Spavia logo

Spavia Franchise

Audited Financials
WellnessEst. 2007Greenwood Village, CO
www.spaviadayspa.com

Risk Score

Pending analysis

Investment Range

$496,450 - $795,950

Franchise Fee

$40,000

Total US Locations

59

Business Summary

Spavia International, LLC offers a franchise for the right to own and operate a Day Spa that provides custom resort-inspired spa services to the general public, including professional therapeutic massage, skin care, facials, lash extensions, and body treatments. These services are offered in a relaxing, clean, and friendly environment and are available through a membership-based program as well as to non-members.

Corporate History

Spavia International, LLC was organized in Colorado on April 15, 2007. The company began offering franchises for its Day Spa concept around April 2007. Its affiliate, Spavia Enterprises, LLC, formed in May 2015, conducts research and development to enhance the client experience and services. The franchisor's business focuses solely on granting franchises for day spa services.

Financial Overview

Investment Range

$496,450 - $795,950

Franchise Fee (Low)

$40,000

Franchise Fee (High)

$59,500

Royalty %

6%

Marketing %

1%

Equipment Costs (Low)

$373,000

Equipment Costs (High)

$616,000

Working Capital

$37,500

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Spavia International, LLC's audited financial statements for 2022, 2023, and 2024 indicate positive net income and healthy cash balances. The independent auditor's report for Spavia International, LLC issued an unqualified opinion, meaning the financial statements present fairly in all material respects. There are no disclosed conditions or events that raise substantial doubt about the company's ability to continue as a going concern.

Financing Details

Spavia International, LLC does not offer any direct or indirect financing to its franchisees, nor does it guarantee any franchisee obligations. Franchisees are responsible for securing their own financing.

Performance Metrics

Total US Locations

59

Franchised Units

59

Corporate Units

0

Avg Square Footage

3,000

Franchising Since

2007

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their franchise agreement, Spavia International, LLC franchisees must meet several conditions: they must not have any uncured material defaults (including monetary defaults) or more than three material default notices in the preceding 12 months, maintain good financial standing, and have the right to possess their premises. They are also required to complete any necessary renovation and modernization of their Day Spa, pay a $10,000 renewal fee, sign the then-current form of franchise agreement (which may have different terms), complete a refresher training course and pay a $1,500 tuition fee, and execute a general release in favor of Spavia International, LLC and its related parties.

Training & Support Program

Franchisor Assistance

Spavia International, LLC provides pre-opening support to its franchisees including designating Development Areas, offering site selection guidelines and assistance, and reviewing and approving proposed premises and leases. Franchisees receive confidential Operations Manuals and lists of required items and approved suppliers. The franchisor also reviews and approves signage, layout, and equipment, and provides guidance for grand opening marketing. Initial training is a hybrid program consisting of remote/online instruction, training at the corporate facility in Greenwood Village, CO, and on-site assistance at the franchised business before or during opening. Ongoing support from Spavia International, LLC includes offering additional and refresher training programs, providing continuous consultation and advice via various communication channels (phone, online), and potentially offering additional on-site assistance (which may incur a fee). The franchisor approves or denies advertising materials, provides seasonal marketing templates, and evaluates requests for non-approved products or alternative suppliers. Spavia International, LLC may also hold annual conferences, maintain a System website portal for franchisees, conduct inspections and audits for compliance, update the Manuals, and research new spa services, products, and equipment for the System.

Initial Training Hours

47

Training Location

Greenwood Village, CO, remotely, and on-site at the franchised business

Ongoing Support

After opening, Spavia International, LLC provides ongoing support to its franchisees in various ways. This includes offering additional training programs and refresher courses, which franchisees and their designated managers may be required to attend, with an annual limit of five days of in-person training and 20 hours of remote LMS training. The franchisor also offers continuous consultation and advice on management and operations through telephone, fax, intranet, and online platforms. On-site assistance from field representatives may be provided, potentially incurring an additional fee. Spavia International, LLC reviews and approves all franchisee-proposed advertising and marketing materials and may provide seasonal signage and marketing templates. The franchisor administers a System-wide brand development fund and may establish regional advertising cooperatives. Franchisees gain access to a System website portal for updates, training, and communication. The franchisor also conducts inspections and audits to ensure compliance with System standards and continuously researches new spa services, products, and equipment for the benefit of the System.

Franchise Requirements

Ideal Candidate Profile

Spavia seeks qualified individuals and entities who are capable of independently owning and operating a day spa business. Ideal candidates should possess strong entrepreneurial and managerial abilities and have a keen focus on customer service, ensuring adherence to Spavia's System standards and guidelines. While personal, full-time participation in day-to-day operations is recommended, franchisees may hire an approved Designated Manager, provided the manager successfully completes the Initial Training Program. Franchisees should also be prepared for the business risks involved in the day spa industry and understand that success is largely dependent upon their abilities and efforts.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Retail

Owner Participation

Full-Time

Territory Type

Exclusive

Territory Size Requirements

Spavia International, LLC grants franchisees a Designated Territory which is typically an exclusive area up to a two-mile radius around the approved premises. For locations in major metropolitan downtown areas or central business districts, the Designated Territory may be limited to a radius ranging from two blocks to two miles. The exact size of the territory can vary based on the location and surrounding demographics. Territory boundaries are defined using various methods such as zip codes, streets, landmarks, or county lines, and population data from public sources like the U.S. Census Bureau is used for determination.

Staffing Notes

Spavia International, LLC requires that each franchised business be managed and staffed at all times by at least one individual who has successfully completed the initial training program. If a franchisee operates multiple locations, each Day Spa must have a properly trained Designated Manager. Franchisees are responsible for training all other employees on sales, operations, and System standards. It is mandatory that all massage therapists, estheticians, and other practitioners providing approved services possess and maintain all required licenses, credentials, and permits according to applicable laws in the Day Spa's location. Franchisees must also ensure the business is sufficiently staffed and adhere to all state and federal employment laws.