Updated October 31, 2020.
Detailed Estimates of Massage Heights Franchise Costs Based on Item 7 (Estimated Initial Investment) of Massage Heights’ 2020 Franchise Disclosure Document
1. Initial Franchise Fee: $39,000
2. Retreat Development Package: $87,813 to $97,057
- 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. Utility and Security Deposits: $3,500 to $6,500
- This estimate does not include deposits required by your telecommunications services company or other public utilities company.
4. Leasehold Improvements and Professional Design Fees: $179,000 to $210,000
- 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 $25 per square foot to $45 per square foot for a 2,000 square foot location.
5. 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.
6. Equipment: $3,050 to $6,100
- This estimate includes appliances and other items that are not included in the Retreat Development Package.
7. Technology System: $26,500 to $31,200
- This estimate includes the cost of obtaining the required technology system, including computer hardware, networking equipment, sound system, sound masking system, phone system, surveillance, and installation, and the required customized software. It also includes the setup fee.
8. 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.
9. 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.
10. Initial Training Expenses: $3,000
- 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.
11. Initial Advertising Program: $20,000
- 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.
12. Additional Funds – 3 Months: $40,090 to $57,440
- 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, three months of the $550 monthly Technology Fee, three months of the $670 monthly social media management services fee, and other items.
- They also include an estimated amount of $7,950 to $10,300 for three months of initial inventory, which includes 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.
- Additionally, Massage Heights has included $480 for three months of fees you will pay to its designated vendors, including $80 per month for scenting machine equipment and services, and $80 per month for overhead music and on-hold music.
- These amounts also include an estimate of $6,000 to $13,000 for insurance premiums for three months.
- Also included in these amounts are an estimated $22,000 to $30,000 for lease payments. This range includes three months’ rent at a monthly rate of approximately $3.30 per square foot to $3.80 per square foot. Retreats will typically be between 2,200 and 2,400 square feet in size with at least eight massage rooms and nine tables.
- The figures in this table 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.
13. Total Estimated Initial Investment: $409,603 to $488,397