Hand & Stone Franchise Corporation
  • Business

    Hand & Stone is a leading franchisor and operator of spas offering affordable, convenient, and professional massage, skincare and health and wellness services. As of June 2022, Hand & Stone operates nearly 550 locations in the U.S. and Canada and serves a loyal base of over 500,000 members.

  • Harvest Partners Investments

    In June 2022, Harvest acquired Hand & Stone in partnership with management. To fund the acquisition, Harvest provided equity capital and arranged the debt financing. In addition, Harvest arranged equity co-investment capital.

  • Investment Thesis

    • A leading provider of health and wellness services in a large, growing and fragmented market
    • Long record of strong financial performance with compelling financial metrics
    • Attractive franchisor business model with strong unit economics and a healthy and diversified franchisee base
    • Recurring revenue given contractual royalty payments and monthly subscription model
    • Multiple levers for growth: same-store sales, franchise development, new services, supplier rebates, M&A
    • Management team with extensive record of innovation and execution