SPA810 2017

Franchise Presentation

Mission and Vision

Mission Statement

Our enduring mission begins and ends with creating a Remarkable Spa Experience for our Guests. It declares our purpose as a company, and serves as the standard against which we weigh every action and decision.

Vision Statement

To become the best boutique spa destination in the United States and throughout the world. Constantly evolving the business through new service and product offerings so we are always relevant in the minds of our clients and considered the leader in our industry.

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spa810 Executive Team

John Dunatov

CEOSamantha Theaumont

President

Dave Struck

SVP Franchise Development

Doris Dunatov

Director, Franchise Support

KariLynn Keith

Director, Training

Nycole Gonsalves

VP Operations

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spa810 Franchise Coaches

Rob Eberle

Philadelphia, PA

Mike Rosenberger

Jacksonville, FL

Dennis Harvey

Nashville, TN

U.S. Area Representatives

ARIZONAMarc and Lori Olson

ARKANSASRichard and Kristy Holland

CALIFORNIA (1)LA COUNTY REGIONJohn Kleinwachter

COLORADODr. Kristine Hirschfield

FLORIDA (3)ORLANDOFabio Hugonnet

MIAMICraig and Sonia Van Sickle

TAMPAMike Antonnucci

GEORGIAAmy Perrault

ILLINOISMike Antonnucci

INDIANA Brian Knoderer

IOWASteve Walker

KENTUCKYDr. Rahul Reddy

MINNESOTACole Wallis,Jason and Chastity Bennicoff

NEBRASKASteve Walker

N. NEW JERSEYDiana MinerviniMichele Dowd

NEVADAContract Pending

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OHIO (2)CINCINNATTIDr. Rahul Reddy

COLUMBUSDr. Rahul Reddy

OKLAHOMAJeff O’Bryan

TEXAS (4)AUSTINLaurel Belfiore

SAN ANTONIOLaurel Belfiore

DALLAS-FORT WORTHMarc Tatarsky

HOUSTON N. and S.Dr. Nishant Kalra

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International Masters

CANADA

Dr. Peter Thomas, Thomas Franchise Solutions

PUERTO RICO

Craig and Sonia Van Sickle

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s

SPA810 FRANCHISE LOCATIONSARIZONA

• N. Scottsdale Road, Scottsdale AZ• Esplanade, Phoenix AZ• Glendale, AZ – February 2015

ARKANSAS• Rogers-Pinnacle Hills, Rogers AR• Fayetteville, Fayetteville AR

FLORIDA• Winter Park, Orlando FL

IOWA• Ankeny, Des Moines IA- January 2016

MINNESOTA• Rosedale, Minneapolis, MN – February 2016

NEBRASKA• Omaha – March 2016

NEW JERSEY• New Jersey – April 2016

OHIO• Columbus, OH – March 2016

TEXAS• Greenville Ave, Dallas TX• Luther Lane, Dallas TX• Plano, Plano TX• Uptown McKinney Ave, Dallas TX• Austin, TX February 2016• Houston, TX – March 2016• Houston, TX – May 2016

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spa810 Franchise Locations`ARIZONA• N. Scottsdale Road, Scottsdale, AZ• Esplanade, Phoenix, AZ• Glendale, AZ • Phoenix, AZ

NEW JERSEY• Weehawken, NJ• New Jersey -TBD• New Jersey - TBD• New Jersey -TBD

ARKANSAS• Pinnacle Hills, Rogers, AR• Fayetteville, AR

NEBRASKA• Omaha, NE -TBD

COLORADO• Denver, CO – Aug. 2017

OKLAHOMA • Tulsa, OK – June 2017

FLORIDA• Winter Park, Orlando, FL• Orlando, FL • Miami, FL

TEXAS, Austin• Austin, TX

TEXAS• San Antonio, TX - TBD

GEORGIA• Lenox Square, GA• Buckhead, GA – TBD• Atlantic Station, GA• Midtown, GA - TBD• Atlanta, GA -TBD• Buford, GA – Fall 2017

TEXAS, Dallas• Greenville Ave, Dallas, TX• Luther Lane, Dallas, TX• Plano, TX• Uptown McKinney Ave, Dallas, TX• Allen, TX - TBD

KENTUCKY• Louisville, KY – Sept. 2017

TEXAS, Houston• N. Houston, TX - TBD• S. Houston, TX

IOWA• Ankeny, Des Moines, IA

MINNESOTA• Rosedale, Minneapolis, MN

INDIANA• Indianapolis, IN - TBD

Company Background

Franchising Start: 2012Scottsdale Corporate Office: 1Scottsdale Training Facility: 1

Retail Locations Operating: 20Retail Locations in Development: 16Area Representatives Awarded: 23International Masters Awarded: 2 - Canada, Puerto Rico

WHAT DOES SPA810 STAND FOR?

spa810 incorporated the 810 nm diode laser that they use on all their laser hair removal procedures.

The Alma Soprano ICE is the safest, most advanced laser in the market. The Soprano ICE is the GOLD STANDARD for laser hair removal.

In recent years, the diode laser has become the superstar of laser hair removal. It is the best overall machine for treating all six skin types based on safety and long term use especially satisfactory to skin types I-IV.

Diode has a longer wavelength than others except Yag Laser, this longer wavelength enables the light to penetrate deeper and is theoretically safer than shorter wavelength lasers because it can better avoid the melanin pigment in the skin's epidermis.

spa810 Breakdown of Service Revenue Laser 40-60% Facials 20-25% Massages 10-15% Retail Products 10-15%

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Past Industry Trends

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BOOMINGINDUSTRY!

The demand for anti-aging procedures along with the desire to increase overall health is being driven by the “Baby Boomers” and “Millennials”

*Marketdata Enterprises Inc., 2013 Independent Study

The global day spa industry has grown tremendously in the U.S. over the last 20years. In 1990 there were 200 day spas in the US. The spa industry grew 58%from 2007-2013: from $60 billion to $94 billion, with a 47% growth in spalocations, to reach 105,591 spas.

2007-2013: International spa locations grew 47%: from 71,762 to 105,591

$94 Billion Breakdown of the current

$94 billion spa industry:

• spa facilities $74B

• spa investment capital $19B

• spa education $800M

• spa media/education/events $200M

• spa consulting $100M

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Current Industry Trends

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Global Overview Values

Estimated global market size of the beauty and anti-aging industry $1.025 Trillion

U.S. health club industry revenue $25.8 Billion

Revenue of the U.S. yoga and pilates industry $6.85 Billion

U.S. Overview Values

Revenue of the U.S. spa industry $16.3 Billion

Number of spa visits in the U.S. spa industry 179 Million

Average rate for a spa treatment at luxury hotel spas in the U.S. $139.00

Demographics

1. Medical Spas Are Booming.

Medical spas are expected to record its fastest growth between 2016-2022, due to the massive developments in the medical field. Europe accounts for the largest market share at 39.1%, followed by the Asia-Pacific and North America in 2015. Featuring the highest growth, LAMEA has rising investments in the tourism industry in countries like Brazil and UAE.

2. Lifestyles and Demographics Fuel Growth.

The growth of the market is factored due to the lifestyles, tourism, rising demand from teenagers and the improvement of the standard of living. Also, the rising popularity of working women and male customers interested in spa services is causing the spa industry to offer more services.

3. Salon/spas Dominate in Europe and the Asia-Pacific.

Within the salon segment, Europe dominated the market in 2015 that was owed to a higher demand in Western Europe. Eastern Europe’s extensive demand is due to the rising income of the middle class customer groups. Asia-Pacific is the second largest region that has helped the expansion due to the multiple mineral spas. The rising popularity of traditional spas has also increased the desire for Thai and Ayuverdic massages in the region.

- See more at: http://www.skininc.com/spabusiness/trends/Global-Spa-Market-to-Increase-to-1546-Billion-by-2022-395767731.html#sthash.aFXxEtuN.dpuf

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Customer Demographics

52% of men have used professional care services and that there is a growing number of male-focused salons

90% female, with mid-to-high incomes

Mintel Group. “Women Dominate Salon Visits, But Men’s Numbers Set to Grow.” July 25, 2012. http://www.gcimagazine.com/marketstrends/consumers/men/163767936.html

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Increase in male focused spa visits 2014

25% of men 18-34 report having a manicure or pedicure

38% of men ages 18-34 have had a facial or bodytreatment

Other

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SPA810 2017

spa810 vs. the CompetitionLaser Skin Massage

Painless Hair

Removal

All Skin

Types I-V

All Hair Colors

*Except Silver/Grey

Facial Capsule

Diamond Tip

Microderm

HydraFacial*Select

spa810’s

Anti-Aging Procedures

AromaTherapy,

Sugar Foot Scrub, Hot

Towels

Add On Modalities

spa810 YES YES YES YES YES YES YES YES YES

Massage Envy

No No No No No No No Yes Yes

Massage Heights

No No No No No No No Yes Yes

Spavia Day Spa

No No No No No No Yes Yes Yes

Hand & Stone

No No No No Yes No Yes Yes Yes

Elements Massage

No No No No No No No Yes Yes

Ideal Image No Yes No No No No No No No

Woodhouse Day Spa

No No No No Yes Yes Facials Yes Yes

European Wax Center

No No No No No No No No No

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Services and Treatments

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Dermaplane

Microderm

Diamond Tip

Microderm

Collagen Boosters

HydraFacial MD®

iS Clinical Facials

SkinCeuticals Peels

and Facials

NuFace Facial

Toning

Chemical Peels

Men’s Grooming

LED Light Therapy

Microblading

Microneedling

RF Microneedling

Hydra Sweep

PRP Treatment

Eyelash and Brow

Tinting

Jane Iredale

Makeup Demo

Laser and Body Contouring

Laser Hair Removal

NIR Skin Tightening

NIR Pain Management

CoolSculpting

Cavitation

Massage

ila Massages and Body

Wraps

Deep Tissue

Swedish

Hot Stone

Trigger Point

Thai

Prenatal

Reflexology

Lymphatic Drainage

Ashitasu

Cold Stone Add On

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*Treatments vary by location

Skin

Featured Product Lines

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Financial Details10 Room spa810 Franchise

Franchise Fee $45,000

Franchise Investment Range $359,700 up to $531,500

Liquid Capital Required $120,000 - $150,000

Net Worth Requirement $350,000

Royalty Fee 7% of Gross Revenues

National Advertising Fund 1% of Gross Revenues per FDD*

Local Advertising Requirement $24,000 Yearly Minimum Spend

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*spa810’s FDD states a 2% NAF. Currently the NAF is 1% for Regions that have 4 or

more spa810 franchise locations operating.

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Item 7 for a 10 Room Spa

Initial Franchise Fee $45,000 $45,000

Utility Security Deposits $3,000 $4,500

Lease Security Deposits - will vary location by location $8,000 $15,000

Architectural Plans $ 6,000 $ 9,000

Leasehold Improvements (Varies Unit to Unit, Landlord Allowance TBD) $35,000 $80,000

Project Management Services $0 $22,500

Signage (Interior and Exterior) $8,500 $10,000

Office Furniture and Fixtures, Washer & Dryer, Decorative Fixtures $8,000 $ 24,000

Professional Equipment (Beds, Laser (1), Capsule (2) - for 8 rooms), tax

and delivery$135,500 $154,500

Computer Hardware, Software, Supplies $10,500 $11,500

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Note: Please note that tenant improvement costs will be assessed in each unit prior to franchisee signing LOI/Lease.

Cost Estimates for Rent/Unit Build Out will vary region by region and location by location within the region.

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Item 7 for a 10 Room Spa

SPA810 2017

Note: Please note that tenant improvement costs will be assessed in each unit prior to franchisee signing LOI/Lease.

Cost Estimates for Rent/Unit Build Out will vary region by region and location by location within the region.

Business Licenses and Permits $1,000 $1,000

Professional Fees $500 $1,500

Insurance - 3 Months $1,500 $ 2,500

Initial Training Expenses, Including Travel $2,500 $5,000

Product/Start-up Inventory $33,000 $40,000

Grand Opening Advertising Program & Startup Marketing $10,000 $15,000

3 Months Marketing Reserves $6,000 $8,000

Additional Funds - 3 Months OH/Payroll/Rent $30,000 $50,000

Eyelash Program Retail Package $0 $6,500

Human Resource Manuals $1,500 $2,500

Startup General Supplies – office, spa rooms, bathroom, break room $5,000 $7,500

Various Equipment (Telephone/Sound/Scent Machine/ Security) $5,000 $8,500

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Item 7 for a 10 Room Spa

SPA810 2017

Note: Please note that tenant improvement costs will be assessed in each unit prior to franchisee signing LOI/Lease.

Cost Estimates for Rent/Unit Build Out will vary region by region and location by location within the region.

POS System Installation $2,500 $3,500

POS Support System $300 $800

Micro Site Set Up $500 $500

Credit Card Processing Devices $500 $1,500

SEO Package $400 $1,200

Total Estimated Initial Investment $359,700 $531,500

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spa810 Equipment

Soprano ICE Laserw/ 810nm Diode & NIR Hand Piece

1

Spa810 Facial CapsuleAromatherapy

2

2 in 1 Microderm and Diamond Tip Facial Machine

3

Spa Luxe - Electric Lift Salon & Spa Table (All Electric w/ Accessories)

4

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spa810 Equipment

Spa Luxe Towel Warmer - Hot Towel Cabinet (SL8)

6

2 in 1 Facial Steamer and Magnifying Lamp Combo (SL-601 & 1001T)

4

Chattanooga - Stainless Steel Cart Model MB-T

4

Rolling Stool with Foot RestSilver Fox 1023

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Additional spa equipment includes massage table warmers, sheets, spa robes, roll bars,

bolsters, cushions, covers, pregnancy pillow, back bar and retail product lines, Eclipse

MicroPen, NuFace, as well as many other items.

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spa810 Typical Unit Operation

Hours of Operation:

Monday – Saturday 10 a.m. to 8 p.m.Sundays 11 a.m. to 4 p.m.

spa810 does not require the Franchisee to open on Sunday, however it is recommended.

2,300-2,500 sq. feet unit with 10-12 service rooms

10-14 professional employees leading to greater profit potential with less overhead, easier management and more efficient operations

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Typical Single Aisle Floor Plan

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Typical Dual Aisle Floor Plan

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spa810 Exterior FacadesSPA810 2017 24

spa810 Interior Appointmentssp

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Real Estate Selection & Buildout

spa810 corporate with its third party experts in real estate and construction will assist in:

Site selection assistance Assist with lease negotiation Assistance of full buildout of the unit Turn key delivery of the unit assistance Assistance purchase all equipment Product ordering assistance Outfitting of the unit assistance

National Real Estate Partner Morrow Hill

This process lasts 60-90 days from the executed lease.

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Training and Support

OPERATIONS TRAINING

Marketing

Payroll, Human Resources

Insurance

Products

Front Desk

Memberships

Laser, Facial, Massage, Aesthetics

Spa Standards

Grand Opening Marketing

POS System

Compliance

AREA REPRESENTATIVE TRAINING

Real Estate and Leasing

Unit Buildout

Business Broker Network

Advertising

Promotions

Ongoing Support

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SPA810 2017

Cosmetology Board

The spa industry is governed by

the cosmetology board. The

board may periodically visit the

spa and request an inspection.

The business license must be

visible, and all cosmetology

licenses must be up in the rooms.

The spa810 professional workforce includes the following:

Spa Director/Manager Asst. Spa Manager Spa Associates Certified Laser Technicians Certified Massage Therapists Licensed Estheticians Medical Director Accountant

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Depending on the state laws for laser services, an

Electrologist, Registered Nurse, Medical Assistant or a Physician may need to operateor supervise the services. “The California Department of Business Oversight hasdetermined that services provided by spa810 franchisees constitutes the practice ofmedicine. In order to operate a spa810 franchise, franchisees must comply with allmedical licensing and operating requirements. For example, California law mayrequire that a laser hair removal clinic may only be owned by a physician and thatanyone administering laser hair removal services be actually supervised by a physician.In addition, there may be other laws and regulations governing the provision of laserhair removal and other spa services typically offered by spa810 franchisees. SPA 810L.L.C. has not and will not undertake or assume any responsibility for reviewing oranalyzing California state law with respect to the operation of a spa810 business inCalifornia. If you are interested in purchasing a spa810 business in California, you aresolely responsible for complying with all laws including, without limitation, allregulations and medical licensing requirements. We recommend that you ensure thatyou can comply with such laws before purchasing a spa810 franchise.”

Marketing the Brand

Allison & Partners, National Marketing Partner, Nationally Recognized Advertising Firm for spa810 Creative Brand

Local Spa Marketing: Messaging, Campaigns/Advertisement, Loyalty Programs

Assistance with Content Development, SEO and Social Media Management

Assistance Direct Mail Marketing – Every Door Direct Campaigns

Social Media Guidance– Facebook, LinkedIn, Twitter, Blogs, Instagram

Print Advertising – Newspapers Ads, Inside Coop, Every Door Direct

Billboards, Sidewalk Marquees, Moving Billboards, Bench Marketing

Grand Opening Marketing Kit and Workbook

Compliance on use of “Marks” and “Logo”

Brand Standards Guidance

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E2 & EB5 Visa’s Options

“spa810 is excited to work with our International candidates who are looking for E2 & EB5 Visa qualifying business

investments"

SPA810 2017

Arizona Franchise Excellence Awards

Best New Concept 2015

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Success To Date

23 U.S. Area Representative Regions awarded, plus two International Masters awarded; Canada and Puerto Rico

20 units open and 16 under development

spa810 is listed "On the Hot List" for 2015's top 10 franchise categories for the spa industry that shows strength and promise for new concepts

Ranked number 267 on the top 500 by FranchiseGrade.com 2015

Voted “Best Laser Hair Removal spa” in Dallas 2015, 2016

"Best New Franchise Concept“ Honoree, Phoenix Business Journal, 2015

“Best Day Spa Experience” Winter Park Chamber of Commerce 2015

and 2016

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Franchise Candidate Profile

Individuals seeking opportunities with high earnings potentials within a proven industry and with an established Franchisor.

Qualified candidates should have:

A good business acumen with business experience

Strong customer service skills

Be able to demonstrate our core values of transparency, loyalty and passion for success

Candidate needs to be able to meet the financial requirements

Area Representatives are our regional development partners, and therefore should have strong desire to build a legacy business with our brand

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Who’s Joined Our Team?

Cardiologist (2)

Neurologist

Dermatologist

Pharmacist

MD – Internal Medicine

PHD Engineer

M&A Attorney

Marketing Exec., American Express

Finance Manager, Georgia Pacific

Account Exec., Pharmaceutical Co.

Trader, Chicago Board of Trade

Owner, Business Brokerage Firm

Master Franchisee, Century 21

3-Unit Franchisee, Fantastic Sam’s

Account Exec., IBM

Real Estate Exec., QuikTrip

Marketing Exec., Walmart

Project Analysis Manager

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Next Steps

1. Complete the spa810 Request for Consideration document

2. Review our Franchise Disclosure Document (FDD)

3. Attend a Discovery Day in Dallas, TX or Scottsdale, AZ

4. Validation Calls with current franchisees

5. Review Franchise Agreement

6. Final call to ensure all questions are answered

7. Execute a spa810 franchise agreement

8. Open your spa810 business

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Lobby of spa810 unit

Thank You For Your Time

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DisclaimerNOTE: This advertisement is not a franchise offering. A franchise offering can be made by us only in a state if we are firstregistered, filed, excluded, exempted or otherwise qualified to offer franchises in that state, and only if we provide you with anappropriate franchise disclosure document. Follow-up or individualized responses to you that involve either effecting orattempting to effect the sale of a franchise will be made only if we are first in compliance with state registration or notice filingrequirements, or are covered by an applicable state exclusion or exemption.

The following states regulate the offer and sale of franchises: California, Florida, Hawaii, Indiana, Kentucky, Maryland,Michigan, Minnesota, Nebraska, New York, North Dakota, Rhode Island, South Dakota, Texas, Utah, Virginia, Washington andWisconsin. If you reside, plan to operate or will communicate about the franchise in one of these states, you may have certainrights under applicable franchise laws or regulations. We are not registered, and cannot sell franchises, in California (pending)Hawaii, Maryland, Michigan (pending), North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin(pending).

Spa810 is not generally offering franchise opportunities in California. We are only offering the opportunity to purchase a spa810 franchise in California to those individuals who meet the requirements to be considered an Experienced Franchisee (see California Corporations Code section 31106), or a Large Franchisee (California Corporations Code section 31109) or a Fractional Franchisee (see California Corporations Code section 31108).

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