Is
Spenga
a franchise?
How many
Spenga
franchises
are there?
What are the
Spenga
franchise
fees?
Initial Franchise Fee
Franchisees are required to pay an Initial Franchise Fee of $49,500 upon the execution of the Agreement. This fee is non-refundable under any circumstances and is considered fully earned upon payment. This fee contributes to the administrative expenses incurred in granting the franchise and compensates for the franchisor's lost or deferred opportunity to franchise to others.
Royalty Fee
Franchisees must pay a monthly Royalty Fee which is the greater of: seven percent (7%) of the Net Cash In generated by the Studio in the preceding calendar month, or a Minimum Royalty of $1,000 per month. This fee is due on or before the fifth of each month, commencing upon the franchisee's first sale or the opening of the Studio.
Marketing Fee
The Marketing Fee, also known as the Brand Development Fund Contribution, can be up to two percent (2%) of the Net Cash In generated by the franchisee's Studio over the preceding month. However, it is noted that currently, the franchisor does not collect any Fund Contribution.
Local Marketing Requirement
Franchisees are also required to spend a minimum of $3,000 to $4,000 each month on local advertising for their Studio. This does not include labor charges and is specified by the franchisor in writing.
Grand Opening Marketing
In addition to the Local Marketing Requirement, franchisees must spend between $20,000 and $30,000 for Grand Opening Marketing expenses under a marketing plan developed by the franchisee and approved by the franchisor.
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
Spenga
franchise?
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
Spenga
provide
training
to its
franchisees?
Corporate Initial Training
Franchisees are provided with an initial training program that includes components conducted at the franchisor's corporate headquarters or another designated training facility, known as the Corporate Initial Training. This training must be completed prior to the opening of the franchised business. Additionally, there is a Remote Initial Training component that may include telephone calls, webinars, or other remote learning methods.
Initial On-Site Assistance
Franchisees will also receive Initial On-Site Assistance, which includes Instructor Training. All prospective studio instructors must participate in this training and successfully demonstrate their ability to provide the approved services in a studio setting.
Multi-Unit Owner Training
For franchisees who are multi-unit owners and have already received Corporate Initial Training for two other studios, the franchisor reserves the right to waive certain training requirements and may not provide the same level of initial training or on-site assistance.
Costs and Expenses
Franchisees are responsible for all costs and expenses associated with attending and completing all aspects of the initial training program, which includes travel, lodging, meals, and any personnel wages/compensation.
Does
Spenga
provides
territory
protection?
The franchise does not provide territory protection to its franchisees, meaning they do not have exclusive rights to operate within a certain geographic area without competition from other franchise-owned or company-owned locations.
Can a
Spenga
franchise
be run as
a passive
investment?
The franchise can potentially be run as a passive investment, provided that a franchisee hires a designated manager approved by the franchisor to handle the daily operations.
