How To's
The Cost of A Clovr Life Spa Franchise
With many people wanting to unwind, relax, and practice self-care, a wellness franchise can become a profitable venture. And, if you think a wellness franchise is something worth pursuing, then you should put Clovr Life Spa on your list. While they’re new to franchising, you could be one of the early franchisees of the wellness company. Read more below on how you can get started.
Clovr Life Spa Franchise Overview
The franchisor is Spa Acquisitions, LLC. But the franchise name is Clovr Life Spa.
Their services include:
- Aesthetic and beauty services
- Therapeutic and body services
- Wraps
- Skincare and waxing
- Teeth whitening
- Meditation
A franchisee may offer all or most of the services listed.
In some cases, a Clovr Life Spa franchise may also offer alcoholic beverages such as champagne, beer, and wine, so long as it’s not against the law to serve these drinks.
Currently, there are only fewer than ten Clovr Life Spa locations (both owned and franchised).
Training
The franchisee (or a principal) and the general manager (responsible for the day-to-day operations) should attend training. They will have the initial five-day training program held by the franchisor. The franchisor may even designate a certain day and location for succeeding training. This applies to franchisees (or a principal), previously trained personnel, and other staff members. In some cases, the franchisor may even require additional training sessions to ensure the franchisees meet the franchisor’s standards.
The franchisor may also hold conferences, conventions, and regional meetings and may require franchisees to attend these events.
Territory
The franchisee should only operate on the premises approved by the franchisor. If the franchisees follow what was agreed upon on the franchise agreement (FA), the franchisor will NOT open another Clovr Life Spa within a 2-mile radius. This area will be the protected area and be established and remain that way. However, if it’s in a high-density location, the radius shrinks to half a mile.
Here are the cities identified as high-density locations:
- New York City (and its boroughs)
- Chicago
- Boston
- San Francisco
- Honolulu
Aside from that, franchisees may cater to customers living outside of the protected area, provided that the services are done inside the Clovr Life Spa protected area.
Obligation and Terms of Agreement
For entity franchisees, they need to designate a principal and become the “operating principal.” They must have at least 10% of equity ownership AND must oversee and supervise day-to-day operations. Not only that, but they should provide updates on financial, management, operational, and policy matters. Moreover, they are the sole individual to fulfill these tasks.
The franchisors expect the franchisees to operate ONLY a spa business. In addition, they should also monitor and maintain inventory, allocate a sufficient number of employees per shift, and run the spa business based on the number of hours stipulated in the manual. Presently, the franchisor requires any Clovr Life Spa to render 60 hours a week and are open six days a week. Also, the franchisees should only sell and provide services mandated by the franchisor.
Meanwhile, the terms of the agreement are ten years, starting from when the Life Spa opens. Franchisees may request to continue being a franchisee, and they may receive two consecutive five-year terms to operate.
Clovr Life Spa Franchise Cost
The initial franchise cost to open a Clovr Life spa ranges from $270,275 to $723,975. Other fees include royalties, marketing, and advertising fees, and renewal fees.
The franchisor doesn’t provide direct and indirect financing and can’t guarantee lease, obligations, and notes.
You can see the breakdown of all fees and expenses below.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $39,000 | $39,000 |
| Pre-Sale and Marketing Plan | $5,000 | $10,000 |
| Grand Opening | $10,000 | $10,000 |
| Real Property | $18,000 | $36,000 |
| Travel and Living Expenses While Training | $500 | $3,000 |
| Leasehold Improvements | $161,000 | $400,000 |
| Architect/Engineer/Permits and Licenses | $5,000 | $12,000 |
| Legal/Professional Fees | $2,500 | $5,000 |
| Prepaid Rent, Security and Other Deposits | $7,000 | $13,500 |
| Initial Liability Insurance and Workers’ Compensation Deposit | $8,000 | $10,000 |
| Exterior Signage | $10,000 | $15,000 |
| Technology Purchases | $22,000 | $28,000 |
| PCI Compliance Network Security Service Fees (Initial 3 Months) | $650 | $650 |
| Technology, Software Licensing and Support Fee (Initial 3 Months) | $2,625 | $2,625 |
| Opening Inventory and Supplies Not Otherwise Noted | $20,000 | $30,000 |
| Furniture, Fixtures, and Equipment | $60,000 | $100,000 |
| Additional Funds (Initial 3 Months) | $60,000 | $90,000 |
| ESTIMATED TOTAL | $270,275 | $723,975 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty Fee | 10% of gross sales. |
| Marketing Fund Contribution | 2% of gross sales. |
| Proprietary Database Fee | 7% of gross sales. |
| Billing Services Fee | 5% of gross sales. |
| Annual Convention Fee | Reasonable fee and all expenses. Currently the fee is $495 per person. |
| Additional Training and Assistance | Fee and expenses (only if the franchisor visits the franchisor’s agency). The current fee is $600 per day and the expenses would include the franchisor’s travel and living costs. |
| Interest on Late Payments | Lesser of 1.5% per month or maximum legal rate. |
| Transfer Fee – Franchise Agreement | $10,000 |
| Taxes | Actual cost |
| Recruiter Training | Reasonable fees. Currently $2,000. |
| New Recruiter Fee | $125 set up charge and $60 per month and $85 to train recruiters using the Proctor Program. |
| Training of Designated Manager | Reasonable fees. Currently $3,500. |
| Non-Compliance Fee | $100 per incident. |
| Technology Fee | The then-current fee, currently $150 per month. |
| Temporary Management Assistance | Currently, $600 per day plus the franchisor’s expenses. |
| Indemnification | Will vary under circumstances. |
| Approval of Suppliers | Reasonable fee based on the costs of the test. |
| Costs and Attorneys’ Fees | Will vary under circumstances. |
| Failure to Comply with the Dispute Resolution Provisions | Damages in the amount of the initial franchise fee plus costs and expenses. |
Did You Know?
- Customers can book the Life Spa for a private event and have a spa party in one of their spaces.
- They use the term “anti-membership” since customers can use their rolled-over contribution anytime instead of being discarded by Clovr Life Spa.
- On their official Entrepreneur page, veterans who plan on franchising will get a 10% discount on the franchise fee.
For other franchise information, read more here at Franchise How!