About MassageLuXe - Unit Program Franchise
MassageLuXe is a membership based massage and spa services franchise that has been franchising since 2008, backed by WIT Nutrition I, LLC.
The brand offers professional massage therapy, facials, and other spa services in a luxurious, relaxing studio environment at membership based pricing that makes regular wellness care affordable and accessible.
The franchise fee is $42,500.
MassageLuXe - Unit Program Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $42,500 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2.5% of Gross Revenue (Regional Ad Fee) and 1% of Gross Revenue (National Ad Fee) | National brand fund |
| Total Investment Range | $387,800 – $732,900 | Includes build-out, inventory, working capital |
The investment range of $388K–$733K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Revenue) and marketing fee (2.5% of Gross Revenue (Regional Ad Fee) and 1% of Gross Revenue (National Ad Fee)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $42,500 | $42,500 |
| Leasehold Improvements | $196,600 | $389,400 |
| Signs | $1,800 | $13,200 |
| Spa Equipment and Supplies | $24,300 | $81,300 |
| Fixtures | $13,300 | $38,000 |
| Furniture and Décor | $5,800 | $19,300 |
| Initial Pre-Opening Inventory | $9,000 | $9,000 |
| Start-Up Marketing | $15,000 | $20,000 |
| Insurance | $8,000 | $12,000 |
| Pre-paid Rent and Lease Deposits | $5,600 | $8,000 |
| Professional Fees | $8,000 | $10,000 |
| Training Expenses | $3,000 | $5,000 |
| Licenses/Bonds | $100 | $1,000 |
| Computer Hardware and Software | $15,800 | $15,800 |
| Security Systems | $1,500 | $1,500 |
| Phone and Music Systems | $2,200 | $2,600 |
| Office Supplies and Other Miscellaneous Expenses | $6,300 | $6,300 |
| Shipping | $4,000 | $8,000 |
| Additional Funds – 3 months | $25,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then current Initial Franchise Fee |
| Renewal Fee | 25% of the then current Initial Franchise Fee |
| Technology Fee | Initial fee of $500 and an ongoing fee of $125 per week |
| Audit Fee | Actual Costs |
| Refresher Training and Additional Guidance | $400 per day per trainer |
| On-Line Continuing Education Programs | $100-$500 per therapist per training program |
| Alternative Supplier or Product Approval Fee | $500 plus reasonable fee based on our costs if expenses incurred are greater than $500 |
| Interest | The lesser of 1.5% per month or the highest contract rate of interest permitted by law |
| Transfer Deposit | $5,000 |
| Relocation Fee | 25% of the then current Initial Franchise Fee |
| Customer Assistance Fee | All costs, actual and administrative, incurred in providing assistance to you customers |
| Costs and Attorney’s Fees (Franchise Agreement and MUD) | Actual Costs |
| Taxes | Actual Costs |
| Liquidated Damages | $1,000 per day and/or per incident |
| Early Termination Fee | $50,000 plus actual costs |
| Dispute Resolution Fee (Franchise Agreement and MUD) | $50,000 plus actual costs |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 10 working days |
| Classroom Training | 8 |
| On-the-Job Training | 72 |
| Training Location | Chesterfield, MO or at another MassageLuXe Spa |
| Additional Training | We may require you or your previously trained and experienced employees to attend periodic refresher courses at times and locations we designate, and we may charge reasonable fees for such courses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | approximately 3-mile radius |
| Description | Typically, your Territory will be an approximately 3-mile radius around the location of your Spa unless you are in a densely populated area (i.e. metropolitan area) or a rural area. If you are in a rural area, the geographic radius of your Territory may be much larger and if you are in a densely populated area, the geographic radius of your Territory may be smaller. For Multi-Unit Development Agreements, the territory is non-exclusive. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | The most current franchise agreement may contain significantly different terms and conditions than your original agreement. |
| Renewal Fee | 25% of the then current Initial Franchise Fee |
| Renewal Conditions | Under the FA, you must give notice, remodel your Spa to meet our current standards, pay a renewal fee, sign a general release and sign a new franchise agreement, which may have materially different terms and conditions than your original agreement. |
| Transfer Fee | 50% of the then current Initial Franchise Fee |
| Transfer Conditions | The transferee meets our qualifications, signs our then-current FA which might contain different terms and conditions, and satisfactorily completes training; a transfer fee is paid to us; and you must sign a general release. |
| Termination for Cause | Material, uncured breaches of the FA, including failure to complete initial training, failure to open the Spa within 270 days, abandonment of the Spa, material misrepresentation, criminal conduct, unauthorized assignment, loss of location, unauthorized use of confidential information, violation of health/safety laws, misuse of Marks, failure to make payments, failure to pay taxes, or repeated failures to comply with the agreement. |
| Non-Compete Period | 24 months |
| Non-Compete Details | Upon termination, expiration, or transfer of the Agreement, for a period of 24 months, neither you nor your owners will have any direct or indirect interest in a Competitive Business operating (i) at the Location; (ii) within 25 miles of the Location; or (iii) within 5 miles of any other Spa in operation or under construction. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Although you are not required to personally participate in the day-to-day management of your Spa, we recommend that you do, and no matter what your participation in management is, you are required to devote your best efforts to the operation of your Spa. You or your managing owner must, at all times, faithfully, honestly and diligently perform and exert your best efforts in performing your obligations under the Franchise Agreement. You are permitted to designate a managing owner to operate the franchise. There is no required amount of equity interest that the managing owner must have in the franchise. If you elect to hire a manager or supervisor to operate the franchise and we consent, the employee must successfully complete our initial training program and must be bound to the confidentiality and noncompetition provisions of the Franchise Agreement. You are required to carefully monitor and be responsible for the performance of anyone designated to manage the operation of your Spa. |
| Required Suppliers | The goods, services, supplies, fixtures, inventory and computer hardware and software must be purchased by you from us, our affiliates, our approved suppliers or according to our specifications. |
| Supply Restrictions | We and our affiliates currently do not provide any products or services to our franchisees except as specified in this FDD although we reserve the right to do so in the future. We may occasionally develop proprietary private label equipment and products that are an integral part of our System and you must comply with all our specifications and requirements and incorporate and use the equipment and products in the operation of the franchise business, as we may require. |
| Franchisor Revenue from Suppliers | In the fiscal year ending December 31, 2021, we sold $7,541 products to our franchisees, representing 0.1% of our gross revenues of $5,435,221. In 2021, we received rebates from approved suppliers ranging from 0%-15% of purchases made by Spas. Any purchases from us or our affiliates will generally be at prices exceeding our, or our affiliate’s, costs. |
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. |
MassageLuXe - Unit Program Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
MassageLuXe - Unit Program 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.
MassageLuXe - Unit Program System Growth
MassageLuXe - Unit Program currently operates 69 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 | 7 | 1 | 66 |
| 2020 | 3 | 1 | 67 |
| 2021 | 4 | 2 | 69 |
Transfers: 2 | Closures: 2
State Registrations
Registered in 18 states: CA, FL, HI, IL, IN, MD, MI, MN, NE, NY, ND, OR, RI, SD, TX, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Schmersahl Treloar & Co. for year ending December 31.
MassageLuXe - Unit Program Franchise — FAQ
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