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FDD Talk 2015: The MassageLuXe Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on June 18, 2015

in FDD Talk 2017: Service Franchises, Franchise Earnings, Massage Franchise

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Massage Luxe Photo from Massage Luxe

In this FDD Talk 2015 post, you’ll learn the following:

  • Section I – Background information on the MassageLuXe franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a MassageLuXe franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of MassageLuXe’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • 2014 average annual revenue for the 16 franchisee-owned Spas that were open during the entire 2014 calendar year
  • 2014 adjusted average operating results for 6 affiliate-owned Spas that were operated by the franchisor’s affiliates for the entire 12 months during this period

Section I – Background Information

Massage LuXe is trying hard to become a major player in the massage franchise industry, but it has a long ways to go.

Like many of its competitors, it offers both massage and facial services, but has also added in waxing services as a distinguishing feature from other massage chains like Massage Envy and Massage Heights.

Headquartered in Fenton, Missouri, MassageLuXe is the brain child of entrepreneur and company president Todd Beckman, who opened his first location in 2008 to offer high-quality, luxurious massage and spa services at affordable prices. The chain already has 32 locations and plans to open 22 more during 2015 alone.

Massage styles include Swedish, Deep Tissue, Prenatal, Hot Stone, Aromatherapy, Reflexology, Sports, and Trigger Point, to name just a few. They even feature the HydroLuXe dry water massage table with its jets of warm water striking the underside of a natural rubber bed in regular circular motions to massage the body.

Here’s how MassageLuXe keeps a growing customer base feeling pampered:

The Founding Force

Founder Todd Beckman is the same guy who already made his mark in the tanning industry with the Tan Co. and its membership model, until growth started sputtering. The tanning industry has become a tougher sale in recent years due to health warnings about skin cancer, especially for people who use tanning beds.

Massage, on the other hand, is all good when it comes to health. Ideas he’s carrying over into the massage operation include monthly memberships that result in an average price significantly lower than the industry average.

Wine Down Wednesdays

This is just a brilliant idea. Everyone knows a massage is a great way to wind down from any stressful activity whether a long week at work or a special event. But it’s even better when combined with wine!

Every third Wednesday of the month from 5-8 p.m. MassageLuXe locations offer wine tastings, free chair massages, and free skin care consultations. It’s an ongoing promotion that certainly brings in new potential clients for a mid-week wind-down.

Better Waxing

Women love the smooth feel of skin that’s been waxed free of all hair, but many waxing services are downright painful. Not so with MassageLuXe’s Repêchage SeaSmooth Artisan Seaweed Wax, which also contains antimicrobial zinc oxide and calming aloe vera. Applied using soft muslin strips with a super high thread count to provide maximum adhesion, most recipients barely even flinch when they’re removed.

Facials for Everyone

The variety of facials offered at MassageLuXe is worthy of mention. They include the Pore Refining Facial, Seaweed Facial, Glycol Peel and Reveal, the Lamina Lift Mask 4 Layer Facial, Hydra Medic Facial, the Vita Cura, Biolight Facial, Microdermabrasion, and the Papaya Enzymatic. This diverse menu of facial offerings ensures everyone can find one that’s right for them.

Section II – Estimated Costs

  • Please click here for detailed estimates of MassageLuXe franchise costs, based on Item 7 of the company’s 2015 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis

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