The company’s innovation process includes careful
analysis of industry data and testing programs before fully
launching. “Several years ago, when we decided to go to a
month-to-month membership model, franchisees were very
concerned members would cancel if not bound to an
agreement,” Leff recalls. “We believed it was more about the
experience than the contract and launched a 360-feedback
program with Questar to allow consumers to conveniently
rate every experience at Hand & Stone.”
Through data collected, the company was able to assure
franchisees that all employees were creating highly satisfied
customers and coach or replace those who were not. “With
those insights and ongoing feedback, we were confident in
switching to month-to-month agreements—the result was
that our member sales skyrocketed and attrition improved,”
he says.
Credit-Worthy Franchise
As proof of its success, Hand & Stone was included in the top
10 list of “Most Credit-Worthy Brands in Franchising” by
FRANdata, an organization that develops performance standards
in franchising model and set the bar based on those standards.
Hand & Stone is the only spa and wellness brand included
in the list. The recognition came on the heels of a year of huge
growth for the brand. The franchise company added 60 spas in
2015 with almost 70 due to open this year.
“There is nothing more important in franchising than in
demonstrating to franchisees and lenders that the business
model is solid and proven. This designation comes from a thirdparty review of all franchise brands. We have had a great track
record with franchisees and lenders, and it’s nice to have
recognition of that from the business community,” Leff says.
Learning From Failure
Hand & Stone’s biggest failure happened when they partnered
with a big box retailer to sell Hand & Stone gift cards.
“Consumers did not buy the cards in that environment despite
the fact that the retailer sees tens of thousands of customers per
week in each location. Our spas sell a tremendous number of
gift cards on-site, and we have learned you need to have the
right environment for the product to sell,” Leff says.
Aside from learning the hard lessons from failure, another
lesson Leff keeps in mind and shares to franchise spa owners is
to recruit the right personnel. “They have to build their
‘employer brand’ in the community—be the place that
therapists, estheticians and associates want to work.” n
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Sheri Claflin • [email protected] • 310-795-7072
Julie Ambrosini • [email protected] • 512-368-5428