The largest provider of therapeutic massages and skin care in the United States, Massage Envy has established its position through a membership model. This provides customers with monthly massage appointments and discounts on additional treatments, encouraging repeat business and increasing the financial certainty for franchisees.
The company faced trouble in late 2017, when allegations of repeated sexual assault by its staff came to light, as well as evidence that the company had mishandled related complaints. Since then, Massage Envy has founded a safety advisory council with industry executives and a representative from an anti-sexual assault advocacy organization, to make customers safer and repair its tarnished reputation.
How much is a Massage Envy franchise?
The initial investment to set up a Massage Envy franchise ranges from $551,850 to $912,000 (Item 7, FDD 2021). This includes the initial franchise fee, three months’ rent, licenses and permits, training, equipment, and improvements to the rented premises, the last part being the most expensive.
If you want to set up a Massage Envy business, then you will currently have to set up what the company calls a “smaller format business”. This is a new smaller size and layout for Massage Envy businesses, ranging from 2,300 to 2,800 square feet in size, that all new franchisees are now required to develop. 216 out of the company’s 1,127 outlets are currently smaller format businesses.
How much is the Massage Envy franchise fee?
The initial franchise fee giving you the right to set up a Massage Envy franchise is $45,000 for your first franchise, and $35,000 for each additional Massage Envy outlet you run. There is a discount for military veterans, which reduces the fee for the first Massage Envy business to $36,000, and for each subsequent one to $28,000 (Item 5, FDD 2021).
Once the franchise is up and running, you pay 6% of gross earnings in royalties to the company, on a weekly basis. You must also pay 2% of gross sales into the company’s marketing fund. There may be additional payments to a regional advertising cooperative, varying by region and set by the franchisees in that cooperative, giving you some control over this fee (Item 6, FDD 2021).
How much does a Massage Envy franchise make?
Earnings vary with factors such as size and location. New Massage Envy outlets have to match the company’s smaller format business model, for which 2020 average sales for businesses open 1-5 years were $519,921. This smaller format business requires premises of 2,300 to 2,800 square feet, and is the only format currently allowed for new franchisees. More than a sixth of the brand’s businesses currently use this model (Item 19, FDD 2021).
Obviously, not all of the outlet’s sales will turn into profit for the franchisee. To get a sense of what these earnings might be, you need to deduct operating expenses such as rent, cost of goods, and labor, the last of which is particularly important for Massage Envy, a business selling the skills of trained professional massage therapists. To get a better grasp of the details, you might want to look at Franchise Chatter’s in depth reviews, as well as our comparison tools for comparing Massage Envy’s finances with similar franchises, all of which are available to our subscribers.
How do you franchise a Massage Envy?
The path to running a Massage Envy franchise starts with completing an initial form on their website. From there, the company will contact you and lead you through the application process, in which you’ll learn more about the brand and they’ll assess whether you meet the requirements to run one of their franchises.
One of the factors the company looks at is your financial circumstances. To start a Massage Envy franchise, you’ll need a net worth of at least $250,000 and cash liquidity of $200,000. As with any franchise, they’ll also be looking at your skills and experience, and whether your personality is a good fit for the brand and its outlets.
If you pass the application process, then the company will provide you with ten days of on-the-job training, as well as 38 hours of classroom training, to prepare you for running one of their businesses. They also provide ongoing support in areas such as marketing, lease negotiation, and proprietary software, which take some of the burden off you in establishing your new business.
Is the Massage Envy franchise for you?
If you’re passionate about taking care of others and want to run your own business along those lines, then Massage Envy could be a good fit for you. The company provides an established brand and a financial model that creates greater stability than if income was by individual appointment alone. Its current focus on smaller outlets might set limits on the more ambitious franchisee, but could also provide a comfort zone for someone with less experience.
If you’re not sure whether this is the franchise for you, or you want a chance to compare it with other options, then subscribe to Franchise Chatter for more information and comparison tools that will help you to evaluate any franchise.
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