Woodhouse Spa franchise unit economics
Woodhouse Spa franchisees run day spas that sell massage, facials, nails and body treatments, priced per visit and sold heavily through gift cards.
Woodhouse Spa in the news
- Woodhouse Spa Expands Franchise Footprint as Club and MedSpa Programs Gain Momentum · Webull (PR Newswire) ·
The Woodhouse Spa headline above is the publisher's own and links to the publisher. Averan Advisors checked this Woodhouse Spa link on 11 October 2026. Franchise news lists news on 88 brands, including Woodhouse Spa. Woodhouse Spa is in the Health and Wellness franchise guide.
Woodhouse Spa franchise at a glance
Item 19 of Woodhouse Spa's 2026 FDD reports 2025 gross sales and gift card sales by quartile for 81 franchised spas, and a full profit and loss for its four company spas.
Woodhouse Spa franchisees averaged $2,711,439 of sales in 2025, with a median of $2,596,280, according to Item 19 of Woodhouse Spa’s 2026 FDD, issued 30 April 2026. The 81 in that group are 91%* of Woodhouse Spa’s 89 locations. Fees paid to Woodhouse Spa come to about 7.75%* of sales. A Woodhouse Spa franchise costs $1,336,897 to $2,022,969 to open.
- A Woodhouse Spa franchise costs $1,336,897 to $2,022,969 to open, including a $60,000 initial franchise fee, according to the brand's 2026 FDD.
- Woodhouse Spa charges a royalty of 6% of sales, a 1.75% brand fund contribution and a $550 monthly technology fee.
- 48% of reporting Woodhouse Spa locations reached the average.
- Woodhouse Spa’s four company-owned spas averaged spa-level EBITDA of 20.7% of gross sales in 2025. Woodhouse Spa’s FDD defines spa-level EBITDA as gross sales less the ordinary operating expenses in its table, including personnel, lease, royalty and ad fund.
- At the average Woodhouse Spa location, rent and space costs took 9.68% and cost of goods took 33.63% of sales.
- Work out Woodhouse Spa's fees at your own sales with the minimum fee calculator.
These figures come from Woodhouse Spa's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Averan Woodhouse Spa Conversion Package →- Gift card sales are 37.3% of the average spa's gross sales, $1,012,129 of $2,711,439. The share holds across every group: 38.3% at the top quarter and 36.9% at the bottom.
- Royalty and the advertising fund take 7.75% of gross sales, paid every Tuesday for the previous week. $78,440 a year of it lands on gift card proceeds at the moment they are sold.
- Cost of sales runs 33.63% of gross sales and personnel just 18.49% at the company spas. That is $1,057,997 against $581,612 on average gross sales of $3,146,138.
- The top quarter of spas bills $4,178,778 and the bottom quarter $1,353,204. That is a 3.1 times range, with a system high of $6,830,937 and a low of $816,325.
- Opening costs $1,336,897 to $2,022,969, of which building work are $645,182 to $921,700. Fixtures, furniture and equipment add $349,848 to $476,585.
How much does a Woodhouse Spa franchise make?
The average Woodhouse Spa unit reported $2,711,439 of revenue in the 2026 FDD, and the median reported $2,596,280. The brand’s disclosure document puts spa-level EBITDA at its four company spas at 20.7% of revenue. Fees come off the top first, at about 7.8% of sales across royalty, brand fund and the rest of the stack. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid. The figures for the highest-selling and lowest-selling businesses are below.
Gift cards & sales
Sales and gift cards by group, 2025
| Band | Spas | Average gross sales | Average gift card sales | Gift card share | Median gross sales | Highest / lowest gross sales |
|---|---|---|---|---|---|---|
| Top 25% | 21 | $4,178,778 | $1,599,019 | 38.3% | $3,932,921 | $6,830,937 / $3,312,773 |
| Top 50% | 41 | $3,579,868 | $1,355,510 | 37.9% | $3,328,447 | $6,830,937 / $2,513,247 |
| Bottom 50% | 40 | $1,821,300 | $660,164 | 36.2% | $1,789,306 | $2,894,136 / $816,325 |
| Bottom 25% | 20 | $1,353,204 | $499,174 | 36.9% | $1,367,978 | $1,761,341 / $816,325 |
| All 81 | 81 | $2,711,439 | $1,012,129 | 37.3% | $2,596,280 | $6,830,937 / $816,325 |
As the brand reported it, except the gift card share column, which is marked *.
Gift cards are 37% of the top line at every level of the system. That is 38.3% at the top quarter, 36.9% at the bottom, 37.3% overall. That consistency is the point: this is a structural feature of the model. A Woodhouse spa is, financially, a business that sells about $1 million of future treatments a year and then delivers them.
The top quarter's gift card sales alone ($1,599,019) exceed the bottom quarter's entire revenue. That is $1,353,204. And the gift card ratio between those two groups is 3.2 against a gross sales ratio of 3.1, so the gap is almost exactly proportional. Whatever separates a $4.2 million spa from a $1.4 million one, it moves both lines together.
The lowest spa in the system bills $816,325 and the highest $6,830,937. That is eight and a half times, inside 81 spas of 5,000 to 7,000 square feet running the same treatment menu. The bottom half's ceiling is $2,894,136 and the top half's minimum is $2,513,247, so the two halves overlap by $380,889. The group boundary is a line through a continuum.
Sales, 2023 to 2025
| Measure | 2023 | 2024 | 2025 |
|---|---|---|---|
| Spas reporting | 71 | 76 | 81 |
| Average gross sales | $2,336,270 | $2,496,638 | $2,711,439 |
| Year-on-year change | n/a | +6.9% | +8.6% |
| Median | $2,238,850 | $2,452,249 | $2,596,280 |
| Highest | $4,974,717 | $5,668,046 | $6,830,937 |
| Lowest | $241,552 | $166,026 | $816,325 |
| Spas beating the average | 34 (48%) | 36 (47%) | 39 (48%) |
As the brand reported it.
The average spa added 8.6% in 2025 after 6.9% in 2024. $2,336,270 to $2,496,638 to $2,711,439, $375,169 of growth across two years, and the median moved almost in step at $2,238,850 to $2,596,280. Growth is landing broadly: the share of spas beating the average has held at 47% to 48% throughout.
The system ceiling rose $1,856,220 in two years while the minimum rose from $241,552. The high went $4,974,717, $5,668,046, $6,830,937. The 2025 low of $816,325 sits well above the earlier years&rsquo. Lows because the newest reporting criteria leaves out spas under 3,000 square feet, two such spas fall below current brand standards.
Top performers
What separates the top Woodhouse Spa performers
Woodhouse Spa splits its locations into groups instead of publishing one average. The top group averaged $4,178,778 a year. The lowest averaged $1,353,204. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $2,596,280. The average was $2,711,439. More than half the system is below the number the brand quotes.
Decided before you open
- Site and trade area.A 3.1× gap between bands, and 8.4× between the highest-selling and lowest-selling single location, is too wide for operations alone to explain. Catchment, daytime population and what sits next door set the ceiling before the first customer arrives.
- Capacity.Locations run 5,000 to 7,000 square feet. The build sets how much you can sell.
- Opening cost range.Opening costs $1,336,897 to $2,022,969, a 1.5× range inside one brand.
- Lease cost.Occupancy cost ran 9.7% of sales in this filing. Rent stays the same when sales fall, so it takes a larger share of sales at lower-selling locations.
Live operating levers
- Products and materials.Products and materials take 33.6% of sales, against spa-level EBITDA of 20.7%. The levers are buying terms, price discipline and waste.
- Occupancy cost.Rent and building costs take 9.7% of sales here. The rent is fixed when the lease is signed, so this share falls only as sales per square foot rise.
- Visits.Track how many visits happen, what each one is worth, and how many customers book the next one before they leave.
- Gift cards.Gift cards averaged $1,012,129, 37% of sales. The top performers run a deliberate seasonal program. They do not wait for customers to ask. A gift card is deferred revenue until redeemed, so cash and earned revenue arrive in different periods, and the fees are charged on the sale. They are not charged on the visit.
- Fees and the minimum.Fees run about 7.8% of sales. A minimum fee also applies, so lower-selling locations pay a higher effective rate. Work out the sales level where the percentage overtakes the minimum.
Context you underwrite around
- Locations included.These figures cover 81 of 89 locations. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded, as are locations under the brand’s current size standard.
- The franchisor reports its own locations too.The franchisor reports its own locations alongside the franchised ones. Treat them as a guide to what is possible. They do not represent the system: they are operated by the franchisor, usually mature, and usually few.
Profit and loss
Company-owned spas, 2025
| Line | Dollars | Share of gross sales |
|---|---|---|
| Average gross sales | $3,146,138 | 100.00% |
| Cost of sales | $1,057,997 | 33.63% |
| Personnel costs | $581,612 | 18.49% |
| Lease expense | $304,489 | 9.68% |
| Royalty and advertising fund | $244,016 | 7.76% |
| Credit card and bank fees | $82,054 | 2.61% |
| Advertising and marketing | $55,057 | 1.75% |
| Insurance | $53,839 | 1.71% |
| Repairs and maintenance | $40,185 | 1.28% |
| General and administrative | $39,360 | 1.25% |
| Utilities | $28,877 | 0.92% |
| Office technology | $8,421 | 0.27% |
| Spa-level profit | $650,229 | 20.7% |
| Median spa-level profit | $521,065 | n/a |
| Highest / lowest profit | $1,142,217 / $454,044 | n/a |
| Median / highest / lowest gross sales | $2,967,283 / $4,351,631 / $2,399,603 | n/a |
As the brand reported it.
Cost of sales is 33.63% of gross sales and personnel is 18.49%. That is $1,057,997 against $581,612. Read the 18.49% as management and front-of-house, and build your own chart of accounts to the same split before benchmarking against it.
Lease is $304,489, or $51.73 a square foot on 5,886 square feet. That compares with a stated annual rent of $24.00 to $50.50 a square foot at recently developed spas. So the lease line here has common area charges and more besides. At 9.68% of sales it is the third largest line, and on the bottom quarter's $1,353,204 of revenue the same dollar rent would be 22.5%.
Royalty and the fund at 7.76% cost more than insurance, repairs, utilities, technology and general administration combined. That is $244,016 against $170,682. Only cost of sales, personnel and rent come close to it in the disclosed structure. So after the three big operating lines, the brand is the fourth largest thing this business buys.
Card and bank fees are 2.61% of sales, $82,054. That is a large share for a business with an average ticket above $150. The gift card model is why. A card is bought on one transaction and redeemed on another. So a single treatment can touch the payment rails twice. It is also the one line here that responds to renegotiation in a single afternoon.
Spa-level EBITDA runs from $454,044 to $1,142,217 across the four company spas, and their sales run from $2,399,603 to $4,351,631. That is 26.2% against 18.9% by our arithmetic on those two pairs. All four made money, and the lowest spa-level EBITDA among them was $454,044, more than a third of the bottom quarter franchised spa's entire annual revenue. The company estate is four mature spas in two states, which is a narrow base to read a cost structure from.
Fees and what it costs to open
Fees at each group
| Band | Gross sales | Royalty 6% | Fund 1.75% | Local 1.75% | Technology | Total with local advertising | Share |
|---|---|---|---|---|---|---|---|
| Top 25% average | $4,178,778 | $250,727 | $73,129 | $73,129 | $6,600 | $403,585 | 9.66% |
| Top 50% average | $3,579,868 | $214,792 | $62,648 | $62,648 | $6,600 | $346,688 | 9.68% |
| All 81, average | $2,711,439 | $162,686 | $47,450 | $47,450 | $6,600 | $264,186 | 9.74% |
| All 81, median | $2,596,280 | $155,777 | $45,435 | $45,435 | $6,600 | $253,247 | 9.75% |
| Bottom 50% average | $1,821,300 | $109,278 | $31,873 | $31,873 | $6,600 | $179,624 | 9.86% |
| Bottom 25% average | $1,353,204 | $81,192 | $23,681 | $23,681 | $6,600 | $135,154 | 9.99% |
| Lowest spa disclosed | $816,325 | $48,980 | $14,286 | $14,286 | $6,600 | $84,152 | 10.31% |
We applied Woodhouse's filed schedule, starting with a 6% royalty collected by electronic transfer each Tuesday for the preceding week. An advertising fund contribution currently at 1.75% with a stated ceiling of 2%, collected the same way. A local advertising requirement of 1.75% of gross sales that you spend yourself each quarter, with any shortfall collectable by the franchisor and payable into the fund, and the technology management fee at its current $550 a month.
The royalty, fund and technology fee paid to the brand come to 7.91% at the top quarter and 8.24% at the bottom. One of the flattest fee schedules in the category, because only the $6,600 technology fee is fixed. What you pay here really is proportional to what you take, which makes the gift card base the thing worth understanding.
$78,440 of the average spa's fees falls on gift card sales. 7.75% of $1,012,129, paid in the week the card is sold. Add the 1.75% you spend locally and the figure is $96,152 of cash committed against treatments still to be delivered, some of which will land in a different financial year, at a cost of sales of 33.63% that has yet to be incurred.
Royalty is due every Tuesday for the previous week. It is collected weekly by electronic transfer, with a $100-a-day late fee and 18% annual interest on overdue amounts. On the average spa that is $4,041 a week of royalty and fund leaving the account. So the deposit account has to be managed as a weekly cycle.
Cost to open
| Line | Low | High |
|---|---|---|
| Building work | $645,182 | $921,700 |
| Fixtures, furniture and equipment | $349,848 | $476,585 |
| Initial franchise fee | $60,000 | $60,000 |
| Computer and IT systems | $58,500 | $70,000 |
| Initial inventory | $53,965 | $151,877 |
| Architectural fees, permits and site evaluation | $44,200 | $54,500 |
| Security deposit and one month of rent | $22,679 | $55,783 |
| Signage | $21,648 | $39,274 |
| Launch program and grand opening | $15,000 | $15,000 |
| Training fee, training expenses, licenses, insurance and professional services | $15,875 | $28,250 |
| Additional funds, three months | $50,000 | $150,000 |
| Total | $1,336,897 | $2,022,969 |
As the brand reported it, except three grouped lines. Those are marked *. We combined architectural fees with permits and site evaluation services. We combined the $10,000 new location launch program fee with the $5,000 grand opening requirement, and the $5,000 initial training fee with training expenses, business licenses, insurance and professional services.
Building work and equipment are $995,030 to $1,398,285 of the total. That is between 69% and 74% of the whole budget, spent on a 5,000-to-7,000-square-foot build before the first appointment. Against the bottom quarter's average revenue of $1,353,204, the low end of that pair is nine months of sales.
Initial inventory swings $97,912, $53,965 to $151,877. The widest proportional range in the table, on a line that becomes cost of sales at 33.63% of revenue. Opening deep costs cash at the lowest possible moment; opening thin costs revenue in the first quarter, when the gift card base is still being built.
Three months of additional funds is $50,000 to $150,000 against a build of up to $2 million. Two months of pre-opening marketing and three months after are required. That includes $10,000 paid to the franchisor to run a digital campaign and $5,000 of your own grand opening spend. A spa at the bottom-quarter average turns $112,767 a month, and its royalty and fund start the week it opens.
The network of locations
Units opened and closed, 2023 to 2025
| Year | Franchised start | Opened | Terminated | Left other ways | Franchised end | Company | Total |
|---|---|---|---|---|---|---|---|
| 2023 | 73 | 7 | 0 | 0 | 80 | 4 | 84 |
| 2024 | 80 | 6 | 0 | 2 | 84 | 4 | 88 |
| 2025 | 84 | 6 | 1 | 0 | 89 | 4 | 93 |
As the brand reported it.
Nineteen spas opened across three years against three departures. That is 7, 6 and 6 openings, against one non-renewal, one closure and one termination. That is a retention record very few franchise systems can show, on a model asking $1.3 million to $2.0 million of capital. The growth rate has been almost exactly flat at six or seven spas a year.
The company estate has stayed at four spas for three years. It had no openings, no closures and no sales to franchisees. So the brand is growing entirely through franchisees while keeping a four-spa laboratory in Texas and Colorado. That is also the entire basis for the only cost structure it publishes.
Zero transfers happened in 2025. There were three in 2023, one in 2024 and none in the most recent year, on an 89-spa network. Combined with the single termination, that is a system where very little changes hands, worth knowing if your own exit is on a five-year horizon, because the comparable sale data is thin.
Territory
The protected area is a maximum radius of six miles. The franchisor agrees to keep its own and other franchisees’ spas outside it for the term, with the actual shape set by barriers, population density, income and household counts. It may be significantly smaller in an urban center. Continuation depends on zero sales thresholds, and the franchisor lacks any circumstance permitting it to modify the area during the term, though it may be redrawn at renewal.
Six miles is the only protection. The franchisor retains the right to advertise and promote inside your protected area, to operate and license spas immediately outside it. It can also sell products and services within it through other channels. Rights of first refusal on further spas are excluded entirely; expansion runs through a development agreement, priced at $60,000 for two spas up to $340,000 for ten.
Relocation requires consent and an application within 30 days of losing the site. The replacement must sit inside the same protected area. On a build of $645,182 to $921,700, the lease term and its renewal options have as much weight as the rent itself.
Questions we get asked
Questions owners ask.
How much does a Woodhouse Spa franchise make?
Woodhouse Spa franchisees averaged $2,711,439 of sales in 2025, with a median of $2,596,280, according to Item 19 of Woodhouse Spa’s 2026 FDD, issued 30 April 2026. The 81 in that group are 91%* of Woodhouse Spa’s 89 locations. Fees paid to Woodhouse Spa come to about 7.75%* of sales. A Woodhouse Spa franchise costs $1,336,897 to $2,022,969 to open.
What should a Woodhouse Spa location be billing?
The 81 franchised spas open the whole of 2025 averaged $2,711,439 of gross sales with a median of $2,596,280, ranging from $816,325 to $6,830,937. By group the averages were $4,178,778 for the top quarter, $3,579,868 for the top half, $1,821,300 for the bottom half and $1,353,204 for the bottom quarter. The average grew 6.9% in 2024 and 8.6% in 2025. The four company spas averaged $3,146,138.
How big is the gift card business at Woodhouse Spa?
Woodhouse gross profit was $1,012,129 at the average spa, or 37.3% of gross sales, with a median of $958,879. The share changes little by group: 38.3% at the top quarter, 37.9% at the top half, 36.2% at the bottom half and 36.9% at the bottom quarter. The system high is $2,472,330 and the low is $273,035. Gross sales include gift card sales, so the 6% royalty, the 1.75% fund contribution and the 1.75% local advertising requirement all apply when a card is sold.
What does the cost structure look like at Woodhouse Spa?
Only the four company spas show costs. On average gross sales of $3,146,138, cost of sales takes 33.63%, personnel 18.49%, lease 9.68%, royalty and fund 7.76%, card and bank fees 2.61%, advertising 1.75%, insurance 1.71%, repairs 1.28%, general and administrative 1.25%, utilities 0.92% and office technology 0.27%, leaving spa-level EBITDA of $650,229, or 20.7%. The median was $521,065, the high $1,142,217 and the low $454,044. Personnel covers every spa employee including the general manager, and an owner acting as general manager sets their own pay.
What do Woodhouse Spa's fees add up to?
Woodhouse charges a 6% royalty and a 1.75% advertising fund contribution, both collected by electronic transfer every Tuesday for the previous week, with the fund able to rise to 2%. A 1.75% local advertising requirement you spend yourself each quarter, with shortfalls collectable, and a $550 monthly technology management fee. That totals 9.66% of sales at the top quarter's volume and 9.99% at the bottom quarter's. Opening costs $1,336,897 to $2,022,969, including a $60,000 franchise fee, a $5,000 training fee, a $10,000 launch program fee and $5,000 of grand opening spend.
Who does bookkeeping for a Woodhouse Spa franchise?
The gift card line makes this a genuinely different close from any other spa brand. 37% of what the franchise agreement calls gross sales is cash for treatments that have yet to happen. That means your royalty base and your revenue recognition diverge by about a million dollars a year at the average spa. The franchisor is owed 6% weekly on the card sale. The accounts should have that money as a liability until the treatment is delivered. Getting that right requires a gift card sub-ledger with issuance, redemption and breakage tracked separately, an escheatment review against your state's unclaimed property rules. A reconciliation that ties the royalty base to the card sale. Two further quirks: treatment-delivery labor appears to sit inside cost of sales. So your chart of accounts needs matching before any benchmark means anything, and royalty runs on a weekly cycle with a $100-a-day late fee. So the cash calendar is weekly whatever the reporting calendar says. Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team.
Questions worth putting to Woodhouse Spa
The filing answers what it answers. These are the gaps an owner or a buyer should close directly.
- Is the profit figure in Item 19 before or after owner pay, and how many locations sit below it?
- Which factors does Woodhouse Spa see in its highest-selling locations, such as trade area, years open and size?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Woodhouse Spa locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. Checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →Is your gift card liability where it should be at Woodhouse Spa?
We review your unit economics, cash forecast and reporting, built around the gap between the royalty base and recognized revenue.
Talk to AveranWhere these figures come from.
Every figure here comes from The Woodhouse SPAS, LLC's 2026 FDD, covering the 2025 calendar year. The document is unaudited by us. The franchised figures are as reported to the franchisor by franchisees. We are unaffiliated with the brand. The figures describe past performance at other spas. Calculations of our own are labeled where they appear. The expense and EBITDA figures belong to four company-owned spas in two states. This page is an educational summary and is not legal or tax advice. WOODHOUSE SPA® is a registered trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: The Woodhouse SPAS, LLC, 2026 Franchise Disclosure Document, issued 30 April 2026.
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Woodhouse Spa reads against the rest of the day spa group: Spavia.
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- Money arrives before the service does. How should that be booked?It explains deferred revenue and why the bank balance and the profit line disagree.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- Do I need a bookkeeper, a controller, or a CFO?It explains what each role owns and when the next hire pays for itself.
- Revenue was the highest it has been. Why did profit not move?It traces where the extra revenue went, line by line.