The NOW Massage Franchise Costs $470K – $783K (+ 2024 Profits)

The NOW Massage, a novel concept in the massage industry, was founded by Jason and Gara Post under their Post Investment Group, which has interests in health and wellness, real estate, and consumer products. The inception of The NOW in 2015 was driven by the founders’ recognition of an unmet need for high-quality massages in a unique, inspired setting that didn’t require the time and financial commitments of traditional spas.

The NOW Massage Franchise, LLC has its headquarters in Los Angeles, California. The brand quickly demonstrated its appeal and scalability by expanding from a single boutique to four within just 18 months. The success of these initial boutiques paved the way for the brand to start offering franchise opportunities in 2019. 

The NOW Massage distinguishes itself in the $18 billion massage industry by offering an affordable yet luxurious experience, primarily targeting the untapped demographic of 147 million Gen Z and Millennials. This approach is part of a membership-based model, which encourages regular visits and fosters a community of wellness and self-care enthusiasts.

Type of Expenditure	Amount
Initial Franchise Fee	$60,000
Initial Training Fee	$15,000
Costs and Expenses Associated with Initial Training	$500 – $3,500
Lease and Utility Deposits	$0 – $13,100
Rent	$0 – $24,000
Project Management Fee	$15,000 – $18,000
Design, Architecture, and Engineering	$11,000 – $25,000
Leasehold Improvements	$186,000 – $335,000
Furniture, Fixtures, and Equipment	$95,000 – $125,000
Permits and Permit Management	$1,500 – $10,000
Signage	$8,000 – $17,000
Initial Marketing Kit	$5,450 – $6,250
Boutique Initial Opening Supplies	$13,334 – $14,064
Business Management System	$18,000 – $20,000
Insurance – 3 Months	$750 – $4,000
Technology Services	$3,750
Initial Marketing Spend	$2,250
Professional Fees and Business Permits	$5,000 – $8,000
Digital Marketing Requirement – 3 Months	$4,500
Additional Funds – 3 Months	$25,000 – $75,000
Total	$470,000 – $783,000

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 $60,000, which must be paid in full at the time of signing the Franchise Agreement. This fee is non-refundable.

Royalty Fee

Franchisees must pay the greater of 6% of Gross Sales or a minimum monthly payment of $2,500. This Royalty Fee is calculated daily based on Gross Sales.

Advertising Fee

An Advertising Fee of 2% of Gross Sales is required. This fee is payable weekly along with the Royalty Fees to support brand development and promotional activities.

Technology Fee

The Technology Fee varies from $925 to $1,250 per month. This fee covers the licensing and software costs associated with the Business Management System.

Transfer Fees

A Transfer Fee of $10,000 is charged per franchise. This fee must be paid prior to receiving the franchisor’s consent for any transfer, and it may also include additional training fees for the new franchisee.

Renewal Fees

The Renewal Fee is set at $10,000 and is payable before the approval of a renewal request. This fee is subject to certain conditions to qualify for renewal.

Management Fees

When the franchisor or their representative manages the franchisee’s operations, a Management Fee of up to 8% of Gross Sales is applied. This fee also includes any incurred costs and expenses.

Franchise pros and cons

The Pros:

• Site selection and construction: The franchisor has a qualified real estate team to help its franchisees with site selection and identify the right salon location regarding market demographics. It also helps them in designing, construction and lease negotiations to get the best real estate terms.
• Pre-opening training: The NOW Massage provides its franchisees with in-depth training and support in establishing their boutiques. Franchisees are trained on the best salon practices, products and services, how to handle customers and how to carry out a successful grand opening.
• HR assistance: The NOW Massage provides its franchisees with direct assistance in recruiting qualified staff and team building.These include a personalized applicant tracking system and work with partners like the International Spa Association (iSPA) and the American Massage Therapy Association (AMTA).
• Sales and operations: The brand employs an operational team to help its franchisees with sales guidance and training. It assists franchisees from the start to ensure that they drive membership sales, meet key metrics and grow their salons.
• Marketing and public relations: The franchisor has a dedicated marketing and branding team to help franchisees attract customers. It helps them with their public relations, digital advertising, social media, influencer & ambassador engagement, content development, email marketing and website optimizations.
• Exclusive territory protection: The franchisor allows franchisees the right to operate in a protected development market. It does not authorize other franchises or competing channels to operate in the protected area.
• Third-party financing: The brand has relationships with third-party lenders to offer its franchisees financing for the franchise fee, startup costs, equipment, inventory and payroll.
• Multiple revenue streams: The brand has designed different options and enhancements to offer a great customer experience and boost their profitability. It offers three signature Swedish-inspired massages: The Now, The Healer and The Stretch, in addition to a branded product line of self-care products, jewelry as well as the opportunity to sell gift cards and memberships.

The cons:

• Not a part-time business: The NOW Massage cannot be run on a part-time or side-hustle basis. Franchisees must follow the franchisor’s set working hours.
• Not a passive investment: The franchise does not allow for absentee ownership. Franchisees are required to participate in the day-to-day operations of their boutiques actively.
• Not a home-based business: The franchise cannot be operated from a mobile unit or vehicle. Franchisees are required to have an office space, retail facility, or warehouse to operate from.
• Competition from other leading massage franchises such as Massage Envy and Hand & Stone Massage.

How to open a The Now Massage franchise

Opening a The Now Massage 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 The Now Massage franchise.

1. Research and Understand the Brand

• Familiarize yourself with The Now Massage’s brand identity, services, and customer experience.
• Study the brand’s history, mission, and values to ensure they align with your business goals.
• Review customer feedback and testimonials to understand the brand’s market position and reputation.

2. Evaluate Franchise Requirements

• Review The Now Massage’s franchise disclosure document (FDD) for detailed information on financial requirements, fees, and investment costs.
• Understand the required net worth and liquid capital to ensure you meet the financial qualifications.
• Assess any specific qualifications or experience required by the brand, such as business management or customer service experience.

3. Submit a Franchise Application

• Complete The Now Massage’s franchise application form with your personal and business information.
• Be prepared to provide details about your financial status, business experience, and why you’re interested in opening a franchise.

4. Attend a Discovery Day

• Participate in a Discovery Day, where you’ll meet the franchisor, learn more about the franchise operation, and get a feel for the brand’s culture.
• Use this opportunity to ask questions, meet other franchisees, and evaluate if the franchise is the right fit for you.

5. Secure Financing

• Determine the total investment required, including franchise fees, equipment, inventory, and working capital.
• Explore financing options, such as loans, investor funding, or franchisor financing programs, if available.
• Prepare a solid business plan to present to potential lenders or investors.

6. Choose a Location

• Work with The Now Massage’s real estate team or approved vendors to find a suitable location that meets the brand’s demographic and geographic requirements.
• Consider factors such as foot traffic, accessibility, competition, and local market demand.
• Secure a lease agreement that aligns with your business plan and budget.

7. Complete Training and Onboarding

• Participate in The Now Massage’s training program to learn about operational procedures, service standards, and business management.
• Ensure you and your staff understand the brand’s service offerings, customer service expectations, and operational guidelines.
• Familiarize yourself with the brand’s marketing, branding, and promotional strategies.

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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