Affordable Spa Chain to enter Mumbai through Franchisee Route

India's first chain of surprisingly affordable spas - The Four Fountains Spa - is expanding to Mumbai and is looking for Business Partners.

The Four Fountains Spa (TFFS) – India’s first chain of surprisingly affordable spas – is in expansion mode. After successfully operating a chain of 4 day spas and 1 hotel spa in the IT hub of Pune, it will now expand its footprint to Mumbai, Goa, Lonavala, Aurangabad and Manali.

The company - set up by 3 management graduates, Anurag Kedia and Saurabh Garg from IIM Ahmedabad and Sunil Rao from SP Jain Institute of Management & Research - aims to put spas within the reach of upper-middle class Indians. “Spas have traditionally been perceived as for the elite because of their high prices and exclusive presence in five star hotels. We are changing this perception with our chain of surprisingly affordable spas,” says Sunil Rao, Director Marketing, TFFS. Prices at TFFS are less than half of those at five-star spas. However, despite the low prices the ambience and service quality is comparable to that of any five star spa.

TFFS plans to open 300 spas across the top 50 cities of India by 2014.Anurag Kedia, Director New Projects shares the insight behind this multi-store strategy, “Convenience drives repeated usage. It is inconvenient to visit spas located outside the city to visit frequently and as a result most people visit resort spas occasionally. A day spa like The Four Fountains Spa located in multiple locations within each city, reduces the time and effort cost for consumers, hence making it easy for them to become regular spa goers.”

The concept of spas is new in India and awareness regarding health benefits of spa therapies is lacking. Unlike in many western countries, in India spas are regarded as a luxury and not a necessity in India. “The Four Fountains Spa invests significantly in educating its guests about the health benefits of spa therapies,” says Saurabh Garg, Director Operations. There is a first-of-its-kind benefit-based menu in which therapies are classified by benefit rather than being classified as massages, body wraps, facials etc. The menu is free of jargon and contains recommendations based on each guest’s lifestyle. “It also contains suggested frequencies for each therapy. All these things make it easy for even a first-time spa-goer to choose a therapy that best meets his or her current need,” he says. Educational material is packaged in various forms such as leaflets and beginners’ guides and freely distributed by TFFS to its guests in an effort to debunk myths and create greater awareness.

In doing all of this, TFFS’s focus on the basics is unwavering. “Many consumers’ negative perception of spas is influenced by spas where the experience is below par on factors like hygiene and privacy. At TFFS we have a same-gender therapist policy and a shower cubicle in each of our therapy rooms for maximum privacy. Highest levels of hygiene are practiced,” says Garg.
The spa has also introduced some innovations since its inception. It sells gift vouchers of spa therapies through its spas as well as through its website (http://www.thefourfountains.in). Candles, aroma diffusers and other spa products like massage oils and body lotions are also sold from the spas. Based on suggestions from its guests, TFFS has started organizing spa workshops in which guests can learn their favourite massages. The spa also offers mobile spa services in which therapists can be hired on a per day basis to provide short, dry 10 minute therapies like Foot Reflexology at private parties, company conferences etc.
After fine-tuning its model in Pune for 2 years, TFFS is now preparing to expand. While its existing spas in Pune are a mix of company owned and franchisee owned spas, for its expansion to Mumbai it plans to set up all 4 spas in the first phase through the franchisee route.

The Four Fountains Spa has a unique proposal of ‘guaranteed returns without operational hassles’ for its franchisees who are referred to as ‘business partners’. Speaking about the business partnership model Kedia says, “Most other brands require the franchisee to not only invest but also be actively involved in day to day management of the business. However, business partners of TFFS do not need to be operationally involved as the spa operations are completely managed by the company as per its standard operating procedures. The business partner only needs to invest in the construction of the spa. Thereafter the business partner takes home a fixed sum of money every month for the duration of the agreement. The partner also gets the invested capital back at the end of the agreement term. This aspect of ‘no operational involvement’ is a very strong draw for passive investors like working professionals, self-employed professionals as well as businessmen who cannot spare time for a second business. The guarantee of a ‘fixed return every month’ brings in predictability and gives investors clarity regarding the rate of return they will make on their investment.”

Of the 4 spas it plans to launch in Mumbai, TFFS has signed up a business partner for 1 of its spas. The company is looking for business partners for its other 3 locations in Mumbai. In smaller cities like Aurangabad, Goa, Lonavala and Manali TFFS plans to partner with leading hotels and resorts. These spas will cater to in-house guests of the hotels and, where possible, guests from nearby residential locations.

The spa industry is part of the Rs. 11,000 crores wellness services industry which is growing at 35% p.a. according to a 2009 FICCI E&Y report on the wellness industry. The spa market itself is estimated at Rs. 250 crores and is expected to grow to Rs. 5,500 crores. The Four Fountains Spa hopes to drive most of this category growth through its chain of affordable, conveniently located and simple to understand spas.

Persons interested in becoming business partners of The Four Fountains Spa in Mumbai may contact Saurabh Vohara, Business Partnership Manager, by e-mailing him at saurabh.vohara@thefourfountains.in or by calling him on 9371102918.