Day Spa vs. Med Spa Franchise: Which Is Right for You?
Published February 11, 2026
The U.S. spa industry generated $22.5 billion in revenue in 2024, recording its third consecutive year of growth. Meanwhile, the medical spa segment has exploded to a $21.2 billion market growing at nearly 16% annually. If you're exploring franchise ownership in the wellness space, the question isn't whether to get in — it's which model is right for you.
Day spa franchises and med spa franchises serve the same booming wellness economy, but they operate with very different investment levels, regulatory requirements, risk profiles, and paths to profitability. This guide breaks down everything a prospective franchise buyer needs to know so you can make a confident decision about which wellness franchise model fits your goals, lifestyle, and risk tolerance.
If you're already leaning toward the day spa model and want to learn how Spavia's affordable luxury franchise compares, book a call with our franchise team to get a personalized overview.
What's the Difference Between a Day Spa and a Med Spa?
A day spa focuses on relaxation-based wellness services: massages, facials, body treatments, and skincare. No physician oversight is required, and the client experience centers on stress relief, rejuvenation, and self-care.
A med spa (medical spa) combines clinical aesthetic treatments — Botox, dermal fillers, laser treatments, CoolSculpting — with a spa-like environment. Every med spa must operate under the supervision of a licensed physician, and staff must include licensed medical professionals such as nurse practitioners, physician assistants, or registered nurses.
The distinction matters enormously for franchise buyers because it affects your startup cost, ongoing complexity, regulatory exposure, and the type of team you need to build.
It's also worth noting that consumer expectations are shifting. Day spa brands like Spavia are responding by adding results-oriented treatments — like microcurrent facials and advanced skincare — without crossing into medical territory. This means day spa franchises can capture growing demand for wellness outcomes while maintaining operational simplicity.
Investment Cost: How Much Does Each Model Require?
One of the first questions any franchise buyer asks is: how much will this cost me? The gap between the two models is significant.
| Cost Category | Day Spa Franchise | Med Spa Franchise |
|---|---|---|
| Total Investment | $295K – $800K | $550K – $1M+ |
| Franchise Fee | $26K – $60K | $25K – $80K |
| Equipment | $20K – $50K | $50K – $300K+ |
| Medical Director | Not required | $12K – $30K/year |
| Malpractice Insurance | ~$1,700/year | $2,500 – $3,500+/year |
| Time to Open | 6 – 12 months | 12 – 18 months |
| Min. Liquid Capital | $120K – $150K | $500K+ |
The equipment gap alone is striking. A full-service med spa may spend $50,000 to $300,000+ on laser devices and clinical equipment, while a day spa's treatment tools typically run $20,000 to $50,000. Med spas also carry the ongoing cost of a mandatory medical director, typically $1,000 to $2,500 per month.
For context, Spavia Day Spa's total franchise investment ranges from $496,450 to $795,950, positioning it competitively in the day spa spectrum with a proven model that has generated average unit volumes of over $1 million at mature locations.
Revenue and Profitability: Where's the Better Return?
Higher investment doesn't always mean higher returns. Here's how the two models stack up:
Med Spa Revenue
- •Avg. single-location revenue (2024): $1.4M/year
- •Profit margins: 20–25% standard; 30–40%+ for top performers
- •Owner income range: $280K–$500K
Day Spa Revenue
- •Avg. revenue range: $500K–$2M+ per location
- •Spavia avg. unit volume: $1,146,952 (mature locations)
- •Spavia EBITDA average: 20.6%
The takeaway:
Med spas may offer higher raw margins on individual treatments like injectables, but day spa franchises often deliver stronger ROI relative to invested capital — especially membership-driven models like Spavia, where over 65% of revenue comes from recurring memberships.
Regulatory Complexity: The Hidden Cost of Med Spas
This is where the two models diverge most sharply — and where many prospective buyers underestimate the gap.
Med Spa Requirements
- ✕Mandatory physician (MD/DO) as medical director
- ✕Many states require physician ownership (CPOM laws)
- ✕Full HIPAA compliance for patient records
- ✕OSHA compliance for medical equipment
- ✕FDA regulatory exposure
Day Spa Requirements
- ✓Licensed estheticians & massage therapists
- ✓Standard business licensing & zoning
- ✓General liability insurance
- ✓No physician oversight or HIPAA required
The regulatory risk is real. In 2024, Eli Lilly filed six lawsuits against medical spas for unauthorized use of compounded medications. In 2025, the FDA issued warnings about RF microneedling risks and restricted compounded GLP-1 products. Day spas operate in a far simpler compliance environment with minimal exposure to medical regulatory risk.
See how affordable luxury franchising works
Learn how Spavia's membership-driven model delivers proven returns with a simpler path to ownership.
Schedule a Call →The Membership Model: Why Recurring Revenue Matters
Both models can leverage membership programs, but the dynamics differ. Med spa member retention sits around 70%, while day spa retention ranges from 60–75%.
Spavia's three-tiered membership program is a standout in the day spa category. With over 65% of projected revenue from memberships and members visiting 8–10 times per year, the model creates predictable, recurring cash flow that makes franchise ownership sustainable and financeable.
Market Trends: Where Is Growth Headed?
The med spa market is expanding at a 15.8% CAGR, driven by surging demand for non-invasive aesthetics. The broader wellness and spa market is growing at a steadier 8.6% annually through 2027, powered by a fundamental shift: consumers now view self-care as a daily necessity rather than a luxury.
For franchise buyers, the question is whether you want to ride a faster-growing but more volatile wave, or build on a stable, recession-resilient foundation. The spa industry's proven staying power through economic cycles — with revenue now 18% above pre-pandemic levels — suggests the day spa model offers a durable, long-term investment thesis.
Side-by-Side Comparison
| Factor | Day Spa Franchise | Med Spa Franchise |
|---|---|---|
| Total Investment | $295K–$800K | $550K–$1M+ |
| Physician Required | No | Yes — mandatory |
| Time to Open | 6–12 months | 12–18 months |
| Time to Profitability | 1–2 years | 3–4 years |
| Equipment Cost | $20K–$50K | $50K–$300K+ |
| Staff Requirements | Licensed estheticians | MDs, NPs, PAs, RNs |
| Regulatory Risk | Low | High (FDA, CPOM, HIPAA) |
| Revenue Range | $500K–$2M+ | $1M–$2M+ |
| Profit Margins | 10–25% | 20–40% |
| Membership Retention | 60–75% | ~70% |
| Market Growth Rate | 8.6% annually | 15.8% CAGR |
| Owner Lifestyle | More operational flexibility | Medical oversight demands |
So, Which One Is Right for You?
A med spa franchise may be right if you…
- •Have $500K+ in liquid capital
- •Have a medical background or physician connections
- •Are comfortable navigating healthcare regulations
- •Are willing to wait 3–4 years for full profitability
A day spa franchise may be right if you…
- •Want a lower entry point with proven returns
- •Prefer simpler regulatory requirements
- •Value recurring, membership-driven revenue
- •Want to open faster and reach profitability in 1–2 years
- •Are drawn to a community-focused wellness business
Many of Spavia's franchisees came from careers outside the spa industry — finance, tech, healthcare administration, education — and were attracted by the affordable luxury model, the strength of membership-based recurring revenue, and the simplicity of operating without medical regulatory complexity.
Why Spavia Is the Franchise to Watch in 2026
Celebrating its 20th anniversary in 2025, Spavia Day Spa has grown to 60+ locations across 25 states with ambitious plans to reach 200 locations in the next decade. Here's what sets the brand apart:
Affordable Luxury
Resort-inspired experience at accessible price points
Proven Revenue
Avg. unit volume of $1,008,046 with 65%+ membership revenue
Lower Investment
$496K–$796K vs. competitors at $600K–$2.7M
Design-Led
Four curated interior themes tailored to local markets
56hrs Training
Initial training + ongoing support from 100+ yrs experience
Diverse Revenue
Massage, facials, body treatments, waxing, retail & more
Ready to Explore Spa Franchise Ownership?
Whether you're comparing your options or ready to take the next step, our franchise team can walk you through Spavia's model, financials, available territories, and what ownership looks like day-to-day.
Book a Call with Our Franchise Team →Frequently Asked Questions About Spa Franchises
How much does it cost to open a spa franchise?+
Is owning a day spa franchise profitable?+
Do I need a medical license to own a spa franchise?+
How long does it take to open a spa franchise?+
What is the difference between a wellness franchise and a spa franchise?+
Sources
- International Spa Association (ISPA), 2025 U.S. Spa Industry Study
- Grand View Research, U.S. Medical Spa Market Size Report (2024–2033)
- McKinsey & Company, “The Future of Wellness” Consumer Survey (2025)
- Global Wellness Institute, Global Wellness Economy Monitor (2025)
- American Med Spa Association (AmSpa), 2024 Industry Survey
- Franchise Disclosure Documents: Spavia, Hand & Stone, Massage Envy, Woodhouse (2024–2025)
- U.S. Food & Drug Administration, Warning Letters and Enforcement Actions (2024–2025)
- Franchise Times Top 400 (2025)
Permalink: https://spaviafranchise.com/blog/2026/02/11/day-spa-vs-med-spa-franchise