About Massage Envy Franchise
Massage Envy is the largest provider of massage therapy and skin care services in the United States, with franchise operations dating back to 2019 in its current registration form.
The brand operates membership based wellness studios that offer professional massage therapy, facials, and total body stretch sessions at accessible price points.
Massage Envy is backed by ME Holding Corporation.
Massage Envy Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $45,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales (Marketing Fund/NAF Contributions), 2% of Gross Sales (Supplemental Marketing Fund) | National brand fund |
| Total Investment Range | $614,850 – $927,000 | Includes build-out, inventory, working capital |
The investment range of $615K–$927K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (2% of Gross Sales (Marketing Fund/NAF Contributions), 2% of Gross Sales (Supplemental Marketing Fund)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $45,000 | $45,000 |
| Initial Opening Package | $46,000 | $63,000 |
| Computer System | $57,600 | $82,000 |
| Security Deposits | $6,000 | $12,000 |
| Three Months’ Lease Rent | $13,000 | $29,000 |
| Leasehold Improvements | $361,000 | $523,000 |
| Signage (excludes interior signage that is part of the building materials included in Leasehold Improvements) | $6,000 | $18,000 |
| Business Licenses and Permits | $250 | $5,000 |
| Professional Fees | $7,000 | $30,000 |
| Grand Opening Advertising Program | $15,000 | $15,000 |
| Insurance | $10,000 | $35,000 |
| Training Expenses | $2,000 | $5,000 |
| Additional Funds– 3 months | $46,000 | $65,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 2/3 of our then-current initial franchise fee |
| Renewal Fee | 2/3 of our then-current initial franchise fee |
| Technology Fee | Approximately $1,198 per month |
| Audit Fee | Cost of inspection or audit (As incurred) |
| Additional Training or Assistance Fee | $250 per person per day plus expenses |
| Failure to Attend Convention or Program Fee | $400 per person per day for the duration of the convention or program |
| Opening Audit Fee | Up to $500 |
| Fines | Up to $500 per incident |
| Management Fee | Up to 8% of Gross Sales, plus costs and expenses |
| Costs and Attorneys’ Fees | Will vary with circumstances |
| Indemnification | Will vary with circumstances |
| New Product or Supplier Testing | Cost of Testing |
| Insurance | Actual cost of premiums, plus our costs and expenses |
| Late Fee and Dishonored Debits Fee | 1.5% per month (late fee); $25 per incidence (dishonored debit) |
| Rapid Response/D3 | Approximately $90 per month |
| Advertising Coop Accounting Fee | 1% of Total Monthly Contributions |
| Meevo Computer Software | $215 monthly subscription fee |
| Centralized Tech Solutions & Support Fee | $390 per month |
| Internet Service Fee | $350 per month |
| Managed Network & Internet Fee | $83 per month |
| Enhanced Security Fee | $37 per month |
| App Development & Maintenance Fee | $122.50 per month |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 15 days |
| Classroom Training | Approximately 38 hours |
| On-the-Job Training | Approximately 10 days |
| Training Location | Massage Envy Franchise Support Center in Scottsdale, Arizona and/or other designated locations. |
| Additional Training | Franchisor may require franchisees and/or employees to attend up to 5 days of additional or refresher training courses and up to 3 days of national business meetings/conventions annually, with a fee of $250 per person per day plus expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected with right of first refusal |
| Exclusive Territory | No |
| Description | A specific geographic area identified on Exhibit A of the Franchise Agreement, complying with current general territory profile criteria for minimum population, qualified households (e.g., 7,500 in suburban/independent markets with specific income levels), age range of core customers, therapist availability, market variables, traffic flow, and natural/man-made boundaries. Described by street map landmarks, compass directions, or a radius of miles. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Conditional upon meeting requirements for a successor franchise under then-current terms. |
| Renewal Fee | 2/3 of our then-current initial franchise fee |
| Renewal Conditions | Provide appropriate notice, maintain possession of the site, meet minimum standards for character, skill, aptitude, attitude, English language, business ability, and financial capacity, remodel the site to current standards, sign a general release, pay a successor fee, and sign the then-current franchise agreement. |
| Transfer Fee | 2/3 of our then-current initial franchise fee |
| Transfer Conditions | Franchisee and owners must be in full compliance, pay all amounts due, sign a release, pay transfer fee, and subordinate amounts due from buyer. Buyer and its owners must meet qualifications, complete training, sign current franchise agreement and related documents, be in full compliance if a current franchisee, and bring the business into compliance with current mandatory System Standards. Franchisor must approve material terms, decline right of first refusal, and approve new franchisee and owners. |
| Termination for Cause | Non-curable defaults include material misrepresentation, selling unapproved products/services, failure to complete training, abandonment, unauthorized transfer, felony conviction, interference with inspections, dishonest/unethical/illegal conduct, loss of license/permit, unauthorized use of confidential information/Marks/Copyrights, failure to maintain minimum Gross Sales ($500,000), failure to pay taxes, repeated failure to submit reports/payments, or default under financing. Curable defaults include violation of any law (72 hours to cure), monetary defaults/failure to maintain insurance (10 days to cure), loss of premises (90 days to find new site), and any other default subject to cure (30 days). |
| Non-Compete Period | 18 months (reducible to 12 months if unenforceable) |
| Non-Compete Details | Neither franchisee, any owner, nor any immediate family member of an owner may have a direct or indirect interest (e.g., as owner, investor, employee, consultant) in any Competitive Business operating (i) at the Site, (ii) within 25 miles of the Site, or (iii) within 25 miles of any other Massage Envy Business in operation or under construction on the date of termination, expiration, or transfer. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee must designate a 'Managing Owner' who holds at least a 20% ownership interest, successfully completes initial training, and serves as the primary manager, dedicating full-time efforts and avoiding conflicting business activities. A 'Business Manager' must also be designated, who may or may not be the Managing Owner, and must also dedicate full-time efforts and complete initial training. The Managing Owner is responsible for supervising the Business Manager if they are different. |
| Required Suppliers | Designated third-party distribution vendor for Initial Opening Package; approved or designated suppliers for computer hardware and software, signage, marketing materials, software maintenance and support services, architectural and real estate brokerage services, credit card processing services, audio and visual services, security system and cameras, certain digital marketing services, and massage-related and facial-related furniture, products and other inventory items; KDM Signs, Inc. for branded print materials and marketing collateral. |
| Supply Restrictions | Franchisees must purchase certain goods and services only from approved or designated suppliers or consist of items that meet franchisor specifications. The franchisor restricts sources to protect trade secrets, assure quality, ensure reliable supply, control third-party use of Marks, and monitor manufacturing and delivery. Between 90% and 95% of initial purchases and 70% and 85% of ongoing purchases are from approved/designated suppliers or must meet specifications. |
| Franchisor Revenue from Suppliers | The franchisor and/or its affiliates may derive revenue from franchisee purchases and leases, including referral fees, commissions, promotional allowances, volume discounts, and other payments from approved or designated suppliers. In fiscal year 2021, the franchisor received $639,897 from approved/designated suppliers and $5,526,782 in referral fees from its designated third-party distribution vendor. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease, or obligation. |
Massage Envy Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Massage Envy Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Massage Envy System Growth
Massage Envy currently operates 1109 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 11 | 23 | 1154 |
| 2020 | 7 | 34 | 1127 |
| 2021 | 8 | 26 | 1109 |
Transfers: 118 | Closures: 26
State Registrations
Registered in 6 states: California, Illinois, Indiana, Michigan, New York, Wisconsin
Franchisor Financials (Item 21)
Audited by Grant Thornton LLP for year ending December 31.
Massage Envy Franchise — FAQ
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