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

• Section I – Estimated initial investment (franchise costs) for an Elements Massage franchise, based on Item 7 of the company’s 2022 FDD

• Section II – Initial franchise fee, royalty fee, and marketing fee for an Elements Massage franchise, based on Items 5 and 6 of the company’s 2022 FDD

• Section III – Number of franchised and company-owned Elements Massage outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

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

• Section V – Presentation and analysis of Elements Massage’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• 2021 average revenue, new client trial, conversion %, and number of members as of December 31, 2021 for the top 10, top 3rd, bottom 3rd, bottom 10, and all 241 Elements Massage franchised studios open as of January 1, 2021; 236 Elements Massage franchised studios open greater than 1 year prior to 2021; and 222 Elements Massage franchised studios open greater than 3 years prior to 2021

• Section VI – Key ratios, comparables, computations, and analyses for the Elements Massage franchise opportunity (exclusive content for Platinum subscribers)

Section I – Elements Massage Franchise Costs

• Elements Massage franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $40,000
• Real Property and Utility Security Deposits:  $5,000 to $15,000
• Leasehold Improvements (net of landlord tenant allowances):  $157,954 to $281,208
• Cabinetry and Millwork:  $24,359 to $44,886
• Site Survey Fee:  $2,500
• Site Development Fee:  $7,500
• Massage Equipment and Supplies:  $15,045 to $28,305
• Furniture, Decor, and Other Equipment:  $2,236 to $14,586
• Computer System:  $12,150 to $14,050
• Training Program:  $0 to $4,707 (plus travel, meal, lodging, and other expenses)
• Architectural Design & MEP Fees:  $9,500 to $16,500
• Grand Opening Spend Requirement:  $15,000
• Signage:  $14,392 to $17,644
• Business Supplies:  $1,581 to $1,708
• Business Licenses and Permits:  $2,595 to $11,429
• Insurance (Initial 20% Payment):  $1,830
• Professional Fees:  $1,800 to $12,300
• Additional Funds for 3 Months:  $19,400 to $30,700
• Total Estimated Elements Massage Franchise Costs:  $332,842 to $559,853

Section II – Elements Massage’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Elements Massage’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $40,000
• Royalty:  6% of Gross Receipts
• Brand Marketing Fund:  2% of Gross Receipts
• Local Advertising Fee:  $1,625 per month
• Local Spend Amount:  2% of Gross Receipts

Section III – Number of Franchised and Company-Owned Elements Massage Outlets

Franchised

2019

• Outlets at the Start of the Year:  237
• Outlets at the End of the Year:  242
• Net Change:  +5

2020

• Outlets at the Start of the Year:  242
• Outlets at the End of the Year:  245
• Net Change:  +3

2021

• Outlets at the Start of the Year:  245
• Outlets at the End of the Year:  246
• Net Change:  +1

Company-Owned

2019

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  8
• Net Change:  0

2020

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  2
• Net Change:  -6

2021

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

Section IV – Background Information on the Elements Massage Franchise

13 Things You Need to Know About the Elements Massage Franchise

Announces Summer Celebration to Recognize and Honor Studios’ Massage Therapists and Team Members

1.  At the beginning of July 2021, Elements Massage announced that it was hosting a “Summer Celebration” to recognize and honor the studios’ Massage Therapists and Team Members. In total, the brand gave away $25,000 worth of cash and prizes including Apple AirPods, HyperVolt massage devices, and $500 gift certificates. This celebration culminated in a grand prize giveaway of $10,000 in cash awarded the week of August 30, 2021, to any eligible studio employee hired on or before Wednesday, June 30, 2021.

2.  Eric Stephenson, chief wellness officer of Elements Massage, said, “The Elements Massage brand was started over a decade ago by a Massage Therapist with the goal of providing the therapeutic and healing benefits of massage therapy to every client. Today, the brand remains exclusively focused on massage and delivering on our mission of providing a personalized experience to meet each client’s need on every visit. We’re thrilled to be hosting this Summer Celebration to recognize studio teams. The last year has been challenging but I’m so proud and grateful of all that we’ve done together to keep clients and studio employees safe. Members are returning at unprecedented rates and the studios are looking for more team members to help provide the healing benefits of massage.”

3.  Elements Massage ended the Summer Celebration in mid-September when it awarded Kayla Flohre with a $10,000 cash award. Flohre has worked as a licensed Massage Therapist for the Elements Massage brand for eight years. During her time with Elements Massage, she has performed over five thousand massage services. She chose the massage therapy profession because of her appreciation for the healing power of massage therapy. She chose to work for Elements Massage because of its unmatched commitment to delivering the best therapeutic, healing massage experiences for both clients and massage therapists.

4.  Flohre said, “My mom is an Occupational Therapist and so I grew up with a respect and passion for the healing power of touch and therapy. I’ve been a licensed Massage Therapist for many years, and it’s been such a great career for me. I love working at my Elements Massage location because they, along with the brand, give Massage Therapists the tools they need to support them both personally and professionally.”

5.  Stephenson added, “Acts of appreciation and words of gratitude are at the heart of the Elements Massage brand. It’s why the brand launched the ‘Summer Celebration.’ After such a tumultuous time, we wanted to show our deep appreciation for studio teams’ dedication to clients’ health and well-being. I’m so excited that Kayla was awarded with our Summer Celebration grand prize of ten thousand dollars! With close to a decade as a Massage Therapist at Elements Massage and over five thousand massage services performed, she truly embodies the culture of the brand!”

Parent Company Celebrates Record Growth in 2021

6.  At the end of January 2022, WellBiz Brands, Inc. – the parent company of Elements Massage, Drybar, Amazing Lash Studio, Radiant Waxing, and Fitness Together – shared 2021 results from the record-breaking year the company experienced. With nearly $500M in systemwide sales, close to 900 locations, and 250,000 members, 2021 marked a year of tremendous growth for the company.

7.  In 2021, the brands managed by WellBiz Brands signed over 100 new franchise agreements expanding its category-leading concepts in major markets as well as expanding to new communities around the country. Trends continue to point to the resiliency of personal services which was evident in the double-digit sales growth compared to 2019, one of the primary barometers for the overall health of its business.

8.  Jeremy Morgan, CEO of WellBiz Brands, said, “WellBiz Brands’ growth is driven by category leading brands that deliver best-in-class, personalized services, leaving guests feeling empowered and confident. As the expert in brands that affluent female consumers love, we are dedicated to creating customer-centric experiences that create brand loyalty. The demand for self-care, whether it be a blow-out before a big event or a massage as part of your wellness routine, is truly limitless. WellBiz Brands is the perfect fit for experienced franchisees looking to expand into new concepts or the entrepreneur looking to start their own business for the first time.”

9.  Backed by a management team with nearly a century of combined leadership experience, WellBiz Brands is the future of membership-based brands. With an expertise in digital marketing, the company developed a cross-brand digital marketing program that drives effective member acquisition strategies, creating a world-class membership ecosystem. The company also provides service provider retention and attraction tools, giving franchisees the leading edge in their industries.

10.  WellBiz Brands has received national recognition on lists such as the Inc. 5000 Fastest Growing Companies, Entrepreneur’s Franchise 500, and Franchise Times’ Fast & Serious, and was recently honored with the 2021 Franchising@WORK Silver award by Franchise Business Review.

Company History

11.  Elements Massage was founded in 2002 by Michele Mehrib in Aurora, Colorado. Mehrib had been working as a message therapist at a country club for a few years, but was fired after new owners took over. After the initial shock of losing her job, Mehrib decided to rent her own retail space and opened her own massage studio. Initially, she wanted her massage studio to be a general wellness center where therapeutic massage was just one of many services. After realizing that customers typically only wanted massage services, Mehrib shifted focus.

12.  Following the success of the first Elements studio, Mehrib opened a second location in 2005. A year later, Mehrib partnered with Fitness Together – now Wellbiz Brands – to start franchising Elements Massage. The company grew pretty quickly over the next decade and by 2016, there were 223 studios open across 36 states. Today, there are also Elements Massage locations in Canada.

Entrepreneur’s Franchise 500

13.  Elements Massage did not rank on Entrepreneur’s 2022 Franchise 500 list.

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Elements Massage Franchise (Item 19, 2022 FDD)

Franchised Studios Open as of January 1, 2021 and for One Year and Three Years as of January 1, 2021

• The following table describes 2021 Average Revenue, Average New Client Trial, Average Conversion, and Average Number of Members for three categories of franchised Studios in the United States that were open as of January 1, 2021, and operated throughout 2021: (1) all franchised Studios that were open as of January 1, 2021, and operated throughout 2021; (2) franchised Studios that were open for at least one year as of January 1, 2021, and operated throughout 2021; and (3) franchised Studios that were open for at least three years as of January 1, 2021, and operated throughout 2021.

• As of December 31, 2021, there were 246 franchised Studios in operation in the United States. Of those 246 franchised Studios: (1) 241 were open as of January 1, 2021, and operated throughout 2021; (2) 236 were open for at least one year as of January 1, 2021, and operated throughout 2021; and (3) 222 were open for at least three years as of January 1, 2021, and operated throughout 2021.

Top 10

• Number of Studios:  10
• 2021 Average Revenue:  $1,822,423
• 2021 Average New Client Trial:  1,912
• 2021 Average Conversion %:  34.1%
• Average Number of Members as of December 31, 2021:  1,131

Top 3rd

• Number of Studios:  80
• 2021 Average Revenue:  $1,147,737
• 2021 Average New Client Trial:  1,502
• 2021 Average Conversion %:  31.5%
• Average Number of Members as of December 31, 2021:  772

Bottom 3rd

• Number of Studios:  80
• 2021 Average Revenue:  $471,041
• 2021 Average New Client Trial:  981
• 2021 Average Conversion %:  22.8%
• Average Number of Members as of December 31, 2021:  327

Bottom 10

• Number of Studios:  10
• 2021 Average Revenue:  $274,001
• 2021 Average New Client Trial:  898
• 2021 Average Conversion %:  17.1%
• Average Number of Members as of December 31, 2021:  169

All Studios

• Number of Studios:  241
• 2021 Average Revenue:  $789,610
• 2021 Average New Client Trial:  1,219
• 2021 Average Conversion %:  27.2%
• Average Number of Members as of December 31, 2021:  536

All Studios Open Greater Than One Year Prior to 2021

• Number of Studios:  236
• 2021 Average Revenue:  $799,497
• 2021 Average New Client Trial:  1,216
• 2021 Average Conversion %:  27.4%
• Average Number of Members as of December 31, 2021:  543

All Studios Open Greater Than Three Years Prior to 2021

• Number of Studios:  222
• 2021 Average Revenue:  $816,754
• 2021 Average New Client Trial:  1,194
• 2021 Average Conversion %:  27.8%
• Average Number of Members as of December 31, 2021:  557

• “Gross Receipts” include all of your revenue and receipts, including those taken by cash, credit card, debit card, check, electronic funds transfer, ACH, trade, barter or exchange.

• Gross Receipts also include: (1) any other means of revenue derived from the operations of your Studio, including the sale of memberships, merchandise, or any products or services that are sold by you, whether sold at the Premises or from an off-Premises location; (2) all revenue from the sale or redemption of gift cards, in accordance with Elements Massage’s then-current System Standards; and (3) the gross amount of any business interruption or similar insurance payments.

• Gross Receipts exclude: (1) sales, use, or privilege taxes paid to the appropriate taxing authority; (2) refunds that are provided to clients; and (3) tips received from clients for payment to your employees.

• “New Clients” are individuals who have not previously visited a particular Studio.

• “Conversion” means the percentage of new clients who sign up for Elements Massage’s wellness membership program.

• “Members” are individuals who are participants in Elements Massage’s wellness membership program who paid a monthly membership fee in December 2021.

• Elements Massage compiled this data using information submitted to it by its franchisees. Elements Massage did not audit or otherwise verify the accuracy of the information submitted. These revenues and gross profit results are based upon historical data.

• Some studios have earned these amounts. Your individual results may differ. There is no assurance that you will earn as much.

Section VI – Elements Massage Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️