Franchise Master Plan
Franchise Opportunities
www.ginsengbathhouse.com.au
WHAT IS A BODY INC SPA?
As the doors open to the Spa you will find yourself entering a different world courtesy of Body Inc. Approaching the Spa the large water feature and antique Asian doors invite you to enter and leave the chaos of this world behind.
The scent of essential oils and the sound of soothing music lures you to a well-appointed reception desk where a warm smile awaits you with professionally trained staff there to indulge you and your body from the soles of your feet to the far reaches of your mind.
You’re captivated by the Spa and all it has to offer, you are already under its spell. The Body Inc Goddess’s genuine interest in your well-being is comforting as she takes you through the range of treatments the Spa provides, from massage, pedicures, facials, manicures and body wraps, designed to satisfy the most frequent indulger.
As you sip your herbal tea you contemplate life before Body Inc and are comforted in the thought that another Body Inc Spa is opening soon at your next destination.
Definition Of A Body Inc Franchisee
“A PARTNER IN OUR BUSINESS.”
Being able to develop a successful relationship is essential to a positive outcome. Lets face it, not every month is going to be easy sailing, there will be times where you will be challenged. For the record our, Franchisees are not selected on, who has the biggest cheque book, however having said that, they need to be financial.
More importantly we consider potential applicants on:
"Are we going to work well together?"
"Is it for better or worse?"
"Are they a value add to our business?"
"What are they bringing to the table with them?"
Communication is paramount to this and effective meetings are an essential tool to instigate and follow up on action or task list. We will try to cover support franchisees in all aspects of managing the business and provide ongoing trouble shooting.
Managing a spa or spas can be a very rewarding career especially when we get it right. Its important to remember whilst some treatments may be thousands of years old we have only just started our journey and have a long way to go.
We need to realise that the Franchisor and Franchisee are in the same boat and need to make it work.Once we commit we commit for better or worse.
There is no "Them & Us"..... Its just Us. Your problems and concerns are ours. It is crucial we need to work together to achieve a positive outcome. It almost goes without saying that everyone works together well when we are all making money.
What will determine whether we have chosen wisely is how we work together under difficult times. We understand people make mistakes, that’s what we are there for to help keep you and your business on track and avoid the mistakes we have already made.
If you are the “Chosen One” who expands the Body Inc vision here or overseas to realise the full potential of what we have developed, then we need to take the next step?
"It’s Not Very Relaxing, Running A Relaxation Business”
Quote from the founder of Body Inc after first year.
Do not make the mistake of thinking that because we are involved in reducing peoples’ stress, it should be an enjoyable relaxing environment to work in. It takes a lot of hard work and commitment to create that sense of Zen when a guest enters a Body Inc Spa.
Welcome to the ascended levels of Body Inc. You may have already been a Body Inc therapist, who decided it was time to ascend, someone from an unrelated field,or you could be someone looking to invest in this growth industry.
Whoever you may be and for whatever reasons you have decided to take interest understand your performance as an effective franchisee, will impact on the guest experience at Body Inc.
If you are not a people person then this is not the industry for you, so please consider this before proceeding any further. The Franchisee plays a key role in their businesses success. The Franchisee ensures everything, from the moment the guest enters the spa until they leave transformed to an altered state of bliss.
Developing systems, procedures and manuals does not guarantee we will have a trouble free business. It is from our experience and the advantage of hindsight we develop systems to minimise the chaos and provide contingencies in the event of the unforeseen. We should feel confident with our achievements, however unless it is implemented and managed correctly, we will find ourselves suffering the consequences of the ill prepared.
A Master Franchisor holds a trusted position and their success will no doubt determine the company’s success.
The Culture of Body Inc is simple,
Have Fun, Make People Feel Good and Make Some Money.
If all the above is happening then we are doing our job.
UNDERSTANDING THE BUSINESS
Take it Personally!
The first thing one realises in this industry is it’s personal and you should treat it as such. Westerners on a whole are less than comfortable with being asked to go into a dark room, undress, lay face down, whilst a stranger comes in and rubs some liquid substance over their body.
Let’s face it, for first-time spa goers, it is intimidating. Being elitists, by creating some strict spa etiquette where clients are walking on eggshells, is going to impact on the clients experience and eventually, the revenue.
We are part of the “Well Being Industry” a trillion dollar world wide business. In 2003, the beauty / massage / spa industry in Australia had predominately been a cottage industry; fragmented and inconsistent. Ironically people would pay more for an hour spa treatment than they would pay for the 24-hour use of a luxury hotel suite except without the same level of customer service.
WHAT IS THE SPA BUSINESS?
Spa means “Water” and water has been the essential ingredient in relaxation therapies throughout the ages which transcends cultures and continents. Water is synonymous with cleansing and calming, natural hot springs, hot mud baths found in nature have been captured and bottled for our personal and convenient use. You will see the word, “Spa” used frequently in many places that do not resemble its origins. In fact some spas reflect more of an operating theatre rather than the tranquil tropical paradise one conjures up when reading the brochure.
The spa industry now has an association “ASPA” which is trying to determine levels of service and standards with ratings similar to the hotel industry, however instead of “stars” they are looking for “drops” eg 5 Drops is the ultimate. Despite the Industry’s growing pains, it is supported by large International cosmetic companies who provide training and products to promote the services as well as the retail. They tell us 30 – 50% of our business turnover should be retail sales. The problem with this is that with this pressure to sell it detracts from the guest’s experience. At Body Inc we focus on the treatments and retail sales should come naturally.
If we want to group spas, we could look at them like this.
• Alternate Spas Ala Natural incense candles and organic home made products.
• Clinical Spas Hi Tech lots of equipment and maybe a touch of Botox, expensive.
• Beauty Salon Cosmetic waxing, nails, facials etc usually owner operator.
• Massage Clinic Massage tables, oils, incense and curtains, low cost.
• Hairdresser Hair stations maybe a nail table high volume vary in 1to 5 star.
• Bath House Steam Room, Sauna Heated Pool, Showers Body treatments.
• Body Inc Spas Non Clinical, Zen feel incorporates selected beauty treatments focusing on organic products. Can be with or without Bath House & Hairdressing facilities
WHY DO PEOPLE USE THE SPA?
Health, Mind, Body & Spirit is the text book answer and probably where it all started but like everything good we managed to twist it all out of shape appealing to peoples insecurities and egos. We tell people they need this synthetic eye crème from Paris and charge up the credit card.
But apart from the, “I want to look good scenario” today it’s mainly an escape. Some people are lonely some may not have much human contact. Lets face it the world is a mess, people are distressed who doesn’t want to escape. The fit out and atmosphere of the spa should be inviting not like your going in for surgery.
Clients feel like they deserve to spoil themselves or their loved ones and maybe they can afford to do it, maybe they can’t afford not to do it. Stress is a killer! 17 seconds they tell us before our stress levels start to rise. Imagine standing in a crowded lift waiting, waiting, waiting, 17 seconds can seem to be a very long time. It gets to a point that people will spend money to find a release. When they make that decision to go to the Spa for a massage we want them to think about Body Inc. When they leave the Spa they should be thinking why didn’t I do this before and when can I do it again?
WHY DON’T PEOPLE USE THE SPA?
There are more people that don’t use spas, than people who do. That means there is a huge untapped market. So we need to find out why? They may be shy, embarrassed about their body or just don’t feel comfortable. So if we greet them with an elitists attitude and demonstrate a zero care factor, guess what is going to happen? They will never be enticed. I am very proud to say that we have a very high number of first time users. We need to demonstrate that we are relaxed about relaxing with a down to earth empathetic attitude and a smile that says, “We understand.” That’s what we and our guests are looking for.
Generally speaking, potential clients (people who could not wait another 17 seconds) who walk into a typical spa/salon/clinic, are greeted with when they ask for a booking?
“Ah I’m sorry you will have to wait!” “I’m going to lunch “It’s not convenient right now I am closing.”…..You have to be kidding me!!! Unfortunately there not kidding, this has been the culture of the spa and beauty industry. People “The Clients” are so desperate they feel they have to accept it. What choice do they have?
Expensive products, treatments, some genuine some …well just expensive. How many people get burned by their experience in a spa, and I don’t mean by a waxing.
Unfortunately, the spa experience more often than not; provides a much lower level of customer service than that of the hotel industry. Wouldn’t it be great to be able to have our standard of service justify the charges.
WHO IS RESPONSIBLE FOR OUR INDUSTRY STANDARDS?
Is it the Schools, the Curriculum or the Lecturers?
Or is it the work ethic of Australians, Attitudes of Young, Society or Family etc?
Schools, which provided nationally industry accredited courses, are generally not selective and rarely culled the intake of students, providing the student or their parents could pay the fee. They can’t afford to be anything else they have only one source of income, school fees, so get as many students as you can. The assumption is what we don’t teach you, you will learn on the job.
From our own experiences at Body Inc, graduates would tell us that less than 10% of their graduating class was worth employing. This came as a major concern as it meant that 90% of future therapist’s attitudes, skills and presentation would be doubtful at best.
At the end of the day, we can only hope to impact on staff and industry development through selecting professional and passionate management, committed to providing a better guest experience.
If we ask the question again,” Who is responsible?”
The answer at a Body Inc is, “We Are!” and by “We” I mean you! “The Franchisee!”
The Fugitive
Our quality control program relies heavily on Mystery Shoppers. Its designed to be a fun and effective operations and marketing tool. The calling card is left behind on the table and the appraisal completed on-line by anyone we nominate or has been chosen as a "Frequent Indulger." Monitors above the reception desk provide some security however it’s the first hand face to face experience that really bears fruit.
Body Inc Franchise Process
You know who we are what we have done we need to get to know you a little better and address the formalities of taking this to the next level.
The Process
It’s a bit of a process going from a phone call enquiry to getting the key to the spa however we have done it many times and this will help take the stress out of launching your new spa. Body Inc business are provided with the information they require to make a well informed decision about joining the Body Inc.
A Franchise Or Master Franchise?
What does this mean? If you have an interest in establishing a Body Inc Spa or Spas in a particular area Suburb/City/State or Country, then we will advise you whether or not the area you have requested is available. Subject to negotiation in our early stages we can be flexible however as we develop and partner prime locations will be sought first. A Capital City for example, will be limited to 15 Sites and regional towns or districts to 3 before being split into another region.
Once you have signed the Franchise Agreement, you have 6 months to locate an actual site we will also actively be searching for you. Each potential area will be assessed for its demographics to assist in the business plan. We want to ensure that both you and Body Inc are maximizing the business opportunity by finding you the best available site.
This becomes a priority and we work within our network of agents and hoteliers to secure a site that will best suit the spa. We will have our builders assess the site and subject to your approval have a quantity surveyor give an estimate on costs of fitout. We will involve you in this process as your time permits. Once a site is agreed upon, we will negotiate on your behalf.
If, for some reason, a site within 6 months that suits you and us, we will refund your Franchise Fee less any reasonable costs that we have incurred in pursuing sites for you.
The Commitment
Entering into a Franchise Agreement involves a number of stages and documentation. Once the process has begun, we commit to keeping it on track.
To guide you through this process and make sure we do our job to the best of our abilities and that you secure the area you desire, we have outlined the process for you below as well as filling you in on why each aspect of the process is required.
You can use this guide to help you stay on track with the process.
First Contact
Is generally made by you via our website or a phone call to our Head Office.
The Contact
This enquiry is passed on to our Master Franchisor, or Agent, who will contact you to inform you that we have received your enquiry.
The Package
A Package will then Express Post to you our Initial Enquiry Pack which contains:-
- A Permission for Referee Check Form
- A General Overview of the Body Inc business history and model as well as of the current business
- An Instruction Letter
- Our Franchisee Process Overview
- Asset and Liability Statement Pro Forms
- A set of questions we call Self Analysis Questions
We ask you to complete the Asset and Liability Statement so that we can assess your financial capability to enter the Body Inc business. Setting up a Body Inc Spa will require between $75,000.00 to$125,000.00, per site plus, fit out, start up and working Capital. depending on a number of varying factors related to fitout and start up capital. Body Inc businesses have been established in retail shopfronts, resorts, Airports, Athletes Villages however have potential to also be viable in large office complexes, points of embarkation such rail, shipping etc and we are always open to new spa business models. In being this flexible, it is impossible to put an exact figure on what a fitout may cost. Sometimes, we may be able to negotiate with a lessor or developer to contribute to the fitout.
However, if you keep in mind a figure between $50,000.00 to $150,000.00, covers most construction situations.
This will assist us in assessing the type of spa you could afford to establish..
Return To The Sender
You will need to return to us by fax or post the completed:-
- Self Appraisal Questions
- Asset and Liability Pro Forms
- Finance Report
Doing Our Homework
We will contact your referees by phone, review your answers to the Self Analysis Questions and your Finance Report. After this is completed, we will call you and invite you to move to the Next Step.
Your'e Invited
If you accept our invitation to move to the Next Stage, we will post out to you our Next Stage Pack. This pack contains the following:-
- Instruction Letter
- This will contain contact details for some of our franchisees and also contact details for an independent accountant who prepares financials for a number of our franchisees.
This will enable you to gain further valuable knowledge about owning and running a Body Inc Spa.
- This will contain contact details for some of our franchisees and also contact details for an independent accountant who prepares financials for a number of our franchisees.
- Confidentiality Deed
- We ask you to sign and return this document so that we can release further information to you.
- Business Plan Pro Forma
- This will assist you to formulate a business plan so that you are clear about what is involved in owning a Body Inc Spa. It is important that you complete this Business Plan as soon as possible as you will be presenting it at your Panel Interview.
- Request for Documents
- We ask you to sign and return this document so that our solicitor can provide you with further documents.
- Body Inc bank account details
- We ask you to deposit 10% of Licence fee to Body Inc. In the event that you review the Body Inc Documentation and decide not to proceed, then you will be refunded your money less $1300.00 for legal fees. We allow 14 days for this process. If you require further time to review the documentation and you discuss this with us prior to the expiry of the 14 days, then we may be able to extend the review time a further 7 days. If you extend beyond the 14 days without prior discussion with us, then we will refund your money less $1000.00 toward legal and administration fees.
We ask for this deposit to ensure you are committed to moving to the Next Stage so that both parties are seriouslyworking toward a common goal. Once you have made the deposit, we will need a copy of the deposit slip and reference number so that we can advise our accountant of who the deposit relates to.
- We ask you to deposit 10% of Licence fee to Body Inc. In the event that you review the Body Inc Documentation and decide not to proceed, then you will be refunded your money less $1300.00 for legal fees. We allow 14 days for this process. If you require further time to review the documentation and you discuss this with us prior to the expiry of the 14 days, then we may be able to extend the review time a further 7 days. If you extend beyond the 14 days without prior discussion with us, then we will refund your money less $1000.00 toward legal and administration fees.
- Franchise Agreement Instruction Sheet
- You will complete this document with details of the name etc. that you will require on the Franchise Agreement.
- You will complete this document with details of the name etc. that you will require on the Franchise Agreement.
Getting Down To Business
Once we have received back from you the completed:-
- Confidentiality Deed
- Request for Documents
- Franchise Agreement Instruction Sheet
- Advice of deposit
We will send these documents to our solicitor who will draft the further relevant documents. We will also email to you a Worksheet Template which will assist you in formulating your Business Plan.
The Lawyers
You will receive in the post from our solicitor:-
- Letter of Instruction
- Draft Copy of the Franchise Agreement
- Copy of the Franchise Code of Conduct
- Our Disclosure Document (in duplicate)
- A Receipt of Documents Form
You will need to send back to us one signed copy of the Disclosure Document and the Receipt of Documents Form.
Meeting The Czar Of Spa
We will then, make arrangements for you to meet the CEO of Body Inc, Michael Lloyd-White who will conduct a Panel Interview. At this meeting, we ask that you:-
- Present your Business Plan
- Discuss the Franchise Agreement and any request for amendments that you may have. If there are amendments that the Directors agree to, we will ask you to sign a Franchise Amendment Document. This will be passed to our solicitor for advice.
- Discuss any ideas you have with regard to location and size of spa that your financial position will support.
The Phone Call
You will be advised within a week of your Panel Interview if your application has been successful.
It Begins
We will arrange a date for the signing of the Franchise Agreement and payment of the balance of the Franchisee Fee.
The Franchise Agreement Instruction Sheet and any Request for Amendment will be forwarded to our solicitor who will review and provide advice regarding the requested amendments. If the amendments are approved, then our solicitor will draft the Franchise Agreement as requested. If they are not approved, we will contact you to discuss. At the meeting, you and the Franchisors will sign the Franchise Agreement and you will pay the balance of the Franchise Fee.
If you would like to know more, please fill out the following form and click 'Submit' and we will be in contact with you shortly.