Franchise Deep Dive: MassageLuXe Franchise Costs, Fees, Profit and Data

MassageLuXe is a nationwide spa franchise that offers massages, facials and waxing services. Licensed massage therapists and estheticians help clients find relief for chronic pain and skin conditions in a relaxing environment. Founded in 2007 in St. Louis, Missouri, the nationwide franchise is growing rapidly and aims to have 250 locations across the country by 2025.

Services offered

The brand offers various massage services, including the Swedish massage, deep tissue massage, prenatal massage and several specialty massages. MassageLuxe is built upon the value that therapeutic massage and skin health treatments aren’t just a luxury; they are methods of self-care that lead to better health, pain management and overall improvements to a person’s well-being.

MassageLuXe currently has more than 70 locations across 19 states and is planning to expand to 250 locations in the next four years.

After seeing significant growth in 2022, MassageLuXe is on track for a record-breaking 2023. With an aggressive growth strategy in place, MassageLuXe signed 17 new franchise locations last year—an achievement that puts the brand on track to reach its goal of expanding to 100 franchise locations by the end of this year.

Revenue model

MassageLuXe provides spa and massage services to clients through single- and multi-unit franchisees. Its spa franchises are driven by a membership revenue model that it claims to have a significantly higher level of consistency than other spa revenues and profits on a year-round basis.

A typical territory will be an approximately three-mile radius around the location of the spa unless franchisees are in a densely populated area or a rural area. Franchisees will not receive an exclusive territory under the Franchise Agreement. If franchisees sign a Multi-Unit Development Agreement, the franchisor will give them the right to develop and open a specific number of spas as designated.

Franchisees are not required to personally participate in the day-to-day management of their spa, but the franchisor recommends that they do. Additionally, franchisees may only offer and sell services and related goods that the franchisor has approved, while offering all services and related goods that the franchisor designates as required.

MassageLuXe’s Item 19 is not publicly available. However, the average day spa owner’s salary is $80,000 a year, according to some industry experts’ estimates. MassageLuXe says that many of its franchisees skew well above the average earnings and often enjoy six-figure annual salaries.

Locations typically produce more than a 20% profit margin each year. MassageLuXe’s membership model also creates a continuous revenue stream for franchise owners, providing reliable income.

Owning a MassageLuXe also means being a part of a growing industry. The American Massage Therapy Association has estimated the massage industry is worth $18 billion.

Initial costs

The estimated initial cost to open a MassageLuxe business varies from $387,800 to $732,900. The cost to open a massage business depends on a variety of factors, including spa equipment and supplies, leasehold improvements and insurance. Below is breakdown of the cost:

• Initial franchise fee: $42,500

• Leasehold improvements: $196,600–$389,400

• Signs: $1,800–$13,200

• Spa equipment and supplies: $24,300–$81,300

• Fixtures: $13,300–$38,000

• Furniture and décor: $5,800–$19,300

• Initial pre-opening inventory: $9,000–$9,000

• Start-up marketing: $15,000–$20,000

• Insurance: $8,000–$12,000

• Prepaid rent and lease deposits: $5,600–$8,000

• Professional fees: $8,000–$10,000

• Training expenses: $3,000–$5,000

• Licenses/bonds: $100 –$1,000

• Computer hardware and software: $15,800–15,800

• Security systems: $1,500–$1,500

• Phone and music systems: $2,200–$2,600

• Office supplies and other miscellaneous expenses: $6,300–$6,300

• Shipping: $4,000–$8,000

• Additional funds-3 months: $25,000–$50,000

• Estimated Total: $387,800–$732,900

The initial franchise fee to open a MassageLuXe is $42,500.

• Mark Otter, CEO and President

• Kristen Pechacek, Chief Growth Officer

• Cookie Pangilinan, Chief Financial Officer

• Stephanie Hill, Vice President of Marketing

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