FRANCHISING
Jeni Garrett
Founder and CEO, Woodhouse Day Spas, US
W
oodhouse was formed 10 years ago and has 26 locations in 13 US states. We set out to take spa from luxury to necessity.
We’re poised to open our fi rst site over-
seas, in Punjab, India. This 15,000sq ft (1,393sq m) spa has been adapted to suit the local market: it will offer memberships, a salon, a gym (for male appeal), yoga, pilates, a café and a bridal suite, as this is a big market in India. The day spa fran- chise concept is new to India and we chose to launch there as our franchisee is very familiar with the area. After eight years of setting up our systems, we’re now ready to really focus on the development side – domestically and internationally. We offer 35 treatments – mostly ayurvedic
and very results-orientated – and work with holistic and certifi ed organic lines like Amala, Naturopathica and Arcona. What sets us apart is what we call the Woodhouse Experience: little details, such as our signa- ture oil and handwritten thank you notes. Franchisees are required to have liquid
capital of US$200,000 (¤149,900, £125,400) and a network of US$250,000 (¤187,400, £156,750) in order to qualify. They have to demonstrate the willingness to work hard, market the brand and develop a team. They
www.spahandbook.com All of our treatments are
costed-out down to the cotton balls we use, so if we see a deviation in the product costs we can trace it
come from outside the industry: some have been in corporate America and have been laid off, retired, or just want to be their own boss. Others are business owners and entrepre- neurs who want to add to their portfolio. The initial investment is anything from
US$400,000-600,000 (¤299,850-449,750, £250,750-376,150). The royalty fees are 6 per cent of gross sales and there’s an advertising fund of 0.25 per cent. We offer ongoing training, with weekly
webinars and a huge resource library. We also do detailed fi nancial reporting, and help with budgeting annually. There’s an online support village where franchisees can blog with each other. There are eight marketing promotions a year with tools to deliver this.
Woodhouse Day Spas offer 35 treatments and the US company is set to open its fi rst site in India this year
Franchisees do their own recruiting, but we provide the tools and resources for this. Protecting the brand is our job, so we have
a very fi xed policy and procedure manual and all staff are drilled to stick to protocols. We ask franchisees to do compliance sur- veys and all guests are given a comment card. All of our treatments are costed-out down to the cotton balls, so if we see a devi- ation in product costs we can trace it. A decentralised system and dealing with
many personalities is our biggest challenge. We protect the brand by clearly commu- nicating our vision and making sure it’s properly understood. We’ve been very selective with our franchisees, which is why we haven’t grown as fast as we could. We’re in constant contact with our franchisees: studies show that the happiest franchisees are those who feel they are heard.
Garrett launched Woodhouse in 2001 as a young student and a year on took it nation- wide. Details:
www.woodhousespas.com
spa business handbook 2012 93
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