Hand & Stone to Expand Dallas Footprint With Multi-Unit Deal - franchisetimes.com

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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.

There’s plenty of potential for more, though, as brand leadership sees an opportunity to double the number of locations in the market. It’s on its way, signing a three-unit agreement with a group of first-time franchisees.

Leading the development is Chandi Patel, who’s 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.


“We learned about Hand & Stone and met their team before visiting their corporate office,” Patel said. “They shared everything about their entire business, their operations, their products, and we became really interested in partnering with the brand.”

While Patel was impressed by the services and their ability to create multiple revenue streams, it was the brand’s overall success that sealed the decision. She noted a strong track record combined with the region’s expanding population as factors that pushed the group to begin with a multi-unit agreement, rather than a single spa.

“They have locations everywhere and the industry overall is growing as well,” Patel said. “One of the reasons I moved to Dallas from Philadelphia is because it’s growing, too. “The area is going up, and since we believe in the brand, we felt there was a real opportunity to open more than one.”

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.

“Since the pandemic, consumers are more aware and focused on self-care,” Durham said. “There’s a beautiful tailwind that is helping our brand and owners. In an environment where there’s a franchise for everything, there’s especially a lot of growth potential, not just for our brand, but in the health and wellness industry. So, there’s a lot of opportunity in Dallas and other major markets.”

For the latest deal in the Dallas market, Durham said the lease for the first unit has already been signed, an indication of the brand’s willingness to hit the ground running.

“We don’t let any grass grow under our feet in the time from signing the agreement to signing the lease,” Durham said. “Our 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.”

That strategy has been a welcome showing for the franchisees, who praised the experience so far.



Hand & Stone Chief Development Officer Jennifer Durham


“The corporate team has been very supportive,” Patel said. “They’ve answered all the questions we have so far. When you work with someone, especially in a franchise, it’s important to have a relationship like that.”

As Hand & Stone looks to attract more franchise groups for its development, Durham said they’re using the point that sold Patel earlier, touting its success.

“Before Hand & Stone, I was in the restaurant business,” Durham said. “Everyone 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.”

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.
 
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