MassageLuXe Franchise Cost & Fees
Date of Incorporation: 2007
Franchising Since: 2008
Headquarters: Fenton, Missouri
Business Description: Massage Luxe International, LLC is the franchisor. MassageLuXe Services include massage therapy services together with related services, products, merchandise and accessories as may presently exist or which may be modified, changed, or acquired by the franchisor or its affiliates.
Franchise Offer: The franchise offered is a massage therapy spa featuring massage services, together with related services, products, merchandise, and accessories.
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: The current training program consists of initial training at the franchisor’s training location or at an operating Spa on the operation of a Spa for franchisees (or, if the franchisee is a business entity, the managing owners), and up to 10 additional employees the franchisee elects to enroll in the training program. Initial training consists of 10 working days. In addition to the training program described above, the franchisor will send one representative to the Spa for a period of 3 to 5 days to provide on-site opening assistance during the opening of the Spa.
Territory: The franchisor will grant franchisees rights to operate a single Spa under the MassageLuXe Marks in a territory in which the franchisor will not locate another Spa offering primarily the MassageLuXe services under the MassageLuXe marks, nor directly or indirectly own another Spa offering primarily the MassageLuXe services under the MassageLuXe marks. Typically the territory will be an approximately 3 mile radius around the location of the Spa unless franchisees are in a densely populated area (i.e. metropolitan area) or a rural area.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in full compliance and meet other requirements, they may acquire a renewal franchise.
Obligations and Restrictions: Franchisees (or the managing owners) agree to personally manage and operate the franchise as their primary occupation and will not, without prior written consent, delegate their authority and responsibility for management and operation. Franchisees must operate their franchise in accordance with our Operations Manual. Franchisees may only offer and sell those services and related goods that the franchisor has approved. Franchisees must offer all services and related goods that he franchisor designates as required for all franchisees.
Estimated Number of Units: 40
|Name of Fee||Low||High|
|Initial Franchise Fee||$38,000||$38,000|
|Spa Equipment and Supplies||$37,800||$50,100|
|Furniture and Décor||$19,700||$22,200|
|Initial Pre-Opening Inventory||$9,500||$11,500|
|Pre-Paid Rent and Lease Deposits||$2,000||$8,000|
|Computer Hardware and Software||$12,500||$17,000|
|Phone and Music Systems||$1,500||$2,000|
|Office Supplies and Other Miscellaneous Expenses||$2,500||$4,500|
|Additional Funds - 3 months||$25,000||$50,000|
|Type of Fee||Amount|
|Royalty||5% of Gross Revenue commencing on the first day of operations.|
|Refresher Training Fees||$400 per day per trainer.|
|Per Day Fee||$400 per day per trainer.|
|Regional Ad Fee||2.5% of Gross Revenue commencing on the first day of operations.|
|National Ad Fee||1% of Gross Revenue commencing on the first day of operations.|
|POS System Software Fees||For each Spa: Initial fee of $350 and an ongoing fee of $75 per week.|
|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.|
|Auditing Costs||Actual costs.|
|Transfer Fee (Franchise Agreement)||25% of the then current Initial Franchise Fee.|
|Transfer Fee (Multi-Unit Developer)||$5,000 per Spa to be developed under the Multi-Unit Development Agreement.|
|Renewal Fee||$5,000 under the Franchise Agreement.|
|Costs and Attorneys’ Fees (Franchise Agreement and Multi-Unit Developer)||Actual costs.|
|Liquidated Damages||$1,000 per day.|
|Products and Fixtures||Per the price list, which is subject to change.|
|On-Line Continuing Education Programs||$100-$500 per therapist per training program.|
The above information has been taken from the FDD of MassageLuXe. Year of FDD: 2016
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