Massage Envy
Massage Envy offers professional massage services, including Total Body Stretch and hot stone therapy, in a clean, friendly environment. Known for its membership-based program and high-end products, it operates as a personal health business franchise.
About Massage Envy
Massage Envy Franchising LLC is an American massage, body care, facial and skin care national franchisor, based in Scottsdale, Arizona. The Massage Envy franchise network is the largest provider of results-driven massages and skin care in the United States, and has nearly 1,000 independently owned and operated franchise locations. Massage Envy was established in 2002 and began franchising in 2003.
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Massage Envy franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Massage Envy Business ranges from $695,870 to $1,046,506. This includes an initial franchise fee of $45,000 and other start-up costs as detailed in the FDD [p.1].
What is the initial franchise fee?
The initial franchise fee varies based on whether it's your first or subsequent Massage Envy franchise, and if you qualify for the VetFran program. For a first-time franchisee, the initial franchise fee is $45,000, while for those acquiring their second or subsequent franchise, it is $35,000 unless they are a veteran eligible for the VetFran discount, in which case the fees are $36,000 for the first and $28,000 for any additional franchises. [p.26, p.32]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of Gross Sales, which includes various types of revenue from the operation of the business [p.117]. This percentage applies to the total revenue and receipts derived from the business operations, as detailed in the franchise agreement [p.117]. This isn't specified in the excerpts for advertising fees specifically.
How long is the initial franchise agreement, and can I renew it?
The initial terms of the franchise agreements are typically 10 years [p.94]. The franchisor has the right to refuse to renew the franchise without fairly compensating you for your inventory, supplies, equipment, fixtures, and furnishings, provided certain conditions are met [p.5(d)].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot sell or transfer your franchise without the franchisor's prior written approval [p.140]. If you wish to sell or transfer your franchise rights, you must first obtain a bona fide, executed written offer from a responsible and fully disclosed buyer [p.144], and submit a true and complete copy of this offer to the franchisor along with details about the payment terms and financing for the proposed purchase price [p.144].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement if there is good cause, such as the failure of the franchisee to comply with any lawful provision of the franchise agreement and not curing such failure after being given written notice and a reasonable opportunity to cure, which cannot exceed 30 days [p.5].
What financial requirements — net worth and liquid capital — do I need to qualify?
You need to demonstrate proven net worth and liquidity requirements as established by the franchisor [p.141]. These standards are also applicable for new franchisees upon the expiration of the term, provided they substantially complied with the agreement during their tenure [p.145]. The specific amounts are not detailed in these excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.54]. You may face competition from other franchisees, outlets owned by the company, and competitive brands controlled by them. Additionally, the franchisor reserves the right to operate or license others to operate Massage Envy Businesses in Captive Venues within your designated territory [p.54].
What training and ongoing support does the franchisor provide?
The franchisor provides approximately ten (10) days of onsite training at your Business or another location they designate. This includes hands-on operational support and training on the P4 Technology, reporting systems, and other tools that support your business. Additionally, representatives from designated suppliers will provide product and service knowledge training lasting about 2-4 hours. [p.51, p.119]
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does provide some financial performance information, but it is limited. According to [p.66], the franchisor can provide actual or potential financial performance data for its outlets if there is a reasonable basis and this information is included in the Disclosure Document. However, [p.70] states that other than what is provided in Item 19, no additional representations are made about future financial performance, and employees or representatives are not authorized to make such claims either orally or in writing.
What am I restricted to selling, and where must I buy supplies?
You are required to adhere to certain operating restrictions, which may include controlling what you sell. The franchise agreement may prohibit you from operating a similar business during the term of the franchise [p.3]. Additionally, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, as these items might be more expensive than those you could purchase on your own [p.3]. For specific details on products, materials, supplies, and services you must use, refer to Item 8 and Sections 2(D), 2(E), 2(F), 4(D) & 8 of the Franchise Agreement [p.43] and [p.128].