Massage Envy Franchise Costs, Fees & FDD

Year Business Began: 2002

Franchising Since: 2003

Headquarters: Scottsdale, Arizona

Estimated Number of Units: 1,010

Franchise Description: The franchisor is ME SPE Franchising, LLC. The franchisor offers franchises to operate a personal health business that offers professional therapeutic massage services, Massage Envy’s proprietary Total Body Stretch service, hot stone massage therapy, customized facial and/or skin care services (including services such as microdermabrasion and chemical peel), all utilizing a unique process and high-end product line, as well as related products and services through a membership-based program in a distinctive, clean and friendly environment.
Training Overview: Franchisees will be provided approximately 15 days of initial training for the franchise’s managing owner, business manager, and up to an additional three of the management personnel. The initial training program includes approximately five days of new franchisee training conducted in a classroom setting at the Massage Envy Franchise Support Center, located in Scottsdale, Arizona and/or at other locations the franchisor designates, which may include a virtual setting; and 10 days of on-site training at the franchisee’s business. The franchisor may require franchisees and/or their previously trained and experienced employees attend up to five days of additional or refresher training courses each year and a national business meeting or convention up to three days per year at the times and locations it designates.

Territory Granted: Franchisees will operate the business from a specific location approved by the franchisor. The franchisor will identify the geographic territory that that it agrees to grant the franchisee, which complies with its current general territory profile criteria for minimum population, minimum number of qualified households, age range of core customers and therapist availability. Currently, the minimum number of qualified households in a suburban and independent market is 7,500. A “qualified household” in a suburban market has an average annual income exceeding $75,000 and a “qualified household” in an independent market has an average annual income exceeding $50,000. The franchisor would consider granting a franchise for a territory that includes fewer than 7,500 qualified households in certain circumstances. Other than certain limitations, neither of the franchisor nor its affiliates will establish, or grant rights to other persons to establish another Massage Envy business, the physical premises of which is located in the territory.

Obligations and Restrictions: Franchisees must designate one of the owners to serve as the “managing owner.” The managing owner must hold at least a 20% ownership interest in the franchise (or the franchisee entity if the franchise is owned by an entity) and successfully complete the initial training program. The managing owner must be the primary manager of the business. Franchisees must also designate a general manager (the business manager) of the Massage Envy business. The managing owner may serve as the business manager, but it is not required that the business manager have an ownership interest in the franchise. The business manager will exert full-time efforts to fulfill the obligations under the Franchise Agreement. Franchisees must perform all services and offer all products the franchisor periodically requires for Massage Envy businesses. Franchisees may not offer, sell or otherwise distribute any products or perform any services that the franchisor has not authorized.

Term of Agreement and Renewal: The length of the franchise term is 10 years. If franchisees have substantially complied with the Franchise Agreement during the initial term, and meet other requirements, they may acquire a successor franchise under the then-current terms.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$45,000	$45,000
Initial Opening Package	$31,000	$78,500
Computer System	$57,600	$82,000
Security Deposits	$5,000	$37,000
Three Months' Lease Rent	$11,500	$36,000
Leasehold Improvements	$405,000	$554,000
Exterior Signage (excludes interior signage that is part of the building materials included in Leasehold Improvements)	$6,000	$17,000
Business Licenses and Permits	$250	$15,000
Professional Fees	$15,000	$30,000
Grand Opening Advertising Program	$15,000	$15,000
Insurance	$10,000	$35,000
Initial Training	$1,000	$6,500
Additional Funds - 3 months	$117,000	$130,000
ESTIMATED TOTAL	$719,350	$1,081,000

Other Fees

Type of Fee	Amount
Royalty	6% of gross sales.
P4 Technology Fees	Currently, charges for all available services would be approximately $705 per month for cable-enabled internet (locations without cable-enabled internet will see an increase in the total per month cost).
Centralized Tech Solutions & Support Fee	$390
Marketing Fund Contributions	2% of gross sales.
Supplemental Marketing Fund	2% of gross sales.
Regional Advertising Cooperative Contributions	Established by advertising cooperative members.
Regional Advertising Cooperative Accounting Fee	1% of total monthly contributions.
Additional Training or Assistance Fee	Currently, $250 per person per day plus expenses.
Failure to Attend Convention or Program Fee	For each person who was required to attend, $400 per person per day for the duration of the convention or program.
Opening Audit Fee	Up to $500, currently, which may be charged to audit and certify a location’s readiness to open.
Refresh Site Survey Fee	$1,900, but could increase if franchisor’s costs increase.
Refresh Architectural Plans Fee	$2,800, but could increase if franchisor’s costs increase.
Successor Franchise Fee	2/3 of the then current initial franchise fee.
Transfer Fee	2/3 of the then current initial franchise fee.
Audit	Cost of inspection or audit.
Interest	Lesser of 15% per annum or highest commercial contract interest rate law allows.
Fines	Up to $500 per incident.
Management Fee	Up to 8% of gross sales, plus costs and expenses.
Costs and Attorneys' Fees	Will vary with circumstances.
Indemnification	Will vary with circumstances.
New Product or Supplier Testing	Cost of testing.
Insurance	Actual cost of premiums, plus franchisor’s costs and expenses.
Late Fee and Dishonored Debits Fee	15% per annum or 1.25% per month (late fee); $100 per incidence (dishonored debit) or insufficient funds in the bank account.
Rapid Response / D3	Approximately $90 per month but could increase if franchisor’s costs increase.
NASF Employment Verification System	$150 as incurred.

The above information has been compiled from the FDD of Massage Envy. Year of FDD: 2025.
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