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Massage brand Hand & Stone is adding to its 27-unit presence in the Dallas market with the signing of a deal for three locations. Joining the brand is a group new to franchising but with a mix of business experience.
Hand & Stone, a concept providing both massage and skincare services, established a strong presence in the Dallas-Fort Worth area with 27 open spas.
Thereโs plenty of potential for more, though, as brand leadership sees an opportunity to double the number of locations in the market. Itโs on its way, signing a three-unit agreement with a group of first-time franchisees.
Leading the development is Chandi Patel, whoโs teaming up with several other entrepreneurs to open spas in and around the Dallas metropolitan area. Patel said she is interested in wellness and skincare services and was quickly interested in Hand & Stone when learning about it at a local franchise expo.
Hand & Stone locations offer both massage and skincare services.
โWe learned about Hand & Stone and met their team before visiting their corporate office,โ Patel said. โThey shared everything about their entire business, their operations, their products, and we became really interested in partnering with the brand.โ
While Patel was impressed by the services and their ability to create multiple revenue streams, it was the brandโs overall success that sealed the decision. She noted a strong track record combined with the regionโs expanding population as factors that pushed the group to begin with a multi-unit agreement, rather than a single spa.
โThey have locations everywhere and the industry overall is growing as well,โ Patel said. โOne of the reasons I moved to Dallas from Philadelphia is because itโs growing, too. โThe area is going up, and since we believe in the brand, we felt there was a real opportunity to open more than one.โ
Hand & Stone has more than 650 locations across 38 states and Canada. Founded in 2004, the brand opened 53 spas in 2024 and is aiming to add 40 locations by the end of this year. Jennifer Durham, chief development officer, said developments like the one signed for Dallas is common for the concept as it fills existing markets with remaining white space.
Based on its market analysis, Durham said Dallas, for example, has the potential for up to 74 spas. The opportunity for growth and brand density, Durham said, comes from the growing popularity of health-centric concepts.
โSince the pandemic, consumers are more aware and focused on self-care,โ Durham said. โThereโs a beautiful tailwind that is helping our brand and owners. In an environment where thereโs a franchise for everything, thereโs especially a lot of growth potential, not just for our brand, but in the health and wellness industry. So, thereโs a lot of opportunity in Dallas and other major markets.โ
For the latest deal in the Dallas market, Durham said the lease for the first unit has already been signed, an indication of the brandโs willingness to hit the ground running.
โWe donโt let any grass grow under our feet in the time from signing the agreement to signing the lease,โ Durham said. โOur real estate team gets after the site selection opportunities as our candidates are going through their exploration and planning as they join the brand. We work those things in parallel, instead of in sequence.โ
That strategy has been a welcome showing for the franchisees, who praised the experience so far.
Hand & Stone Chief Development Officer Jennifer Durham
โThe corporate team has been very supportive,โ Patel said. โTheyโve answered all the questions we have so far. When you work with someone, especially in a franchise, itโs important to have a relationship like that.โ
As Hand & Stone looks to attract more franchise groups for its development, Durham said theyโre using the point that sold Patel earlier, touting its success.
โBefore Hand & Stone, I was in the restaurant business,โ Durham said. โEveryone wants to try a new restaurant and that first year is usually the highest performing, while years two and three you kind of try to meet that initial demand. In our business, we have a different curve, year two is better than one, and three is better than two. What we love to show in our documents with our prospects is the growth continues as we continue adding members.โ
Average gross sales for franchise locations in 2024 were $1.4 million; for franchise units that opened in 2023, average sales were $687,470.
Over the past several years, total sales across the brand grew from $640 million in 2022 to $709 million in 2023. The initial investment to open a Hand & Stone location ranges from $578,507 to $871,602 and the average square footage is 2,500.