Relax The Back Franchise Costs $190K - $392K (2024 FDD Stats)

INVESTMENT

$190,000

-

$392,000

LOCATIONS

81

Debbie

Updated

April 17, 2024

Is

Relax The Back

a franchise?

Yes,
Relax The Back
currently
accepts
franchise
applications

Relax The Back, founded in 1984, has established itself as a leading brand in the health and wellness industry, specializing in products that aim to alleviate back and neck pain. It is recognized as the number one specialty retailer in its category. This franchise presents a compelling opportunity for entrepreneurs passionate about contributing to the improvement of their customer's quality of life through specialized health and wellness products​​.

The brand's emphasis on providing solutions that enhance overall well-being has helped it thrive in an industry that sees an annual growth rate of 8-10%, generating over $4.5 trillion in revenue​​. Relax The Back's franchise model is designed for simplicity and profitability, offering franchisees a chance to tap into a significant market demand for ergonomic and back care products. 

The franchise provides extensive training and support to ensure franchisees, regardless of their previous retail experience, can successfully operate their stores and provide valuable solutions to individuals seeking relief from back and neck pain. With the wellness industry's growth showing no signs of slowing down, a Relax The Back franchise offers a promising path to both personal and financial fulfillment​​.

How many

Relax The Back

franchises

are there?

In 2022, there were
81
outlets in
the United
States, of which
79
are franchises, and
2
are corporate-owned.

What are the

Relax The Back

franchise

fees?

Advertising fee

2.00%

Initial Franchise Fee

The initial franchise fee for the first location is $29,500, and for the second or subsequent stores, it is $5,000.

Continuing Royalty Fee

For the first store, there is no fee for the first 12 months, followed by a 5% of Adjusted Gross Sales for months 13-24. From the 25th month onwards, the fee is the greater of 5% or $1,875. For the second or subsequent store, the fee is 3% for the first 12 months.

Advertising Fee

A minimum of $10,000 is required for a grand opening marketing program.

Technology Fee

The technology fee includes leasing the point-of-sale system for $640 to $650 per month and a QuickBooks software license with a $500 set-up fee plus $200 per month.

Transfer Fee

The transfer fee is set at $7,500, which is refundable under certain conditions.

Renewal Fee

For renewal, the fees are $0 for a single 10-year term, $12,000 for a single 5-year term, and $15,000 for a 5-year term with an additional 5-year renewal option.

Management Fee

The management fee ranges from $150 to $250 per day plus costs, considered a reasonable amount.

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

Relax The Back

franchise?

It costs between
$190,000
and
$392,000
to start a
Relax The Back
franchise.
Type of Expenditure Amount
Initial Franchise Fee $5,000 to $29,500
Real Property Improvements $0 to $75,000
Rent/Security Deposit $5,000 to $20,000
Equipment, Fixtures, & Supplies $33,230 to $47,960
Initial Inventory $17,500
Other Inventory $74,900 to $93,000
Training Related Expenses $2,000 to $7,500
Grand Opening Expenses $10,000
Insurance $3,000 to $5,000
Exterior Signs $6,600 to $19,800
Computer Hardware & Software $3,020 to $3,050
Visual Merchandising Fee $0 to $4,000
6 months’ Additional Funds $30,000 to $60,000
Estimated Total $190,250 to $392,310

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

Relax The Back

provide

training

to its

franchisees?

Yes,
Relax The Back
provides
training

The franchisor provides an initial training program that covers the franchisee and their initial Relax The Back Store manager.

This training is designed to prepare them for the operation of their Relax The Back Store and must be completed to the franchisor's satisfaction before the commencement of store operations. Subsequent managers and supervisory personnel are also required to successfully complete this training program before managing store operations.

The training is conducted at a time and place designated by the franchisor, which may include virtual sessions, and is included in the initial franchise fee. The program may require the attendance of both the franchisee and their manager, and all associated costs such as travel, lodging, meals, and incidental expenses are the responsibility of the franchisee. The franchisor may also require additional or ongoing training and conventions for the franchisee or their manager, for which a fee may be charged.

Furthermore, the franchisor may offer annual training sessions at the franchisee's store or virtually, as part of their ongoing support. These sessions are intended to provide guidance on delivering approved products and maintaining the customer service standards of the System. The franchisor reserves the right to charge a reasonable fee for the training of subsequent managers and supervisory personnel unless otherwise agreed in writing.

Does

Relax The Back

provides

territory

protection?

The franchisor does not provide exclusive territory rights to franchisees. According to the franchise agreement, franchisees do not receive an exclusive territory and may face competition from other franchisees, outlets owned by the franchisor, or from other channels of distribution or competitive brands controlled by the franchisor.

However, as long as franchisees comply with the Franchise Agreement, they will receive a protected territory defined in the agreement, considering geographic, market, population, and other relevant factors, as well as the franchisor's overall development strategy. The size of a territory varies from franchise to franchise and is determined by the franchisor​​.

Can a

Relax The Back

franchise

be run as

a passive

investment?

The franchise agreement requires the RELAX THE BACK Store to be personally managed on a full-time basis by an individual who has successfully completed all the required training by the franchisor and meets all other current standards set by the franchisor. This implies a significant level of involvement from the franchisee or a designated manager in the day-to-day operations of the franchise.

Managers and other supervisory personnel at the franchise must sign confidentiality, non-competition, and other agreements deemed acceptable by the franchisor, and the franchisee is responsible for informing the franchisor about the identities of these managers and supervisors.

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