By Brandon Brown – Reporter, Phoenix Business Journal Mar 22, 2018
The people behind successful franchise businesses Massage Envy, The Joint and Amazing Lash Studio are opening a new day spa concept and a former Phoenix Suns executive is part of the group bringing it to Arizona.
Former Suns vice president Rob Harris and his partner John Fechter purchased the regional developer license for Sirius Day Spa for Arizona. They have already opened the first location in Scottsdale.
In the franchise world, Sirius Day Spa has been one of the hottest topics since the Leonesio Group (TLG-SDS,LLC) and Frank Leonesio announced they were creating a new concept in the winter of 2017. Since it announced, the company has signed deals for 280 regional developer licenses all over the U.S.
Sirius offers multiple services, including massages, facials, body wraps, manicures, pedicures, hair stylings and a meditation room.
Harris’ group was the first to sign a regional developer deal with Sirius. As regional developer, the group will be able to sign up other franchisees in the state. They want to open 20 Arizona locations during the next five years and Harris said they expect to sell out the territory in 24 months.
The first Sirius Day Spa opened earlier this year in Scottsdale at the Shops Gainey Village, which is located at 8877 N. Scottsdale Road. While not all franchise regional developers open their own stores, Harris and Fechter decided to so they can better understand the business and to show potential franchisees how it works. “It’s easier to sell it with an operating location open,” Harris said.
Fechter said there was a lot of demand for health and beauty services but there not much supply. The wellness and spa industry is a $17 billion annual business.
Harris and Fechter’s goal is to have four more Sirius locations opened in Arizona by the end of the year. Fechter said they have already sold one franchise and they haven’t even started advertising. The initial investment for a Sirius franchisee would be between $550,000 and $750,000, Harris said. That includes a $39,000 license fee.
A Sirius location can operate in a space between 3,500 and 4,500 square feet, but “4,000 (square feet) is the sweet spot,” Fechter said.
The Sirius franchise business model has franchisees who report to the regional developers who report to the corporate offices. Fechter said that ongoing support from the different levels is the value proposition of franchising and specifically Sirius.
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