1. Introducing …
Where Beauty is Always in Style…

2. Goals for Today’s Presentation
Introduction to the Faces365 Skin Care Spa Franchise
Our offer to consumers
The Faces365 advantage
Costs & terms
Next steps

3. Exciting New Franchise Opportunity
Offering Facials, Full Service Waxing, and Premium Skincare Products
Powerful MEMBERSHIP Business Model!
Multi-Billion Dollar Skincare Industry
Riding the Health & Wellness Trend
Offering both Regional Developer and Franchise Opportunities
Key points
The beauty industry is a multi-billion dollar industry
Traditionally dominated by retail sales
Beauty services traditionally offered by beauty parlors, hair salons, and day spas. But none of these focus exclusively on esthetics. And none offer a membership business model and franchising
Wellness is the next “trillion dollar” industry according to researchers
The spa category is relatively easy to sell to franchise prospects and has performed well during the down turn
Beauty is Always in Style…

4. Brand Development Industry Examples
In the ’90’s we saw branding of hair salons
Great Clips, Fantastic Sam’s, Super Cuts
In the 2000’s it was health & wellness
24 Hour Fitness, Massage Envy…
But in spas and beauty services
There is no national brand leader in beauty services, (but there are leaders in beauty retailing)
Aging boomers want to preserve their appearance and vigor. Young adults are focused on anti-aging, and youth has more discretionary income than ever before.
The beauty industry is ripe for a nationally branded, cost effective business model that provides standardized, convenient services at affordable prices.

5. About Skincare & Waxing
Facials address all ages/conditions
Anti-aging, sensitive skin, acne
Advanced services
Peels, Microdermabrasion, FaceLIFT365
Waxing is a popular method of hair removal
Being “smooth all over” is chic
All services require ongoing treatments to sustain results.
Premium spa-only products
Yon-Ka of Paris, IMAGE Skincare

6. Our Consumer Promise Results, Value & Convenience Results Value
Highly trained estheticians
Professional skin care services
Premium skin care products
enable ongoing results
Value
Our member price point is typically 25-50% less than comparable services
Introductory services are offered at member prices to entice new customers
Convenience
Open 7 days per week, including nights and weekends
Clients can book appointments online
Walk-ins welcome
Results, Value & Convenience

7. Faces365 Membership Program Advantages
Proven sales program
All services are designed around membership
Services are structured to encourage sales
Builds a steady revenue stream through daily EFTs
Converts occasional visitors into loyal members.
Generates intense word of mouth
Staff compensation aligned to member sales
Staff retention improved because we keep them busier than other spas

8. Faces365 Revenue Model Our revenue is built on a great customer experience and outstanding customer service
Advanced Services Revenue
Subsequent Services Revenue
Product Revenue of $20-25/facial
Member Dues from $40-80/mo
Introductory Facial & Waxing Revenue
Professional Service Platform
Facials, Waxing, and more…

9. How This Business Works for You
Advertising & Location
Referrals/
Word of Mouth
Great Experiences
Introductory Facials
& Waxing
Member Dues &
Product Sales
$$$
New Members
(20-30% join)

10. The Faces365 Spa Retail shopping center +/-2000 square feet
8 private treatment rooms
120 square foot relaxation area
Strong co-tenants
Female-oriented anchors, lifestyle center, grocery store, tenants who draw our demographic
Demographics
Females age 25-60
$75,000 average household income
50,000 qualifying population
Relaxation Zone
A relaxing get away
Lobby and retail setting

11. Training & Support from Faces365
Your ongoing support includes:
Two weeks of training prior to opening your spa
Local regional developer
Real estate
Construction
Vendors
Operations
Advertising & website
Member and product sales techniques
Access to franchise store for ongoing supplies
…and more

12. Faces365 Spa Software Customized for Faces365 Spa Franchises
Web-based…operate the business anytime, anywhere
Based on MindBodyOnline software
Over 3,000 clients in 30 countries
All data is in a highly secure server installation, never onsite. Always backed up % uptime
Clients can book appointments online
Extensive reports
Sales
Payroll
Membership
Inventory
Staffing

13. Franchisors’ Experience
Previous careers in high tech and education
Bought Massage Envy Region in 2004
Sold 41 Locations, Opened 33
Own 2 Highly Successful Locations
Worked with ME Corporate on Pricing, Operations, etc. Served on National Franchise Advisory Board.
Experience as Franchisees, Regional Developers, and now as Franchisors

14. Key Franchise Terms Franchise Fee
$40,000 for first location
$29,900 for second and subsequent locations
6% royalties, 1.5% national marketing fund
10 year initial term, 10 year successor agreement
Local marketing: the greater of 4% of gross sales or $2,000/month.
Protected territory based on demographics and natural boundaries
Two week training program
Local support and training provided by Regional Developer

15. Franchise Costs Initial Franchise Fee $40,000
Low Estimate
High Estimate
Initial Franchise Fee $40,000
Training Expenses ,000
Security deposit on real estate , ,900
Leasehold improvements , ,000
Furniture, Fixtures, & Equipment 35, ,182
Initial Inventory , ,964
Three months’ lease , ,600
Professional fees , ,000
Grand opening advertising program , ,000
Insurance, deposits, prepaid expenses , ,000
Additional funds , ,000
Estimated Initial Investment $225,677 $390,046

16. The Time is Now! Easier to Manage Review of the benefits:
Membership model
Multiple revenue streams
Dues, services, product sales
Affordable entry cost
$ K
Prime territories
Early entry =
Best locations!
Easier to Manage
Through state-of-the art cloud computing software

17. Next Steps
Franchise Discovery & Evaluation
Approval of Franchise Application
Sign Franchise Documents!!
Franchise Training
Franchise Opening
Franchise Sales and Support!!
Faces365 looks forward to working with you as you move through the franchise discovery process!

18. Q&A