In this FDD Talk 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 2018 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a MassageLuXe franchise, based on Items 5 and 6 of the company’s 2018 FDD

• Section IV – Number of franchised and company-owned MassageLuXe outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD

• Section V – Presentation and analysis of MassageLuXe’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:

• 2017 average and median annual revenue for the franchisee-owned MassageLuXe Spas that were open during the entire 2017 calendar year

• 2017 adjusted average operating results (i.e. revenue, operating expenses, net income) for the affiliate-owned MassageLuXe Spas that were operated by the franchisor’s affiliates for the entire 12 months during this period

Section I – Background Information

9 Things You Need to Know About the MassageLuXe Franchise

Newest Location

1.  Back in December 2018, MassageLuXe announced that it was opening a new location in early February 2019 in Lancaster, Florida. MassageLuXe chose a 3,500-square-foot space next to Orrstown Bank in the Wegmans-anchored shopping center along Harrisburg Pike near Long’s Park for its new spa.

2.  The Lancaster MassageLuXe is owned and operated by Eric and Rachel Jenkins, who have three other MassageLuXe locations in Florida. Eric Jenkins said he expects to invest more than $500,000 in the Lancaster location, which will operate with about 35 employees, including 20 massage therapists. The Lancaster MassageLuXe is the 62nd franchise location for the chain.

Membership Tiers

3.  MassageLuXe offers four different types of memberships to fit every customer’s needs. All of the memberships are valid at any MassageLuXe Spa location and include unlimited 15-minute daily HydroLuXe dry water massage sessions. All memberships also include a 15% discount on products and waxing services.

4.  The membership tiers are as follows:

• LuXe – This is MassageLuXe’s lowest tier, which includes a 1-hour standard massage session or a 1-hour LuXe facial each month. Swedish, Deep Tissue, and Prenatal massages are available for this tier. For facials, customers can have a FaceLuXe Pore Refining Facial, FaceLuXe Seaweed Facial, or FaceLuXe Express Glyco Peel and Reveal.

• Elite – The Elite tier includes a 1.5-hour standard massage session – including Swedish, Deep Tissue, and Prenatal – or a 1-hour specialty session. Specialty massages include: Hot Stone, Sports, Trigger Point/Tender Point, Aromatherapy, and Reflexology.

• Epic – The Epic membership includes one 2-hour standard massage session, one 1.5-hour specialty massage, or one FaceLuXe VIP Facial/Microdermabrasion session each month. The standard and specialty massages available are the same as the other tiers. FaceLuXe VIP Facial/Microdermabrasion sessions include: the Repêchage Four Layer Facial; Vita Cura – 5 Phase Firming Facial; Hydra Medic Biolight Miracle Facial; and Microdermabrasion.

• Family – The Family membership is for two people living in the same household. This membership tier is essentially the same as the LuXe tier but can be used by two people.

More Than Just Traditional Spa Services

5.  In addition to traditional spa and facial services, MassageLuXe also offers waxing and various unique treatments. For its waxing services, which can be done on practically any part of the body or face, MassageLuXe uses a seaweed wax, which is infused with two different types of seaweed to sooth, heal, and calm the skin. It is rich in Zinc Oxide, Titanium Dioxide, and Vitamin E to deliver a virtually painless waxing experience with less irritation, redness, and bumps.

6.  Some of MassageLuXe’s other treatments include:

• Opti Firm Eye Treatment – According to MassageLuXe, this treatment uses clinically-proven ingredients that work to combat signs of sleep deprivation, aging, and environmental damage. MassageLuXe uses a unique blend of peptides that is known to help reduce wrinkle depth, puffiness, and dark circles.

• Lamina Lift Mask – This mask treatment uses an organic blend of seaweed, orange water, and other botanicals infused in an organic aloe vera juice blend. It provides an instant soothing, cooling, and moisturizing effect. The Lamina Lift Mask can be added on to any massage, facial, or waxing service.

• Scalp Treatment – MassageLuXe’s Scalp Treatment nourishes damaged or frizzy hair and restores a youthful shine with a scalp massage utilizing the Repêchage Hydra Amino 18 Hair Serum, which has 18 amino acids, 12 vitamins, and 42 trace elements and minerals.

Company History

7.  MassageLuXe was founded in 2008 by Todd Beckman in Rock Hill, Missouri. Beckman recognized the need for more affordable ways for customers to enjoy the benefits of a luxurious massage or facial treatment. The mission of MassageLuXe Spa is to deliver the highest-quality massage, facial, and waxing services in an environment that is both luxurious and relaxing to all of its guests. Like most massage franchises, MassageLuXe operates on a membership-based business model.

8.  Franchising began not long after the first MassageLuXe location was opened. MassageLuXe has grown slowly over the past decade and continues to seek franchisees around the world. In April 2016, Beckman stepped down as CEO and president of MassageLuXe’s parent company BAM Brands, following a number of legal troubles. The company was handed off to Mark Otter, who continues to serve as CEO today.

Entrepreneur’s Franchise 500

9.  MassageLuXe ranked No. 485 on Entrepreneur’s 2019 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of MassageLuXe franchise costs, based on Item 7 of the company’s 2018 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on MassageLuXe’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2015

• Outlets at the Start of the Year:  22
• Outlets at the End of the Year:  33
• Net Change:  +11

2016

• Outlets at the Start of the Year:  33
• Outlets at the End of the Year:  39
• Net Change:  +6

2017

• Outlets at the Start of the Year:  39
• Outlets at the End of the Year:  48
• Net Change:  +9

Company-Owned

2015

• Outlets at the Start of the Year:  7
• Outlets at the End of the Year:  7
• Net Change:  0

2016

• Outlets at the Start of the Year:  7
• Outlets at the End of the Year:  5
• Net Change:  -2

2017

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  5
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis

• This financial performance representation contains (1) the actual 2017 average and median annual revenue of all franchised Spas in operation during the entire 2017 calendar year (Part 1, below); and (2) the adjusted average 2017 operating results of certain affiliate-owned Spas (Part 2, below).

Part 1 – Actual Average and Median Annual Revenue of Franchised MassageLuXe Spas

• The financial performance representation in this Part 1 contains the actual 2017 average and median annual revenue of 48* franchisee-owned Spas that were open during the entire 2017 calendar year.

• These 48 Spas represent approximately 91% of the total 53 franchisee-owned Spas open for business as of December 31, 2017. Spas that were not in operation for all of 2017 have been excluded from the financial performance representation as their partial year performance is not indicative of the performance MassageLuXe would reasonably expect to see over an entire calendar year.

• The Spas used to compile the information below have been in operation between 1 and 7 years.

• These results are based on the sales data MassageLuXe collects from the computer system software used by its franchisee-owned Spas. MassageLuXe has not independently audited this information.

• The actual average and median annual revenue numbers do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from revenue to obtain net income or profit.

13 to 24 Months in Operation