15 Make-or-Break Questions to Ask Before Investing in a Massage Chain - MassageLuXe

15 Make-or-Break Questions to Ask Before Investing in a Massage Chain

If you are interested in opening a massage business, you’ve got the right idea. It is a profitable industry. The American Massage Therapy Association (AMTA) says massage therapy is an $18 billion industry that is growing continually. But before you jump in and purchase an independent spa or massage chain, there are some unexpected business pitfalls you will want to avoid. Begin by asking these fifteen make-or-break questions before you buy.

15 Questions to Ask Before You Buy

  1. What are my costs to open?

First and foremost, you need to make sure you have enough capital to set up and operate your massage business. As in any business, it will take a few months to buildout the business, open the doors, and start bringing in money, so part of your cost-to-open figure should include funding for those months ahead of your grand opening.

  1. What are my ongoing costs?

If you are buying a spa franchise, the franchisor can usually provide an educated estimate based on your monthly lease, employee salaries, utilities, and products. It is important to have a structured financial plan in place and understand the overhead costs.

  1. How much money will I make?

Opening a business is an investment and you need to feel confident about your ROI. Ask for numbers including profit margins and average spa owner salary. If you’re investing in a franchise, item 19 of the brand’s Franchise Disclosure Document (FDD) should reveal telling financial details to help you make an informed decision about the opportunity.

  1. How long will it take to open?

This is an important question, and the answer will vary depending on the franchise brand, the location, the time it takes to secure a lease, and the time it takes to renovate or buildout your spa location.

The benefit of franchising with a proven spa concept like MassageLuXe is the support you receive during the buildout process. Our team can help you open a turnkey spa in just a few short months.

  1. How do I find qualified employees?

There are many ways to advertise your need for employees through job boards and social media. You may consider letting a local massage school know that you will be opening your business soon and you’re in need of qualified and licensed massage therapists. Your location will require general office staff to work with customers, and perhaps a general manager to oversee the smooth operation of your spa unless you choose to manage the spa as the owner.

  1. Who is my target market?

While once considered luxury pampering, massages are now recognized for their intrinsic value. They are considered essential by many for self-care and overall health and well-being. Therefore, your vertical market is quite vast, ranging from adults who need to relax and de-stress to people with ailments including chronic pain, fibromyalgia, arthritis, and more.

According to the American Massage Therapy Association, just 19% of consumers list pampering as their primary reason for their last massage. More than 60% of men and women surveyed list “health or wellness reasons” for their last massage. Of the consumers who got a massage in 2020 for health and wellness reasons, 30% say it was part of a treatment plan from a doctor or medical provider.

  1. How much do you charge?

You need to set up a price chart providing clients with a clear view of what every service costs. You may want to determine what your competitors are charging for services like massage — and price accordingly.

Franchising removes the guesswork. MassageLuXe sets its prices for franchises nationwide so customers are never surprised by varying prices if they visit multiple spas.

  1. How can you make it more profitable?

You may want to look into other revenue generators. Perhaps in addition to massage, you will provide facials, waxing, and sell products. MassageLuXe franchisees enjoy multiple revenue streams from massage, facial and waxing services, memberships, and quality products sold in spas nationwide.

  1. What equipment will I need?

If you are following a chain or franchise model, you will know all your equipment needs, those costs, and who will supply them. That’s one of the perks of working with an established brand.

10. How much space do I need?

Determine how many massage rooms you will need to deliver convenience for your clients. If your shop is too small and clients can’t get appointments, it’s very discouraging for them. Work with your contractor on how to design your space for the highest efficiency and profitability. Again, a massage franchise will already have this information available to you.

11. How do I handle financing?

When you work with an established brand, they can often direct you to third-party financial specialists who can help with acquiring a loan. Franchises like MassageLuXe are experienced in helping their prospective owners secure funding and can make suggestions are direct you to helpful sources.

12. How do you manage growth?

As your customer base grows and your location begins turning a consistent profit, you may want to think about expanding your existing site or owning another location. When working with a franchise, multi-unit development is available for franchisees ready to scale their business.

13. How do I keep records?

Bookkeeping is essential to financial success. It is worth investing in a good computer system and software to manage your budget. MassageLuXe provides its franchisees with a software tool to manage their books.

14. How do I advertise?

Marketing your massage chain is often done through channels like direct mail marketing, email marketing, and a lively social media presence. MassageLuXe spa owners enjoy the benefit of a franchise that provides marketing and advertising tools and assistance to get customers into their spas.

15. How do I perform better than the competition?

It’s always important to keep an eye on the competition. Often competitors duplicate one another’s promotional ideas. Although it’s important to know what your competitors are doing, it’s more important to grow your brand and take care of gaining the trust of your clients. Franchising with a proven, reputable brand like MassageLuXe can help you hit the ground running with a spa people recognize and trust.

MassageLuXe is Your Best Investment

Armed with all this knowledge, if you are looking for the best brand to choose to open a massage location, all arrows are pointing toward MassageLuXe. Our massage franchise allows you to enjoy the benefits of business ownership with the use of a proven turnkey business model. We are a fast-growing franchise-based spa company with a mission to provide an unparalleled experience that supports and encourages health, well-being, and quality of life.

To learn more about spa franchise opportunities with MassageLuXe, scroll down to fill out the contact form below. 

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