The wellness market in India is at a nascent stage and is experiencing a high double digit growth. A study by FICCI EnY has estimated the spa market at around 250 crores and projects a growth of 31% year on year for the next five years. The Four Fountains Spa- the first generation entrepreneurial venture of CMYK Health Boutique Private Limited is India’s first chain of surprisingly affordable health spas and aims to be the largest spa chain in the world with the target to set up a chain of 300 affordable day spas across top 50 cities of India by 2014.The Director, Four Fountain Spa, Mr. Anurag Kedia shares his vision and mission with Franchise Mart India.

FM: Share with us the origin, growth and success of Four Fountains Spa.

AK: The Four Fountains Spa was launched in October 2007 and currently operates four spas at Aundh, Koregaon Park, Magarpatta City Central Park Hotel in Pune. It currently serves more than 2000 guests every month and has a team of around 70 people. It also runs a training Academy in Pune and is in the process of setting up an academy in Mumbai. The Four Fountains Spa is a unisex spa and targets men and women who know about spas through the media but have never / seldom been to a spa. These are also customers who typically spend more than Rs 500 on eating out once or more every month. The primacy competition is from other spas / ayurvedic clinics which offer therapies below Rs2000/-. The secondary competition would be other entertainment and indulgence options like restaurants, multiplexes etc.

FM: How is the Spa market in India and how Four Fountain Spa aims to be different?

AK: The spa market in India has gaps in terms of low availability of spas, spas being very expensive, low awareness about spas and spa therapies and an intimidating experience. The Four Fountains Spa aims to fill these gaps – 1. Availability: 300 spas at multiple locations across the top 50 cities of India2. Affordable Prices: Pre-paid membership plans that offer 60 min full body massage therapies for as low as Rs. 449/- in Pune3. Accessible Locations: Prime residential neighbourhoods in each city4. Simplified Menu: Choice of spa therapies from India and all over the world, explained using an easy-to-use menu that is benefit-based and free of jargon5. Professional Therapists: Trained, audited and re-trained periodically 6. High Standards of Hygiene Privacy: Only same-gender therapists to perform therapies and use of disposable under-clothes for all therapies

FM: How many Spa formats do you have?

AK: We have the following spa formats -1.Stand Alone Day Spa – Typically located in posh residential localities. If offers spa services close to the home. 2.Hotel Spa – Located inside a hotel, caters to both inhouse guests and guests from the near by catchment area3.Day Spa cum Salon – Similar to stand alone day spas it has salon services as an add on. The salon services are offered by leading brands in the country, with which The Four Fountains has a tie up.

FM: What is the eligibility criteria for taking a franchise of Four Fountain Spa?

AK:1. A professional approach towards the investment2. Ability to invest 40 lakhs into the business3. Not seeking active involvement in the business (The Four Fountains Spa offers a passive investment opportunity)

FM: How many units do you have across India? And how many are franchised?

AK: We have four units in Pune currently which are operational. Two of these are company owned and two are franchised. Five more units are under construction in Pune, Lonavla, Goa, Manali and Aurangabad, all of which are franchised.

FM: What is the Franchisee Support system you offer?

AK: We offer end to end store management which includes site selection, negotiation, legal documentation, construction, recruitment and training, marketing, operations, IT etc. The franchisee only has to invest in a store and can expect good returns on the investment.

FM: What are the company’s future plans for franchise expansion?

AK: The company wants to set up its spas in Mumbai immediately and then in Delhi, Bangalore and Chennai in the near future. Several opportunities are available all across Mumbai.

FM: What challenges are faced by a franchisee in this business?

AK: The entire operations, marketing and other aspects of the business are managed by the company and hence the challenges faced by the franchisee are handled by the company on behalf of the franchisee.

FM: Share with us any new venture that your company has entered into – any new tie-up?AK: Tie up with hotels like Best Western, Radisson, Lagoona, Quality Inn etcFM: Lastly what is the USP of your Franchise offer?

AK:1.Downside protection: Once the spa has been set up, all the operational expenses are borne by the company and hence there is no further infusion of capital required, even if the spa is not meeting targets. 2.Limited period offer for capital protection and minimum guarantee: For a limited period the company is offering capital protection and a minimum assured ROI to all its franchisees.