Massage Heights Franchise Costs $477K – $554K (+ 2024 Profits)

Massage Heights is more than just a spa franchise; it is a lifestyle brand committed to elevating the lives of its clients through comprehensive wellness services. Founded in San Antonio, Texas, in 2004, the brand quickly distinguished itself in the wellness industry by offering professional, convenient, and affordable massage and spa services.

The following year, in 2005, Massage Heights opened its doors to franchising, marking the beginning of a significant expansion that would see the brand grow beyond Texas to other states and eventually into Canada. Massage Heights is headquartered in San Antonio, Texas.

What sets Massage Heights apart is its unique business model, which emphasizes accessibility and affordability of therapeutic services without compromising on quality.

Type of Expenditure	Amount
Initial Franchise Fee	$49,500
Retreat Development Package	$55,000 to $63,000
Utility and Security Deposits	$3,500 to $6,500
Leasehold Improvements and Professional Design Fees	$256,000 to $286,000
Exterior Signage	$7,500 to $10,000
Equipment	$3,050 to $6,100
Technology System	$32,000 to $40,000
Software Setup Fee	$500 to $500
Facial Services Expenses	$4,500 to $5,000
Business Licenses and Permits	$150 to $2,100
Professional Fees	$1,000 to $8,000
Initial Training Expenses	$3,500 to $3,500
Initial Advertising Program	$25,000 to $25,000
Additional Funds – 3-months	$36,000 to $49,000
Total Estimated Initial Investment	$477,000 to $554,000

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.

Initial Franchise Fee

The initial franchise fee is $49,500 for the first and second franchises, and $34,500 for each subsequent franchise purchased at the same time.

Royalty Fee

The royalty fee for the Massage Heights franchise is set at 6% of Gross Revenue. This fee is payable bi-weekly based on the gross revenue for the preceding two weeks.

Initial Advertising Program

Franchisees must pay $25,000 for the Initial Advertising Program to market the MH Business before opening and during the first 30 days after opening.

Brand Fund Contribution

A 3% contribution of Gross Revenue to the Brand Fund, bi-weekly, for system-wide promotion and brand building. This can be increased up to 6%.

Software Setup Fee

A $500 software setup fee is required for operations software and other technologies.

Retreat Development Package

The cost ranges from $55,000 to $63,000, depending on the Retreat’s size, and covers startup items such as massage tables, chairs, initial operational and retail product inventory, and massage equipment.

Social Media and Website Management Fee

Currently $450 per month for certain services, which may increase annually.

Technology Fee

Currently $550 per month for software updates or new software, including POS software, email, and network support, among others. This fee may increase annually.

Promotional Package Fee

Approximately $200 for each seasonal promotion, which may vary based on the Retreat’s size and materials included.

National Franchise Convention or Business Meeting Fee

Currently up to $600 per person annually for attending the convention or business meetings.

Franchise pros and cons

The Pros:

• Third-party financing: The brand works with third-party lenders to help franchisees with their SBA processing and financing for the franchise fee, startup costs, equipment, inventory, and ongoing costs.
• Multiple income streams: The Massage Heights franchise presents its franchisees with several income streams that they can use to upsell and improve their bottom lines. These include the massage and facial services offered to the general public through membership plans and the sale of related products.
• Exclusive territory protection: Massage Heights grants its franchisee the right to operate in an exclusive territory. As long as the franchisees comply with the franchise agreement, the franchisor does not authorize any other franchise or a competitive channel to operate in the agreed-upon area.
• Comprehensive training: Massage Heights offers its franchisees detailed classroom and on-the-job training and education by training its franchisees about business concepts, products and services, cash management, customer service, advertising, promotions plus opening and closing procedures.
• Marketing and promotions: Franchisees get access to proven marketing tools such as national media, a dedicated web page, email marketing, regional advertising, local salon campaign tools, social media and loyalty program apps.
• Real estate and construction: The franchisor helps franchisees with site selection guidance, approval, designs, construction and lease negotiations to establish and build their salons at lower development costs.

The Cons:

• Not a passive investment opportunity: The Massage franchise does not allow for absentee ownership. Franchisees must be actively involved in the decision-making and operations of the salons.
• Not a part-time opportunity: The franchise cannot be operated on a part-time basis or as a side business. It requires franchisees to adhere to the parent company’s working schedule.
• Not home-based business: Massage Heights cannot be run from home or a mobile unit. Franchisees must have fixed office spaces, warehouses, or retail facilities to operate their salons from.
• Competition: The franchise faces stiff competition from other massage franchises such as The NOW Massage and Massage Envy.

How to open a massage heights franchise

Opening a Massage Heights franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Massage Heights franchise.

1. Research and Initial Inquiry

• Start by thoroughly researching the Massage Heights franchise opportunity to understand the business model, investment requirements, and support offered.
• Visit the official Massage Heights franchise website to gather information and read through available resources, including the FAQ section.
• Express your interest by filling out the inquiry form on the website, and providing your personal and contact information.

2. Introductory Call and Education

• After your initial inquiry, you will receive a call from a Massage Heights franchise representative to discuss your interest and answer any initial questions.
• Participate in educational webinars or sessions provided by Massage Heights to gain deeper insights into the franchise operation and industry.

3. Review of Franchise Disclosure Document (FDD)

• You will be provided with the Franchise Disclosure Document (FDD), which outlines detailed information about the franchise opportunity, financial performance, and legal obligations.
• Carefully review the FDD to understand the investment, fees, obligations, and performance of existing franchises.

4. Validation and Due Diligence

• Engage in validation steps where you can speak with current franchisees to gain firsthand insights into their experiences and the business’s day-to-day operations.
• Conduct your due diligence by reviewing financials, market potential, and other relevant factors to ensure that this franchise is the right fit for you.

5. Executive Review and Approval

• Meet with the executive team or leadership of Massage Heights to discuss your application and potential as a franchisee.
• This step might involve interviews or meetings to assess your compatibility with the brand’s values and business model.

6. Discovery Day and Meeting the Team

• Attend a Discovery Day event at the Massage Heights headquarters or a designated location, where you’ll have the opportunity to meet the corporate team, understand the culture, and see the operations firsthand.
• This is a crucial step to experience the brand environment and meet other team members and potential fellow franchisees.

7. Final Decision and Franchise Award

• After the successful completion of all previous steps, and if both parties agree to proceed, you will receive a franchise offer.
• Review the final franchise agreement and any outstanding details before signing.

8. Training and Opening Preparation

• Upon signing the franchise agreement, you will undergo comprehensive training covering operations, marketing, service protocols, and more, ensuring you are fully prepared to run your Massage Heights franchise.
• Begin the process of site selection, construction, and setup of your location with ongoing support from the Massage Heights team to ensure your franchise meets brand standards and is poised for success.

Disclaimer

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