About MassageLuXe Franchising
MassageLuXe® is a fast-growing franchise based spa company. We provide spa services to clients, primarily through national area developers, multi-unit and single-unit franchises. Our spas are driven by a membership revenue model that assures a significantly higher level of consistency than other spa revenues and profits on a year-round basis. The membership revenue model is relatively new to the marketplace and franchise community, however massage therapy and esthetics are not. Massage is a service that improves health, promotes relaxation and overall well-being for the consumer, and has been practiced throughout the world for thousands of years. Historically, the delivery of massage services has been fragmented, with the quality varying dramatically. We designed the MassageLuXe franchise concept to achieve and deliver the highest standard in the massage membership business. MassageLuXe is focused on being the leading provider of massage and esthetic services to clients in every marketplace where we franchise. Our mission is to deliver the highest quality massage while providing a comfortable, relaxing and luxurious environment to our clients. We offer MassageLuXe franchise owners:
- An environment focused on healthy living.
- A combination of professional staff, state-of-the-art technology, superior products and service to create outstanding value for our clients.
- Other experienced area developers and franchise owners.
- A unique operating and franchise model as well as a unique business model.
- A great opportunity to own your own franchise business and be successful!
The Basics This franchise model offers the expertise of a reputable, successful business system and established products while entering into an agreement. In the agreement, the franchisor licenses the future owners to use trademarks, service marks, logos and/or advertising to identify their business. There is an initial franchise fee to be paid and royalties thereafter to do business under the franchisor’s name and system. Strengths The massage industry has continuously expanded year after year. Currently it’s an 11 billion dollar industry with 47 million massages performed on average per year. The growth in this industry is projected at 3 percent this year alone. By combining business ownership with a well-known franchised name, experience and an established company, a unique, mutually beneficial business relationship is formed. Benefits We offer most of the benefits of traditional business ownership with far less risk, and provide additional aspects to assist with the success of your franchise. By buying into our franchise model, you have the immediate backing of a recognized brand with a proven track record and franchise system. This system also offers:
- Training and support
- Real estate assistance
- Start-up assistance
- Access to marketing and advertising programs
- Use of the trademarks, service marks, and logos.
The Spa Franchise Industry
The earliest written records of massage therapies date back to 3,000 B.C. Today, more than 350,000 massage therapists provide more than 160 billion massages annually in the United States. The demand for massage franchise services is growing faster than ever. The spa franchise industry is mainstream, stable and growing rapidly. According to the American Massage Therapy Association (AMTA), the massage therapy industry is an 11 billion dollar industry and only continues to grow. According to the AMTA consumer survey, an average of 32.6 million adult Americans received at least one massage in the last year.
- Spas are where most people continue to receive massage, with 21 percent of those surveyed in saying they had their last massage at a spa.
- According to the U.S. Department of Labor, employment for massage therapists is expected to increase 20 percent from 2006 to 2016, faster than average for all occupations.
The reasons consumers are turning to massage therapy franchises are also expanding. According to the AMTA Consumer Survey, more people are recognizing the importance of massage therapy in lives for overall health.
- 54 percent of adult Americans have used massage therapy for pain relief.
- 92 percent of people surveyed agreed that massage therapy could be effective in pain reduction.
- Eighty-five percent of people surveyed agreed that massage therapy could be beneficial to health and stress relief.
The Advantages of Becoming a MassageLuXe Owner
MassageLuXe® is a pioneer in wellness membership franchises and strives to be the best by offering our clients multiple levels of massage choices. We consistently work to deliver the highest quality services to our clients in the massage membership business by hiring the most qualified massage therapists and finding future franchise owners who share our passion and vision. Some Advantages of Becoming a MassageLuXe Franchise Owner:
- Innovative Approach to Massage Service – Join the team that is a pioneer of membership-based massage services.
- Attractive Membership Pricing Structure – By offering a competitive monthly membership to customers, franchise owners see a more consistent sales cycle, reducing administrative and billing time.
- World Class Training and Ongoing Support – Our experienced management team understands the resources needed to train, grow and help support our franchise owners. We provide hands on training at our headquarters, in our corporation owned locations and at your spas prior to opening. We also provide manuals, video and supporting materials, through our seasoned trainers.
- Comprehensive Marketing Programs – MassageLuXe owners position an original marketing program designed to attract clients and establish a strong referral network and to encourage high client usage and retention. We effectively use radio, TV, direct mail, print, social media, public relations, phone directory, word-of-mouth, in-spa marketing and email marketing campaigns.
- Fully Computerized Operations – We offer our franchise owners state-of-the-art management software to coordinate all aspects of the franchise business, from scheduling client services to membership and sales tracking to financial management and reporting to the owners and the franchisor.
- Professional Working Environment – We provide our therapists and estheticians with scheduled clients, a professional work environment, linens and supplies and the outstanding physical design of our MassageLuXe spa locations.
- Multiple Revenue Opportunities – In addition to potential membership service fees, we maximize sales through additional revenue opportunities, including gift card sales, retail sales, and special event opportunities.
The MassageLuXe business model is unique in the world of franchising –
Unique Revenue Stream
A membership-pricing model shaped over 15 years through successful experiences in our tanning and fitness affiliates drives MassageLuXe spa revenue. Designed to encourage ongoing client participation and visits, create steadier, more predictable sales cycles and reduce administration and billing time. This unique model, with multiple membership levels, ties the clients’ massage or facial session quality, therapist and esthetician compensation and total spa revenue together. The MassageLuXe labor model provides massage therapists with a defined career by increasing compensation opportunities and continuing education and resulting in superior employee recruiting and retention. The 5-STAR MassageLuXe Customer Service model, developed from our experience in the beauty, fitness and tanning businesses, combined with our array of therapies and specialty massages, creates additional opportunities for revenue growth and higher customer retention and referral rates. In addition to the massage services membership fees, MassageLuXe owners can develop additional revenues through gift cards and gift certificates, retail sales of massage, and special events.
Site Development Assistance
The experts at MassageLuXe will help guide you through all phases and details of building and opening your new spa location. The Development Team, consisting of professionals with extensive practical experience in commercial real estate, financing, construction, demographics research, site analytics, lease negotiation and retail store build-outs will assist you and provide you with the tools, information, guidance and support needed to get your MassageLuXe massage therapy business up and running. You will also be provided with MassageLuXe’s comprehensive site development manual that includes a variety of floor plans for space planning, detailed architectural and construction drawings, finish standards and specifications. It also provides details on installation, equipment, turn key fixtures and standard contract and lease documents specific for MassageLuXe businesses and their construction.
Advertising and Marketing Support
The most important part of owning your own day spa business is getting your customers and keeping them. MassageLuXe’s marketing and advertising support is comprehensive and begins the moment you start your site selection. We will begin to develop your pre opening grass roots program along with the grand opening plan and business launch. All marketing and advertising materials are professionally developed and designed to appeal to targeted clients and demographics. Specific marketing tactics include: local promotional programs, print media, special event sponsorships, direct mail marketing, social media, public relations and in-store and email campaigns. As a MassageLuXe owner, you have access to all of these original, cost effective and proven programs designed to attract clients and establish a strong referral network.
Superior Training and Support
MassageLuXe will provide a minimum of 10 days of training prior to opening your spa in addition to at least 3-5 days of in-store training once the spa is open. Training prior to your massage business’s opening consists of hands-on education time spent at a MassageLuXe location currently in operation as well as classroom training at our corporate office in St. Louis, Missouri. Once your location has opened, a MassageLuXe expert will travel to your location to assist with the Grand Opening as well as provide more hands-on training regarding the set-up and day-to-day operations of your day spa and the POS/Computer system. Each MassageLuXe owner will find ongoing support when they are appointed a District Manager to work with them on day-to-day operations of their business. Ongoing training is provided to therapists to offer additional treatment modalities and yield higher compensations and better offers to clients.
Our Franchise Process
Whether it’s your first franchise or you’re an experienced franchise owner, the MassageLuXe® franchise model empowers you to get more out of what you want from your franchise and your life. Acquiring a MassageLuXe franchise of your own is an important decision for everyone involved. We have created our 5-Step Discovery Process to guide you through the decision making process, to help you ask the right questions, and to help you to learn as much as possible about us. As you go through the steps, you will find all the information necessary to decide whether a MassageLuXe spa franchise meets your goals and expectations and is the right choice for you.
An exchange of general information that includes a preliminary qualification report and a brief pre-screening interview where you have the opportunity to have your questions answered.
Through a series of scheduled telephone conferences, correspondence exchanges and presentations with one of our professional development team members, you will have the opportunity to learn about the MassageLuXe business model and our support systems.
Franchise Disclosure Document (FDD) Review
You will also have the opportunity to review our Franchise Disclosure Documents (FDD) and gain an understanding of the site selection and spa construction process.
You will be given direct access to existing owners so you can speak with them about any issues, concerns, or questions you may have.
You will have the opportunity to visit our corporate headquarters and observe how our programs and business systems operate. At this time, you will also meet, interview and be interviewed by corporate executives and other team members responsible for supporting owners and their businesses. You will preview the Training, Operations, Vendor Selection and Site Development Manuals. Finally, you will discuss financing options available and preparation of the business plan and lender package.
The Franchise Market
In addition to single unit franchises, MassageLuXe® also offers Area Development Agreements (ADAs) to qualified, experienced individuals. For an initial franchise development fee, Area Developers are granted exclusive franchise development rights to a specific number of franchise units within a defined territory based on various market and economic conditions including population, household earnings and other demographic criteria. The minimum franchise ADA is for 21 units that includes one unit that the Area Developer must own and operate as a Model Spa. In exchange for generating sales and providing ongoing support and services to all the MassageLuXe franchised spas within the development area, the Area Developer shares in both the initial franchise fee and a percentage of the franchise royalties generated in their area. Area Developers must be able to demonstrate:
- Prior successful business experience (preferably in franchise development, sales, operations or multi-unit ownership)
- Minimum liquidity of $400,000 and a net worth of at least $700,000
Nearly 500 MassageLuXe spas are already in development and plenty of areas are still available. Single and multi-units are available in most ADA markets. If you don’t see the specific market that you are interested in, we encourage you to fill out our request form for more specific information.
In addition to being committed to your own franchise, you will also need sufficient capital and the appropriate level of financing to build, launch and operate a single-unit MassageLuXe® franchise. Your investment in a single unit MassageLuXe franchise is likely to range between $399,175 and $550,575 depending on a number of factors including the size of your location and specific market conditions. The minimum financial requirements to open a MassageLuXe franchise in the United States are:
- Single unit: Liquid Capital $90,000, Net Worth $300,000
- Multiple units: Liquid Capital $200,000, Net Worth $500,000
The following information is excerpted from the 2017 Franchise Disclosure Document.
|TYPE OF EXPENDITURE||LOW||HIGH|
|Initial Franchise Fee||$38,000||$38,000|
|Spa Equipment and Supplies||$38,500||$51,400|
|Furniture and Decor||$18,700||$22,000|
|Initial Pre-Opening Inventory||$6,900||$6,900|
|Pre-paid Rent and Lease Deposits||$3,000||$8,000|
|Computer Hardware and Software||$18,375||$20,375|
|Phone and Music Systems||$1,300||$2,300|
|Office Supplies and Misc Expenses||$3,800||$4,000|
|Additional Funds – 3 months||$25,000||$50,000|
*The chart describes the estimated initial investment for a single unit Spa, whether it is a single Unit or a Unit under a Multi-Unit Development Agreement. The Initial Fee is non-refundable. Any refund of all of the other expenses or portion of these expenses are subject to the polices of the applicable supplier and may depend on whether delivery of the item(s) has been made. The foregoing expenses are merely estimates. You are encouraged to make an independent investigation and analysis of the potential expenses which may be incurred in order to start your Spa.
Frequently Asked Questions
Click on a question below to learn more.
Do I need previous massage therapy or franchising experience to become a MassageLuXe® owner?
No, but prior business experience is always helpful. We offer a complete training program prior to and during opening along with continuous assistance once your spa is up and running.
What is the initial fee and what are the royalty fees?
For a single unit operator, the initial fee is $38,000. For a Multi Unit Developer, the initial fee is $76,000 (minimum of three spas). For an Area Developer, the initial fee is $200,000. The ongoing royalty fee is five percent (5%) of gross sales plus three and one half percent (3.5%) for advertising.
What types of licensing and certifications are needed to become a MassageLuXe owner?
Most of the licensing that you will need to obtain will be very similar to any business, however some of the licensing will vary depending on state and local law. We will assist you to make sure you have all the proper licenses you will need. These can include Massage/Spa/Therapist Registration.
Does MassageLuXe offer financing?
Although we do not offer financing directly, we assist you in obtaining financing through the Small Business Administration (SBA) or your local bank. We also can prepare and assist with the completion of a very detailed business plan.
How soon can I expect my MassageLuXe to open?
Once you sign a lease, your MassageLuXe will be ready to open in 90-100 days. We estimate from the time you sign your agreement until the spa opens to be between six and nine months.
Where are MassageLuXe spas generally located?
You will find us in high-traffic, highly populated areas such as in strip centers, end caps and freestanding buildings when available.
Will I have a protected territory?
Yes. Typically your territory will be approximately a three-mile radius around the location of your massage therapy business.
Will I receive guidance on purchasing spa equipment and supplies?
Yes, we are continuously working with vendors to assure not only the top of the line equipment and supplies but the best pricing available in the industry.
What kind of spa and massage training can I expect as a MassageLuXe owner?
Initially we provide 10 days of training that is a combination of classroom and onsite for the owner, manager and up to 10 additional employees. We also provide three to five days of support during your spa’s grand opening. The training covers everything from the day-to-day operations to managing and owning a spa. We also have available at greatly discounted rate additional modality training for therapists.
Will I receive assistance in planning a MassageLuXe Grand Opening?
Yes. We have designed a Grand Opening Manual with ideas and suggestions that have been successful in prior openings. We also ship a Grand Opening Kit to your location with marketing materials and a press release that you will need to successfully promote your spa opening.
How do I get started?
Contact us via phone or through our website and we will be glad to work with you to achieve your goals.
Mark Otter is the CEO, President and Managing Member for MassageLuXe and serves as a member of the advisory council for the company’s franchisees. Prior to joining the MassageLuXe team as Chief Operating Officer, Mark spent 7 years as a Division President for the Steak N Shake brand and 5 years as a franchisee of J Buck’s Restaurant. Mark’s early career was spent with Buffet’s, Inc., where he worked his way through the ranks from General Manager to Regional Vice President of Operations during his 12 years there.
Mark’s greatest strengths are his drive, leadership, and ability to unite a team around a common goal – even during the most challenging of times. Those attributes, combined with Mark’s experience as a franchisee, have been instrumental in strengthening the relationship between the franchise owner and franchisor. MassageLuXe has enjoyed a renewed sense of excitement under Mark’s guidance and is well positioned for continued growth and success under his leadership.
Mark lives in St. Louis with his wife and daughter. He is an avid golfer and spends much of his free time trying to beat his daughter on the links, with very limited success.
Stephanie Struckhoff is the Vice President of Marketing for MassageLuXe and has been an integral team member of the company since its inception in 2007. She is responsible for overseeing the marketing and graphic design departments. Stephanie began her career with the organization in 1999, working part-time in sales for MassageLuXe’s sister company, Tanco.
As a tenured veteran, Stephanie is a well-respected member of the executive management team at MassageLuXe. She is a “hands on” manager, working directly with the franchisees to ensure they are equipped with the marketing tools required to set them up for success. The fact that she has spent her career in various positions within the company, inside and outside of salons and spas, gives her a unique vantage point from which to create and implement effective marketing plans for MassageLuXe.
Stephanie has worked on many successful fundraising campaigns benefitting The Muscular Dystrophy Association, Gateway to Hope STL, and the Missouri Special Olympics.
Stephanie holds a bachelor’s degree in Health Care Management from Harris-Stowe State University. She lives in the St. Louis area with her husband and 3 daughters. Most of her “down time” is spent shuttling the girls to and from commitments, however, she enjoys coaching her daughters’ volleyball team and playing sand volleyball from time to time.
Cookie Pangilinan serves as the Chief Financial Officer of MassageLuXe. As a member of the executive management team, Cookie is responsible for managing the company’s finances, budgeting, financial planning, franchise documents, taxation, legal issues, facility and risk management and human resources.
Cookie had over 25 years of accounting experience before joining MassageLuXe at its inception. Prior to MassageLuXe, she was CFO at a real estate conglomerate. She has over 20 years of experience as a CPA, where she focused on auditing, taxation and business consulting and held various leadership roles.
Cookie holds a Master of Science degree in Taxation from Fontbonne University and a Bachelor of Science degree in Accounting from Quincy University. She has served as an adjunct professor for both of her alma maters. She is also an active member of the Missouri Society of CPAs.
Cookie enjoys traveling and is a die-hard St. Louis Cardinals baseball fan. She resides in the St. Louis area and has two sons, two daughters-in-law and one granddaughter, all of whom she loves to drag to as many Cardinal games as possible.
Jason Malacarne is the Vice President of Operations for MassageLuXe and represents the company as a member of the franchisee advisory council. Jason began his career in 2010 as an assistant manager at one of the first 3 spas the company had opened. An entrepreneur at heart, Jason became a partner in a small restaurant chain at just 21 years of age and is currently a partner in the first MassageLuXe spa opened.
Jason’s passion, work ethic and ability to relate to franchisees and their issues has been invaluable in his role with the company. Jason and his operations team pride themselves on the top notch customer service they provide the franchisees. He considers his team second to none when it comes to partnering with franchise owners to provide them the support and guidance needed for success.
Jason graduated magna cum laude from Southern Illinois University with a Liberal Arts degree. He was first introduced to the Health and Wellness Industry at the age of 26, when he became a personal trainer at one of the top fitness centers in the St. Louis area.
Jason lives in the St. Louis area with his beautiful daughter, who is the light of his life. He is a man of strong faith and considers his role as Dad to be the most important and rewarding endeavor of his life.
If you seek a rewarding opportunity and have the drive and commitment to open a MassageLuXe franchise, your first step is to complete the information request form below and you will be contacted by one of our representatives.
Director of Franchise Development
11 Champion Dr.
Fenton, MO 63026