True REST Float Spa Embraces a Simple Business Model with High NETs
What is it, aside from passion and revenue potential, that lures prospective entrepreneurs into particular business models? As aspiring franchisees look toward the future, they often seek simplicity, the opportunity to work for themselves without being by themselves, and an escape from a rigid corporate structure. Franchisees across the U.S. are finding that right fit and franchise home with True REST Float Spa, the fastest growing franchise in the flotation therapy industry.
True REST provides simplicity via a recurring revenue model with a low cost of goods and a one to two employee structure that translates to a high net-profit business for franchise owners. The True REST Item 19, which summarizes actual performance numbers from the brand’s 2018 fiscal year, shows an average net profit of 22.25 percent, with net profits for top performing franchises coming in as high as 48.26 percent.
In comparison, consider the fast food industry, a popular investment choice for investors. Fast food franchises have posted a net profit average of 2 to 3 percent in recent years1, while net profit for full service restaurants averaged 6.1 percent2.
The reason for the significant difference between the two industries lies in the brand’s operational simplicity. True REST leads the way in an industry that boasts low reoccurring expenses, low cost of goods, no independent contractors or skilled laborers, and B+ real estate lease rates.
In a 2009 column in Entrepreneur on “recession-proof” business models,” Jeff Elgin, CEO of FranChoice, advised would-be investors to look for franchises with a product or service—and rapidly growing demand—that offer clients a chance to escape from day-to-day stressors. Flotation therapy, the principal service of the True REST business model, fits the bill by promoting pain relief, relaxation, and better sleep. And, there has never been a better time to be a True REST franchise partner. With skyrocketing healthcare expenses, the search for alternative and all-natural ways to treat pain, anxiety, depression, stress, and insomnia are at an all-time high.
Research on flotation therapy is also on the rise, with studies on both mental and physical benefits of floating. The existing science can be found at clinicalfloatation.com; the popularity of the practice can be seen everywhere you turn. As more professional athletes, veterans, and doctors tout the benefits of floating in a tank, filled with 10 inches of water and infused with 1,000 pounds of dissolved Epsom salts, the industry is experiencing more medical and psychiatric client referrals to True REST, with HSA and FSA-approved charges. The push towards validated holistic wellness alternatives also creates a more stable recurring membership model, even throughout economic turns.
The initial investment to open a True REST is not small—total startup costs average $400,000 to $500,000. The leasehold improvements reflect a high-end, durable, and inviting spa atmosphere. But with the premium build comes low long-term maintenance and a business model that can run with just a few part-time, minimum wage float consultants and an average of 5.6 percent spent on cost of goods. Unlike many other franchises, True REST Franchising shares actual franchisee performance numbers in its Franchise Disclosure Document Item 19. To request this document please contact Mandy Rowe at email@example.com.
If you are looking for a new business opportunity and haven’t experienced floating yet, True REST encourages you to visit your local spa. You will see the simplicity of the model first hand and experience the benefits of floating that reside for up to three days following your therapy. If you are looking for more information on flotation therapy, visit truerest.com. For details on joining the True REST experience as a franchisee, see TrueRESTfranchising.com
2Biery, Mary Ellen, Sageworks Stats. “Restaurants' Margins Are Fatter, But Competition Is Fierce.” Forbes, Jan. 26. 2018.