The Woodhouse Day Spa Franchise

Financing Details

Woodhouse Spas does not offer any direct or indirect financing to its franchisees. This includes not guaranteeing any notes, leases, or other obligations. Franchisees are responsible for securing their own financing.

Litigation Summary

Woodhouse Spas has no pending litigation. The company has been involved in two past litigation cases. In 2017, The Woodhouse Spas Corporation filed a lawsuit against a former employee and franchisee for theft of trade secrets, misuse of confidential information, and violation of non-compete clauses. One franchisee filed counterclaims for fraud and misrepresentation. This case was settled in September 2017, with Woodhouse Spas paying the franchisee $125,000. In 2019, The Woodhouse Spas Corporation was involved in a dispute with a Tennessee franchisee, who filed for bankruptcy, claiming improper termination and breach of contract after Woodhouse Spas terminated their agreements for failing to meet sanitation standards. Woodhouse Spas sought injunctions to prevent unauthorized use of trademarks. This matter was settled in December 2019, with Woodhouse Spas paying the franchisee $25,000. The settlement included terms for terminating the franchise agreements, preventing marketplace confusion, and addressing gift card liabilities.

Renewal Conditions

To renew their franchise agreement, Woodhouse Spas franchisees must provide written notice between six and nine months before their initial term ends. They must update and refurbish their spa to meet the then-current brand standards and image, and they must not be in default of any agreements with Woodhouse Spas or its affiliates. Franchisees must have paid all outstanding financial obligations, retain the right to their current location, and pay a renewal fee of $12,750. Additionally, they must sign a general release of claims against Woodhouse Spas and its affiliates, and comply with current qualification and training requirements.

Staffing Notes

The Woodhouse Spa requires franchisees to designate an Operating Principal who must meet the franchisor's qualifications and be approved. This individual is ultimately responsible for the business. The Operating Principal for all Woodhouse Spas under a single franchisee must be the same person. The Operating Principal must dedicate full-time effort to supervising the business, unless a General Manager is appointed and approved by The Woodhouse Spa. A General Manager, if appointed, must also devote full-time effort. For spa services, each Woodhouse Spa location typically requires at least one registered massage therapist, one licensed esthetician, and one licensed nail technician, all of whom must maintain current licenses and registrations. The franchisee is entirely responsible for all employment aspects, including hiring, firing, discipline, scheduling, and compensation of staff. Employees must be made aware that the franchisee is their employer, not The Woodhouse Spa. Before opening, the Operating Principal and General Manager must successfully complete the initial training program. Successor or replacement personnel in these roles must also undergo this training. The Woodhouse Spa may also require management-level employees to attend additional training, informational programs, or annual conventions, for which fees and travel expenses may apply. The franchisor may also specify a dress code for employees. Franchisees must use approved suppliers for employee background checks and may be required to use a designated supplier for investigations in cases of suspected safety protocol breaches.