Hand & Stone Featured in Baltimore Business Journal

Hand & Stone was featured in the Baltimore Business Journal. 

As real estate opens up for retailers in light of RadioShack’s recent bankruptcy filing, brands such as Hand & Stone have begun looking into the brand’s vacant sites for potential development. Now, based on RadioShack’s reputation for selecting ideal real estate, Hand & Stone is actively looking into the locations to continue to grow the brand’s presence in the Baltimore region.

Click here for more information. 

Q&A With Tony & Brittany Rodgers

Both having similar backgrounds and goals for success, Tony and Brittany seek to open five Hand & Stone locations throughout Houston. With a strong passion for the health and wellness industry, the couple brings devotion, motivation and faith to the Hand & Stone brand.

Q: Where are you from?

A: Tony grew up in South Bend, Ind., where he graduated from a five year apprenticeship program with his associates degree in applied science. Brittany grew up in Orlando, Fla., but moved to South Bend, to go to school, where she met Tony. She attended Indiana University and graduated with degrees in psychology, social and behavioral science and radiology science.

Q: What was your career before franchising?

A: Before franchising, Tony spent 10 years in the construction industry, running large commercial accounts. Later, Tony became operations manager for a large manufacturing/recycling  facility located in Northern Indiana. Brittany worked in the medical field of Radiology where she enjoyed helping and caring for patients. She worked mostly in large out-patient centers, including one of the largest orthopedic clinics in all of central Florida. Additionally, Tony dabbled with his Realtor’s license, partnering up with a company to buy, remodel and sell prime real estate for opportunities to further his success. The couple spent two years purchasing and renovating vintage riverside homes in the Notre Dame/ St. Mary area of Northern Indiana.

Q: How did you learn about the brand?

A: Tony and Brittany learned about the Hand & Stone brand from Frannet, a leading company in expert franchise consulting.  Once Tony and Brittany realized their strong desire for independence and accomplishment,  the couple began searching  for the next step towards success. With much research, and the assistance from Frannet, Tony and Brittany were introduced to Hand & Stone Massage and Facial Spa.

Q: Why did you decide to open your own business?

 A: Tony and Brittany chose to open their own business to gain personal freedom,  stability and the chance to one day give back. They wanted the opportunity to finally reap the benefits from their devoted strength. By opening their own business, Tony and Brittany have the ability to watch their hard work pay off for future generations to come.

Q: When choosing a franchise, what were the criteria you used to make your decision?

A: When choosing a franchise, Tony and Brittany had specific criteria they were in search of. They knew they wanted to stay in the health and wellness industry due to their passionate histories for both health and wellness. They wanted a company they could stand behind, a company they felt passionate about, a company that could meet their financial goals for personal success and a company that connected with the community.

Q: What was appealing to you about joining a franchise system?

A: For Tony and Brittany, the most appealing aspect about joining a franchise system was the proven track record for success. They felt strongly about the worth of a well-established business model and felt it was a great way to get started in the entrepreneurial world of business.

Q: What are some of your achievements (professionally or personally) that you think will help you along the way in your business?

A: Tony and Brittany were once told the keys to success are devotion, motivation and faith —three things neither of them lack. Starting their entrepreneurial business journeys at a young age, the couple’s education and work experience have been their biggest achievements thus far. Priceless assets they share that will drive their success in the franchise world include dedication for hard work, a passion for continuously giving back to others and an extensive background in many aspects of the business world. 

Spa franchise Hand & Stone continues to expand since moving corporate offices in Hamilton

By Mike Davis/The Times 
Follow on Twitter 
on February 16, 2014 at 7:10 AM

HAMILTON — They started out in towns near the Jersey Shore, small day spas offering massages to people on the go.

Within a few years, they’d become hot spots in the New York and Philadelphia markets.

Now, there are nearly 150 Hand & Stone locations throughout the United States and Canada. Like many other businesses looking to spread their name far and wide, Hand & Stone operates as a franchise business, allowing individual investors to own and operate one or more stores.

“Using a franchise model for development of a brand is tremendous for a business with low capital,” Hand & Stone president and chief executive officer Todd Leff said last week. “You have franchisees use their capital to help grow the distribution and breadth of the brand.”

“And of course, they profit from that. It’s their own business,” Leff said.

In 2005, chief operating officer John Marco founded Hand & Stone in Toms River after years as a physical therapist. Within five years, the business expanded to more than 40 franchise locations and has more than tripled that number since then, operating 145 locations.

Leff, who became CEO in 2010 after working as CEO for Cottman and AAMCO Transmissions, attributed the success to a changing business model to attract a changing customer base. As the job market went south, Leff said, the company switched from a long-term membership contract to smaller month-to-month commitments and began offering simple day services, such as facials and waxing. Facials quickly became the fastest growing sector of Hand & Stone’s business, Leff said.

“We positioned the brand as a health and wellness business,” Leff said. “People wouldn’t spend $2,000 or $3,000 on a vacation where they could get a massage, but they might spend $50 or $60 on health and wellness. We had to make adjustments.”

Continued strategic growth is the goal in the future, Leff said. He projected between 50 and 60 new spas to open up each year but only with thoroughly vetted franchisees and in areas prime for growth.

New Jersey has been one of the fastest growing markets for Hand & Stone, which hit more than $90 million in sales in 2013, but the brand also has taken off in Houston, Dallas, Denver and south Florida.

But it takes a lot of scouting before opening up in new markets, Leff said. For example, before committing to bringing Hand & Stone to the Atlanta area, the company will seek a franchisee willing to open between five and 10 locations. With multiple locations, the company can advertise on television and ensure viewers have a Hand & Stone within driving distance.

“It’s hard to support locations that are far out in the field and we need to have a concentration of stores in any given TV market,” Leff said.

In 2015, the business could grow even more with the help of a $10 million “franchise fund” from Benetrends, a firm that provides loans and consults with small business owners on how to develop or expand their business and how to fund it.

The “franchise funding” will streamline the process for franchisees looking to open a Hand & Stone location, having already pre-approved the Hand & Stone product and business model.

“One of the biggest concerns of people deciding whether to buy a franchise is having sufficient capital and getting funded,” Leff said.

“This takes a lot of the worry away from them. If the candidate meets some pretty objective requirements, they’re basically guaranteed funding. That takes a lot of the guesswork out of the process and a lot of fear away from the franchisees.”

Contact Mike Davis at (609) 989-5708 or mdavis@njtimes.com.

http://www.nj.com/mercer/index.ssf/2014/02/spa_franchise_hand_stone_continues_to_expand_since_moving_corporate_offices_in_hamilton.html 

San Antonio Express News: Retailers rush to fill empty Blockbusters

By Neal Morton

January 17, 2014

SAN ANTONIO — Less than a week after Blockbuster closed its remaining stores, businesses hoping to make their debut or expand their footprint in San Antonio have targeted the newly vacant — and apparently prime — commercial real estate space.

Blockbuster officially closed its last 10 locations here Sunday, just two months after the embattled video-rental company announced it would walk away from the few hundred remaining stores it operated across the country.

During the holidays, bargain hunters scoured the bins and shelves at area Blockbusters, hoping to score a cheap movie from the latest victim of online competition.

Already, a First Choice Emergency Care clinic has started moving into one of the now-empty stores, at 13434 Nacogdoches Road.

Other Blockbuster locations across the city have appeared on the radar of fast-growing franchise chains, including Frisco-based Mooyah, a fast-casual burger and shake chain that opened its first restaurant here two years ago.

Similarly, spa company Hand & Stone and 24-hour gym operator Workout Anytime might consider some of Blockbuster's old digs to establish an initial presence in San Antonio.

“It's kind of an irony or, I guess, just an evolution of business that Blockbuster disrupted the video industry by changing the way people watch movies,” said Todd Leff, president of Hand & Stone. “And then business evolved again: Blockbuster's out, and now we're coming to change the way massages and facials are delivered.”

Since 2012, the New Jersey-based franchiser has opened 14 spas in Austin, the Dallas-Fort Worth area and Houston, with six more locations in the works.

Leff wants to open at least three spas in San Antonio and has paid attention to Blockbuster locations in the city.

Blockbuster officially closed its remaining 10 locations in San Antonio, opening real estate space for other retailers. This location is 2951 Thousand Oaks Drive.

“We've done some investigation into the real estate there, and things like Blockbuster are a key component for us to be able to get into big-box anchored shopping centers at a reasonable rate,” he said. “We've identified some key locations, but it's all about finding the right developer at this point.”

Businesses like Leff's have waited months for Blockbuster to vacate its space.

The company operated more than 9,000 retail locations less than a decade ago. But crippling pressure from online streaming services and video rental kiosks pushed Blockbuster's owner, Dish Network Corp., to announce in November that it would close its remaining stores.

The official closure last weekend cleared the way for opportunistic retailers looking to find a home here.

“With the real estate climate being what it's been the last few years, we haven't seen much” new construction, said Alan Hixon, vice president of development for Mooyah. “Availability is what really drives your real estate.

“So without a lot of projects coming out of the ground, you're going to need second-generation space,” he added.

Mooyah franchised its first location here at 22502 U.S. 281 near Stone Oak, but the owners hope to debut as many as 20 more restaurants in the city.

Like Hixon, Randy Trotter, vice president of development for Georgia-based Workout Anytime, described the newly vacant Blockbusters as attractive places to open the company's first San Antonio gyms.

“They are normally in grocery-anchored shopping centers, with great visibility, access and parking,” Trotter said. “A large company like (Blockbuster) did their homework back in the day and really picked quality real estate.”

http://www.expressnews.com/business/local/article/Retailers-rush-to-fill-empty-Blockbusters-5150380.php

Hand & Stone is proud to be the first to receive $100 Million to fuel growth!

Benetrends Announces New $100 Million Fund To Fuel Franchise Growth

Hand & Stone Secures $10 Million in Initial Funding to Drive its Expansion Across U.S.

NORTH WALES, Pa., Jan. 7, 2014 /PRNewswire/ -- Benetrends, the trusted leader in franchise funding, announced today the creation of a new proprietary $100 million franchise financing program. The new franchise lending program was created to help International Franchise Association franchisor members provide qualified candidates with direct access to capital for new store development. Hand & Stone, a rapidly growing spa franchise, is the first franchisor selected by Benetrends to participate in the new fund. Hand & Stone has been provided $10 million in initial capital to assist with its franchise growth.

"Benetrends is excited to now provide franchisors and their franchisees access to the critical funding needed to expand their current operations or purchase their first franchise," said Rocco Fiorentino, president & CEO, Benetrends, Inc. "We're pleased to award Hand & Stone the first $10 million from the new fund as they look to meet their future development needs following their record-setting growth in 2013."

Franchisors and franchisees selected to participate in the program benefit from:

• Direct access to capital
• Simplified qualification process
• Dedicated loan officer from application to closing
• Loan proposals within 48 hours of receiving initial application
• Loan commitments within 10 business days of receiving loan package
• Consistent communication with lender and single point of contact
• Experienced PLP SBA lender

"Capital access challenges are going to affect every franchise system's unit expansion for the next few years," said Bob McQuillan, Hand & Stone vice president of franchise development. "The days of building relationships with preferred lenders in advance of expected loan applications are gone and we're now experiencing a paradigm shift in the ways franchisors and lenders interact. A fund like Benetrends will continue to allow brands such as ours to grow organically and bring in best-in-class franchisees and operators." 

In addition to the new franchise financing program, Benetrends also offers a full suite of funding options to help entrepreneurs secure the capital needed for their small business or franchise. The company originated the 401(k)/IRA tax-deferred and penalty-free rollover process more than 30 years ago and has created more than 85,000 jobs with $4 billion in retirement assets invested in America's small businesses. Additionally, Benetrends features a wide range of loan options covering every type of business need, including SBA loans, equipment leasing, merchant cash advances, securities-backed lines of credit, and more.

"Part of ensuring sustained franchise growth across the country includes offering access to strong, franchise-focused lending programs such as Benetrends new $100 million fund," said Steve Caldeira, president and CEO, International Franchise Association. "In doing so, we are providing both existing and prospective franchisees with the tools and financial resources they will need for long-term growth and success."  

Hand and Stone receives National Ranking of #248 in Entrepreneur Magazine's 2013 Franchise 500!

We are very proud to announce today that Hand and Stone has been
ranked for the first time in Entrepreneur Magazine’s 2013 Franchise
500. Hand and Stone was ranked #248, and second in the industry ahead
of all other massage and facial chains, except Massage Envy. The
ranking is based on financial strength, growth, store sales, closings
and years franchising. We are happy to obtain some national
recognition for the great success our system has had over the past few
years.

Click here to read more!

Meet Hand & Stone franchisee Teri Evans

Teri Evans is originally from a small town in Louisiana and earned multiple degrees from Northwestern State University in Louisiana for computer information systems and business administration. Teri has a background in technology, and has been the director of IT for the past six years for a small company in the health care industry. She has lived in Austin for the past 15 years and is now opening her first Hand & Stone Massage and Facial Spa location. 

How did you learn about the brand?
The company I worked for was bought by a larger company and due to downsizing my position was no longer available. I took some time off and traveled the world for six months while at the same time figuring out my next move. I knew I had always wanted to own my own business, and after my rest and time away I knew this was the right time for me to pursue my dreams. I began researching franchising, and worked with a franchise consultant. After several recommendations, I decided Hand & Stone was the right opportunity for me.

Why did you choose an opportunity with Hand & Stone?
I love the Hand & Stone business model. During my travels, I often sought out different spas to try out and I am also a regular spa visitor, so I have always had an interest in the industry. I also have a passion for the health industry and personal health.

What makes your business unique in the community?
The full-service aspect of our business and the service we provide sets us apart in the community. There is another location just outside of Austin, but this will be the first location in Austin city proper.

Are you involved with any charities or do any community outreach with your business?
I volunteer for Eels on Wheels, and also work with the Girls Settlement Home in Austin. I also work with First Tee of Austin, teaching golf to young girls ages 5-18. I plan on making my Hand & Stone location a true community service.

What challenges have you overcome to get where you are now?
I had been doing a lot of research before expressing my plans to open my own business. The initial reaction from people around me expressing their doubts and concerns about opening a business was challenging to hear, however I’m excited about the opportunity to prove it to everyone that Hand & Stone will flourish throughout the community!

What are your expansion or development plans? What is your end goal with Hand & Stone?
I am planning to open three locations. Eventually, I would like to open more than three and even venture outside of Austin. I believe in this model and see the potential of the brand.

Do you have any other interesting hobbies or passions?
I play a lot of golf and love to scuba dive and travel! I’m glad that I’m able to give back to the community through my passions.

Hand & Stone featured in Woodlands Online

Recently, Hand & Stone was featured in Woodlands Online in an article titled, "Hand & Stone massage headed to The Woodlands."  The article focuses on Tony and Brittany Rodgers opening Hand & Stone Massage and Facial Spa in The Woodlands, Texas.  It then goes on to highlight the Rodgers’ journey to becoming a part of Hand & Stone and The Woodlands community.  Click here to read the whole article.

Hand & Stone massage headed to The Woodlands
By: Brian Shettig

THE WOODLANDS, Texas--Research Forest is getting...hot stones?

That's right.  When Hand & Stone massage and facial spa opens April 15, the salon will focus on the spa side of things, including massages with hot stones incorporated into the massaging itself.

"We want to be able to offer the highest quality massage at an affordable price, especially for those who have never had a massage before," said Brittany Rodgers, owber of the location off Research Forest near Diva Boutique and Hubbell and Hudson Kitchen.  This is the first Hand & Stone in Texas and possibly the first of five in the north Houston area, Rodgers said. 

Rodgers, who owns the spa along with her husband Tony, moved to The Woodlands from Florida after trying to find a business they could both be passionate about, she said.  They decided, after some research, to combine their interests in fitness and health into massage and after walking in a Hand & Stone in Orlando, Fla., Rodgers said she knew "right away this was the place."

(Read More)

Can Entrepreneurs Succeed as Franchisees?

Hand & Stone was recently featured on AllBusiness.com! The article focuses on entrepreneurs becoming franchisees, including the pros and cons of franchising from an entrepreneurial background. Steve Currier and Craig Schumacher both came from strong entrepreneurial backgrounds, building from the ground up 50,000-square-foot fitness clubs in various parts of the United States. A portion of the story is shared below, and you can view the full article here.

For many people, franchise ownership is the most direct path to business ownership. You buy into an established brand, follow a specific business model, respect set policies and procedures, and have your franchise up and running in no time. But what about people who were previously entrepreneurs and are now looking to purchase a franchise? In such cases, does the franchise model spell success, or is it a recipe for disaster?

For Craig Schumacher and Steve Currier, owners of a Hand & Stone franchise in Ahwatukee, Arizona, franchise ownership offered them an opportunity that they couldn’t quite grasp as entrepreneurs. So, after more than a decade of building up 50,000-square-foot fitness clubs in various parts of the United States and establishing a place in the fitness industry for their independent venture Q The Sports Club -- which, at its peak, employed 4,000 people -- the pair decided to change gears and invest in a massage and facial spa franchise.

Read More

Can You Really Have a Spa Treatment at Blockbuster Video?

by Todd Leff, CEO of Hand & Stone

When we meet with new prospects looking to open their own Hand & Stone Massage and Facial Spa the discussion invariably turns to real estate, which I believe to be for several reasons:

1) People know the old adage in retail that its location, location, location.
2) Because they do not yet fully understand the business model they focus on what they have had some experience with and often times that is real estate.

What prospects most want to do after they meet with us is “drive the market.” Having been in franchising for more than 20 years, I can tell you that is the worst possible next step.

First, it takes the prospect away from the real questions they should be researching, such as is this the right industry; is this the right business model; can I work with this management team? Second, you will quickly get discouraged because when you drive around you do not see the perfect opportunity waiting there.

This week I started looking for our new corporate spa location and would suggest a more rational approach. We started with identifying the right markets, plotted the competition, and did our demographic studies. We then engaged our real estate tenant broker representative to do the research in the market to find us the right property. He knows our business and he knows everyone in the market.

As we drove around looking at the opportunities in the area, I was struck by the fact that four of the seven properties I looked at were not even “on the market” or vacant. In some instances the tenant in place was moving, some were being moved out and in one they were dividing the property. I had to be very discrete in looking at two of the spaces because they were currently operating fast food establishments.

At the end of the day, our best prospect is a Blockbuster Video where the landlord wants to divide it into two spaces. Great space, great shopping center, and the public never knew it was on the market. In another market we are converting a Quiznos into a Hand and Stone – and no sign ever went up on the property nor was it ever vacant.

When I was CEO of Cottman Transmission, one of our best locations was converted from a former IHOP to a car repair facility. No one could have seen that “just driving the market.”

So my advice to prospective franchisees: Make a decision you want to be in the business, that it’s the right industry, and then engage the franchisor and their professionals to help you find the right property. It takes imagination, contacts, and research to get the right real estate deal and sometimes they come from the oddest places.