AS SEEN IN YOUR MOST TRUSTED FRANCHISE RESOURCE. March April Building A Concept. The Harding siblings launch a new brand of affordable luxury

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1 AS SEEN IN YOUR MOST TRUSTED FRANCHISE RESOURCE March April 2010 Building A Concept The Harding siblings launch a new brand of affordable luxury

2 In October, Brett and Gigi opened their first corporately-owned Hand & Stone Massage Spa flagship store in Thornhill, Ontario, doubling their sales in the first month Brett & Gigi Harding signing the Canadian Franchise agreement for Hand & Stone. By Roma Ihnatowycz O ne could say that Brett and Gigi Harding, a talented brother and sister team, have printing in their blood. They are the fifth generation in a long line of printers the family business is the Harding Display Corporation and their father is the man responsible for bringing the Kwik Kopy Printing franchise to Canada, building it into a successful national chain.

3 CEO PROFILE Kent Harding was looking for something new and different when he first launched Kwik Kopy in 1979, right at a time when modern printing technology was revolutionizing the industry and making it possible to do in hours what once took weeks. It was the birth of instant printing. Kwik Kopy Design & Print Centres, which offer a range of printing and copying services, were poised to reap the rewards of this market change. New technology and new types of printing presses allowed instant printers to thrive and grow, says Gigi. It really forced the expansion of the market. The Hand & Stone Massage Spa offers the same services as many private spas including hot stone and relaxation massages but at a fraction of the cost It didn t take long for Brett and Gigi to jump into the family fold, working part-time jobs at Kwik Kopy Centres as teenagers. They learned the trade from the bottom up, starting with stapling, collating and binding, and what began as a simple summer job eventually turned into a promising career. Today Gigi is CEO of Kwik Kopy Printing Canada Corporation, and her brother Brett is the company s President. Like any good partnership, the two divide their responsibilities by areas of expertise and interest. Gigi is the expert on systems and franchising models, while Brett likes to focus on sales. Gigi is the boss, and she is amazing on the franchise side of things the legal issues, understanding franchising as a model, and branding. Meanwhile I like handling the sales side of things, says Brett. It is a great business model. And even though it is a mature business, we are still excited about it. Gigi has worn many hats at the company, at one time travelling the globe to help open Kwik Kopy centres in exotic far-off locales like Australia, Argentina, Mexico and Brazil. Brett, on the other hand, stayed closer to home, buying his own Kwik Kopy franchise, which he went on to run for ten years. When their father retired in 1996, Gigi took the helm as CEO and six years later Brett joined her as President. As a team they have continued the work that their father began, building Kwik Kopy into an even

4 Brett (left) and Gigi (right) with John Marco (centre), Founder of Hand & Stone. We kept coming back to the registered massage therapy industry. We began to think about the aging population that was looking for ways to improve its overall wellbeing. Gigi Harding, CEO, Kwik Kopy Printing Canada & Hand and Stone Massage Spa stronger business. Today, there are 70 franchises across all the provinces except Saskatchewan, and the company is still expanding and signing on new franchisees. Although it is a mature business, there are still a lot of people interested in being a part of the franchise, Brett says. Something new But like their father before them, Brett and Gigi were not the type to sit on their laurels. Eventually, they were itching for something new and exciting to add to their business portfolio, and it didn t take them long to find it. After doing their due diligence, the two franchise experts launched their own new franchising concept in Canada this past fall: the Hand and Stone Massage Spa. About five years ago we decided that we wanted to expand our brand offering and we looked at a lot of different brands that were available, says Gigi We kept coming back to the registered massage therapy industry. We began to think about the aging population that was looking for ways to improve its overall wellbeing. We felt that the time was right, just as my father saw that the technology was right for launching Kwik Kopy. The Hand and Stone Massage Spa, which is headquartered in the U.S., represents the first massage franchise to open in Canada, says Brett, which was a major selling point for the brother and sister team. What appealed to us was that no one was doing this as a franchise model in Canada, he explains, so we saw significant power in being the first to enter the market, combined with 30 years of amazing franchise experience and a solid reputation. The Hand and Stone Massage Spa offers the same services as many private spas including hot stone and relaxation massages but at a fraction of the cost. Prices are 20 to 30 percent less than what one would pay in a traditional spa, says Brett, yet the quality is the same. So someone who can t afford to go for a $90 massage might try one of our introductory specials for $49.95, he notes. We are introducing a brand new market of people to the massage industry. Flagship store In October, Brett and Gigi opened their first corporately-owned Hand and Stone flagship store in Thornhill, Ontario, doubling their sales in the first month.

5 CEO PROFILE While the massage industry is a far cry from the printing trade, Brett and Gigi cite their lengthy experience in franchising as their best qualification. They are now actively expanding the brand into the province, and eyeing British Columbia as a possible secondary area of focus. We are working with about 12 candidates right now and are close to opening our first franchise, says Brett. Unlike the business-to-business Kwik Kopy model, Hand and Stone is a very people-oriented business, so franchisees need to have excellent people skills. They also need to be adept at managing a business and staff. Start-up capital ranges from $275,000 to $400,000 depending on the size of the operation, which can be anywhere from 1800 to 3000 square feet. In comparison, Kwik Kopy franchises require an initial investment of around $200,000. Hand and Stone franchisees get three weeks of training, both onsite and at the head office. The training makes use of industry software and system protocols on everything from basic day-to-day tasks like answering phones and dealing with customers pre- and post-massage all the way to more complex business marketing skills. While the massage industry is a far cry from the printing trade, Brett and Gigi cite their lengthy experience in franchising as their best qualification. However, they also did their fair share of research to learn all the ins and outs of the registered massage trade, something they recommend to anyone considering launching a new franchise model. We spoke to experts at massage therapy schools, met with editors of industry magazines and talked to the gurus of the industry to get a really good feel for what was going on out there, says Gigi. We also used a market research company to help determine locations and the demographics of these locations. And yes, we did get a few massages! The two also readily ran their ideas by their father, who, like them, ventured into new business territory when the opportunity arose. He also did it in shaky economic times, mirroring the situation his two children found themselves in decades later.

6 He brought Kwik Kopy into Canada during the 1980s recession and now we are doing the same thing with Hand and Stone, says Gigi. This is the time when a lot of people would say, don t do this. But we say this is the exact time for us to get in! This is the time when you can get the best deals and the best opportunities. What we are doing is really no different from what our father did, sums up Gigi. It s about building a concept and making it work for Canada. HAND & STONE MASSAGE SPA STATS Franchise Units in Canada: 1 In Business Since: 2008 Franchising Since: 2008 Franchise Fee: $39,000 Investment Required: $275K - $400K Training: Three Weeks Website: Available Territories: All of Canada, US CFA Member Since: 2008 KWIK KOPY PRINTING CANADA STATS Franchise Units in Canada: 69 Corporate Units in Canada: 1 In Business Since: 1979 Franchising Since: 1979 Franchise Fee: $29,500 Investment Required: $130K - $208K Training: 36 days Website: Available Territories: All of Canada, US CFA Member Since: 1979 FRANCHISE INQUIRIES CONTACT: Brett Harding, President FRANCHISE INQUIRIES CONTACT: Brett Harding, President or

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