Elements Massage: a Profitable Franchise With a $824K Turnover

This article was updated with the 2023 Franchise Disclosure Document

Founded in 2006 Elements Massage is one of the largest massage franchises in the US with 246 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 $420,000 to open a new location, one massage parlor makes on average $824,000 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 stats

Franchise fee$40,000
Royalty fee6.0%
Marketing fee4.0%
Investment (mid-point)$420,000
Revenue per unit$824,000
Revenue per sq. ft.[franchise_value_revenue_per_sq_ft]
Sales to investment ratio2.0x
Minimum net worth$350,000
Minimum liquid capital$100,000
Source: FDD 2023

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About 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 franchise pros and cons

Pros

  • 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.

Cons

  • 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.

Elements Massage franchise costs

On average, you may need to invest around $420,000 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 $323,000 and as high as $517,000.

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$237,555$396,237
Initial Marketing$15,000$15,000
Operating Costs$30,228$65,888
Total$322,783$517,125
Source: Franchise Disclosure Document 2023

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Elements Massage franchise fees

The initial franchise fee for a Elements Massage franchise is $40,000. In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 6.0% of revenues.

Elements Massage franchise revenue

On average, an Elements Massage franchise makes around $824,000 in revenue per year.

This revenue number is the annual median sales of 238 franchised studios operating in 2021. Indeed, although there were a total of 245 franchises at the end of 2021, only 238 franchises were operating for the whole fiscal year as of January 2022.

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 $835,000 on average vs. a 1-year-old franchise ($828,000) yet the difference isn’t significant either.

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Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

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