Massage Green Spa Franchise Cost & Fees
Date of Incorporation: 2008
Franchising Since: 2010
Headquarters: Southfield, Michigan
Business Description: The franchisor is Massage Green International Franchise Corp. The franchise features massage therapy, infrared sauna therapy, facial therapy, day spa services as some locations (e.g. manicures and pedicures), lifestyle education classes, and take-out sales of environmentally conscious health and beauty items and other merchandise.
Franchise Offer: The franchisor offers and sells Massage Green Spa single unit, multi-unit and area development franchises.
Financial Assistance: The franchisor does not offer direct or indirect financing. It does not guarantee a franchisee’s note, lease, or obligation.
Training and Assistance: Training for all subjects will take place at a Massage Green Spa location designated by the franchisor, its corporate headquarters in Southfield, Michigan or another location in the U.S. specified by the franchisor in its discretion. The franchisor may conduct one training seminar annually at a location to be determined by the franchisor to discuss relevant business trends and share new information relating to Franchised Stores. Attendance at the seminar is optional unless the franchisor gives franchisees at least 30 days prior written notice of the seminar, in which case franchisees or their Manager must attend. Franchisees do not need to attend any on-going training program more than once a year.
Territory: Franchisees will receive a territory around their franchised location. Generally, and unless otherwise specified in the Franchise Agreement, their territory will be the geographic area within a three mile radius of the franchise. If a different territory is specified, that territory may be described in terms of a radius around the franchised location or by use of streets or natural borders. A different territory may be specified if the franchisor believes the population density, level of competition, income levels, or traffic patterns are materially different than the usual situation.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees may renew for up to one additional successive term of 10 years, if requirements are met.
Obligations and Restrictions: Franchisees or a designated Manager who has completed the Initial Training Program must be personally responsible for the management of the Franchised Store after commencement of Franchised Store operations and be present at the premises of, and doing work only for, the Franchised Location a minimum of 8 hours each day, 5 days each week. Franchisees must sell at the Franchised Store all types of the products and services included in the Massage Green Spa Products and other categories of products and services that the franchisor may periodically authorize in its sole discretion.
Estimated Number of Units: 500
|Name of Fee||Low||High|
|Initial Franchise Fee||$45,000||$45,000|
|Initial Lease Payment||$5,000||$15,000|
|Furniture and Fixtures||$10,500||$20,000|
|Equipment, including POS System Computer, Software and Set-Up||$3,500||$6,000|
|Travel and Living Expenses while Training||$2,000||$5,000|
|Security and Utility Deposits||$500||$1,000|
|Grand Opening Advertising||$6,000||$6,000|
|Opening Inventory and Supplies||$1,000||$3,500|
|Miscellaneous Opening Costs||$1,000||$4,000|
|Additional Funds - 3 months||$10,000||$15,000|
|Type of Fee||Amount|
|Royalty Fee||6% of Gross Sales.|
|National Advertising Fund Fee||2-5% of Gross Sales if the franchisor establishes a National Advertising Fund.|
|Local Advertising or Cooperative Advertising Fees||$6,000 during grand opening; then the greater of 5% of monthly Gross Sales or $3,000|
|Late Fees and Interest||$100 for each late payment, plus the highest applicable legal rate for open account business credit not to exceed 1.5% per month.|
|Insufficient Funds Charges||$45 or, if greater, actual bank charges.|
|Annual Convention Fee||$250 each year.|
|Transfer Fee||$10,000 ($1,000 if the transfer is between existing owners of the franchisee).|
|Renewal Fee||One-half of the Initial Franchise Fee being charged at the time of the renewal.|
|Audit||Will vary under circumstances. The franchisor estimates the range of costs is $1,500 to $2,500.|
|Remodeling and Upgrading||Approximately $15,000.|
|Fees to Evaluate and Approve Alternative Suppliers of Products, Equipment or Services||$1,000 plus food, lodging, and transportation expenses.|
|Indemnification||Will vary under circumstances.|
|Cleaning and Repair||Will vary under circumstances. The franchisor estimates routine repairs will total $1,500 per year and cleaning supplies will total $500 to $1,000 per year.|
|On-Site Training Expenses||$300 to $1,350|
|Promotions||Will vary under circumstances.|
|Additional Initial Training||$1,000 per week, plus travel and living expenses.|
|Software Maintenance and Support for POS System||$175 per month.|
|Phone and Internet Services Fees||$175 per month.|
|Fee for Not Being Open During Normal Business Hours||$1,000 per day.|
|Mystery Shopper Fee||$175 per month.|
|Fee for Not Having a Trained Manager||$1,000 per week.|
|Fees Relating to Cross Global Programs||Will vary under circumstances.|
The above information has been taken from the FDD of Massage Green Spa. Year of FDD: 2015
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