Woodhouse Spa Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$1,477,000

-

$3,210,000

LOCATIONS

77

Jennifer

Updated

April 11, 2024

Is

Woodhouse Spa

a franchise?

Yes,
Woodhouse Spa
currently
accepts
franchise
applications

Woodhouse Spa, a premier spa franchise known for its unique approach to wellness services, was founded in 2001 in Victoria, Texas. The franchise began expanding in 2003, with its first franchised spa opening in Kingston, Pennsylvania. Woodhouse Spa has since grown significantly, becoming a leader in the spa industry.

Headquartered in Lakewood, Colorado, Woodhouse Spa distinguishes itself in the wellness market through its holistic approach, targeting both body and mind to offer transformative experiences for guests. This focus on "mood care" is integrated into every aspect of the spa, making it stand out from typical neighborhood spas. Woodhouse Spa offers a diverse range of services, including various spa treatments, high-end retail products, and gift cards, creating multiple revenue streams for franchisees.

Woodhouse Spa prides itself on providing comprehensive support to its franchisees, including assistance in local marketing and operations software, ensuring franchise owners have the necessary tools and resources to thrive. The franchise model appeals to business-savvy professionals passionate about wellness and self-care and committed to providing an unparalleled spa experience.

How many

Woodhouse Spa

franchises

are there?

In 2022, there were
77
outlets in
the United
States, of which
73
are franchises, and
4
are corporate-owned.

What are the

Woodhouse Spa

franchise

fees?

Advertising fee

3.50%

Initial Franchise Fee

The Initial Franchise Fee for The Woodhouse Spas is $55,000. For additional spas developed under a development agreement, there is no initial franchise fee for the second spa.

Royalty Fee

Franchisees are required to pay a Royalty Fee of 6% of Gross Sales.

Advertising Fund Contribution

Franchisees contribute up to 2% of Gross Sales (currently 1.75%) to the Advertising Fund.

Local Advertising Expenditures

Franchisees must spend a minimum of 1.75% of Gross Sales each quarter on local advertising.

Technology Management Fee

A monthly Technology Management Fee of $475 is charged for managing various technical platforms and business tools.

Transfer Fee

For transferring the franchise, a fee of $7,500 to $15,000 is charged, depending on the transferee's status as a new or existing franchisee.

Renewal Fee

The Renewal Fee for continuing the franchise is $12,750.

Initial Training Fee

A $5,000 Initial Training Fee is charged for the Operating Principal and General Manager to attend the franchisor's initial training program.

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

Woodhouse Spa

franchise?

It costs between
$1,477,000
and
$3,210,000
to start a
Woodhouse Spa
franchise.
Type of Expenditure Amount
Initial Franchise Fee $55,000
Fixtures, Furniture and Equipment $293,600 to $484,190
Computer and IT Systems and Components $56,000 to $70,000
Additional IT Related Services $2,625 to $3,225
Security Deposit and Rent $37,500 to $78,750
Leasehold Improvements $820,893.20 to $2,206,876.83
Signage $10,000 to $20,000
Business Licenses and Permits $250 to $1,000
Space Planning and Architectural Fees $29,000 to $40,000
Training Expenses $8,000 to $10,000
Professional Services $3,000 to $10,000
Insurance (For Initial 3-Month Period) $16,000 to $32,000
Grand Opening $15,000
Initial Inventory $79,306 to $81,806
Additional Funds for the start-up phase (For Initial 3-Month Period) $50,000 to $100,000
Employment Screening and Investigation Services $595 to $2,055
Total $1,476,769 to $3,209,902

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

Woodhouse Spa

provide

training

to its

franchisees?

Yes,
Woodhouse Spa
provides
training

The Woodhouse Spas franchise provides a structured training program for franchisees and their key personnel, which includes the following components:

Initial Training Program

  • Participants: The Operating Principal, General Manager, and possibly other management-level personnel must attend and complete the initial training program.
  • Content: The program covers various aspects essential for operating a Woodhouse Spa, including operational, sales, promotional, and marketing methods and techniques.
  • Format: Training is conducted at locations designated by the franchisor and may include classroom and on-the-job components.

Additional Training Programs

  • Successor or Replacement Personnel: The franchisor reserves the right to charge a fee for training successor or replacement personnel.
  • Continuing Education: Franchisees must attend any additional training, meetings, conventions, or conferences required by the franchisor.
  • Remedial Training: On-site remedial training may be provided upon request or if deemed necessary by the franchisor.

Does

Woodhouse Spa

provides

territory

protection?

The Woodhouse Spas franchise system provides franchisees with a protected area, but not exclusive territorial rights. The franchisor retains the right to operate or authorize others to operate Woodhouse Spas outside the franchisee's protected area, as well as to develop and establish other business systems under different names or marks.

Franchisees may face competition from other franchisees, franchisor-owned outlets, or other channels controlled by the franchisor, even within their protected area.

Can a

Woodhouse Spa

franchise

be run as

a passive

investment?

The Woodhouse Spas franchise system does not allow for passive investment or absentee ownership. Franchisees are required to actively participate in the franchise's operations, either directly or through a designated Operating Principal who is responsible for the full-time supervision of the franchise.

This requirement for active involvement and direct management indicates limited scope for passive investors or absentee owners.

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