One of AustraliaÕs largest privately owned spa operators, Spa Resources International (SRI), has launched a new franchise model.
Three pilot franchises have been operating since May 2008, in addition to the six company spas run as The Beauty Spa Club International (BSCI). Another three franchisee agreements are currently being finalised.
Cameron Fancourt, CEO of Spa Resources International, said that SRI has achieved great success with the BSCI spas.
“BSCI has been operating since 2004 and we have tested and perfected our business model over this time. Franchising is the next exciting step for our company and we are positive that this model will give our franchisees the greatest chance of success,” said Fancourt.
The beauty spa sector is the second fastest growing industry in Australia and Asia, with the Australian industry worth in excess of $440 million, and growing at around 20 percent per annum, according to SRI.
The company has plans to add between 25 and 30 spas in the next 18 months and up to 75 within three to five years.
“Our research shows that the current market can readily sustain this kind of growth as more people turn to spas for relaxation and mini-escapes rather than splashing out for expensive holidays. Depending on site location, franchisees joining and following our model can expect to achieve a 20 per cent lift in revenue in the first year and comfortably exceed above industry growth thereafter,” Fancourt said.
A secondary revenue stream for franchisees is SpaTalk.com. This e-commerce platform provides news in beauty and wellbeing, online sales of products and services, hosts and manages spa rewards and member loyalty reward programs, and provides payments to franchisees for their clientsÕ online purchases, explained Fancourt.
“Over the next 18 months, we are focused on becoming the largest spa franchise network in Australasia. We are actively exploring opportunities to expand the franchise model to key Asian markets over the next few years,” he added.
“There has already been pleasing levels of early interest in the franchise and we are holding seminars in the Gold Coast, Brisbane and Sydney during the end of October and early November. These events will allow potential franchisees to get a better understanding of the industry, our business as well as talk to industry experts and solicitors about getting involved in franchising. “