endota-spa-frequently-asked-franchise-questions by suchenfz

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									endota spa                                                             frequently asked questions




Do I need to have beauty or massage therapy training to own an endota?
No, this is not a prerequisite to owning or operating an endota spa. In fact we find that some therapists in this
position tend to work in the business (in one room with one client) rather than on the business, which of course is
not our preference, and nor is it in your best interest.

Do I need to undertake a beauty therapist or massage course?
No, this is not necessary, however if you feel you would like to complete such a qualification then we would be
more than happy for you to do so prior to opening your spa.

Will I be performing any treatments on the clients in my spa?
Most definitely not - unless you are a qualified beauty or massage therapist. Your primary role would be as Spa
Director. Cheryl can send you an outline of the requirements and responsibilities of that particular role.

What will I get from endota when I pay the $5,000 deposit?
On receipt of your initial deposit of $5000, you will receive copies of the following documents:




     strategy planning




How do I pay the deposit to endota?
You can present a personal cheque for $5,000 or you can organise a direct debit into our account, which is:
endota no 1

bsb:             083 004
account number: 17-182-0599
Please ensure you send a copy of your receipt to cherylbastow@endota.com.au

How much of the deposit will I get back if I decide not to proceed?
Should you decide not to proceed before ordering or signing franchise agreements, your deposit will be refunded
to you by direct deposit into your account, less $330 for administration costs, within 14 days of your notice in
writing. If the franchise agreements have been ordered but not signed the refund would be $5000 less $1650.

Is the information sent electronically or posted to me?
In the best interests of the environment, we will endeavour to send you as much information as possible by email
or cd. In some instances, this is not always possible and some documentation may be posted to you or your
solicitor.

Who are the current owners?




endota spa down to earth heaven
endota spa                                                            frequently asked questions




How long has endota been in business?

2005.

Are the owners Melanie and Belinda still involved in the business?


maintain a passion and vision for endota, and a commitment to a grounded, balanced family life.

How many endota spas are there in Australia?




How does endota choose the locations?

and what they would like their spa to be and we encourage business owners to thoroughly research proposed
locations within the agreed geographical region before deciding on a suitable site.


must approve your proposed location, it is ultimately your signature on the lease and you have the final decision as
to whether the proposed site is suitable for the needs of your endota franchise.

Which state has the most endota spas?




Does endota plan to expand overseas?




What determines an endota territory?

sense.

Can I only purchase one territory?
You can purchase more than one territory and we have a pricing structure in place for multiple upfront purchases.
Cheryl can assist you further if you are interested in such a structure and wish to secure multiple sites.

Do any of your other franchisees own multiple units?



How many square metres will I need for my spa?
                                                 2
                                                   to 200m2
opportunities, we can work with spaces 80m2 – 250m2 if necessary.




endota spa down to earth heaven
endota spa                                                                 frequently asked questions




How many treatment rooms should I plan for?




How much is it going to cost me to fit out my spa?

site, availability of services and the contribution if any from the landlord or developer.

franchise fee, stock, computer, software, licenses, furniture, cabinetry, baths, basins, towels, blankets, washer,

between $250k and $400k*. In an attempt to reduce the cost we negotiate aggressively on your behalf with the
landlord or developer to seek a capital contribution of significant value. In some cases in the past this can be in




What percentage of spas are located in strip shopping and what percentage are located in destinational
guest accommodation?




Do you have any endotas in major shopping centres, and are they successful?




is a very large spa with 6 large treatment rooms and a separate kiosk within the centre.

Are the rents in major shopping centres exorbitant?


rents and leases that have been more than acceptable to the franchisees thus far and that have in most cases
had a value added component. endota would not allow any franchisee to sign a lease that did not appear to be
sustainable long term.

Which type of location is the most successful?

location does have some impact on the results however it is not as much of a factor as first thought. It has been
proven time and time again that the ultimate success of the spa is a direct result of the owner of the business,
their networking efforts and hard work.

How long has endota been accredited with the ANZ bank?



Is endota accredited with any other bank?




endota spa down to earth heaven
endota spa                                                               frequently asked questions




As part of the due diligence it is recommended we contact 3-5 franchisees. Who would you encourage us
to contact in the network?

have paid your initial deposit.)

been open for a short while, a spa that is located in a very busy vibrant location, a franchisee that has multiple sites
and also a single operator.
Cheryl will be happy to put a list together for you to choose from, however it is important to note that current
endotees are not permitted to discuss this matter with you unless Cheryl has given such advice to them in writing

that intellectual property is protected and also to ensure that some franchisees are not constantly bombarded with
queries and questions from potential endotees when they are frantically busy.

What will the bank lend me to purchase an endota?

separately. Lending is based on your repayment capacity, savings and equity. However as a rule of thumb the
                                                   equity you have in either your home or combined assets and in
many cases they will lend you half of the value of the spa against the security of the franchise. (Obviously this is



How long will it take to get written approval from a lending institution?

be able to make a decision within a few weeks. If the application is complicated, which is often the case, the
application can take up to 3 or 4 months to work through. If your situation is a little challenging, we would
recommend you discuss your options with several lenders or brokers to ensure you application is strategised and

to endota before we can begin searching for your site.

How do I start the finance process? Who can I speak to?




Is it possible to have an extension for the due diligence period in order to get bank approval if I need it?

diligence period if you provide documentation to support your lender has received your finance application.

Has the spa and beauty industry been adversely affected by the global financial crisis?
It is a fact that the health and beauty industry always prospers in challenging financial times and so the answer

downturn in our economy and may choose not to purchase a new car or home, or take that overseas holiday, they



What are the ongoing fees payable to endota?



How many endota’s have been resold since the original owners purchased them and why?


business commitments were overshadowing their time available to endota. Other contributing factors have been
poor health and matrimonial matters.



endota spa down to earth heaven
endota spa                                                             frequently asked questions




What return will I earn on my investment?




financial outcomes for yourself.

provision of financial information.

are willing to work through any questions you may have regarding this matter at any time. Many factors determine
business success and there are risks attached to all businesses. Such factors include but are not limited to your


franchised business and surrounding businesses, consumer demand for the products and services offered in
the franchised business, prevailing market conditions, competition and your willingness to invest time and money
building the franchised business and generating customer satisfaction.
If you enter into an endota franchise agreement to operate an endota franchised business it will be on the

assessment of the franchised business.

Can you explain what benchmarking figures are?

performing spas in the network. In turn this report gives an indication of achievable outcomes.

How do you obtain the endota benchmarking figure results?


endota.

What working capital is required to start up an endota spa?

figure of not less than $20,000.

How many owners actually work in the business and how many of the spas have managers?



How much would I have to pay a manager?

retail and marketing skills may ask for $55,000 per annum a younger manager with less managerial skills may start
on $40,000 pa.

If you work on the business not in the business do you pay yourself anything from the labour costs or just
the ebita?
Dividends would be the most likely outcome unless you are actively involved in a role in the business in which case
you may decide to pay yourself a regular salary.

What is the likely level of profitability of an owner operated spa and a fully managed spa?

skilled and diligent in which case the opposite may apply.




endota spa down to earth heaven
endota spa                                                                 frequently asked questions




What is the time commitment required by the franchisee?




Do the business owners make more profit on product sales, gift vouchers or services?
If the spa is running efficiently the split of the profit is similar. If on the other hand, if the spa were not keeping the




How does the gift voucher system work?


your own specialised gift voucher, which can only be redeemed at your spa. endota also have a strong partnership
with red balloons and network voucher sales to sell gift vouchers.

Is the endota gift voucher system successful?

of options, treatments and cost as well as being able to be redeemed nationally.

What is the best time of the year to open? Is there a best time?




rare opportunity to make every month of the year something special.

Does endota hold the head lease?



How do I go about finding the right location and negotiating the lease?
Once you have paid your franchise fee in full, you will need to find a suitable location within the agreed
geographical region and negotiate an acceptable and sustainable lease structure, which must first be approved in
writing by endota.
endota is of the view that consideration should be given to various important factors when selecting a site to be
occupied by an endota franchised business, including but not limited to:




endota will provide you with guidance in relation to finding a location but ultimately you are solely responsible for
finding and determining whether the location is suitable for the operation of an endota spa.

Is it common to get a contribution or rent-free period from the developer/landlord?


passed directly to the franchisee.




endota spa down to earth heaven
endota spa                                                               frequently asked questions




What happens if we can’t find a site in 12 – 15 months time?
In the unlikely event of this situation occurring you would be entitled to a refund of your franchise fee less
reasonable costs incurred in the pursuit of finding you a site.

What is the average rent paid by endota franchisees?



What do you think a reasonable rent would be for us?

week.

How do I go about hiring staff?

help and advice to get you started. Most of our spas advertise on Seek Commercial and use the services of a
HR consulting service and use the services of a HR consulting service called HR navigation.

What training does endota provide?
You would be required to have in spa training at an endota deemed most appropriate to you and your location.


Melbourne office.


your Distribution opening order.




Refresher courses are available and you will be advised of those dates as they come to hand.




What ongoing support does endota provide?




refresher courses for product education and retail sales.

What would be my responsibilities if I were the spa director?

reception, retailing of products, staff rosters, customer service, spa presentation, ordering of stock, submission of
reports, marketing duties, staff meetings.

What would be my responsibilities if I were managing the manager?



How much do you think the wages costs will be?




endota spa down to earth heaven
endota spa                                                            frequently asked questions




Do you suggest a mix of contract staff and permanent part time staff?



How many staff will I need to open my spa with?




your opening hours and spa requirements.

What is the percentage of treatments, product sales and gift vouchers in an average spa?



What non-spa expenses would I need to allow for?

staff nights to promote staff culture

What does endota do for their franchisees that other franchisors do not?

our own endota training school, guidance and training with business tools with an emphasis on profitability.

Why am I required to complete a business plan?

local community, demographics, local competition, possible risks, advantages, small or great and guides you to a
budget and marketing strategy to base your business on. Your financial lender will require a business plan from you



Do I have to come to Melbourne for my panel interview?



What refurbishment or updating do I need to do?

minimum endota fit out standard.

May I see the operations manual prior to signing the franchise agreements?
Yes, of course. Cheryl can make an appointment for you to view the Operations Manual at our South Yarra office.

How much stock will I need?




endota spa down to earth heaven
endota spa                                                                frequently asked questions




Do I have to stock endota and dermalogica products?




You must only stock the endota branded range of skincare products and one other branded range of skin care




Can I use the spa for any other related services?

service.

Do we need the advice of a solicitor and an accountant?




How much will their fees cost me?
I would strongly recommend obtaining a written quote before engaging a solicitor as their costs can vary
considerably. Understanding that the franchise agreement is not going to be amended in any way should save a
considerable amount of money.

Are there any other fees I would need to pay beside my solicitor and the franchise fee?

You can add to that your solicitor fees, airfares to Melbourne for a panel interview if your reside interstate.




endota spa down to earth heaven

								
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