In this exclusive Franchise Chatter 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 2023 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 2023 FDD
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Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.Section III – Number of franchised and company-owned Elements Massage outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD
Section IV – News updates on the Elements Massage franchise opportunity
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 2023 FDD, including information on the:
- 2022 average, median, highest, and lowest revenue for the top 10, top 3rd, bottom 3rd, bottom 10, and all 238 Elements Massage franchised studios open as of January 1, 2022; 233 Elements Massage franchised studios open greater than 1 year prior to 2022; and 221 Elements Massage franchised studios open greater than 3 years prior to 2022
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 2023 FDD:
- Initial Franchise Fee: $40,000
- Real Property, Utility, and Other Security Deposits: $3,395 to $14,028
- Leasehold Improvements (net of landlord tenant allowances): $157,900 to $257,615
- Cabinetry and Millwork: $20,827 to $31,256
- Initial Service and Retail Supplies Inventory: $15,045 to $28,305
- Furniture, Decor, Lighting, and Other Equipment: $2,236 to $14,586
- Initial Software Set-Up and Technology Fees: $1,774
- Computer System and Other A/V Technology: $22,745
- Training Program: $3,707 to $4,797 (plus travel, meals, lodging, and other expenses)
- Architect, Engineer, Drawings: $12,600
- Grand Opening Spend Requirement: $15,000
- Signage: $9,571 to $13,107
- Office and Business Supplies: $3,300 to $5,000
- Business Licenses and Permits: $1,000 to $11,429
- Insurance (initial 20% payment): $1,883
- Professional Fees: $1,800 to $12,300
- Additional Funds (3 months): $10,000 to $30,700
- Total Estimated Elements Massage Franchise Costs: $322,783 to $517,125
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 2023 FDD:
- Initial Franchise Fee: $40,000
- Royalty: 6% of Gross Receipts
- Brand Marketing Fund: 2% of Gross Receipts
- Local Advertising Fee: $2,000 per month
- Local Spend Amount: 2% of Gross Receipts
Section III – Number of Franchised and Company-Owned Elements Massage Outlets
Franchised
2020
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.- 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
2022
- Outlets at the Start of the Year: 246
- Outlets at the End of the Year: 245
- Net Change: -1
Company-Owned
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
2022
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 2
- Outlets at the End of the Year: 1
- Net Change: -1
Section IV – News Updates on the Elements Massage Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Elements Massage Franchise (Item 19, 2023 FDD)
Franchised Studios Open as of January 1, 2022 and for One Year and Three Years as of January 1, 2022
- The following table describes 2022 Average Revenue for three categories of franchised Studios in the United States that were open as of January 1, 2022, and operated throughout 2022: (1) all franchised Studios that were open as of January 1, 2022, and operated throughout 2022; (2) franchised Studios that were open for at least one year as of January 1, 2022, and operated throughout 2022; and (3) franchised Studios that were open for at least three years as of January 1, 2022, and operated throughout 2022.
- As of December 31, 2022, there were 245 franchised Studios in operation in the United States. Of those 245 franchised Studios: (1) 238 were open as of January 1, 2022, and operated throughout 2022; (2) 233 were open for at least one year as of January 1, 2022, and operated throughout 2022; and (3) 221 were open for at least three years as of January 1, 2022, and operated throughout 2022.
All Franchised Studios Open as of January 1, 2022
Top 10
- Number of Studios: 10
- 2022 Average Revenue: $1,911,408
- Number That Met or Exceeded the Average: 5
- Percentage That Met or Exceeded the Average: 50.0%
- Same Studio Average Revenue Increase (2022 over 2021): 4.9%
- 2022 Median Revenue: $1,883,993
- 2022 Highest Revenue: $2,325,847
- 2022 Lowest Revenue: $1,533,705
Top 3rd
- Number of Studios: 79
- 2022 Average Revenue: $1,201,226
- Number That Met or Exceeded the Average: 25
- Percentage That Met or Exceeded the Average: 31.6%
- Same Studio Average Revenue Increase (2022 over 2021): 4.3%
- 2022 Median Revenue: $1,097,071
- 2022 Highest Revenue: $2,325,847
- 2022 Lowest Revenue: $801,580
Bottom 3rd
- Number of Studios: 79
- 2022 Average Revenue: $509,768
- Number That Met or Exceeded the Average: 38
- Percentage That Met or Exceeded the Average: 48.1%
- Same Studio Average Revenue Increase (2022 over 2021): 13.6%
- 2022 Median Revenue: $499,857
- 2022 Highest Revenue: $900,845
- 2022 Lowest Revenue: $190,926
Bottom 10
- Number of Studios: 10
- 2022 Average Revenue: $371,129
- Number That Met or Exceeded the Average: 5
- Percentage That Met or Exceeded the Average: 50.0%
- Same Studio Average Revenue Increase (2022 over 2021): 79.2%
- 2022 Median Revenue: $350,921
- 2022 Highest Revenue: $570,685
- 2022 Lowest Revenue: $190,926
All Studios
- Number of Studios: 238
- 2022 Average Revenue: $844,658
- Number That Met or Exceeded the Average: 108
- Percentage That Met or Exceeded the Average: 45.4%
- Same Studio Average Revenue Increase (2022 over 2021): 7.9%
- 2022 Median Revenue: $824,012
- 2022 Highest Revenue: $2,325,847
- 2022 Lowest Revenue: $190,926
All Studios Open Greater Than One Year Prior to 2022
- Number of Studios: 233
- 2022 Average Revenue: $852,987
- Number That Met or Exceeded the Average: 105
- Percentage That Met or Exceeded the Average: 45.1%
- Same Studio Average Revenue Increase (2022 over 2021): 7.2%
- 2022 Median Revenue: $828,472
- 2022 Highest Revenue: $2,325,847
- 2022 Lowest Revenue: $190,926
All Studios Open Greater Than Three Years Prior to 2022
- Number of Studios: 221
- 2022 Average Revenue: $871,506
- Number That Met or Exceeded the Average: 101
- Percentage That Met or Exceeded the Average: 45.7%
- Same Studio Average Revenue Increase (2022 over 2021): 6.8%
- 2022 Median Revenue: $835,109
- 2022 Highest Revenue: $2,325,847
- 2022 Lowest Revenue: $190,926
- The table includes information from 6 Studios which were formerly operated by Elements Massage’s wholly-owned subsidiaries until May 2020.
- Revenue figures in the table are based upon actual data Elements Massage requires its franchisees to submit to it on a monthly basis and are defined in the same manner as Gross Receipts are defined under the Franchise Agreement.
- “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.
- 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) ⬇️
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