Private equity firm Freeman Spogli has invested in Vio Med Spa, securing a majority stake in the Med Spa franchise. Freeman Spogli invests in U.S.-based consumer and distribution companies. Since its founding in 1983, it has invested $5.8 billion in 71 companies.
“They have almost 50 years of experience in franchising and consumer business development, and we have a partnership team, industry advisors, and a really core value alignment with considerable expertise that we feel is the best fit for the future. “This is the vision we have for the company,” said Ryan Rao, Vio’s chief development officer.
Terms of the deal were not disclosed, but Vio’s existing management will continue to run the brand, with founders Harish Kakarala, Joe Stanoshek and Nick Stanoshek remaining minority shareholders. Vio is stylized as “V/O” and is pronounced “vee-oh.”
The 50-unit franchise offers a variety of medical aesthetic services, including Botox, facials, medical weight loss solutions, and dermal fillers. Vio launched in Strongsville, Ohio in 2017 and began franchising in 2018. The brand has more than 200 units across the United States.
“We are able to execute our development plans a little faster and are able to bring additional resources into our franchise system at a faster pace than before,” Rao said.
CEO Ryan Rose said management concluded the investment was necessary as Vio aims to bring those 200 spas to grand opening stage in the next few years.
“It became very clear that we needed a sophisticated partner, both for financial leverage and, perhaps more importantly, for strategic leverage,” Rose said. “Those who have been there and done that can help us pull the levers we need to really achieve and drive growth.”
In mid-2022, VIO raised a minority investment from Tucker’s Farm Corporation, a Bermuda-based goat farm and artisan cheese manufacturing company with an investment arm.
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The investment required to open a Vio Spa franchise ranges from $929,952 to $1.25 million, according to franchise disclosure documents. Average sales volume for franchised stores has been fairly stable over the past three years: $1.47 million in 2023, $1.5 million in 2022, and $1.46 million in 2021.
Across FDD’s 15 franchise locations, injectables and membership fees account for approximately 60 percent of annual sales.
With Freeman Spogli’s investment, Vio’s plan is to enrich its leadership and the company’s technology stack, Rose said.
“We will strengthen our marketing department and build a nationally recognized brand,” he said.
Rose said Vio’s plans include “adding human infrastructure, optimizing all the technology platforms we’ve invested in, and extracting value from each of those platforms to make the franchisee experience even better.” This includes “withdrawal and ultimately investing in new technology.” The same goes for the platform. ”
