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

• Section I – Background information on the Elements Massage franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for an Elements Massage franchise, based on Item 7 of the company’s 2015 FDD

• Section III – Presentation and analysis of Elements Massage’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:

• 2014 average annual revenue, average gross profit percentage, average number of gift cards sold, average percent with a hired manager, and average number of massage rooms for Elements Massage studios in the system open as of December 31, 2014 and open for at least 12 months as of January 1, 2014

• 2014 average new client trials per month and average membership conversion rate for the Elements Massage studios that were open and had operated for 1 month or longer as of December 31, 2014 (“Designated Studios”)

• average monthly revenue for the period of January 1, 2011 to December 31, 2014 for the Designated Studios that completed all of their first year of operations before December 31, 2014

Section I – Background Information

The wellness industry continues to grow at a healthy clip, with consumers spending ever-increasing amounts of money on fitness and nutrition. Massage continues to grow in popularity as an important aspect of overall wellness, and Elements Massage founder Michele Merhib wanted to make the most of that with a solid business model.

She’s a certified massage therapist who opened her first studio in 2001. She discovered that what most of her customers really wanted was therapeutic massage that addresses specific needs. By listening to what her clients were saying, she quickly discovered she could provide a superior service that left customers raving.

She began franchising her approach in 2006 and there are now more than 200 Elements Massage locations throughout the United States, and the chain has been adding 20-30 new locations each year since 2011.

Here’s how Elements Massage rubs people the right way in the massage industry:

Laser-Like Focus

Unlike many spas that try to be all things to all people by offering a dizzying array of services, Elements Massage focuses on one thing and one thing only: Massage. It calls its approach to handcrafted, personalized therapeutic massage The Elements Way, and it’s clearly working for lots of people.

The chain’s studio therapists take the time to listen to each client in order to provide a tailored experience that meets their needs.

Satisfaction Guaranteed

The chain prides itself on its high customer satisfaction scores. In fact, they guarantee your satisfaction with The Elements Promise, which means if you’re less than satisfied, your next massage is absolutely free. This is how Elements shows its commitment to providing customers with the highest level of service it can muster.

The Wellness Program

Savvy consumers want the benefits of massage, but they don’t necessarily want to pay spa-like prices. That’s why the chain developed its innovative Elements Wellness Program. It’s a month-to-month massage subscription where customers enjoy a monthly massage at a significant savings, but without the pressure of losing the investment. If you miss a session one month, it rolls over to the next month with no extra charges.

And you’re not locked in for long periods of time as customers can opt-out with a 30-day notice. The program also includes discounts on gift cards and members-only deals.

On the Business Side

Elements takes its simple approach to providing superior massage services into the business end of the operation as well, featuring surprisingly simple business processes for scheduling appointments and billing. And franchise owners love the steady, recurring income generated by the Elements Wellness Program.

From site selection to studio design and construction, Elements provides support during every step of the process for new franchisees, including a week of training at Highlands Ranch, Colorado.

Backed by the Best

Elements Massage is part of the WellBiz Brands family of wellness chains, which includes both Fitness Together and Fit 36. As one of the largest health and wellness companies in the United States, that collective wisdom around wellness franchising is made available to Elements franchisees.

Section II – Estimated Costs

• Please click here for detailed estimates of Elements Massage franchise costs, based on Item 7 of the company’s 2015 FDD.

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

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