Massage Envy Franchise in 2024: Costs, Fee & FDD
Discover the investment potential of Massage Envy! Learn about franchise costs, key services, and the comprehensive support system that makes Massage Envy a top choice in the wellness industry. Dive into the details to see if it’s the right fit for you!
Table of Contents:
Founded in 2002 by John Leonesio, Massage Envy has established itself as a trailblazer in the wellness industry. The franchise began with a vision to make professional massage and skincare services accessible to everyone, offering a blend of quality and convenience. Its impact on the industry is significant, as it pioneered the membership model for massage therapy, turning self-care into a regular, affordable habit for countless clients across the U.S.
Massage Envy’s core services revolve around massages and facials. Their signature massages include Swedish, deep tissue, and sports therapy, while their facials feature a range of treatments designed to address various skin concerns. Beyond these, they offer ancillary services such as enhanced stretch sessions and specialized treatments like aromatherapy. Their core market consists of busy professionals, active individuals, and anyone seeking stress relief and wellness maintenance.
Currently, Massage Envy boasts a robust presence with over 1,000 locations across the United States. This expansive network ensures that the brand serves a substantial daily customer base, providing consistent service to millions of members. While their primary operations are within the U.S., their influence and reputation extend globally through strategic partnerships and franchising efforts.
Franchisees benefit from a comprehensive support system, including initial training programs that cover everything from operational procedures to marketing strategies. Ongoing support includes access to a dedicated franchise team, marketing resources, and business development tools. The franchise emphasizes community involvement and member retention strategies, ensuring that franchisees are well-equipped to build and sustain successful businesses.
Massage Envy Franchise Insights
- Massage Envy operates over 1,000 locations across the U.S., making it one of the largest massage franchises in the country. This extensive network provides a solid foundation and brand recognition for new franchisees.
- By offering a diverse array of services, including massages, facials, and specialized treatments like aromatherapy, catering to a broad customer base the franchise attracts and retains a wide range of clients.
- The brand’s emphasis on regular wellness routines and affordable self-care makes it appealing to a large, health-conscious market. This focus helps drive consistent customer traffic and fosters long-term client relationships.
Massage Envy Franchise Key indicators
Growth YOY (%)
-2%
vs industry 6%
Total U.S. Franchised Units
1,053
3-year Failure Rate
10%
vs industry 6%
Total Investment
$606K-$1.01M
How much does it cost to open a Massage Envy franchise?
When considering opening a Massage Envy franchise, it’s essential to understand the investment size and capital requirements. This includes initial franchise fees, equipment costs, and ongoing operational expenses. These financial commitments play a significant role in determining the feasibility and profitability of the venture. By thoroughly evaluating these factors, potential franchisees can ensure they are prepared for the financial responsibilities and make informed decisions about their ability to sustain and grow the business, ultimately leading to long-term success.
Min & Max Investment
Opening a Massage Envy franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a Massage Envy below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $45,000 | $45,000 |
| Initial Opening Package | $29,000 | $74,500 |
| Computer System | $57,600 | $82,000 |
| Security Deposits | $6,000 | $17,000 |
| Three Months’ Lease Rent | $13,000 | $32,200 |
| Leasehold Improvements | $353,000 | $554,000 |
| Exterior Signage (excludes interior signage that is part of the building materials included in Leasehold Improvements) | $6,000 | $17,000 |
| Business Licenses and Permits | $250 | $12,000 |
| Professional Fees | $15,000 | $30,000 |
| Grand Opening Advertising Program | $15,000 | $15,000 |
| Insurance | $10,000 | $35,000 |
| Initial Training | $1,000 | $6,000 |
| Additional Funds – 3 months | $55,000 | $95,000 |
| Total | $605,850 | $1,014,700 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Massage Envy franchise, you need to meet specific capital and financial requirements. Here’s an overview:
- Initial Investment The estimated total initial investment for a Massage Envy franchise ranges from approximately $606,000 to $1.01 million. This amount covers the franchise fee, real estate, construction, equipment, and other startup costs, including initial operating expenses. Note that you will likely need 20% of the total investment amount in the form of equity (cash), assuming that you can attain financing.
- Liquid Assets Requirement Massage Envy typically requires franchisees to have a minimum of $100,000 to $200,000 in liquid assets. This ensures that franchisees can handle unforeseen expenses and maintain financial stability during the initial phase of the business.
- Net Worth Requirement Franchisees are generally expected to have a net worth of at least $500,000. This includes all assets, such as real estate and investments, minus any liabilities.
Meeting these financial benchmarks helps ensure that franchisees are prepared for both the initial and ongoing financial commitments of running a Massage Envy location.
How much does a Massage Envy owner make?
Calculating the salary of a Massage Envy franchise owner involves examining gross sales to determine overall revenue, evaluating operational efficiency to understand profit margins, and factoring in franchisor fees along with additional expenses such as rent, utilities, and payroll. Effective management of these components can significantly influence the profitability and financial success of a Massage Envy franchise. By conducting a thorough financial analysis, including estimating net profits after all costs and fees, you can derive a clear projection of the owner’s potential salary. Understanding these financial dynamics ensures accurate salary forecasts and effective planning for the sustainable operation of the business.
Massage Envy Revenue & Gross Sales
In 2023, Massage Envy franchises achieved a median gross sales figure of $1,024,441, reflecting a 5% increase from the previous year. The median gross sales for 2024 is estimated to be $1,051,890, which is a 6% increase from the year before. These positive financial trends demonstrate the brand’s strong market presence and the increasing consumer demand for its wellness services.
Which key factors impact the average revenue performance of Massage Envy franchisees?
Several factors contributed to the growth in U.S. franchisee median gross sales revenue for Massage Envy from 2023 to 2024. Market stability and an increased focus on wellness and self-care have driven heightened consumer demand for Massage Envy’s services. Strategic marketing efforts, including targeted local advertising and promotions, likely attracted new clients and boosted revenue. Membership programs, such as better loyalty rewards and exclusive offers probably contributed to increased sales. Additionally, operational efficiencies, including improved staff training and customer service, have led to higher client satisfaction and repeat business. Franchisee confidence in the brand’s support system and operational guidance also played a significant role in driving revenue growth, creating a favorable environment for financial performance improvements.
Massage Envy Franchise Operational Costs
If you’re considering opening a Massage Envy franchise, understanding the key ongoing operational costs is crucial for managing your business effectively. These costs encompass various aspects of daily operations and can significantly impact your profitability. Here are the primary ongoing operational expenses you should consider:
- Lease and Rent Costs for leasing or renting the location, which varies depending on the size and location of the franchise, are a major part of your ongoing expenses.
- Utilities Monthly expenses for utilities such as electricity, water, and heating are essential to maintain a comfortable and operational environment for both staff and clients.
- Staff Salaries Wages and benefits for employees, including massage therapists, estheticians, and administrative staff, are a significant ongoing cost.
- Supplies and Inventory Regular purchases of massage oils, skincare products, and other necessary supplies are required to ensure the smooth operation of services.
- Insurance Coverage for general liability, property, and other relevant insurance policies is essential to protect your business from potential risks.
- Marketing and Advertising Ongoing local marketing and advertising efforts to attract and retain clients are important for maintaining and growing your customer base.
- Maintenance and Repairs Regular maintenance and unexpected repairs to keep the facility and equipment in good condition are also part of the operational costs.
Understanding and planning for these ongoing operational expenses will help you manage your Massage Envy franchise effectively and work towards achieving long-term financial success.
Massage Envy Franchise Fees
When opening a Massage Envy franchise, it’s important to be aware of the key ongoing operational costs associated with running the business. These costs are crucial for maintaining operations and ensuring the franchise’s success. Here’s a breakdown of the primary ongoing fees:
- Royalty Fees 6% of gross sales, due weekly. This fee is based on the gross sales from the previous week and supports the overall brand and operational support.
- Centralized Tech Solutions & Support Fee $390 per month. This fee covers centralized technology support, help desk services, and technology compliance.
- Marketing Fund/NAF Contributions 2% of gross sales, due weekly. This fee contributes to the national marketing fund, supporting the franchise’s broader marketing efforts.
- Supplemental Marketing Fund An additional 2% of gross sales, due weekly. This fund supports local marketing initiatives and promotional activities.
- Regional Advertising Cooperative Contributions Amounts vary and are established by cooperative members. Contributions support regional advertising efforts and are optional if the Supplemental Marketing Fund is in effect.
- Regional Advertising Cooperative Accounting Fee 1% of total monthly contributions, due monthly. This fee is applicable if the cooperative requests accounting services.
- Additional Training or Assistance Fee $250 per person per day plus expenses, applicable for additional training needs beyond the initial training provided. This includes training for new hires, refresher courses, and conventions.
These ongoing fees are essential to consider when planning the financial aspects of owning and operating a Massage Envy franchise.
Massage Envy Franchise Earnings
Based on the available data, Massage Envy franchises are projected to see an increase in earnings for 2024. The estimated median gross sales for 2024 are approximately $1,051,890, reflecting a 6% increase from 2023. For owner-operators, the estimated earnings are around $189,340, which is also a 6% increase from the previous year. This growth indicates a positive trend in franchise performance and profitability.
For semi-absentee owners, the estimated earnings for 2024 are approximately $147,265, showing a 6% increase from 2023. These earnings are based on the projected increase in gross sales and reflect the potential financial benefits of operating a Massage Envy franchise under both owner-operator and semi-absentee models. The consistent year-over-year growth suggests a favorable environment for franchise profitability.
How to Open a Massage Envy Franchise
Becoming a Massage Envy franchisee involves a series of steps, each crucial to ensuring a smooth transition from initial inquiry to the start of business operations. Here’s a step-by-step outline of the process:
- Initial Inquiry Start by submitting an inquiry through the Vetted Biz website or directly contacting a Massage Envy franchise specialist. This is where you express your interest and gather initial information about the franchise opportunity.
- Franchise Application After expressing interest, you’ll need to complete and submit a franchise application. This application collects information about your background, financial qualifications, and business experience.
- Review and Qualification Massage Envy will review your application to assess your suitability as a franchisee. This includes evaluating your financial qualifications, experience, and alignment with the franchise’s values and goals.
- Franchise Interview Participate in an interview or discovery day with Massage Envy’s franchise development team. This is an opportunity for both you and the franchisor to ensure mutual fit and discuss any remaining questions or concerns.
- Site Selection and Lease Negotiation Once approved, you’ll work with Massage Envy’s real estate team to select a suitable location for your franchise. This involves negotiating a lease agreement and preparing the site for build-out.
- Training and Preparation Attend the mandatory training program provided by Massage Envy. This training covers operational procedures, customer service standards, and business management. Additionally, prepare for the launch by setting up operations, hiring staff, and purchasing necessary equipment and supplies.
- Grand Opening Finally, coordinate with Massage Envy for your grand opening. This includes finalizing marketing efforts, scheduling an opening event, and officially starting your business operations.
Pros & Cons
Pros
Large Network: With over 1,000 locations across the U.S., Massage Envy offers a proven business model and operational support from a large, successful franchise network.
Recurring Revenue Model: The membership-based model promotes steady revenue through recurring payments, which can provide consistent cash flow.
Growth Potential: The wellness industry continues to grow, and Massage Envy’s focus on affordable self-care and wellness positions it well for future expansion.
Cons
Competitive Market: The wellness and massage industry is competitive, and new franchisees must effectively differentiate themselves to attract and retain clients.
Location Dependence: The success of a franchise location can be highly dependent on its geographical location, foot traffic, and local market conditions.
Economic Sensitivity: The wellness industry can be sensitive to economic downturns, where discretionary spending on services like massage and skincare might decrease during tough economic times.
