Franchise Fee $60,000 $60,000
Shop Opening Services Fee $53,000 $53,000
Legal / Professional Fees $5,000 $12,000
Banking Account Fees (Pre-Construction Segregated Bank Account) $1,500 $1,800
Business Licenses / Permits $500 $1,500
Architect / Engineer / Permits & Licenses $46,500 $56,500
Leasehold Improvements and Fixtures, Furniture, and Equipment $545,000 $665,000
Signage $12,000 $22,500
Construction Project Manager Travel $10,000 $10,000
Technology Hardware: Laptops, Printer, iPads, Duo Bundle & Phones / Set-Up $12,500 $15,000
Opening Service $50,000 $78,500
TOTAL ESTIMATED INITIAL INVESTMENT (including real estate costs) $966,010 $1,230,590

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Heyday

provide

training

to its

franchisees?

Yes,
Heyday
provides
training

The franchisor provides various types of training to its franchisees and their staff which include:

Initial Training Program

  • Before opening the Shop to the public, the Managing Owner and Operator must complete an Initial Training to the franchisor's satisfaction. This program is conducted at a designated training location and/or through video and other electronic means. The Shop must always have at least 2 fully-trained persons on staff.
  • The training is expected to occur after signing the Franchise Agreement and while the Shop is being developed. The franchisor plans to be flexible in scheduling training to accommodate both their personnel and the franchisee's personnel.

Pre-Opening Hands-On Training

  • The franchisor will send a "Pre-Opening Hands-On" training team to the Shop to facilitate and oversee the training and certification of the franchisee's employees.

Ongoing and Supplemental Training

  • The franchisor has the right to require the Shop’s Operator and managers to attend and complete various training courses and programs offered periodically. The franchisor may charge a fee for this continuing and advanced training.

Initial Online Franchise Training

  • The initial phase of the training program is conducted online, starting within a week after signing the Franchise Agreement.

Corporate Location Training

  • The second phase includes training conducted at a corporate location in New York or Los Angeles and additional online courses. This phase typically occurs before the Shop's anticipated opening date.

Does

Heyday

provides

territory

protection?

The franchisor provides franchisees with an Area of Protection around their Shop, which is detailed in the Franchise Agreement. This area typically spans approximately a 10-minute drive from the Shop's site. However, the Area of Protection excludes Non-Traditional Venues within it, and the franchisor retains the right to modify this area if the Shop relocates.

Despite this protection, franchisees are not granted exclusive rights concerning the shopping center or other structures where the Shop is located, or in any existing or potential geographic territory.

Can a

Heyday

franchise

be run as

a passive

investment?

The franchisor does not support a purely passive investment approach for franchisees. The franchisee has the primary responsibility for managing and operating the Shop and supervising the Shop’s employees. They are responsible for implementing security and safety measures and have discretion over optional policies and procedures.

The franchisee must designate a Managing Owner responsible for the Shop’s overall management. This person must have sufficient authority to make essential business decisions and communicate directly with the franchisor about Shop-related matters. 

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