SPA810 2017
Franchise Presentation
Mission and Vision
Mission Statement
Our enduring mission begins and ends with creating a Remarkable Spa Experience for our Guests. It declares our purpose as a company, and serves as the standard against which we weigh every action and decision.
Vision Statement
To become the best boutique spa destination in the United States and throughout the world. Constantly evolving the business through new service and product offerings so we are always relevant in the minds of our clients and considered the leader in our industry.
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spa810 Executive Team
John Dunatov
CEOSamantha Theaumont
President
Dave Struck
SVP Franchise Development
Doris Dunatov
Director, Franchise Support
KariLynn Keith
Director, Training
Nycole Gonsalves
VP Operations
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spa810 Franchise Coaches
Rob Eberle
Philadelphia, PA
Mike Rosenberger
Jacksonville, FL
Dennis Harvey
Nashville, TN
U.S. Area Representatives
ARIZONAMarc and Lori Olson
ARKANSASRichard and Kristy Holland
CALIFORNIA (1)LA COUNTY REGIONJohn Kleinwachter
COLORADODr. Kristine Hirschfield
FLORIDA (3)ORLANDOFabio Hugonnet
MIAMICraig and Sonia Van Sickle
TAMPAMike Antonnucci
GEORGIAAmy Perrault
ILLINOISMike Antonnucci
INDIANA Brian Knoderer
IOWASteve Walker
KENTUCKYDr. Rahul Reddy
MINNESOTACole Wallis,Jason and Chastity Bennicoff
NEBRASKASteve Walker
N. NEW JERSEYDiana MinerviniMichele Dowd
NEVADAContract Pending
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OHIO (2)CINCINNATTIDr. Rahul Reddy
COLUMBUSDr. Rahul Reddy
OKLAHOMAJeff O’Bryan
TEXAS (4)AUSTINLaurel Belfiore
SAN ANTONIOLaurel Belfiore
DALLAS-FORT WORTHMarc Tatarsky
HOUSTON N. and S.Dr. Nishant Kalra
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International Masters
CANADA
Dr. Peter Thomas, Thomas Franchise Solutions
PUERTO RICO
Craig and Sonia Van Sickle
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s
SPA810 FRANCHISE LOCATIONSARIZONA
• N. Scottsdale Road, Scottsdale AZ• Esplanade, Phoenix AZ• Glendale, AZ – February 2015
ARKANSAS• Rogers-Pinnacle Hills, Rogers AR• Fayetteville, Fayetteville AR
FLORIDA• Winter Park, Orlando FL
IOWA• Ankeny, Des Moines IA- January 2016
MINNESOTA• Rosedale, Minneapolis, MN – February 2016
NEBRASKA• Omaha – March 2016
NEW JERSEY• New Jersey – April 2016
OHIO• Columbus, OH – March 2016
TEXAS• Greenville Ave, Dallas TX• Luther Lane, Dallas TX• Plano, Plano TX• Uptown McKinney Ave, Dallas TX• Austin, TX February 2016• Houston, TX – March 2016• Houston, TX – May 2016
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spa810 Franchise Locations`ARIZONA• N. Scottsdale Road, Scottsdale, AZ• Esplanade, Phoenix, AZ• Glendale, AZ • Phoenix, AZ
NEW JERSEY• Weehawken, NJ• New Jersey -TBD• New Jersey - TBD• New Jersey -TBD
ARKANSAS• Pinnacle Hills, Rogers, AR• Fayetteville, AR
NEBRASKA• Omaha, NE -TBD
COLORADO• Denver, CO – Aug. 2017
OKLAHOMA • Tulsa, OK – June 2017
FLORIDA• Winter Park, Orlando, FL• Orlando, FL • Miami, FL
TEXAS, Austin• Austin, TX
TEXAS• San Antonio, TX - TBD
GEORGIA• Lenox Square, GA• Buckhead, GA – TBD• Atlantic Station, GA• Midtown, GA - TBD• Atlanta, GA -TBD• Buford, GA – Fall 2017
TEXAS, Dallas• Greenville Ave, Dallas, TX• Luther Lane, Dallas, TX• Plano, TX• Uptown McKinney Ave, Dallas, TX• Allen, TX - TBD
KENTUCKY• Louisville, KY – Sept. 2017
TEXAS, Houston• N. Houston, TX - TBD• S. Houston, TX
IOWA• Ankeny, Des Moines, IA
MINNESOTA• Rosedale, Minneapolis, MN
INDIANA• Indianapolis, IN - TBD
Company Background
Franchising Start: 2012Scottsdale Corporate Office: 1Scottsdale Training Facility: 1
Retail Locations Operating: 20Retail Locations in Development: 16Area Representatives Awarded: 23International Masters Awarded: 2 - Canada, Puerto Rico
WHAT DOES SPA810 STAND FOR?
spa810 incorporated the 810 nm diode laser that they use on all their laser hair removal procedures.
The Alma Soprano ICE is the safest, most advanced laser in the market. The Soprano ICE is the GOLD STANDARD for laser hair removal.
In recent years, the diode laser has become the superstar of laser hair removal. It is the best overall machine for treating all six skin types based on safety and long term use especially satisfactory to skin types I-IV.
Diode has a longer wavelength than others except Yag Laser, this longer wavelength enables the light to penetrate deeper and is theoretically safer than shorter wavelength lasers because it can better avoid the melanin pigment in the skin's epidermis.
spa810 Breakdown of Service Revenue Laser 40-60% Facials 20-25% Massages 10-15% Retail Products 10-15%
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Past Industry Trends
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BOOMINGINDUSTRY!
The demand for anti-aging procedures along with the desire to increase overall health is being driven by the “Baby Boomers” and “Millennials”
*Marketdata Enterprises Inc., 2013 Independent Study
The global day spa industry has grown tremendously in the U.S. over the last 20years. In 1990 there were 200 day spas in the US. The spa industry grew 58%from 2007-2013: from $60 billion to $94 billion, with a 47% growth in spalocations, to reach 105,591 spas.
2007-2013: International spa locations grew 47%: from 71,762 to 105,591
$94 Billion Breakdown of the current
$94 billion spa industry:
• spa facilities $74B
• spa investment capital $19B
• spa education $800M
• spa media/education/events $200M
• spa consulting $100M
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Current Industry Trends
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Global Overview Values
Estimated global market size of the beauty and anti-aging industry $1.025 Trillion
U.S. health club industry revenue $25.8 Billion
Revenue of the U.S. yoga and pilates industry $6.85 Billion
U.S. Overview Values
Revenue of the U.S. spa industry $16.3 Billion
Number of spa visits in the U.S. spa industry 179 Million
Average rate for a spa treatment at luxury hotel spas in the U.S. $139.00
Demographics
1. Medical Spas Are Booming.
Medical spas are expected to record its fastest growth between 2016-2022, due to the massive developments in the medical field. Europe accounts for the largest market share at 39.1%, followed by the Asia-Pacific and North America in 2015. Featuring the highest growth, LAMEA has rising investments in the tourism industry in countries like Brazil and UAE.
2. Lifestyles and Demographics Fuel Growth.
The growth of the market is factored due to the lifestyles, tourism, rising demand from teenagers and the improvement of the standard of living. Also, the rising popularity of working women and male customers interested in spa services is causing the spa industry to offer more services.
3. Salon/spas Dominate in Europe and the Asia-Pacific.
Within the salon segment, Europe dominated the market in 2015 that was owed to a higher demand in Western Europe. Eastern Europe’s extensive demand is due to the rising income of the middle class customer groups. Asia-Pacific is the second largest region that has helped the expansion due to the multiple mineral spas. The rising popularity of traditional spas has also increased the desire for Thai and Ayuverdic massages in the region.
- See more at: http://www.skininc.com/spabusiness/trends/Global-Spa-Market-to-Increase-to-1546-Billion-by-2022-395767731.html#sthash.aFXxEtuN.dpuf
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Customer Demographics
52% of men have used professional care services and that there is a growing number of male-focused salons
90% female, with mid-to-high incomes
Mintel Group. “Women Dominate Salon Visits, But Men’s Numbers Set to Grow.” July 25, 2012. http://www.gcimagazine.com/marketstrends/consumers/men/163767936.html
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Increase in male focused spa visits 2014
25% of men 18-34 report having a manicure or pedicure
38% of men ages 18-34 have had a facial or bodytreatment
Other
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spa810 vs. the CompetitionLaser Skin Massage
Painless Hair
Removal
All Skin
Types I-V
All Hair Colors
*Except Silver/Grey
Facial Capsule
Diamond Tip
Microderm
HydraFacial*Select
spa810’s
Anti-Aging Procedures
AromaTherapy,
Sugar Foot Scrub, Hot
Towels
Add On Modalities
spa810 YES YES YES YES YES YES YES YES YES
Massage Envy
No No No No No No No Yes Yes
Massage Heights
No No No No No No No Yes Yes
Spavia Day Spa
No No No No No No Yes Yes Yes
Hand & Stone
No No No No Yes No Yes Yes Yes
Elements Massage
No No No No No No No Yes Yes
Ideal Image No Yes No No No No No No No
Woodhouse Day Spa
No No No No Yes Yes Facials Yes Yes
European Wax Center
No No No No No No No No No
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Services and Treatments
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Dermaplane
Microderm
Diamond Tip
Microderm
Collagen Boosters
HydraFacial MD®
iS Clinical Facials
SkinCeuticals Peels
and Facials
NuFace Facial
Toning
Chemical Peels
Men’s Grooming
LED Light Therapy
Microblading
Microneedling
RF Microneedling
Hydra Sweep
PRP Treatment
Eyelash and Brow
Tinting
Jane Iredale
Makeup Demo
Laser and Body Contouring
Laser Hair Removal
NIR Skin Tightening
NIR Pain Management
CoolSculpting
Cavitation
Massage
ila Massages and Body
Wraps
Deep Tissue
Swedish
Hot Stone
Trigger Point
Thai
Prenatal
Reflexology
Lymphatic Drainage
Ashitasu
Cold Stone Add On
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*Treatments vary by location
Skin
Featured Product Lines
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Financial Details10 Room spa810 Franchise
Franchise Fee $45,000
Franchise Investment Range $359,700 up to $531,500
Liquid Capital Required $120,000 - $150,000
Net Worth Requirement $350,000
Royalty Fee 7% of Gross Revenues
National Advertising Fund 1% of Gross Revenues per FDD*
Local Advertising Requirement $24,000 Yearly Minimum Spend
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*spa810’s FDD states a 2% NAF. Currently the NAF is 1% for Regions that have 4 or
more spa810 franchise locations operating.
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Item 7 for a 10 Room Spa
Initial Franchise Fee $45,000 $45,000
Utility Security Deposits $3,000 $4,500
Lease Security Deposits - will vary location by location $8,000 $15,000
Architectural Plans $ 6,000 $ 9,000
Leasehold Improvements (Varies Unit to Unit, Landlord Allowance TBD) $35,000 $80,000
Project Management Services $0 $22,500
Signage (Interior and Exterior) $8,500 $10,000
Office Furniture and Fixtures, Washer & Dryer, Decorative Fixtures $8,000 $ 24,000
Professional Equipment (Beds, Laser (1), Capsule (2) - for 8 rooms), tax
and delivery$135,500 $154,500
Computer Hardware, Software, Supplies $10,500 $11,500
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Note: Please note that tenant improvement costs will be assessed in each unit prior to franchisee signing LOI/Lease.
Cost Estimates for Rent/Unit Build Out will vary region by region and location by location within the region.
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Item 7 for a 10 Room Spa
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Note: Please note that tenant improvement costs will be assessed in each unit prior to franchisee signing LOI/Lease.
Cost Estimates for Rent/Unit Build Out will vary region by region and location by location within the region.
Business Licenses and Permits $1,000 $1,000
Professional Fees $500 $1,500
Insurance - 3 Months $1,500 $ 2,500
Initial Training Expenses, Including Travel $2,500 $5,000
Product/Start-up Inventory $33,000 $40,000
Grand Opening Advertising Program & Startup Marketing $10,000 $15,000
3 Months Marketing Reserves $6,000 $8,000
Additional Funds - 3 Months OH/Payroll/Rent $30,000 $50,000
Eyelash Program Retail Package $0 $6,500
Human Resource Manuals $1,500 $2,500
Startup General Supplies – office, spa rooms, bathroom, break room $5,000 $7,500
Various Equipment (Telephone/Sound/Scent Machine/ Security) $5,000 $8,500
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Item 7 for a 10 Room Spa
SPA810 2017
Note: Please note that tenant improvement costs will be assessed in each unit prior to franchisee signing LOI/Lease.
Cost Estimates for Rent/Unit Build Out will vary region by region and location by location within the region.
POS System Installation $2,500 $3,500
POS Support System $300 $800
Micro Site Set Up $500 $500
Credit Card Processing Devices $500 $1,500
SEO Package $400 $1,200
Total Estimated Initial Investment $359,700 $531,500
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spa810 Equipment
Soprano ICE Laserw/ 810nm Diode & NIR Hand Piece
1
Spa810 Facial CapsuleAromatherapy
2
2 in 1 Microderm and Diamond Tip Facial Machine
3
Spa Luxe - Electric Lift Salon & Spa Table (All Electric w/ Accessories)
4
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spa810 Equipment
Spa Luxe Towel Warmer - Hot Towel Cabinet (SL8)
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2 in 1 Facial Steamer and Magnifying Lamp Combo (SL-601 & 1001T)
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Chattanooga - Stainless Steel Cart Model MB-T
4
Rolling Stool with Foot RestSilver Fox 1023
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Additional spa equipment includes massage table warmers, sheets, spa robes, roll bars,
bolsters, cushions, covers, pregnancy pillow, back bar and retail product lines, Eclipse
MicroPen, NuFace, as well as many other items.
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spa810 Typical Unit Operation
Hours of Operation:
Monday – Saturday 10 a.m. to 8 p.m.Sundays 11 a.m. to 4 p.m.
spa810 does not require the Franchisee to open on Sunday, however it is recommended.
2,300-2,500 sq. feet unit with 10-12 service rooms
10-14 professional employees leading to greater profit potential with less overhead, easier management and more efficient operations
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Typical Single Aisle Floor Plan
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Typical Dual Aisle Floor Plan
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spa810 Exterior FacadesSPA810 2017 24
spa810 Interior Appointmentssp
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Real Estate Selection & Buildout
spa810 corporate with its third party experts in real estate and construction will assist in:
Site selection assistance Assist with lease negotiation Assistance of full buildout of the unit Turn key delivery of the unit assistance Assistance purchase all equipment Product ordering assistance Outfitting of the unit assistance
National Real Estate Partner Morrow Hill
This process lasts 60-90 days from the executed lease.
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Training and Support
OPERATIONS TRAINING
Marketing
Payroll, Human Resources
Insurance
Products
Front Desk
Memberships
Laser, Facial, Massage, Aesthetics
Spa Standards
Grand Opening Marketing
POS System
Compliance
AREA REPRESENTATIVE TRAINING
Real Estate and Leasing
Unit Buildout
Business Broker Network
Advertising
Promotions
Ongoing Support
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SPA810 2017
Cosmetology Board
The spa industry is governed by
the cosmetology board. The
board may periodically visit the
spa and request an inspection.
The business license must be
visible, and all cosmetology
licenses must be up in the rooms.
The spa810 professional workforce includes the following:
Spa Director/Manager Asst. Spa Manager Spa Associates Certified Laser Technicians Certified Massage Therapists Licensed Estheticians Medical Director Accountant
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Depending on the state laws for laser services, an
Electrologist, Registered Nurse, Medical Assistant or a Physician may need to operateor supervise the services. “The California Department of Business Oversight hasdetermined that services provided by spa810 franchisees constitutes the practice ofmedicine. In order to operate a spa810 franchise, franchisees must comply with allmedical licensing and operating requirements. For example, California law mayrequire that a laser hair removal clinic may only be owned by a physician and thatanyone administering laser hair removal services be actually supervised by a physician.In addition, there may be other laws and regulations governing the provision of laserhair removal and other spa services typically offered by spa810 franchisees. SPA 810L.L.C. has not and will not undertake or assume any responsibility for reviewing oranalyzing California state law with respect to the operation of a spa810 business inCalifornia. If you are interested in purchasing a spa810 business in California, you aresolely responsible for complying with all laws including, without limitation, allregulations and medical licensing requirements. We recommend that you ensure thatyou can comply with such laws before purchasing a spa810 franchise.”
Marketing the Brand
Allison & Partners, National Marketing Partner, Nationally Recognized Advertising Firm for spa810 Creative Brand
Local Spa Marketing: Messaging, Campaigns/Advertisement, Loyalty Programs
Assistance with Content Development, SEO and Social Media Management
Assistance Direct Mail Marketing – Every Door Direct Campaigns
Social Media Guidance– Facebook, LinkedIn, Twitter, Blogs, Instagram
Print Advertising – Newspapers Ads, Inside Coop, Every Door Direct
Billboards, Sidewalk Marquees, Moving Billboards, Bench Marketing
Grand Opening Marketing Kit and Workbook
Compliance on use of “Marks” and “Logo”
Brand Standards Guidance
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E2 & EB5 Visa’s Options
“spa810 is excited to work with our International candidates who are looking for E2 & EB5 Visa qualifying business
investments"
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Arizona Franchise Excellence Awards
Best New Concept 2015
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Success To Date
23 U.S. Area Representative Regions awarded, plus two International Masters awarded; Canada and Puerto Rico
20 units open and 16 under development
spa810 is listed "On the Hot List" for 2015's top 10 franchise categories for the spa industry that shows strength and promise for new concepts
Ranked number 267 on the top 500 by FranchiseGrade.com 2015
Voted “Best Laser Hair Removal spa” in Dallas 2015, 2016
"Best New Franchise Concept“ Honoree, Phoenix Business Journal, 2015
“Best Day Spa Experience” Winter Park Chamber of Commerce 2015
and 2016
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Franchise Candidate Profile
Individuals seeking opportunities with high earnings potentials within a proven industry and with an established Franchisor.
Qualified candidates should have:
A good business acumen with business experience
Strong customer service skills
Be able to demonstrate our core values of transparency, loyalty and passion for success
Candidate needs to be able to meet the financial requirements
Area Representatives are our regional development partners, and therefore should have strong desire to build a legacy business with our brand
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Who’s Joined Our Team?
Cardiologist (2)
Neurologist
Dermatologist
Pharmacist
MD – Internal Medicine
PHD Engineer
M&A Attorney
Marketing Exec., American Express
Finance Manager, Georgia Pacific
Account Exec., Pharmaceutical Co.
Trader, Chicago Board of Trade
Owner, Business Brokerage Firm
Master Franchisee, Century 21
3-Unit Franchisee, Fantastic Sam’s
Account Exec., IBM
Real Estate Exec., QuikTrip
Marketing Exec., Walmart
Project Analysis Manager
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Next Steps
1. Complete the spa810 Request for Consideration document
2. Review our Franchise Disclosure Document (FDD)
3. Attend a Discovery Day in Dallas, TX or Scottsdale, AZ
4. Validation Calls with current franchisees
5. Review Franchise Agreement
6. Final call to ensure all questions are answered
7. Execute a spa810 franchise agreement
8. Open your spa810 business
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Lobby of spa810 unit
Thank You For Your Time
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DisclaimerNOTE: This advertisement is not a franchise offering. A franchise offering can be made by us only in a state if we are firstregistered, filed, excluded, exempted or otherwise qualified to offer franchises in that state, and only if we provide you with anappropriate franchise disclosure document. Follow-up or individualized responses to you that involve either effecting orattempting to effect the sale of a franchise will be made only if we are first in compliance with state registration or notice filingrequirements, or are covered by an applicable state exclusion or exemption.
The following states regulate the offer and sale of franchises: California, Florida, Hawaii, Indiana, Kentucky, Maryland,Michigan, Minnesota, Nebraska, New York, North Dakota, Rhode Island, South Dakota, Texas, Utah, Virginia, Washington andWisconsin. If you reside, plan to operate or will communicate about the franchise in one of these states, you may have certainrights under applicable franchise laws or regulations. We are not registered, and cannot sell franchises, in California (pending)Hawaii, Maryland, Michigan (pending), North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin(pending).
Spa810 is not generally offering franchise opportunities in California. We are only offering the opportunity to purchase a spa810 franchise in California to those individuals who meet the requirements to be considered an Experienced Franchisee (see California Corporations Code section 31106), or a Large Franchisee (California Corporations Code section 31109) or a Fractional Franchisee (see California Corporations Code section 31108).
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