ZenotiZenoti
Mandatoryty to Hand and Stone consumer feedback platforms. You must execute the sublicense agreement attached to the Franchise Agreement as Exhibit “J”, and purchase a subscription for the Zenoti POS and relat
From the filings
+3.448% units YoYHQ-led decisions
Hand and Stone
Personal servicesHand and Stone controls software purchasing from headquarters: franchisees must subscribe to the franchisor's designated POS system, currently Zenoti, and use any hardware or software Hand and Stone designates or develops. The system spans 615 units, 600 of them franchised, in the personal-services segment.
For software vendors selling into US franchise brands.
Live signals
Total units
615
600 franchised
Unit growth YoY
+3.448%
vs prior filing
AUV
$1.33M
Item 19, 2026
Royalty
6%
of gross sales
Ad fund
1%
national + local
Initial fee
$50K
per unit
Investment range
$321K–$865K
all-in, Item 7
Procurement
Approved supplier
from the filing
Item 19
Claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
7%of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
1 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.
FacebookMeta
romoting your Franchised Business or using the Proprietary Marks without our prior written approval in any manner on the Internet, including social and networking websites such as Facebook, LinkedIn,
InstagramMeta
ised Business or using the Proprietary Marks without our prior written approval in any manner on the Internet, including social and networking websites such as Facebook, LinkedIn, Instagram, Pinterest
LinkedInLinkedIn
our Franchised Business or using the Proprietary Marks without our prior written approval in any manner on the Internet, including social and networking websites such as Facebook, LinkedIn, Instagram,
PinterestPinterest
ss or using the Proprietary Marks without our prior written approval in any manner on the Internet, including social and networking websites such as Facebook, LinkedIn, Instagram, Pinterest, X, Groupo
TikTokTikTok
tary Marks without our prior written approval in any manner on the Internet, including social and networking websites such as Facebook, LinkedIn, Instagram, Pinterest, X, Groupon, TikTok, and/or YouTu
YouTubeGoogle
out our prior written approval in any manner on the Internet, including social and networking websites such as Facebook, LinkedIn, Instagram, Pinterest, X, Groupon, TikTok, and/or YouTube. You may sel
Franchisor behaviours
What the franchisor requires
29 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 1 question the text does not settle, which is not a no.
Accounting
Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesItem 8
To ensure that you have accurate financial records and reporting, during the first year of the term of the Franchise Agreement, you are required to use the services of Accounting Firm.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We have the right to independently access all information you collect or compile at any time without first notifying you.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Franchisee shall supply to Franchisor on or before the fifteenth (15th) day of each month, in a form approved by Franchisor, a balance sheet as of the end of the last day of the preceding month and an income statement for the preceding month and the fiscal year-to-date.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We are an Approved Supplier of certain items you must purchase, including lobby furniture, cabinetry and millwork, signage, attention buttons, and HS Design for the coordination of architectural services, but we may approve alternate suppliers if appropriate.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Franchisor has the right to change or modify the System from time to time including, without limitation, the adoption and use of new or modified Marks or copyrighted materials, and new or additional computer hardware, software, software support, equipment, inventory, supplies or sales and marketing techniques.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
40315488Item 8
In the fiscal year ended December 31, 2025, we and our subsidiaries derived $40,315,488 (or 32.1%) of our consolidated total gross revenues of $125,731,451 from required franchisee purchases and leases.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We will receive rebates, discounts or other financial benefits from Approved Suppliers, or any other suppliers based on our franchisees’ purchase of goods or services.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
70Item 8
We estimate that approximately between 70% and 80% of your purchases on an ongoing basis will be for goods and services that must be purchased from either us or an Approved Supplier, or in accordance with our standards and specifications.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
You must reimburse us for all of our reasonable expenses in connection with determining whether we will approve an item, service or supplier.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you want to use any item or service in establishing or operating the Franchised Business that we have not approved (for items or services that require supplier approval), you must first send us sufficient information, specifications or samples for us to determine whether the item or service complies with our 19 ©…
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 11
All telephone numbers you use in your Franchised Business will be owned by us.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
This includes taking all reasonable steps, including but not limited to those related to visibility and management of the Franchised Business’s network, that are necessary to ensure that the Franchised Business is compliant with all Payment Card Industry Data Security Standards (PCI DSS) requirements, as such…
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor and its designees have the right to enter and inspect the Franchised Business and the Approved Location at all reasonable times and, additionally, have the right to observe the manner in which Franchisee renders services and conducts activities and operations, and to inspect facilities, equipment…
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Franchisor has the right to add to or otherwise modify the Manual from time to time to reflect changes in the specifications, standards, operating procedures and rules prescribed by Franchisor; provided, however, that no such addition or modification shall materially alter Franchisee’s fundamental status and rights…
Must the franchisor approve the franchisee's site or location before opening?
YesItem 12
You must operate your Franchise at a location that we approve (the “Approved Location”) and you may not relocate without our written approval.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
Franchisee acknowledges and agrees that it is strictly prohibited from promoting the Franchised Business and using the Marks in any manner on the Internet, including any social or networking website, such as Facebook, LinkedIn, Instagram, Pinterest, X, Groupon, TikTok, and/or YouTube, except in a manner and form…
Is a minimum grand opening advertising spend required?
YesItem 7
You must spend a minimum of $15,000 on Grand Opening Advertising.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 11
Each week, you must pay to us, Advertising Agency or our designee 4% of your Gross Sales (with a minimum payment of $400.00 weekly) (the “Local Advertising Fee”), which is payable at the same time and in the same manner as the Royalty Fee, which we, Advertising Agency or our designee will use for conducting or…
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
Franchisee shall institute membership programs as specified in the Manual.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
The products, supplies and services discussed above may only be purchased from Approved Suppliers in accordance with the Manual.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
The products, supplies and services discussed above may only be purchased from Approved Suppliers in accordance with the Manual.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 11
You must also sign up for an account with Zenoti Payments for credit card and membership billing.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
I HEREBY AUTHORIZE HAND AND STONE FRANCHISE LLC TO AUTOMATICALLY DEBIT THE FOLLOWING CHECKING ACCOUNT ON A WEEKLY BASIS FOR ROYALTIES, MARKETING, LOCAL ADVERTISING, EQUIPMENT, COMPUTER SOFTWARE SUPPORT FEE OR ANY OTHER AMOUNTS DUE TO HAND AND STONE FRANCHISE LLC SO LONG AS MY FRANCHISE AGREEMENT IS IN EFFECT.
Must the franchisee participate in a gift card program?
YesItem 6
associated with Expenses 3 ceasing operations and de-identifying yourself from the Store and our System 11 © 2026 Hand and Stone Franchise LLC 2026 Franchise Disclosure Document Type of Fee Amount Due Date Remarks Gift Card, Rewards Will vary Will vary You must participate in our gift Program, Referral card program…
People
Must employees wear uniforms specified by the franchisor?
YesFranchise agreement
Franchisee shall abide by any uniform requirements stated in the Manual.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 8
You are required to purchase a subscription for our designated POS system (currently Zenoti POS) and related software and support from us.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesFranchise agreement
Franchisor shall have full access to all of Franchisee’s computer and point-of-sale data and systems and all related information by means of direct access without notification, either in person or by telephone, modem or Internet to permit Franchisor to verify Franchisee’s compliance with its obligations under this…
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesItem 11
You shall purchase, install and use computers, mobile devices, internet accessibility equipment, network componentry, a franchise relationship management system and a point-of-sale system consisting of hardware and software in accordance with our specifications
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
Periodically we may require that previously trained and experienced franchisees, their managers, and/or employees attend refresher-training programs.
The filing answers no to 4 questions
- Is there a franchisee advisory council, association or committee?Item 20
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Franchise agreement
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
- Does the franchisor require minimum staffing levels or specific roles?Item 15
Who buys here
The buyer at this brand
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
HQ committee: CEO/President + VP Ops + IT/CIO + Franchise + procurement involved.
VP SalesHead of SalesCROSales Director
- With 298 active personal services brands, I can't see which ones are growing or have the tech gaps my product fills, so I waste weeks chasing the wrong targets.A rep burning 10 hours/week on manual research at $50/hr loses $26,000/year. FranCloud's fit_scoring and corpus_search surface high-fit brands in seconds, reclaiming that time for selling.
- 63.5% of personal services brands mandate no POS system, but I can't identify the 108 that do without digging through hundreds of FDDs.Manually reviewing one FDD takes 3+ hours. At 108 targets, that's 324 hours. FranCloud's tech_landscape reveals POS mandates instantly, turning a $16,200 research slog into a single query.
- 91.6% of brands don't mandate a CRM, but the 25 that do are hidden in static reports, delaying my outreach to high-intent prospects.Landing one CRM-displacing deal in this segment can yield $30k+ ARR. FranCloud's find_lookalikes pinpoints those 25 brands and their peers, accelerating pipeline by months.
The vendor opportunity at Hand and Stone
Hand and Stone operates 615 units, 600 of them franchised, in the personal-services segment. Item 19 of the FDD includes a financial performance representation: the Item 19 figure of $1,334,936 for a cohort of 570 franchised outlets open at least 12 months plus 15 corporate spas open the full year, excluding 30 franchised outlets not yet open a full 12 months. Franchised outlets grew 3.448% year over year. Hand and Stone is part of HS Parent.
Who controls software purchasing
Franchisees must purchase a subscription for Hand and Stone's designated POS system, currently Zenoti, along with related software and support, and must use any hardware or software the franchisor designates or develops. A separate fee may apply for maintaining required computer hardware and software under Section 12.5 of the Franchise Agreement. Chief Technology Officer Siddharth Desai is a relevant HQ contact for a vendor pitch.
Tech named in the FDD, and what is actually required
Zenoti is mandated as Hand and Stone's designated POS platform under Item 11. Franchisees must also sign up for a Zenoti Payments account for credit card and membership billing, and buy a Microsoft Office license and CrowdStrike endpoint management. The FDD also names Facebook, Instagram, LinkedIn, Pinterest, TikTok, and YouTube in Item 12.
Procurement, renewals, and timing
Item 8 runs an approved-supplier list: products, supplies, and services must be purchased from Approved Suppliers in accordance with the Manual, and that list may include or be limited to Hand and Stone or an affiliate. Hand and Stone itself is the Approved Supplier for lobby furniture, cabinetry and millwork, signage, attention buttons, and HS Design's coordination of architectural services, though franchisees may propose alternate suppliers for approval. An estimated 70% to 80% of a franchisee's purchases to establish the business must go through Hand and Stone or an Approved Supplier or meet its standards and specifications. Item 17 of the FDD sets renewal, transfer, and termination terms.
How to read the Hand and Stone FDD
The embedded viewer below carries Hand and Stone's 2026 Franchise Disclosure Document, including the Item 8 and Item 11 language summarized above.
Talk to FranCloud for a ranked list of franchise systems like Hand and Stone where the technology mandate and procurement structure line up with your product.
Questions vendors ask
Hand and Stone, answered from the filing
Hand and Stone's franchisor designates the POS system franchisees must subscribe to and can require any hardware or software it develops. Chief Technology Officer Siddharth Desai is a relevant HQ contact for vendors pitching new systems.
Franchisees must subscribe to Hand and Stone's designated POS system, currently Zenoti, plus related software and support, and must use any hardware or software the franchisor designates or develops. The FDD also names Facebook, Instagram, LinkedIn, Pinterest, TikTok, and YouTube in Item 12.
615 total units, 600 franchised and 15 company-owned, in the personal-services segment.
Item 8 runs an approved-supplier list: products, supplies, and services must come from Approved Suppliers named in the Manual, a list that may include or be limited to Hand and Stone or an affiliate. Hand and Stone itself is the Approved Supplier for lobby furniture, cabinetry, millwork, signage, and HS Design's architectural coordination.
Item 17 of the FDD sets renewal, transfer, and termination terms. Franchised outlets grew 3.448% year over year, a pace of expansion that tends to open new technology budgets alongside new openings.
The embedded PDF viewer below carries Hand and Stone's 2026 Franchise Disclosure Document, including the Item 8 and Item 11 language summarized above.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment Hand and Stone files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
519 operators run 520 mapped locations. 1 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit518
2–9 units1
Top states by locations
| FL | 68 |
|---|---|
| NJ | 58 |
| TX | 57 |
| PA | 41 |
| NC | 26 |
Ownership
The portfolio behind Hand and Stone
unknown of hs parent.
Related Personal services brands
Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.