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FDD Talk 2016: The Massage Heights Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on June 1, 2016

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

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Massage Heights Photo from PJ Dick

In this FDD Talk 2016 post, you’ll learn the following:

  • Section I – Background information on the Massage Heights franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Massage Heights franchise, based on Item 7 of the company’s 2016 FDD
  • Section III – Presentation and analysis of Massage Heights’ financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
  • 2015 average monthly and yearly gross revenues for the 57 franchised Massage Heights businesses that were in operation for 24 months or longer at the beginning of January 1, 2015, were operating a Next Generation Retreat, and were operating a Retreat with at least eight treatment rooms (which is the minimum number of rooms for Retreats for new Franchises)

Section I – Background Information

Massage Heights Growing, Seeking New Markets

Massage Heights has grown each year in a dozen years of existence, surpassing 100 locations in 2014. At the end of 2015, Massage Heights had 123 franchised locations in the U.S., eight locations in the Canadian province of Alberta, and two company-owned locations. Thirty-five units were added in the past three years, and 18 units were added in 2015.

The company was rated No. 245 on Entrepreneur’s Franchise 500 list, down just one spot from a high of 244 in 2015.

Massage Heights is seeking franchisees and developers in a number of cities across the United States. Retreat development packages provide franchisees with complete store build-out that is customized for each location.

‘Build a Family’

The first Massage Heights was opened in San Antonio, Texas, in 2004 by Wayne and Shayne Evans, who began franchising the following year.

The company’s vision is “to build a family dedicated to the well-being of the people we serve.”

Massages, Facials, and More

Massage Heights provides massages and facials and related products. The company offers a monthly membership that includes a one-hour custom massage and aromatherapy each month by a licensed professional therapist, as well as discounted rates, discounts for family members, and other perks. Corporate memberships are also available for companies to offer their employees as a health benefit.

The Retreats are open seven days a week, with extensive hours, and some have more than 20 licensed therapists on staff.

Among the most popular massage types are Swedish, deep tissue, sports, couples, trigger point, geriatric and prenatal.

Swedish, Deep-Tissue Massages Join Forces

Swedish massage, the most common type, uses sliding, kneading and rubbing motions for relaxation and stress relief. Deep-tissue massage pinpoints tissues and muscle areas and is helpful for people who have chronic muscle pain. Swedish and deep-tissue massage are sometimes used together, creating a balance between stress release and pain relief.

Massages, Facials Can Be Upgraded With Elevations

Anti-aging, sensitive-skin, clear-skin and essential facials are available. Those getting a facial for the first time will visit with the skin therapist about the reasons for a facial, current physical condition, medical history, lifestyle, level of stress, and other relevant topics. The initial interview also helps the skin therapist choose the products and techniques to use during the facial.

Members can enhance their massages or facials with a variety of Elevations, such as hot stone therapy, foot scrubs and face massage, as well as various aromatherapies that can also be purchased to take home.

Environmentally-Friendly Company

Massage Heights has a commitment to earth-friendly products and processes. Therapists use biodegradable massage oils and lotions, and some use rechargeable battery-operated faux candles. The businesses use earth-friendly retail products and recyclable packaging.

Multi-Unit Franchise Owner Adds 35 Locations

Raj Patel, a multi-unit Massage Heights operator, signed a multi-unit agreement to open 35 retreats in the Chicago area in the next seven years with business partner Jay Punukollu. The first location in Illinois will kick off the company’s growth efforts in the Midwest.

Section II – Estimated Costs

  • Please click here for detailed estimates of Massage Heights franchise costs, based on Item 7 of the company’s 2016 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2016 FDD) and Analysis

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