If you’ve done your due diligence regarding opening a franchise, then your next step in this important research process is to ask for, and closely read the Spavia Day Spa Franchise Disclosure Document (the FDD).
The Franchise Disclosure Document is something that any franchising company must give to prospects who are seriously considering purchasing a franchise. The U.S. Federal Trade Commission requires this; it’s a legal document and its purpose is to provide potential franchisees with truthful and detailed information about the franchise opportunity, its potential upsides, risks, startup costs, and more. In a nutshell, the FDD helps you make an educated decision about whether or not to purchase the franchise.
Franchise Disclosure Document Overview
You’ll notice right away that our FDD isn’t a quick read: it has 23 items broken down throughout it. We don’t have the space to list them all here, so we’re highlighting some of the big takeaways.
1. Background information on Spavia
The Spavia Day Spa FDD provides a history on how we got started, how much your Spavia startup costs may be, the legal obligations we both have to each, and our audited financials.
2. The investment involved
You’ll want to take a close look at Sections 7 and 19. Number 7 gives you an estimate of what you could expect to spend with your startup costs. Briefly, your initial investment can range from $345,899 to $633,363.
How is this number determined?l Here’s an itemized breakdown of some of the things you’ll need to cover:
- Leasehold improvements: $126,000 at the low end to $329,131 at the high end.
- An initial franchise fee: $49,500
- An initial training fee: $5,000
- Spa equipment, millwork, FF&E: $97,089 at the low end to $103,589 at the high end
- Rent: $0 at the low end to $45,000 at the high end
- Local advertising: $20,000 for the first 3 months
To learn more about your Spavia Day Spa investment, check out our investment page.
3. Financial Performance Representations
Take a close look at Section 19 in our FDD. To pique your interest: average gross revenue for mature Spavia Day Spa locations was $1,146,544 in 2015.*
Additional information include statistics you’ll be able to use to figure out a possible net profit for your franchise location (or a realistic pro forma estimate).
How to Get Your Spavia Day Spa FDD
- You must be seriously considering opening a Spavia franchise. Our FDD is a long legal document, one which we – and our lawyers – take very seriously.
- Go to our Become a Franchise page and fill out the contact form.
- A member of Spavia’s development team will contact you to have a more in-depth discussion about the Spavia Day Spa investment. We’ll also want to learn more about you, your reasons for opening a spa with us, your finances, and more.
- Participate in an introductory webinar in which you’ll learn more about our business models (run the franchise yourself, or hire others to manage the day-to-day operations for you), the Spavia brand and our corporate culture.
- If we’re both still interested in moving forward, you’ll attend another webinar in which you’ll learn how Spavia Day Spa startup costs include help with helping you find a location, training, marketing your spa, and other support systems.
- We then provide you with your copy of the Spavia Day Spa FDD.
If you’re excited about the chance to open a day spa and if you’re serious about becoming a Spavia franchisee, take the next step and fill out the contact form on the Become a Franchisee page.
We’re excited you’re taking this important step and we’re eager to learn more about you as we help you meet and exceed your personal and financial goals.
*As disclosed in item 19 of Spavia Franchise Disclosure Document (FDD) dated April 30, 2015. Some units have achieved these results. Your individual results may vary. Mature businesses refers to locations that have been owned and operated for two (2) years as of December 31, 2015. Not all franchises are included in these figures, see the FDD dated April 30, 2015 for additional details.