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Elements Massage: a Profitable Franchise With a $750K Turnover

Founded in 2006 Elements Massage is one of the largest massage franchises in the US with 241 locations today.

In addition to a strong growth fuelled by the expansion of massage therapy in the US nowadays, Elements Massage has also some solid financials that makes it very popular franchisees.

Actually Elements Massage is one of the most profitable salon franchise we found: whilst it costs on average $446,000 to open a new location, one massage parlor makes on average $749,000 in revenue per year. Impressive.

So if you’re considering to buy a Elements Massage franchise, make sure your read this guide as we will dive into the financials disclosed in its latest Franchise Disclosure Document.

How much does it cost to open a new Elements Massage? How much profits can you really make as a franchisee? Let’s find out!

Key figures

Franchise fee$40,000
Royalty fee6.0%
Marketing fee4.0%
Investment (mid-point)$446,000
Revenue per unit$749,000
Revenue per sq. ft.$416
Sales to investment ratio1.7x
Payback period*4 years
Minimum net worth$350,000
Minimum liquid capital$100,000
* using 12-15% net profit margin
Elements Massage franchise business plan template

Download the Elements Massage franchise business plan

📗 Updated with Franchise Disclosure Document

📊 5-year pro forma financial model

📞 Free support

What is Elements Massage?

Elements Massage is a massage therapist based in Colorado that offers customized, therapeutic massage services

Founded in 2000 by Michelle Merhib, the health and wellness brand uses a month-to-month subscription model to ensure its clients enjoy the full benefits of handcrafted massage services.

Unlike other brands, Elements Massage doesn’t provide other services beyond massage therapy, taking a customized approach to satisfy the client’s needs.

The health and wellness brand is a subsidiary of WellBiz Brands Inc. and has been franchising since 2006. Today, Elements Massage operates in over 250 locations worldwide, with 241 studios in the US.

Elements Massage franchises pros and cons


  • Recurring revenue model: repeat clients and monthly membership fees attract recurring revenue.
  • Tech-resistant, simple and effective business model: the franchisor adopts a simple, effective, yet tech-resistant business model. No process of the massage therapy business can be automated, giving franchisees a viable and sustainable investment opportunity.
  • Third-party financing: the franchisor has relations with third-party funding sources to help franchises cover the startup costs, franchise fees, inventory, equipment and payroll.
  • Maximize volume: small footprints of 1300-2000 sq. feet of studio space reduce the overhead costs, the hiring demand and scheduling requirements, making it an affordable investment opportunity.
  • Exclusive territories available: franchisees are granted protected territories to start and operate their businesses without competition from other Elements Massage franchises.
  • Profitability: the ever-increasing demand for massage therapy makes the franchise a profitable venture.
  • Brand support: the franchisor supports and guides new brand owners throughout the entire process, from site selection to studio opening, training and business operations. The brand uses psychographic and demographic data to help franchisees choose the most suitable business locations. Every franchisee is assigned an experienced business development team to drive business growth in addition to helpful communication tools, including videos, newsletters and webinars.
  • Curated massage services: unlike other health and wellness brands, Elements Massage only specializes in quality massage therapy, curating their services according to the client’s needs.


  • No absentee ownership: Elements Massage franchisees must be involved in everyday operations.
  • Not a part-time investment: the business cannot be run part-time or as a side hustle and franchisees must stick to the franchisor’s operating hours.
  • Not a mobile unit or a home-based investment: Elements Massage does not provide a home-based investment opportunity. Franchisees must operate within a physical location such as a retail facility, office space, or warehouse. 
  • Competition: Massage Heights, Back & Bodyworks and Green Leaf Massage Therapy.

How much does a Elements Massage franchise cost?

On average, you may need to invest around $446,500 to open an Elements Massage studio. This amount is in line compared to other salon franchises ($450,000).

As the investment amount is an average it can increase or decrease with your choice of location, the massage salon size, etc. According to the latest Franchise Disclosure Document, the investment can be as low as $333,000 and as high as $560,000.

Elements Massage startup costs

The investment includes an initial franchise fee of $40,000, which must be paid to the franchisor. In addition to this initial franchise fee, the investment covers all the essential startup costs you may need to start a massage parlor: 

  • Formation Costs: training program costs, leasehold improvements, cabinetry & millworks, site survey fees, massage equipment, furniture, decor, computer system, security deposit, signage, permits, business licenses, professional fees, etc.
  • Initial Marketing: grand opening marketing expenses
  • Operating Costs: massage supplies, business supplies, insurance, utility deposits, and working capital for first 3 months, etc.
Type of costLowHigh
Initial Franchise Fee$40,000$40,000
Formation Costs$250,031$455,615
Initial Marketing$15,000$15,000
Operating Costs$27,811$49,238
Source: Franchise Disclosure Document 2022
Elements Massage franchise business plan template

Download the Elements Massage franchise business plan

📗 Updated with Franchise Disclosure Document

📊 5-year pro forma financial model

📞 Free support

What is the revenue of a Elements Massage?

On average, an Elements Massage franchise makes around $749,000 in revenue per year.

This revenue number is the annual median sales of 241 franchised studios operating in 2020. Indeed, although there were a total of 245 franchises at the end of 2020, only 241 franchises were operating for the whole fiscal year as of January 2021.

How much revenue your massage parlor will generate depends on the opening date. Indeed, revenue has a positive correlation with the age of your massage franchise.

For example, a 3-year-old Elements Massage parlor generates $780,000 on average vs. a 1-year-old franchise ($750,000) yet the difference isn’t significant either.

How profitable is a Elements Massage?

We estimate that one Elements Massage franchise makes $214,000 in profits per year. That’s a 29% EBITDA margin.

Note that Elements Massage does not provide a detailed profit and loss for its franchises in its Franchise Disclosure Document. Instead, we had to use available cost data (royalties, marketing fee, rent, revenue) and use our salon franchises benchmarks for some other costs (COGS, staff).

Profit and lossAmount% revenueSource
Revenue$748,936100%as per FDD
COGS$(37,447)5%industry average
Staff$(299,574)40%industry average
Royalties$(44,936)6%as per FDD
Rent$(63,000)8%as per FDD
Marketing*$(37,447)5%as per FDD
Other operating costs$(52,426)7%industry average
* including marketing fee
Source: 2022 Franchise Disclosure Document

Is it a good investment?

You could argue that a 29% profit margin is a great business. Yet it doesn’t necessarily mean it’s a profitable investment.

Indeed, in order to start your own Elements Massage parlor, you would have to fund a significant investment (the estimated investment). As explained earlier, this investment is $446,500 on average.

When compared against the future profits (which we estimate at 15% of revenue i.e. the net profit), we find that Elements Massage has an excellent payback period of 4 years. This is a great investment considering most salon franchises have paybacks of 7-9 years on average.

This means that you would have to wait on average 4 years to repay the initial investment with the profits generated by your franchise. This includes any repayments to investors, loans and the funds you would have invested from your own pocket.

Elements Massage franchise business plan template

Download the Elements Massage franchise business plan

📗 Updated with Franchise Disclosure Document

📊 5-year pro forma financial model

📞 Free support

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