Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
  • Firehouse Subs
  • Jimmy John's
  • Massage Envy
  • Menchie's
  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
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  • And Hundreds More...

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Considering a Massage Envy Franchise? Don’t Overlook These 26 Important Franchise Fees

by Franchise Chatter on August 7, 2017

in Franchise Fees, Massage Franchise



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Don't Invest in a Franchise Until You Check Out This List

If you are considering a Massage Envy franchise, don’t get blindsided by these 26 important franchise fees (from the initial franchise fee, to the royalty fee, to 24 other fees found in Items 5 and 6 of Massage Envy’s 2017 FDD).

1.  Initial Franchise Fee:  $16,000 to $45,000



  • Massage Envy currently charges an initial franchise fee of $45,000 for franchises for Total Body Care Locations. If this is your second or subsequent franchise, your initial franchise fee for a Total Body Care Location will be reduced to $35,000.
  • Massage Envy participates in the International Franchise Association’s Veterans Transition Franchise Initiative, otherwise known as “VetFran.” As part of this program, Massage Envy offers U.S. military veterans discounted franchise fees.
  • If you are a veteran, the initial franchise fee for a Total Body Care Location is $36,000 ($9,000 discount) for your first Massage Envy Business. If you are a veteran and you are purchasing your second (or subsequent) Total Body Care Location, your initial franchise fee is $28,000 ($7,000 discount).
  • Except as described in this section, the initial franchise fee is uniform. You must pay Massage Envy the initial franchise fee in a lump sum when you sign the Franchise Agreement. The initial franchise fee is fully earned by Massage Envy when you sign the Franchise Agreement and is not refundable under any circumstances.
  • The initial franchise fee for a Satellite Location is $25,000. If you purchase more than one Satellite Location, your initial franchise fee for each additional Satellite Location will be reduced to $20,000 ($5,000 discount). If you are a veteran, the initial franchise fee for a Satellite Location is $20,000 ($5,000 discount) and $16,000 ($4,000 discount) for your second or subsequent Satellite Location.
  • As described above, franchises for Satellite Locations are available only to existing Massage Envy franchisees, or in Massage Envy’s sole discretion, to prospective franchisees who are new to the Massage Envy franchise system and who want to own and operate a Satellite Location in unique or remote geographic areas.
  • Existing franchisees purchasing a Satellite Location will typically place the Satellite Location outside any of the areas where it has a Total Body Care Location.

2.  Royalty:  6% of Gross Sales

  • Due Date:  Due on the day of each week Massage Envy specifies.
  • Based on Gross Sales during the previous week.

3.  Marketing Fund Contributions:  2% of Gross Sales

  • Due Date:  Due on the day of each week Massage Envy specifies.

4.  Regional Advertising Cooperative Contributions:  established by advertising cooperative members

  • Due Date:  Established by advertising cooperative members.

5.  Millennium Computer Software, Maintenance, and Support:  $375 monthly support fee for up to 5 workstations, subject to change on 6 months prior notice; additional one-time fee of $150 if you have workstations in excess of 5

  • Due Date:  Support fee due on signing of the license for the Millennium Software.
  • Millennium is Massage Envy’s current POS software which runs on a local server and communicates with a central office database nightly.
  • Massage Envy is introducing a new cloud-based software (Meevo) which has been customized to Massage Envy’s business. Eventually, franchisees will open their franchises using the new software and existing franchisees will be converted over time.

6.  Technology Fee:  $15 per month

  • Due Date:  Due on the day of each month Massage Envy specifies.
  • This covers cost of administrating Massage Envy’s technology compliance program.

7.  P4 Technology Fees:  currently, charges for all available services would be approximately $1,200 per month for cable-enabled internet, with a higher charge for locations without cable-enabled internet



  • Due Date:  Due on the 24th day of the month following the install or receipt of each component associated with the P4 Technology.
  • The P4 Technology fees is estimated to be launched to the franchise network in a phased approach during calendar years 2017-2018.

8.  Massage Envy National Marketing Cooperative:  varies depending on the amount franchisees are required to contribute to support the annual marketing plan. Monies contributed to the National Coop will be credited a franchisee’s Minimum Marketing Spend Requirement on a dollar for dollar basis. For calendar year 2017, the amount to be contributed by franchisees ranges from approximately $1,100 to $1,500.

  • Due Date:  Due as required by the Massage Envy National Marketing Cooperative Committee.
  • The Massage Envy National Marketing Cooperative (“National Coop”) is a cooperative comprised of all current Massage Envy Locations operating in the United States with responsibility for annually reviewing and approving all marketing plans and programs, including those intended for a national audience or intended to be implemented by a regional cooperative, retention and relationships with advertising agencies and other vendors providing advertising and promotional related services, and major advertising or promotional programs to be implemented during the calendar year by Massage Envy.
  • The National Coop has the power to require all franchisees to contribute funds for these plans and programs even if these contributions cause franchisees to spend more than their Minimum Marketing Spend Requirement, although it is the intention that these contributions will not have the effect of causing franchisees to spend more than their Minimum Marketing Spend Requirement.

9.  Advertising Coop Accounting Fee:  1% of Total Monthly Contributions

  • Due Date:  Due on the day of each month Massage Envy specifies.
  • This fee is charged to the regional cooperative if it requests that Massage Envy provide accounting services for the cooperative.

10.  Additional Training or Assistance Fee:  $250 per person per day, plus expenses

  • Due Date:  As incurred.
  • Massage Envy provides initial training at no additional charge, but it may charge you for (i) training newly-hired personnel, (ii) refresher training courses, (iii) conventions, and (iv) any additional or special assistance or training you need or request.

11.  Failure to Attend Convention or Program Fee:  for each person who was required to attend, $400 per person per day for the duration of the convention or program

  • Due Date:  Upon demand.
  • If you fail to attend the annual convention, Massage Envy may charge you a fee of up to $400 per day for each person who was required to attend and failed to do so, multiplied by the number of days of the convention.

12.  Opening Audit Fee:  up to $500, which may be charged to audit and certify a Location’s readiness to open

  • Due Date:  As deemed necessary by Massage Envy.

13.  Site Survey Fee:  $2,000 to $4,000 (varies depending on scope of construction needed)



  • Due Date:  Upon execution of the lease for an approved Site, or upon renewal or transfer triggering a required Refresh.
  • Massage Envy retains a small portion of this fee ($100) with the remainder being paid by Massage Envy to the third-party vendor who will produce the survey.

14.  Refresh Deposit:  $25,000

  • Due Date:  Prior to completion of your transfer or entering into your successor Franchise Agreement.
  • The deposit will be paid by Massage Envy to the designated procurement vendor (currently LogicSource). You are responsible for paying the balance of the cost of the Refresh in accordance with the vendor’s payment terms.
  • Massage Envy may receive a referral fee from the procurement vendor, although to date, it has not received any such fees.

15.  Successor Franchise Fee:  2/3 of Massage Envy’s then-current initial franchise fee

  • Due Date:  Before execution of successor Franchise Agreement.
  • Due if you enter into a successor Franchise Agreement with Massage Envy.

16.  Transfer Fee:  2/3 of Massage Envy’s then-current initial franchise fee

  • Due Date:  Before transfer completed.
  • Due upon transfer of Franchise Agreement or controlling ownership interest in business entity franchisee.

17.  Audit:  cost of inspection or audit

  • Due Date:  As incurred.
  • Due only if you do not give Massage Envy reports, supporting records, or other required information on time or you understate Gross Sales by more than 2%.

18.  Interest:  lesser of 15% per annum or highest commercial contract interest rate law allows

  • Due Date:  As incurred.
  • Due on all overdue amounts under Franchise Agreement.

19.  Returned Check Fee:  $100

  • Due Date:  As incurred.
  • Due each time a check you write to Massage Envy is dishonored.

20.  Fines:  up to $500 per incident

  • Due Date:  Upon demand.
  • Payable if (i) you fail to comply with a mandatory System Standard and you do not cure the non-compliance within the time period Massage Envy requires, (ii) after committing a default under the Franchise Agreement, you commit the same default under the Franchise Agreement within 6 months, or (iii) you fail to operate your Business continuously during normal business hours during any day in which the Business is required to be open and operating without Massage Envy’s consent.
  • Massage Envy will deposit all fines into the Marketing Fund for the benefit of all franchisees. It is not Massage Envy’s intention to profit from these fines.

21.  Management Fee:  up to 8% of Gross Sales, plus costs and expenses

  • Due Date:  As incurred.
  • Due if Massage Envy or a Regional Developer manages your Business after your material breach under the Franchise Agreement.

22.  Costs and Attorneys’ Fees:  will vary with circumstances

  • Due Date:  As incurred.
  • Due only if you do not comply with the Franchise Agreement.

23.  Indemnification:  will vary with circumstances

  • Due Date:  As incurred.
  • You must indemnify Massage Envy and others for any damages incurred if you breach the Franchise Agreement or if Massage Envy and others are sued for claims relating to the operation of your Business.

24.  New Product or Supplier Testing:  cost of testing

  • Due Date:  As incurred.
  • This covers the costs of testing new products or inspecting new suppliers you propose.

25.  Insurance:  actual cost of premiums, plus Massage Envy’s costs and expenses

  • Due Date:  As incurred.
  • If you fail to obtain and maintain the insurance Massage Envy requires, and Massage Envy elects to do so on your behalf, you must reimburse Massage Envy.

26.  Late Fee and Dishonored Debit Fee:  1.5% per month (late fee); $25 per incidence (dishonored debit fee)

  • Due Date:  As incurred.
  • Late fee is due on all overdue amounts under the Millennium Sublicense Agreement; dishonored debit fee is due on each incidence of dishonored debit or instrument of payment for insufficient funds.

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