Med spa franchising. Let’s talk about this fast growing 📈 industry through a Q&A. There has been a lot of interest in the #smbtwit through my DMs lately so perhaps I can shed some light on the basics of what to expect as an investor or a startup zor in this space.
🧵 👇🏼
🧵 👇🏼
Q1: Are there medical laws governing med spa franchise concepts?
A: Yes. Medical and health laws will dictate how you structure the biz, the flow of fee payment, and staff you will need to perform services. Fed and state laws include HIPAA, CPOM, Stark, anti-kickback, etc.
A: Yes. Medical and health laws will dictate how you structure the biz, the flow of fee payment, and staff you will need to perform services. Fed and state laws include HIPAA, CPOM, Stark, anti-kickback, etc.
Q2: What med spa concepts are governed by medical laws?
A: If they offer medical services such as IV, your franchise needs to be owned by a P.C. with you handling admin or you will contract with a medical director (depends on state laws). Some concepts do not offer med services.
A: If they offer medical services such as IV, your franchise needs to be owned by a P.C. with you handling admin or you will contract with a medical director (depends on state laws). Some concepts do not offer med services.
Q3: Who is responsible for medical law compliance?
A: Generally the franchisee is solely responsible for compliance with applicable laws. FDD Item 1 should advise you that you should hire a health lawyer to ensure you are fully compliant. The FA requires it. Budget accordingly.
A: Generally the franchisee is solely responsible for compliance with applicable laws. FDD Item 1 should advise you that you should hire a health lawyer to ensure you are fully compliant. The FA requires it. Budget accordingly.
Q4: What initial fees and costs should I expect from a med spa franchise?
A: You can expect your total initial investment to be in the $1M+ ballpark. Equipment costs, leasehold improvements, initial inventory, and furniture/fixtures are the big expenses.
A: You can expect your total initial investment to be in the $1M+ ballpark. Equipment costs, leasehold improvements, initial inventory, and furniture/fixtures are the big expenses.
Q5: What royalty fees can you expect from a med spa franchise?
A: Most collect royalty fees between 6 to 8% of gross revenue. Fee splitting laws may require a structure that separates revenue of medical services and non-medical revenue. Some concepts have a flat fee minimum.
A: Most collect royalty fees between 6 to 8% of gross revenue. Fee splitting laws may require a structure that separates revenue of medical services and non-medical revenue. Some concepts have a flat fee minimum.
Q6: What other ongoing fees are typical in a med spa concept?
A: One common thread is a high local marketing requirement as there will be competition for business fought out over digital marketing, Groupon, and other advertising avenues. Brand fund between 1-4%. High tech fees.
A: One common thread is a high local marketing requirement as there will be competition for business fought out over digital marketing, Groupon, and other advertising avenues. Brand fund between 1-4%. High tech fees.
Q7: What can I make operating a med spa franchise?
A: The ultimate question, right? Margins on most services are solid. Item 19’s reveal avg. gross rev at $1M to $2M+ with a few showing top and bottom lines. It’s good to be a Franchisor in this space collecting fees off the top.
A: The ultimate question, right? Margins on most services are solid. Item 19’s reveal avg. gross rev at $1M to $2M+ with a few showing top and bottom lines. It’s good to be a Franchisor in this space collecting fees off the top.
Q8: What services are being offered by med spa franchises?
A: The key differentiator for brands is the suite of services. Most have IV’s but the other services include Botox, injectables, red light therapy, cryo, float tanks, weight loss, and even colon hydrotherapy. Yep 💩.
A: The key differentiator for brands is the suite of services. Most have IV’s but the other services include Botox, injectables, red light therapy, cryo, float tanks, weight loss, and even colon hydrotherapy. Yep 💩.
There is so much more to know and learn about this 🚀 franchise industry with amazing emerging brands. I am privileged to represent some awesome franchisors in this space and to help educate you on what to expect as an investor.
If you liked this thread about med spa franchising, please give me a follow @AdamGWaschEsq. DMs are open.
Q9: What med spa brands offer franchises?
A: Not an endorsement of any system but these brands are franchising (in no particular order):
V/O Medspa
Restore Hyperwellness
Serotonin Anti-Aging
Liquivida
4Ever Young
Pause Wellness
10X Health
Facial Mania
BH Rejuvenation
More…
A: Not an endorsement of any system but these brands are franchising (in no particular order):
V/O Medspa
Restore Hyperwellness
Serotonin Anti-Aging
Liquivida
4Ever Young
Pause Wellness
10X Health
Facial Mania
BH Rejuvenation
More…
Definitely check out this thread by @bentigg for more info on the med spa industry.
https://twitter.com/bentigg/status/1615815123184009221
• • •
Missing some Tweet in this thread? You can try to
force a refresh
