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LaVida Massage Franchise Costs & Fees

Date of Incorporation: 2007
Franchising Since: 2007
Headquarters: Brighton, Michigan

Business Description: The franchisor is LaVida Massage Franchise Development, Inc. The franchisor grants franchises for massage Center that offer professional health and wellness services through the use of massage therapy and other related goods and services. This concept is based on high volume massage services in a gender-neutral Center, which is open seven days a week and conveniently located.

Franchise Offer: The franchise offered is for the operation of a therapeutic massage center under the name “LaVida Massage” offering therapeutic massage services to the general public in a clean and relaxing environment.

Financial Assistance: The franchisor offers no financing at this time. However, franchisees of LaVida Massage may be eligible for expedited and streamlined SBA loan processing through the SBA’s Franchise Registry Program.

Training and Assistance: Two weeks before opening the Center, at least one owner must complete all training required to operate the Center. All training, other than the on-site training, will be held at times designated by the franchisor in Brighton, Michigan and must be successfully completed to franchisor’s satisfaction. The current training consists of providing franchisor with up to 10 days of training by the franchisor’s trainers at its training Center in Brighton, Michigan prior to opening. The franchisor will also provide up to five business days of training and oversight by LaVida Massage professionals at the franchisor’s location prior to the grand opening. The franchisor does not have any current requirements but may require in the future that franchisees or their owners attend supplemental or additional training classes at the franchisor’s then current headquarters which the franchisor may periodically offer not to exceed 5 days.

Territory: Franchisees will be granted an exclusive territory (Designated Territory). Each Designated Territory is an area negotiated between you and us and based upon population, growth potential, competition and traffic patterns but usually consist of a minimum area of 1 mile. Franchisees may not conduct the Center at any site other than the premises, or relocate the Center without the franchisor’s prior written consent.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. A 10 year renewal term is available, if franchisees meet certain requirements.

Obligations and Restrictions: The franchisor does not require that franchisees personally supervise the franchised business but it is recommended that the owner is involved in the operations. The business must be directly supervised "on-premises" by a manager or designated representative who has successfully been trained by a LaVida training professional. The on-premises manager or designated representative cannot have an interest or business relationship with any of LaVida's business competitors. Franchisees must offer for sale all products and perform all services that the franchisor periodically requires in their Center. Franchisees may not offer for sale any products or perform any services that the franchisor has not approved.

Estimated Number of Units: 55

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $39,000 $39,000
6 months Lease Rent $20,000 $50,000
Equipment/Fixtures $37,500 $55,000
Leasehold Improvements $20,000 $80,000
Opening Inventory $2,000 $3,000
Signage $6,500 $8,500
Security Deposits $0 $10,000
Business Licenses & Permits $250 $2,000
Opening Advertising (to be spent before opening and within 30 days after opening) $5,000 $10,000
Pre-Opening Training $1,000 $5,000
Miscellaneous (legal, utilities, insurance, office supplies, etc.) $5,500 $20,000
Additional Funds (6 months) $25,000 $75,000
ESTIMATED TOTAL $161,750 $357,500
Other Fees
Type of Fee Amount
Royalty Fee 5% of Weekly Gross Sales.
Renewal Fee 25% of the then current franchise fee.
Marketing Fund Contributions 1% of Gross Sales.
Computer Software Use Fee $43 per week.
Return Check Fee $100
Default Notice Fee $150
Inspections $0 - $250. No charge to franchisee for regular inspections.
Audit Expenses $3,000 - $6,000
Tranfer $7,500
Training Fees (all owners and up to 2 employees for two weeks at LaVida training facility) Costs of travel expenses, room and board for franchisee employees.
Training Fees (one week for LaVida trainers at franchisee location) No cost to franchisee (all owners and up to 2 employees).
Additional Personnel attending Initial Training $125 plus costs of travel, expenses, room and board for franchisee employees.
Additional Training for Employees after Initial Training (upon request or by necessity) $250 - $1,250 plus costs of travel, expenses, room and board for franchisee employees.
Interest on Late Payments Interest will accrue daily on any late payments at the rate 15% per annum during any one year period.
Insurance Actual cost of premiums, plus the franchisor’s costs and expenses.
Charges for Testing and Evaluation Applying to Franchisees Requests for Approval for Goods and Suppliers $0 - $100. Will vary under circumstances.
Indemnification Will vary under circumstances.
Costs of Enforcement Will vary under circumstances.
Maintenance & Up Keep $50 - $2,500 year.
Redecorating/Remodeling $0 - $5,000

The above information has been taken from the FDD of LaVida Massage. Year of FDD: 2016

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