$110,000 invested

38

Investors

12

Payments Made

Funded on NextSeed TX

Revenue Sharing Notes ?

Multiple 1.33x
Maturity 36 months
Minimum Target $110,000 ?
View Key Terms

Healing Waters

Houston, TX

  • Houston’s first ​luxury floatation spa
  • Opening in Montrose, the ​premier arts and museum district of Houston
  • Floatation is experiencing ​double-digit growth in metropolitan areas across the country
  • Enrolled in the NextSeed Payment Automation Service
  • This investment is secured by a blanket lien on all assets of the company and personally guaranteed by the owners of the company

Investment Details

$110,000 invested

38

Investors

12

Payments Made

Funded on NextSeed TX

Revenue Sharing Notes ?

Multiple 1.33x
Maturity 36 months
Minimum Target $110,000 ?
View Key Terms

Company Description

Healing Waters Float Spa LLC (“Healing Waters”) is a luxury, eco-friendly floatation spa opening in Houston during the spring of 2016. Healing Waters will be the first spa in Houston to exclusively offer floatation therapy, and will provide a serene environment for clients to enjoy a blissful and rejuvenating experience.

Floatation therapy is a practice where an individual enters a float pod filled with 1,000 pounds of Epsom salt dissolved in purified water. The pod insulates the user from all external stimuli, including sight and sound. The dense salt water is heated to match skin temperature and allows the user to float effortlessly. At its core, floatation is about providing people with a space to completely relax their bodies and minds.

A wide range of business leaders, artists, engineers and other professionals utilize floatation to help enhance mental clarity and creativity, relieve stress and anxiety, aid in physical recovery (joint and back pain), and escape from the daily grind. The benefits for world-class athletes have also gained national attention. ESPN ran a recent interview with NBA MVP Stephen Curry about how members of the Golden State Warriors basketball team have integrated floatation into their routines this season, contributing to their physical and mental recovery after games.

Renderings presented in this offering may not reflect the final designs of Healing Water Float Spa.

Offering Summary

Issuer
Healing Waters Float Spa LLC
Entity Type
Texas limited liability company
Principal Office
2724 Kipling St. D810
Houston, TX 77098
Securities
Revenue Sharing Loan Agreements
Offering Amount
$110,000
Ownership % Represented by Securities
0%. Investors will not receive any equity interests in the Issuer or any voting or management rights with respect to the Issuer as a result of an investment in Securities.

Use of Proceeds

The Issuer is seeking to raise $110,000 on NextSeed to complete final construction and tank installations for the business and initial working capital.

Key Terms

Minimum Investment
$100
Maximum Investment
Accredited investors: No limit
Non-accredited investors: $5,000
Investment Multiple
1.33x
Investors will each receive in the aggregate 1.33x their original investments, as a result of being paid their proportionate shares of the Issuer’s gross revenue on a monthly basis.
Revenue Sharing Percentage
16%
Startup Period
3 full months following the closing
Payments
During the Startup Period, the Issuer will not make any payments. After the Startup Period, the Issuer will make monthly payments based on the relevant revenue sharing percentage.
Maturity
If any balance remains 36 months after the closing (commencing with the first full month after the closing), the Issuer is required to promptly pay the entire remaining balance to the investors.
Security Interest
The Issuer will grant a security interest in all of its assets and the principals will each provide a personal guaranty in favor of NextSeed for the benefit of the investors to secure the Issuer’s obligations under the Securities.

Total Payment Calculator

Principal Investment Multiple Maturity* Total Payment
1.33x 36 months $133

This investment has a startup period during which no payments will be made. The first payment is not due until after the third (3rd) full month following closing.

*The Issuer expects to pay each investor in full before maturity. However, the exact length of time that it will take the Issuer to pay each investor in full cannot be known in advance since the Issuer's actual revenues may differ from its projected revenues. If any balance remains outstanding on the maturity date, the Issuer will be required to promptly pay the entire outstanding balance due to each investor.

Revenue Sharing Summary

Beginning after the 3rd full month following the closing, the Issuer will pay 16% of each month’s gross revenue to the investors as a group until they are paid in full. Each investor will receive its proportionate share of the monthly payments made to the investors as a group.

EXAMPLE:

Gross revenue in month X
$40,000
Revenue sharing percentage
16%
Monthly payment for month X
$6,400

If Investor A invested $1,100 of the $110,000 that was raised by the Issuer, Investor A is entitled to receive 1.0% of the $6,400 paid to investors for month X. Therefore, Investor A is paid $64.00 for month X.

The example above is an illustrative example only and may not reflect actual performance.

Bonus Rewards

Invest $100 or more

  • 25% Off 1 Float ($16 Value)

Invest $500 or more

  • 1 Free Float ($65 Value)

Invest $1,000 or more

  • 2 Free Floats ($130 Value)

Invest $2,000 or more

  • 4 Free Floats ($260 Value)

Invest $3,000 or more

  • 6 Free Floats ($390 Value)

Invest $4,000 or more

  • 8 Free Floats ($520 Value)

Invest $5,000 or more

  • 10 Free Floats ($650 Value)

Business Model

Healing Waters will create a serene space for relaxation, recovery and rejuvenation through floatation therapy. The key target markets include busy professionals seeking alternatives for stress reduction and mental clarity, as well as yoga practitioners who seek improvement of mind, body, and spirit. We believe all individuals can attain a vastly improved quality of life and raise their level of overall wellbeing by practicing floatation therapy.

Healing Waters will be designed to include four suites: two rooms with state of the art Evolution Float Pods, one room containing a larger float cabin, and one room as a spacious open float. This will provide our clients with three unique floatation experiences based on their preferences and needs. All suites come equipped with showers, and all areas of the spa are created to be soundproof, offering the client complete tranquility.

The Evolution Float Pods are considered the top-of-the-line pods in the industry, also utilized by various professional sports teams for their own athletes.

Float sessions will average $65 for a 1-hour float (1.5 and 2-hour options will also be available). Clients will be able to purchase single-session passes, and multiple monthly membership options will be offered for multiple floats per month.

Location Analysis

Healing Waters will be located in a new commercial construction in the Montrose area of Houston (504 W Gray St, Houston, TX 77019).

This location puts Healing Waters in a new, premium space within the heart of Houston, just minutes away from downtown and the Texas Medical Center. Montrose is home to a creative and increasingly wealthy populace, and Healing Waters will be positioned in close proximity to several other prosperous communities, including River Oaks, West University, Memorial, Galleria, Bellaire, Heights, Washington and Midtown, with easy access to several major highways. This location specifically provides access to two primary target customer markets for Healing Waters: busy professionals and the growing yoga community.

Further, Houston has one of the strongest and fastest growing yoga markets in the nation with hundreds of locations and instructors offering classes on a daily basis. A high concentration of the busiest and most popular yoga studios are located in the neighborhoods surrounding Healing Waters. As with floatation, yoga is a practice that facilitates meditation and mental focus, relaxation and spinal alignment. As a result, the Healing Waters team expects its float spa to draw a large number of yoga practitioners as well as health-conscious clientele of organic restaurants and grocery stores in neighboring areas. The image below shows the concentration of yoga studios and organic restaurants and grocery stores within a 10-minute drive from Healing Waters.

Market Analysis

The Healing Waters team has closely examined the Houston market and found only a limited offering of floatation experiences.

Only three locations currently offer Houstonians with floatation pods, and all three are located on the outskirts of the metropolitan area. One location is a home-based business, and two provide salon services (hair, nails and massages) and have floatation as a secondary or complimentary service.

Given the similarity of benefits sought from yoga and floatation therapy, the Healing Waters team believes that the strength of Houston’s yoga community is indicative of robust demand for floatation therapy in the city. This correlation is clearly identifiable among U.S. cities with large yoga communities. New York City, San Francisco, Los Angeles, Seattle and Austin are ranked as the top 5 most active yoga cities (as ranked by Yoga Alliance), and new floatation centers have continued to emerge in those metropolitan areas in recent years. For example, according to Gothamist (as of August 2015), New York City has the largest numbers of Yoga Alliance registered teachers and schools in the nation, and the city is currently home to six floatation centers. As of January 2016, Austin is ranked 5th in yoga population and currently hosts three dedicated floatation centers.

In contrast, Houston ranks 10th in the country in concentration of yoga practitioners but still does not have a single dedicated floatation center that offers a top-of-the-line floating experience. The opening of Healing Waters will change this.

Leadership

Juan Carlos Mazorra, President

Juan Carlos grew up in Houston and began his professional career in the music video film industry. After completing film school, Juan Carlos joined The INC, a hip hop label under the Def Jam and Universal Music umbrella. He created and managed The INC’s video promotion and production department, directed multiple chart topping music videos and DVD movies including for the R&B superstar Ashanti. These projects required the management and coordination of dozens of people with equipment, municipal permits, union reps, production budgets and schedules.

Juan Carlos moved back to Houston in 2007 to become a part of the startup television company Mi Casa Broadcasting as a producer and show creator. During this time, he was drawn to the home healthcare industry and invested in Confident Care Home Health Services, Inc (“Confident Care Home Health”). Juan Carlos quickly became an integral part of Confident Care Home Health in a leadership role, developing its marketing strategy and assisting in operations and helped triple the business’s revenue within two years. Juan Carlos is currently a partner in the business, and his role gives him direct responsibility over 25 employees and 10 outsourced vendors managing Confident Care Home Health.


Joseph Cyrus, Vice President

Joseph Cyrus spent his formative years in Houston, and started his career in the events promotion business while in college. He was a marketing manager at a prominent music event planning and promotions company, and subsequently moved into a management role in the lounge and bar industry. While working in the entertainment and services industry, he connected with Juan Carlos because of their common passion for meditation, physical wellness and floatation.

Joseph’s interest in leading-edge meditation and wellness techniques catalyzed the Healing Waters team’s pursuit of floatation as a business interest. In recent years, Joseph has traveled to meditation centers and floatation destinations in 20 different countries to learn more about meditation and floatation.

History

October 2015
Healing Waters Float Spa LLC legal entity formed to begin preparations to construct and operate the spa
February 2016
Healing Waters Float Spa signed a lease with the landlord to secure its location
March 2016
Anticipated approval of permits for Healing Waters and construction begins
May 2016
Planned opening of Healing Waters Float Spa

November 21, 2017

Update from Healing Waters

It’s been quite the ride, and having your continued support as we prepare to announce our grand opening to the public will mean so much to us in the next phase of our journey. We invite you to visit us to see the space and redeem your bonus rewards. Since our soft opening, we learned that the code provided on the gift cards we issued could only be used in person and not while booking a float on our website. To ease the booking process, we have generated a personal promo code for each investor that can be used to book your future float on our website.  All promo codes have been sent to investors via email.

We can’t stress enough the importance that your involvement has in our continued growth and we look forward to meeting you in person. If you have any questions while redeeming your bonus rewards, please feel free to reach us at info@hwfloatspa.com.

October 20, 2017

Update from Healing Waters

We are thrilled to share the new photos of our interior and announce that our doors opened on October 18th! You can also book your floats through our website! For any investor related questions related to redeeming your gift card, please feel to reach out to us at info@hwfloatspa.com!

 

July 5, 2017

This Just In!

We are happy to announce that our vessels for silence and healing have arrived on site!  More updates to come as we continue to make progress during installation!

 

April 22, 2017

Updated date + construction

We’re writing to update you once again, and unfortunately, we’ve been hit with delays over the past month and we’ve pushed our open date back to July. We’ve made a lot of progress on the space and wanted to share some photos with you!

February 28, 2017

Its been a long road, but we are getting close!

We wrote to everyone in December with the expectation that we would be open by now (not to mention the prior announcement with a similar goal in October). It’s been an incredibly frustrating process, but we have some good news.

Throughout the process, we’ve been held back by various challenges with construction with the building and with permitting for both the building and for our own space. With the building, roof leaks and electricity permits delayed us for months.

We began construction within our space in November. Having submitted plans and with approvals from two separate inspectors, everything appeared to be in order and we were optimistic about opening in January. In January, city permitting gave our landlord additional trouble regarding the building’s structural permits. From what we understand, everything had been done correctly, but paperwork had to be presented again.

Further, a final inspector visit in January threw us a curveball. This new inspector refused to approve the way our drainage system within the float rooms and showers was designed. Despite our efforts to push back through both official channels and relationships through the permitting office, we were stuck. We finally relented and simply made the changes. We tore up the shower floor, dropped the floor an additional two inches, re-installed the drain, and compacted the concrete once again. This clearly cost us more money in terms of construction, but more importantly, it cost us time.

The “good” news is that we finally received our approval after this was done. And that’s everything. We’ve received all of the final FINAL stage permits on all fronts, and all that is left is for us to finish our buildout. Our landlord also received confirmation that their issue was resolved last week.

We are hoping to open soon! Here are some photos of the space as it is now:

January 6, 2017

We're so Close!

We’re excited to announce that we will be opening within a few weeks! After several false starts on our interior build out the past few months, the roof situation was finally resolved in December, and we have been able to move quickly on the drywall and flooring. It has been a relief to get past this stage.

We’re busy training staff and getting ramped up for our launch towards the end of January.

October 1, 2016

Nearly there!

The external walls are up, plumbing is in, and the roof was just installed! The landlord and general contractor have been battling weather, design changes, and permitting. Our team is finally getting into the space to complete the buildout for Healing Waters, and our own contractor is now moving quickly to complete the space. Our new target open date is mid-November!

Healing Waters Float Spa
Healing Waters Float Spa

April 2016

Construction is underway!

The landlord’s construction permits have finally been approved, and the construction crew is making significant progress. If you drive by, you will see that the foundation has been poured, and the frame has been added. The inclement weather in Houston is creating some new hurdles, but everyone is pushing forward. The landlord has doubled up on construction resources to try and make up for lost time.

ouhw03

April 11, 2016

Success!

Healing Waters Float Spa raised $110,000 from 38 investors! Thank you kindly for the trust and support you have in our vision to help our community grow, heal, and prosper with Healing Waters Float Spa. We are ecstatic to be able to build and provide a place of pure solace and rejuvenation for you and the city of Houston.

ouhw02

February 16, 2016

Healing Waters launch

Healing Waters Float Spa launched its NextSeed campaign to raise $110,000 to build a luxury floatation spa in Houston’s hip Montrose area!

ouhw01

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