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

Section I – Estimated initial investment (franchise costs) for a Massage Heights franchise, based on Item 7 of the company’s 2023 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Massage Heights franchise, based on Items 5 and 6 of the company’s 2023 FDD

Section III – Number of franchised and company-owned Massage Heights 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 Massage Heights franchise opportunity

Section V – Presentation and analysis of Massage Heights’ 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 gross revenue for the top 10, top 50%, bottom 50%, bottom 10, and all 99 franchised Massage Heights retreats that were open and in continuous operation for 12 months or longer as of December 31, 2022

• 2022 average, median, highest, and lowest number of prospects for the top 10, top 50%, bottom 50%, bottom 10, and all 99 franchised Massage Heights retreats that were open and in continuous operation for 12 months or longer as of December 31, 2022

• 2022 average, median, highest, and lowest number of annual service units for the top 10, top 50%, bottom 50%, bottom 10, and all 99 franchised Massage Heights retreats that were open and in continuous operation for 12 months or longer as of December 31, 2022

• 2022 average, median, highest, and lowest membership base for the top 10, top 50%, bottom 50%, bottom 10, and all 99 franchised Massage Heights retreats that were open and in continuous operation for 12 months or longer as of December 31, 2022

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

Section I – Massage Heights Franchise Costs

• Massage Heights franchise costs, based on Item 7 of the company’s 2023 FDD:

• Initial Franchise Fee:  $49,500
• Retreat Development Package:  $55,000 to $63,000
• Utility and Security Deposits:  $3,500 to $6,500
• Leasehold Improvements and Professional Design Fees:  $256,000 to $286,000
• Exterior Signage:  $7,500 to $10,000
• Equipment:  $3,050 to $6,100
• Technology System:  $32,000 to $40,000
• Software Setup Fee:  $500
• Facial Services Expenses:  $4,500 to $5,000
• Business Licenses and Permits:  $150 to $2,100
• Professional Fees:  $1,000 to $8,000
• Initial Training Expenses:  $3,500
• Initial Advertising Program:  $25,000
• Additional Funds – 3 Months:  $36,000 to $49,000
• Total Estimated Massage Heights Franchise Costs:  $477,200 to $554,200

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

• Massage Heights’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:

• Initial Franchise Fee:  $34,500 to $49,500
• Royalty:  6% of Gross Revenue
• Brand Fund Contribution:  3% of Gross Revenue
• Social Media and Website Management:  $450 per month
• Local and Regional Advertising Cooperatives:  established by cooperative members
• Local Advertisement Payment:  the greater of 3% of Gross Revenue or $2,000 per month

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

Franchised

2020

• Outlets at the Start of the Year:  122
• Outlets at the End of the Year:  109
• Net Change:  -13

2021

• Outlets at the Start of the Year:  109
• Outlets at the End of the Year:  106
• Net Change:  -3

2022

• Outlets at the Start of the Year:  106
• Outlets at the End of the Year:  102
• Net Change:  -4

Company-Owned

2020

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  4
• Net Change:  0

2021

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  3
• Net Change:  -1

2022

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

Section IV – News Updates on the Massage Heights Franchise

• Massage Heights Sees Record Revenue with 1.4M Services Delivered to Members and Guests

• Massage Heights Experiences Historic Revenue Growth

• Massage Heights Adds State-of-the-Art Skin Treatment

• Massage Heights Partners with the Zenoti Foundation and Awards $50,000 Worth of Scholarships to Massage Therapy Students

• Massage Heights Inks Deal for First Ever Hudson Valley Retreat

• Massage Heights Expands Senior Leadership Team

• Massage Heights to Support Nurses, First Responders and Teachers with Free Massages

• Massage Heights Did Not Rank on Entrepreneur’s 2023 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Massage Heights Franchise (Item 19, 2023 FDD)

• As of December 31, 2022, there were 102 franchised Massage Heights Businesses and 3 company-owned Massage Heights Businesses in operation in the United States.

• Of the 102 franchised Massage Heights Businesses: (a) 99 were open and in continuous operation for 12 months or longer as of December 31, 2022 (“Franchised Retreats”); (b) two of the 102 Massage Heights Businesses first opened for business in the 2022 calendar year (the “New Retreats”); and (c) one location began winding down operations during the last quarter of the 2022 calendar year in preparation for a 2023 closure (this location ceased operations in March 2023) (the “Closed Retreat”).

• The New Retreats and the Closed Retreat were excluded from the performance information presented in this Item 19.

• This Item 19 presents certain historical data as provided to Massage Heights by the Franchised Retreats through sales records and reports. Massage Heights has not audited this information, nor independently verified this information.

• For purposes of this Item 19 disclosure, Massage Heights divided the Franchised Retreats into four categories: Top 10% (10 Franchised Retreats); Top 50% (50 Franchised Retreats); Bottom 50% (49 Franchised Retreats), Bottom 10% (10 Franchised Retreats), and all locations (99 Franchised Retreats).

• Each of the four tables presented in this Item 19 displays results for the Franchised Retreats, broken down into these four categories.

• Part 1 shows the average Gross Revenue for the Franchised Retreats; Part 2 shows the average number of Prospects for the Franchised Retreats; Part 3 shows the average Annual Service Units for the Franchised Retreats; and Part 4 shows the average Member Base for the Franchised Retreats.

Part 1 – Gross Revenue for Franchised Retreats Open as of January 1, 2023

All Retreats

• Number of Retreats:  99
• 2022 Average Revenue:  $1,038,246
• Number and Percentage That Met or Exceeded Average:  43 / 43%
• 2022 Highest Revenue:  $2,858,208
• 2022 Median Revenue:  $965,619
• 2022 Lowest Revenue:  $346,603

Top 10

• Number of Retreats:  10
• 2022 Average Revenue:  $2,122,346
• Number and Percentage That Met or Exceeded Average:  4 / 40%
• 2022 Highest Revenue:  $2,858,208
• 2022 Median Revenue:  $1,960,546
• 2022 Lowest Revenue:  $1,606,823

Top 50%

• Number of Retreats:  50
• 2022 Average Revenue:  $1,386,263
• Number and Percentage That Met or Exceeded Average:  20 / 40%
• 2022 Highest Revenue:  $2,858,208
• 2022 Median Revenue:  $1,209,859
• 2022 Lowest Revenue:  $941,011

Bottom 50%

• Number of Retreats:  49
• 2022 Average Revenue:  $683,288
• Number and Percentage That Met or Exceeded Average:  27 / 55%
• 2022 Highest Revenue:  $939,326
• 2022 Median Revenue:  $715,510
• 2022 Lowest Revenue:  $346,603

Bottom 10

• Number of Retreats:  10
• 2022 Average Revenue:  $467,589
• Number and Percentage That Met or Exceeded Average:  6 / 60%
• 2022 Highest Revenue:  $532,638
• 2022 Median Revenue:  $484,562
• 2022 Lowest Revenue:  $346,603

Part 2 – Number of Prospects for Franchised Retreats Open as of January 1, 2023

All Retreats

• Number of Retreats:  99
• 2022 Average Prospects:  1,941
• Number and Percentage That Met or Exceeded Average:  41 / 41%
• 2022 Highest Prospects:  5,041
• 2022 Median Prospects:  1,764
• 2022 Lowest Prospects:  640

Top 10

• Number of Retreats:  10
• 2022 Average Prospects:  3,813
• Number and Percentage That Met or Exceeded Average:  4 / 40%
• 2022 Highest Prospects:  5,041
• 2022 Median Prospects:  3,539
• 2022 Lowest Prospects:  2,998

Top 50%

• Number of Retreats:  50
• 2022 Average Prospects:  2,558
• Number and Percentage That Met or Exceeded Average:  19 / 38%
• 2022 Highest Prospects:  5,041
• 2022 Median Prospects:  2,283
• 2022 Lowest Prospects:  1,759

Bottom 50%

• Number of Retreats:  49
• 2022 Average Prospects:  1,311
• Number and Percentage That Met or Exceeded Average:  28 / 57%
• 2022 Highest Prospects:  1,748
• 2022 Median Prospects:  1,415
• 2022 Lowest Prospects:  640

Bottom 10

• Number of Retreats:  10
• 2022 Average Prospects:  836
• Number and Percentage That Met or Exceeded Average:  5 / 50%
• 2022 Highest Prospects:  915
• 2022 Median Prospects:  865
• 2022 Lowest Prospects:  640

Part 3 – Number of Annual Service Units for Franchised Retreats Open as of January 1, 2023

All Retreats

• Number of Retreats:  99
• 2022 Average Services:  12,155
• Number and Percentage That Met or Exceeded Average:  38 / 38%
• 2022 Highest Services:  29,257
• 2022 Median Services:  11,270
• 2022 Lowest Services:  4,448

Top 10

• Number of Retreats:  10
• 2022 Average Services:  24,185
• Number and Percentage That Met or Exceeded Average:  5 / 50%
• 2022 Highest Services:  29,256
• 2022 Median Services:  24,279
• 2022 Lowest Services:  19,116

Top 50%

• Number of Retreats:  50
• 2022 Average Services:  16,088
• Number and Percentage That Met or Exceeded Average:  18 / 36%
• 2022 Highest Services:  29,257
• 2022 Median Services:  14,629
• 2022 Lowest Services:  11,242

Bottom 50%

• Number of Retreats:  49
• 2022 Average Services:  8,142
• Number and Percentage That Met or Exceeded Average:  27 / 55%
• 2022 Highest Services:  11,192
• 2022 Median Services:  8,480
• 2022 Lowest Services:  4,448

Bottom 10

• Number of Retreats:  10
• 2022 Average Services:  5,690
• Number and Percentage That Met or Exceeded Average:  7 / 70%
• 2022 Highest Services:  6,260
• 2022 Median Services:  5,947
• 2022 Lowest Services:  4,448

Part 4 – Membership Base for Franchised Retreats Open as of January 1, 2023

All Retreats

• Number of Retreats:  99
• 2022 Average Member Base:  863
• Number and Percentage That Met or Exceeded Average:  36 / 36%
• 2022 Highest Member Base:  2,304
• 2022 Median Member Base:  781
• 2022 Lowest Member Base:  185

Top 10

• Number of Retreats:  10
• 2022 Average Member Base:  1,873
• Number and Percentage That Met or Exceeded Average:  6 / 60%
• 2022 Highest Member Base:  2,304
• 2022 Median Member Base:  1,917
• 2022 Lowest Member Base:  1,529

Top 50%

• Number of Retreats:  50
• 2022 Average Member Base:  1,178
• Number and Percentage That Met or Exceeded Average:  19 / 38%
• 2022 Highest Member Base:  2,304
• 2022 Median Member Base:  1,010
• 2022 Lowest Member Base:  780

Bottom 50%

• Number of Retreats:  49
• 2022 Average Member Base:  542
• Number and Percentage That Met or Exceeded Average:  28 / 57%
• 2022 Highest Member Base:  762
• 2022 Median Member Base:  565
• 2022 Lowest Member Base:  185

Bottom 10

• Number of Retreats:  10
• 2022 Average Member Base:  313
• Number and Percentage That Met or Exceeded Average:  6 / 60%
• 2022 Highest Member Base:  393
• 2022 Median Member Base:  333
• 2022 Lowest Member Base:  185

• “Gross Revenue” means the total selling price of all services and products sold at or from or through the Franchised Retreats, whether or not sold or performed at or from the Franchised Retreat, including the full redemption value of any gift certificate or coupon sold for use at a Franchised Retreat (fees retained by or paid to third-party sellers of such gift certificates or coupons are not excluded from this calculation), and including all proceeds from any business interruption insurance and all income, revenue, and consideration of every other kind and nature related to the Franchised Retreat operation, whether for cash or credit and regardless of collection in the case of credit.

• “Prospects” is defined as a non-member coming into the Franchised Retreat to receive a service.

• “Membership Base” is defined as the total number of individual members who paid a monthly membership fee or paid the membership fee in-full.

• “Services” is defined as the total number of one hour of services provided.

• The financial performance representation disclosed in this Item 19 does not contain any information about any operating costs or expenses that must be deducted from the Gross Revenue figures to obtain a net income or profit. Operating costs and expenses may vary substantially.

• Some outlets have sold this amount. Your individual results may differ. There is no assurance you’ll sell as much.

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