Massage Envy Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$555,000

-

$980,000

LOCATIONS

1103

Jennifer

Updated

April 11, 2024

Is

Massage Envy

a franchise?

Yes,
Massage Envy
currently
accepts
franchise
applications

Massage Envy, a leading franchise in the wellness and therapeutic massage industry, has been a trusted name in relaxation and rejuvenation since its establishment. Founded in 2002 by John Leonesio, this franchise has its headquarters in Scottsdale, Arizona, USA.

Massage Envy is renowned for its commitment to making therapeutic massage and skincare services accessible to a broad clientele, providing an array of services aimed at promoting physical and mental well-being.

What sets Massage Envy apart in the wellness industry is its dedication to offering professional and personalized experiences. With a focus on individualized care, each massage and skincare treatment is tailored to address the unique needs and preferences of each client. This ensures that clients receive effective, customized treatments that cater to their specific concerns, whether they seek relaxation, pain relief, or stress reduction.

How many

Massage Envy

franchises

are there?

In 2022, there were
1103
outlets in
the United
States, of which
1103
are franchises, and
0
are corporate-owned.

What are the

Massage Envy

franchise

fees?

Advertising fee

5.00%

Initial Franchise Fee

The initial franchise fee is $45,000 for the first franchise. For veterans purchasing a second or subsequent franchise, the fee is $28,000. This fee is non-refundable and must be paid in a lump sum upon signing the Franchise Agreement.

Royalty Fee

The royalty fee is 6% of Gross Sales. This is a weekly fee based on the previous week's gross sales.

Advertising Fee

This includes a Marketing Fund/NAF Contributions of 2% of Gross Sales and a Supplemental Marketing Fund also of 2% of Gross Sales.

Technology Fee

Technology fees cover services like internet, network monitoring, and use of proprietary digital applications, approximately $1,198 per month.

Renewal Fee (Successor Fee)

The successor fee is two-thirds of the then-current initial franchise fee, due upon signing the successor franchise agreement.

Management Fee

This fee can go up to 8% of Gross Sales, plus costs and expenses, and varies based on circumstances.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Massage Envy

franchise?

It costs between
$555,000
and
$980,000
to start a
Massage Envy
franchise.
Type of Expenditure Amount
Initial Franchise Fee $45,000
Initial Opening Package $46,000 to $66,600
Computer System $57,600 to $82,000
Security Deposits $6,000 to $17,000
Three Months’ Lease Rent $13,000 to $32,200
Leasehold Improvements $287,000 to $554,000
Exterior Signage $6,000 to $17,000
Business Licenses and Permits $250 to $5,000
Professional Fees $7,000 to $30,000
Grand Opening Advertising Program $15,000
Insurance $10,000 to $35,000
Initial Training $1,000 to $6,000
Additional Funds– 3 months $61,000 to $75,000
TOTAL ESTIMATED INITIAL INVESTMENT $554,850 to $980,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Massage Envy

provide

training

to its

franchisees?

Yes,
Massage Envy
provides
training

The training provided by the franchisor for Massage Envy franchises includes several key components:

Initial Training Program

1. 5-Day Onsite or Virtual New Franchisee Training: Conducted at the Massage Envy Franchise Support Center in Scottsdale, Arizona, or other designated locations, including virtually. This training covers:

  • Delivering the Brand Promise
  • Managing the Business
  • Leading Teams
  • Operations Manual Overview
  • Additional Training/Onboarding Guides

2. 10-Day Onsite Training at Your Location: Provided by a Regional Developer or designated person. This includes:

  • Hands-on operational support
  • Training on the P4 Technology (point of sale system)
  • Reporting and other systems support for the business

3. Training by Suppliers: Approximately 2-4 hours of training on product and service knowledge by representatives of designated suppliers of skin care products and services.

Does

Massage Envy

provides

territory

protection?

The Massage Envy Franchise Disclosure Document indicates that franchisees are granted a specific geographic territory. The territory is defined based on factors like population, number of qualified households, and therapist availability.

However, the territory granted is not exclusive. Franchisees may face competition from other franchisees, outlets owned by the franchisor, or other distribution channels or brands controlled by the franchisor. Additionally, the franchisor reserves the right to modify the franchisee's territory under certain conditions, and these modifications could affect the franchisee's operations within their designated area.

Can a

Massage Envy

franchise

be run as

a passive

investment?

The franchisor expects active involvement from the franchisee. The franchise agreement stipulates that one of the franchise owners must be designated as the "Managing Owner" and hold at least a 20% ownership interest.

The Managing Owner is required to complete the franchisor's initial training program. Also, the franchisor maintains a level of control over who owns and operates the franchise.

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