Hand & Stone Acquires Canadian Franchise Massage Experts | Franchise Mergers and Acquisitions

Hand & Stone Massage and Facial Spa have made their first Canadian acquisition, purchasing the 24-unit Massage Experts franchise to expand Hand & Stone’s existing 32-location presence in the country.

Hand & Stone, first brought to Canada by master franchisee Gigi Harding in 2009 and sold back the rights to the Pennsylvania-based franchisor in 2019, will continue to operate and sign new franchisees under the Massage Experts brand and add franchisees under Hand & Stone. According to Anita Wells, General Manager and Director of Marketing at Hand & Stone Canada, Massage Experts has “very little transition” to Hand & Stone in terms of both geographic presence and service model.

Anita Wells, General Manager and Director of Marketing, Hand & Stone Canada.

“They position themselves as clinics, they only offer massage, while Hand & Stone is really positioned as a spa,” Wells said. “We did some consumer research in December before we closed the deal to see if there was any difference in brand perception,” that there was.

“There is absolutely room in the market to franchise both brands,” she continued. “You have met a sufficiently diverse consumer.”

The largest competitor to the franchise, Wells said, is Massage Addict, which is based in Toronto and has more than 100 locations.

Clayton Hamilton, CEO of Massage Experts, will remain with the company and serve as vice president of franchise development in Canada for both brands, Wells said. He and his wife are also franchisees, each of whom run a clinic.

While lockdowns and business restrictions related to the COVID-19 pandemic continue to impact operations in Canada, massage experts performed “absolutely” well before the crisis, according to Wells. It has locations in Alberta, New Brunswick, Newfoundland, Nova Scotia, Ontario, Quebec, and Saskatchewan. Most clinics are open. Hand & Stone locations are unable to provide facial and other aesthetic services in some markets. However, the locations in Canada are open for massages.

In an announcement of the deal, Hand & Stone President John Teza said the acquisition of Massage Experts will bring the company’s North American franchise network to more than 500. “System-wide revenue is estimated to be over $ 550 million in 2021.” Hand & Stone is ranked 160th in the Times Top 200+ franchise.