Franchising Since: 2007
Headquarters: Brighton, Michigan
Estimated Number of Units: 50
Franchise Description: The franchisor is LaVida Massage Franchise Development, Inc. The franchisor grants franchises for massage center units which operate under the name “LaVida Massage” and 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.
Training Overview: The current training consists of providing franchisees with up to 10 days of training by trainers at the franchisor’s training Center in Brighton, Michigan. Two weeks before opening the center, at least one owner must have completed 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 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 then current headquarters which the franchisor may periodically offer not to exceed five days. The franchisor does not currently have any mandatory supplemental training classes available.
Territory Granted: Franchisees will be granted an exclusive territory with a minimum area of an eight-minute driving radius. The territory shall be approved by the franchisor based upon population, growth potential, competition, and traffic patterns. Franchisees may not conduct the center at any other site than the approved location. The franchisor will not operate stores or grant franchises for a similar or competitive business within the area.
Obligations and Restrictions: The franchisor does not require that franchisees personally participate full-time in the day-to-day operation of the center, but it does recommend it, and at a minimum, franchisees must devote substantial and continuing efforts to the operation of the center. If franchisees do not participate in the daily operations, the center must be directly supervised “on-premises” by a designated manager who has successfully completed the training program. If franchisees have a designated manager operate the center, they must still make sure that the center is operated in compliance with the terms of the Franchise Agreement, the operations manual, and the system standards. The franchisor requires franchisees to offer and sell only those goods and services that have been approved. Franchisees must offer all goods and services that the franchisor designates as required for all franchisees.
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.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation.
Investment Tables:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $39,000 | $39,000 |
| Real Estate/Rent | $18,000 | $36,000 |
| Equipment/Fixtures | $30,000 | $50,000 |
| Leasehold Improvements | $120,000 | $233,000 |
| Opening Inventory | $3,000 | $6,000 |
| Signage | $6,500 | $8,500 |
| 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) | $85,000 | $110,000 |
| ESTIMATED TOTAL | $313,250 | $529,500 |
| Type of Fee | Amount |
|---|---|
| Royalty Fee | 5% of weekly gross sales. |
| Renewal Fee | 25% of the then current franchise fee. |
| Cooperative Advertising Fund Contributions | 1% of gross sales. |
| Center Management Software Fee | $119 per week. |
| Return Check/ACH Fee | $100 |
| Default Notice Fee | $150 |
| Inspections | $0 - $1,200. No charge to franchisee for regular inspections. |
| Audit Expenses | $3,000 - $6,000 |
| Transfer | $7,500 |
| Training Fees (all owners and up to 2 employees for up to five days 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 two 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. |
| Management Services Upon Franchisees Death or Disability | $250 - $500 per day. |
| 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 |
Franchise Direct's Disclaimer