2026 FDD Issued Apr 6, 2026, amended Oct 6, 2026 Minnesota Commerce (CARDS) Checked Nov 2, 2026
Hand and Stone Franchise Cost (2026)
A Hand and Stone franchise costs an estimated $320,891 – $864,729 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $49,500 initial franchise fee (Item 5) and covers this format: Single Spa. Item 6 lists royalty fee: 6% of Gross Sales, subject to the conditions below.
- Total investment
- $321K – $865KItem 7 source and qualifications
- Franchise fee
- $49.5KItem 5 source and terms
- Royalty
- 6% of Gross SalesItem 6 conditions and fee bases apply
- Brand fund
- 1% of Gross SalesItem 6 conditions and fee bases apply
- Units (2025)
- 615Item 20 source and scope
- Franchise exit rate
- 0.6% / yrCalculated 3-year average; definition and source
What stands out about Hand and Stone
Local marketing is the largest ongoing charge after the royalty, and it has a floor. Item 6 requires a local advertising fee on weekly sales with a fixed weekly minimum, in addition to a royalty of 6% of Gross Sales and a smaller national fund that the franchisor may raise at the local fee's expense. A spa in its slow first months pays that minimum regardless of sales, so this page does not estimate yearly fees from a single sales figure.
Item 19 is broad. It covers nearly every franchised spa open a full year, not a hand-picked sample, and reports average gross sales of $1,334,936, with close to half of spas at or above that figure. Separate tables split sales into massage, facial and product revenue, which lets a buyer see how much depends on add-on services rather than the core massage business.
Few spas close, but many change hands. Item 20 shows only a handful of exits in each year and 600 franchised spas at the end of 2025, while transfers between owners ran far higher. A buyer considering an existing spa can ask why sellers are leaving and how prices compare with the $320,891 – $864,729 cost of opening a new one, which Item 7 builds with several months of reserve funds.
What are the initial franchise fees and financial requirements for Hand and Stone?
Item 5 lists an initial franchise fee of $49,500 for Hand and Stone. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Item 5 (PDF pages 13-15): the initial franchise fee is $49,500 for a new franchisee and $39,500 for an existing franchisee buying another spa; qualifying veterans get 20% off ($39,600 or $31,600). The fee is paid at signing and is not refundable. In 2025 fees ranged from $0 to $49,500 because fees were waived for owners converting existing spas. An Area Development Agreement for at least three spas costs $103,500 ($34,500 per spa). Before opening you also pay the franchisor about $5,150 for decorative features and chairs, a $3,500 Connectivity Fee and $15,000 for the grand opening campaign. A non-designated architect's plans may cost $0 to $1,500 to review.
Source: Hand and Stone 2026 FDD, Item 5, PDF p. 13.
This record lists no minimum net worth or liquid-capital requirement for Hand and Stone, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a Hand and Stone franchise? (Item 7)
Source: Hand and Stone 2026 FDD, Item 7, PDF p. 21.
Item 7 of Hand and Stone’s 2026 Franchise Disclosure Document estimates the total cost to open one single spa at $320,891 – $864,729. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Franchise Fee | $39,600 | $49,500 |
| Deposits (Rent, Utilities) | $6,214 | $15,176 |
| Leasehold Improvements | $132,310 | $423,538 |
| Furniture, Fixtures & Equipment | $29,661 | $98,156 |
| Computer/POS System | $15,632 | $20,068 |
| Connectivity Fee | $3,500 | $3,500 |
| Insurance | $1,050 | $5,000 |
| Office Equipment and Supplies | $2,640 | $8,000 |
| Camera/Music System | $9,137 | $9,601 |
| Initial Inventory | $12,722 | $28,500 |
| Other Pre-Opening Expenses (Travel, Grand Opening) | $18,729 | $37,394 |
| Signage | $8,856 | $23,937 |
| Licenses, Permits and Architectural Fees | $14,540 | $31,859 |
| Legal & Accounting | $1,300 | $10,500 |
| Additional Funds (9 Months) | $25,000 | $100,000 |
| Total | $320,891 | $864,729 |
Other formats
| Format | Total investment |
|---|---|
| Area Development Agreement (Three Spas) | $926,673 – $2,549,187 |
For comparison, the median high-end investment among 5 health & wellness records without a source-review hold is $761,154.
Item 7 (PDF pages 21-22) prints $320,891 to $864,729 for one spa of about 2,200 to 3,200 square feet; its 15 lines add to that total. The franchise fee line starts at the $39,600 veteran price. Leasehold improvements are the largest line. Additional funds cover 9 months. An Area Development Agreement chart (PDF page 24) prints $926,673 to $2,549,187 for three spas.
What ongoing royalties and fees does Hand and Stone charge? (Item 6)
Source: Hand and Stone 2026 FDD, Item 6, PDF p. 15.
Item 6 of Hand and Stone’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Royalty Fee | 6% of Gross Sales | Every period | 6% of Gross Sales, paid weekly. (Item 6, PDF p. 15) |
| Renewal Fee | Varies | When it applies | 25% of the then-current initial franchise fee, before renewal. (Item 6, PDF p. 15) |
| Marketing Fund Contribution | 1% of Gross Sales | Every period | 1% of Gross Sales, paid weekly with the royalty; the franchisor may raise it to 2% on notice. (Item 6, PDF p. 15) |
| Local Advertising Fee | 4% of Gross Sales | Every period | 4% of Gross Sales with a minimum of $400 per week, paid weekly with the royalty. If the Marketing Fund rises, this fee falls by the same amount so the two do not exceed 5% of Gross Sales. (Item 6, PDF p. 16) |
| Audit Expenses | Varies | When it applies | All audit costs if the audit shows an understatement of at least 3%. (Item 6, PDF p. 16) |
| Late Fees | Varies | When it applies | The lesser of 18% per year or the legal maximum on overdue amounts. (Item 6, PDF p. 16) |
| Insufficient Funds Fee | $150 | When it applies | $150 when your account cannot cover a payment. (Item 6, PDF p. 16) |
| Approval of Products or Suppliers | Varies | When it applies | Reasonable evaluation costs, not more than $500. (Item 6, PDF p. 16) |
| Insurance Policies | Varies | When it applies | Unpaid premiums plus reasonable expenses if the franchisor buys required coverage for you. (Item 6, PDF p. 16) |
| Transfer Fee | Varies | When it applies | 50% of the initial franchise fee at the time of transfer; not charged for an assignment to a Controlled Entity. (Item 6, PDF p. 16) |
| Onsite Transfer Training Fee | $2,300 | When it applies | $2,300 plus trainer travel, paid by the buyer of an existing spa. (Item 6, PDF p. 17) |
| System Modifications | Varies | When it applies | All costs of required new equipment, fixtures, software or trademarks. (Item 6, PDF p. 17) |
| Relocation Assistance | $1,000 – $3,000 | When it applies | $1,000 to $3,000 if you request relocation help and the franchisor agrees. (Item 6, PDF p. 17) |
| Customer Service | Varies | When it applies | Costs the franchisor incurs addressing complaints from your customers, including refunds or gift cards. (Item 6, PDF p. 17) |
| Ongoing Training Programs | Varies | When it applies | Your expenses plus reasonable program fees; refresher training about $150 per day; at most twice and seven days a year. (Item 6, PDF p. 17) |
| Additional Training | Varies | When it applies | Currently $350 per day plus expenses for training beyond the included pre-opening program. (Item 6, PDF p. 18) |
| Additional Operations Assistance | Varies | When it applies | Currently $350 per day plus the franchisor's expenses for assistance beyond about five opening days. (Item 6, PDF p. 18) |
| Customer Resolution Fees | Varies | When it applies | Reasonable costs, including gift cards or refunds, when a customer complains to the franchisor. (Item 6, PDF p. 18) |
| Indemnification | Varies | When it applies | All costs, including attorneys' fees, of lawsuits arising from your business. (Item 6, PDF p. 18) |
| Computer Software Maintenance and Support | $726 per month | Every period | $726 monthly subscription and support for the Zenoti POS and related software; may rise up to 10% a year. (Item 6, PDF p. 18) |
| Cyber Insurance Fee | $35 per month | When it applies | $35 per month for cyber insurance the franchisor provides, unless you secure your own policy. (Item 6, PDF p. 18) |
| Liquidated Damages | Varies | When it applies | If terminated for cause: average monthly royalty and marketing fund amounts from the prior 12 months, multiplied by the lesser of 36 or the months remaining (note 2). (Item 6, PDF p. 18) |
| Post-Termination and Post-Expiration Expenses | Varies | When it applies | Costs of ceasing operations and de-identifying the spa (note 3). (Item 6, PDF p. 19) |
| Gift Card, Rewards, Referral and Membership Programs | Varies | When it applies | Required participation; gift cards, points and memberships may be redeemed at any spa in the system. (Item 6, PDF p. 19) |
| Computer Hardware and Software Upgrades | Varies | When it applies | Currently about $1,000 a year for required upgrades. (Item 6, PDF p. 19) |
| Signage Review Fee | $250 | When it applies | $250 if you source signage from a third party. (Item 6, PDF p. 19) |
| Millwork Review Fee | $350 | When it applies | $350 if you source millwork from a third party. (Item 6, PDF p. 19) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
Hand and Stone startup investment and modeled fees over 10 years
Item 6 sets the Local Advertising Fee at 4% of Gross Sales with a minimum of $400 per week. A single annual sales figure cannot show which weeks reach that minimum, so this record does not produce an annual fee estimate or payback preset. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: Hand and Stone franchised outlet history
Source: Hand and Stone 2026 FDD, Item 20, PDF p. 74.
Item 20 Table 3 reports 600 franchised outlets at the end of 2025. The company-owned table reports a further 15 outlets. Our calculated average annual franchised exit rate is 0.6% across the 3 reported years, using the definition below.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 487 | 43 | 3 | 527 | 0.6% |
| 2024 | 527 | 55 | 2 | 580 | 0.4% |
| 2025 | 580 | 25 | 5 | 600 | 0.9% |
Franchised units went from 487 to 600 over 3 years (+113).
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables. Compare Hand and Stone’s exit rate with other brands.
33 units changed owners in 2025.
Item 20 Table 3 totals are on PDF page 74; Table 1 (page 68), Table 2 transfers (pages 68-70) and Table 4 (page 75) match. Subsidiaries operate 15 company-owned spas (14 in Florida, 1 in New Jersey). Exits were few in each year, while owner-to-owner transfers numbered in the dozens.
How much do Hand and Stone franchise owners make? (Item 19)
Source: Hand and Stone 2026 FDD, Item 19, PDF p. 56.
Item 19 of the 2026 FDD reports average Gross Sales, Franchised Outlets open at least 12 months (Table 1b) of $1,334,936 (2025 calendar year, 570 of 600 franchised U.S. spas open at least 12 months by December 31, 2025; 273 (48%) were above the average). Hand and Stone’s Item 19 reports sales but no profit, costs or owner pay. Rent, payroll, supplies, loan payments and Item 6 fees such as the royalty (6% of Gross Sales) come out of sales before an owner is paid, so these figures cannot show what an owner earns.
See every Hand and Stone Item 19 figure, with its period and sample.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How to interpret Hand and Stone’s Item 19 figures and sample limits.
How long is the Hand and Stone franchise agreement term?
Source: Hand and Stone 2026 FDD, Item 17, PDF p. 46.
The standard Hand and Stone franchise agreement runs 10 years, with renewal terms of 10 years.
Item 17 (PDF page 46): a 10-year initial term with one additional 10-year renewal term if you meet the renewal conditions and pay the renewal fee.
How long does it take to open a Hand and Stone franchise? (Item 11)
Source: Hand and Stone 2026 FDD, Item 11, PDF p. 36.
Item 11 of the 2026 FDD states the time from signing the Franchise Agreement to opening: twelve months. The agreement requires you to open not later than twelve months after signing the Franchise Agreement.
Franchises with a similar investment range
These published records are selected by proximity to Hand and Stone’s $320,891 low-end Item 7 investment, starting with Health & Wellness. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
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Compare other health & wellness franchises
Sources
Hand and Stone Franchise LLC Franchise Disclosure Document, issued April 6, 2026, as amended October 6, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 13
- Item 6: cited PDF p. 15
- Item 7: cited PDF p. 21
- Item 19: cited PDF p. 54
- Item 20: cited PDF p. 74
- Agreement term (Item 17): cited PDF p. 46
Page references for Hand and Stone use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- November 2, 2026: Source check completed against the recorded FDD.
- November 2, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued April 6, 2026).
- November 2, 2026: Independently checked against the April 6, 2026 Minnesota Clean FDD, as amended July 9 and October 6, 2026: cover, Items 1, 5, 6, 7, 11, 17, 19 and 20. Corrected the issue date (April 6, 2026) and recorded the October 6 amendment. Item 6 now lists all 27 rows (the draft had 6) and suppresses the annual fee model because of the weekly local advertising minimum. The franchise fee now shows the $49,500 standard fee, with discounts in notes. Added the opening time and deadline and Item 7, Item 19 and Item 20 notes. Rewrote the analysis.
- October 6, 2026: Amendment date recorded for the source FDD.