Level 5 Capital has closed on 60 units across the country, putting the skincare brand on pace to meet its goal of opening 300 units nationwide within the next five years.
Heyday, the fast-growing skincare brand with plans to open 300 new franchise units in the next five years, just took a giant step toward that ambitious goal. Level 5 Capital (L5), the investment group behind nationally recognized brands including Big Blue Swim School, Orangetheory Fitness, Restore Hyper Wellness and CorePower Yoga, has signed on to open 60 Heyday units in top markets including Los Angeles, Washington, D.C., Atlanta and Dallas within the next five years.
Currently, Heyday has 10 corporate-owned locations in Philadelphia, New York and Los Angeles, and the brand recently signed on three franchise groups to open locations in Chicago, Austin, and Cleveland.
Heyday’s mission is to shake up the $7 billion-dollar skincare industry by taking facials out of the spa and creating single-service boutiques that focus exclusively on one treatment. By treating facials as a regular part of a person’s wellness regimen rather than an occasional indulgence, the brand is aligning skincare with the way Millennial and Gen Z consumers think about self-care while quickly establishing itself as a leader within the space.
Since the beginning, L5 has been a major supporter of Heyday, recently announcing $20 million in Series B Funding with participation from existing investors Lerer Hippeau and Fifth Wall Ventures.
“This level of investment is obviously an incredible vote of confidence in Heyday and its mission to reshape the conversation around skincare,” said Adam Ross, CEO & co-founder of Heyday. “We’re thrilled to be working with a partner that’s as passionate about helping people lead better, healthier lives as we are, and we are eager to bring Heyday locations to new markets across the country over the next few years.”
Based in Atlanta, L5 specializes in helping wellness and lifestyle brands grow to scale and has bolstered an impressive portfolio of brands to achieve national exposure and name recognition. Now, following in the footsteps of boutique fitness concepts like CorePower and Orangetheory, L5 is working with Heyday as the brand strives to provide approachable and affordable skincare services to customers across the country.
“We think that the growth potential for Heyday is absolutely limitless, as our investment in 60 units should make clear,” said Scott Thompson, chief development officer and managing director at L5. “We have a rock-solid belief in the future of this business as well as the people who are leading it, and we look forward to turning the skincare industry upside down with this new, and proven effective, model.”
Heyday is currently targeting expansion in 54 major metropolitan areas including Los Angeles, San Francisco, Seattle, Phoenix, Denver, Dallas, Austin, Houston, Chicago, Atlanta, Miami, New York and Boston, among other large U.S. cities.
Heyday’s startup costs range between $574,000 to $755,500, depending on which market the store is located. Other factors like design, configuration and labor costs will also impact the total investment. Click here to see the full cost breakdown.