Updated April 21, 2021.
Detailed Estimates of Elements Massage Franchise Costs Based on Item 7 (Estimated Initial Investment) of Elements Massage’s 2021 Franchise Disclosure Document
1. Initial Franchise Fee: $39,900
- When you sign a Franchise Agreement to develop a single Studio, you must pay to the franchisor an Initial Franchise Fee of $39,900. You must pay the Initial Franchise Fee as a lump sum by wire transfer. The Initial Franchise Fee is fully earned by the franchisor when paid by you.
- If you are signing the Franchise Agreement under an Area Development Agreement under which you or your affiliate previously paid a Development Fee, then you may not be required to pay an Initial Franchise Fee at the time you execute the Franchise Agreement.
2. Real Property and Utility Security Deposits: $100 to $15,121
- Studios are typically located in upscale retail areas, and require approximately 1,600 to 2,000 square feet.
- Estimated monthly lease payments range from $2,700 to $6,700 (including common area maintenance payments) depending on the size, condition, and location of the leased premises.
- Your landlord may require a security deposit before leasing the premises to you, which is typically equal to one month’s rent. Some utility companies also may require a security deposit before commencing services.
3. Leasehold Improvements (net of landlord tenant allowances): $187,629 to $316,525
- The cost of construction buildout includes the cost of design and architectural services and services performed by one of the franchisor’s designated suppliers for construction services.
- Typically, costs are higher in large metropolitan areas or if you choose premises with square footage in excess of the high range of 2,000 square feet.
- The range disclosed in the chart includes the construction management fee you must pay the franchisor in the event it approves an exception to the requirement that you use one of its designated suppliers for construction.
- In addition, the range disclosed in the chart is the range of costs after deducting any landlord allowances (tenant improvements, rent reduction, and the like), which may or may not be granted by your landlord.
- The franchisor estimates that tenant improvement allowances typically range from $0 to $42,325; however, these allowances may vary by your location and other economic factors.
4. Cabinetry and Millwork: $0 to $44,916
- You must purchase your Studio cabinetry and millwork from the franchisor’s designated supplier.
5. Site Survey Fee: $2,500
- No later than 10 days after the date that you sign an approved lease for the Premises, you must pay to the franchisor a non-refundable site survey fee equal to $2,500, in the form of a lump sum payment by ACH.
6. Massage Equipment and Supplies: $14,735 to $25,565
- You must purchase from the franchisor’s affiliate WAVE specific massage equipment and supplies for the operation of the Studio as detailed by the franchisor in the Operations Manual.
- The range of estimated costs represents the minimum equipment required to the maximum equipment recommended (depending on the number of rooms in your Studio and the equipment selected).
7. Furniture, Decor, and Other Equipment: $2,236 to $14,683
- You must purchase furniture, interior signage, and decor items for your Studio as specified by the franchisor in the Operations Manual or otherwise. The cost will depend on supplier financing terms (if available), the brands purchased, the quality of the items purchased, and other factors.
8. Computer System: $8,400 to $9,700
- Before opening your Studio, the franchisor typically requires you to purchase three computer workstations and related equipment and its designated and other software programs.
9. Training Program: $0 to $4,707 (plus travel, meals, lodging, and other expenses)
- You must pay your own transportation, meals, lodging, and any other living expenses for you and any other persons attending the Training Program.
- Part of the Training Program also includes the requirement that you (or your Operating Partner) and other Training Program attendees experience a massage session, and you will be required to pay for that massage session.
- If such massage session is at a Studio owned by the franchisor or an affiliate, you and your trainees will pay the franchisor or affiliate approximately $69 to $99 per trainee. The franchisor anticipates most franchisees will send up to three trainees, and in that case the fee payable to it or its affiliate would be $207 to $297.
- The low range of the estimate contemplates virtual attendance by you and two other people, while the high range contemplates you and up to two other people traveling to the franchisor’s Support Center office in Colorado for approximately four days.
- The estimates do not include any wages or salary you may choose to pay yourself or others while attending the Training Program, or Wi-Fi access and sufficient technology to attend virtual training.
10. Architectural Plans and Designs: $7,750 to $9,750
- You must use an architect and design vendor approved by the franchisor.
11. Grand Opening Spend Fee: $15,000
- No later than 10 days after the date that you sign an approved lease for your Premises (or 10 days after the date you purchase an existing Studio), you must pay to the franchisor the Grand Opening Spend Fee of $15,000 by ACH.
- The Grand Opening Spend Fee is in addition to your Local Marketing Spend Requirement.
- The franchisor will use the Grand Opening Spend Fee to advertise, market, and promote your Studio using any suppliers it may designate in accordance with a marketing and recruiting plan that it determines.
12. Signs: $6,845 to $14,032
- The estimate includes one exterior sign which bears the marks.
13. Business Supplies: $1,581 to $1,708
- The franchisor estimates that this range will cover the cost of various office and business supplies needed to operate a Studio for approximately the first 90 to 120 days of operations.
14. Business Licenses and Permits: $2,595 to $11,429
- The cost includes the licenses and permits required to operate a Studio in your location. The license and permit requirements are specific to the state and city/town in which your Studio is located.
- Certain states may require that you file and post a bond, the estimated cost of which is not included in the table.
15. Insurance (Initial 20% Payment): $3,984 to $4,500
- You must obtain insurance coverage from the franchisor’s designated supplier. Your landlord may require additional insurance.
- Under the franchisor’s required insurance program, you pay 20% of the annual premium up front and the remaining premiums for the year in equal installments on a monthly basis. The estimate shown in the table reflects the initial 20% payment, which you will pay before your Studio opens.
16. Additional Funds (3 months): $19,400 to $30,700
- The range of estimated costs represents your estimated initial start-up expenses (other than the amounts separately identified in the table), which include payroll costs (excluding a draw or salary for you or your manager if you are not the manager), lease payments, marketing expenses, uniform expenses, the costs of supplies, and other operating expenses.
17. Total Estimated Initial Investment: $312,655 to $560,736
- The franchisor relied on its and its affiliates’ many years of business experience in selling and supporting Elements Massage, Amazing Lash Studio, and Fitness Together franchises to compile these estimates.
- The franchisor does not currently finance any portion of the initial investment.