Updated January 27, 2020.
Detailed Estimates of Massage Heights Franchise Costs Based on Item 7 (Estimated Initial Investment) of Massage Heights’ 2019 Franchise Disclosure Document
1. Initial Franchise Fee: $49,500
2. Retreat Development Package: $84,840 to $93,324
- The Retreat Development Package typically includes furniture, fixtures, and equipment such as millwork, interior signage, seating, retail displays, massage tables, massage chairs, initial operational and retail product inventory, massage equipment, and millwork shipping and installation.
3. Security Deposit: $3,500 to $6,500
- This estimate does not include deposits required by your telecommunications services company or other public utilities company.
4. 3 Months’ Lease Rent: $15,000 to $30,000
- This estimate includes 3 months’ rent at a monthly rate of approximately $2.50 per square foot to $5.00 per square foot. Retreats will typically be 2,000 square feet in size. Retreats typically are located in shopping malls and strip malls.
5. Leasehold Improvements and Professional Design Fees: $118,000 to $164,000
- Building and construction costs will vary depending upon the condition of the premises for the Retreat, the size of the premises, local construction costs, and the extent and quality of improvements desired by you over and above the minimum requirements.
- This estimate includes tenant improvement allowances, which is a negotiated sum a landlord may be willing to spend to customize the leased space for the needs of a tenant. If offered, the range of the tenant improvement allowances may may vary depending upon the condition of the leased space.
- Leasehold improvements and professional design fees are based upon tenant improvement allowances of $35 per square foot to $45 per square foot for a 2,000 square foot location.
6. Exterior Signage: $6,500 to $8,000
- This estimate is for a single exterior sign. The type and size of the signage installed will be based upon the zoning and property use requirements and restrictions. These estimates assume you purchase your exterior signage.
7. Equipment: $15,500 to $26,500
- This estimate includes a telephone system, sound system, sound masking system, appliances, and interior decorative items that are not included in the Retreat Development Package.
8. Computer Hardware and Technology Fee: $9,000 to $13,000
- This estimate includes the cost of obtaining the required Technology System, including computer hardware, networking equipment and installation, and the required customized software. It also includes the setup fee and estimate for three months of the Technology Fee.
9. Business Licenses and Permits: $150 to $2,100
- Certain states may require that you file and post a bond to sell memberships or if you are classified as a health spa. It is your responsibility to verify whether or not your state requires such bond, and provide Massage Heights with the bond documentation.
10. Professional Fees: $1,000 to $8,000
- Massage Heights strongly recommends that you hire a lawyer, accountant, or other professional to advise you on this franchise offering, the lease for your Retreat, and to assist you in setting up your Massage Heights business.
11. Initial Inventory: $9,250 to $11,800
- This estimate includes the beginning inventory for 3 months. These items include: office supplies, opening marketing kit, brochures, flyers, business cards, recruiting materials, gift cards and certificates, stationery, table signs, forms, membership cards, decals, pre-opening and grand opening banners, pens, and other marketing materials not included in the grand opening advertising program.
12. Insurance: $3,500 to $7,000
13. Initial Training Expenses: $1,500
- Massage Heights currently provides training at its franchising office located in San Antonio, Texas. It also provides training through an online platform. You must pay for airfare, meals, transportation costs, salaries, benefits, lodging, and incidental expenses for all Initial Training Program attendees.
- Initial training is provided at no charge for you (or your Managing Owner), your Designated Retreat Director, and one other personnel. If additional initial training is required, or more people need to be trained, an additional fee may be assessed.
- This estimate includes the travel and living expenses including airfare that you will incur when you and one other person attend the Initial Training Program for Retreats. It does not include any wages or salary for you or your employees during this training.
14. Initial Advertising Program: $25,000
- The Initial Advertising Program will be spent towards generating awareness within the local trade area of the opening of your Retreat and promoting introductory massage, as well as memberships.
15. Additional Funds – 3 Months: $20,000 to $25,000
- These amounts represent Massage Heights’ estimate of the amount needed to cover your expenses for the initial three-month startup phase of your Massage Heights business. They include payroll, administrative, utilities, and other items.
- These figures do not include standard pre-opening expenses, Royalties, or advertising fees payable under the Franchise Agreement or debt service, and assume that none of your expenses are offset by any sales generated during the startup phase.
16. Total Estimated Initial Investment: $362,240 to $471,224
17. Additional Expenditures for Optional Facial Services: $11,775 to $13,132
- Beginning in 2019, offering facial services as part of the Massage Heights Businesses is optional.
- Facials may be offered in dual-use therapy rooms unless local and state regulations require separate rooms.
- This estimate includes the additional items you will need to incorporate facial services into your Massage Heights Business, including the cost for the required operational and retail professional facial products that must be purchased from Massage Heights’ approved suppliers. Massage Heights estimates the cost of the operational and retail professional facial products will range from $4,500 to $5,000.
18. Total Estimated Initial Investment for the Massage Heights Business with the Optional Facial Services: $374,015 to $484,356