MassageLuXe Franchise Costs, Fees & FDD

Year Business Began: 2007

Franchising Since: 2008

Headquarters: Chesterfield, Missouri

Estimated Number of Units: 90

Franchise Description: Massage Luxe International, LLC is the franchisor. The franchise offered is a massage therapy spa featuring massages, facials, waxing and skin care treatments, together with related services, products, merchandise, and accessories. The franchisor grants single franchises and multi-unit franchises.
Training Overview: 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 two additional employees the franchisee elects to enroll in the training program. Initial training consists of 10 working days. Franchisees (or their managing owner), and their employees are required to complete the initial training to the franchisor’s satisfaction. In addition to the training program, the franchisor will send one representative to the spa for a period of three to five days to provide on-site opening assistance during the opening of the spa. The franchisor may require franchisees or their previously trained and experienced employees to attend periodic refresher courses.

Territory Granted: The franchisor will grant franchisees rights to operate a single spa under the marks in a territory in which the franchisor will not locate another spa, nor itself directly or indirectly own another spa. Typically, the territory will be an approximately three-mile radius around the location of the spa unless franchisees are in a densely populated area (i.e. metropolitan area) or a rural area. If franchisees are in a rural area, the geographic radius of the territory may be much larger and if franchisees are in a densely populated area, the geographic radius of the territory may be smaller. Franchisees will not receive an exclusive territory under the Franchise Agreement. If franchisees sign a Multi-Unit Development Agreement, the franchisor give them the right to develop and open a specific number of spas as designated in the Multi-Unit Development Agreement. The territory for a Multi-Unit Development Agreement will be determined before the Multi-Unit Development Agreement is signed based on various market and economic factors.

Obligations and Restrictions: Although franchisees are not required to personally participate in the day-to-day management of their spa, the franchisor recommends that they do, and no matter what their participation in management is, they are required to devote their best efforts to the operation of their spa. Franchisees or their managing owner must, at all times, faithfully, honestly and diligently perform and exert their best efforts in performing their obligations under the Franchise Agreement. Franchisees must operate their franchise in accordance with the franchisor’s 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 the franchisor designates as required for all franchisees.

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. Renewal is with a new Franchise Agreement, which may have materially different terms and conditions than the original agreement.

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	$42,500	$42,500
Leasehold Improvements	$368,000	$430,600
Signs	$2,900	$13,200
Spa Equipment and Supplies	$21,700	$79,800
Fixtures	$10,600	$38,300
Furniture and Décor	$5,400	$19,400
Initial Pre-Opening Inventory	$13,600	$13,600
Start-Up Marketing	$15,000	$15,000
Insurance	$10,000	$15,000
Pre-Paid Rent and Lease Deposits	$16,000	$26,000
Professional Fees	$12,000	$21,000
Training Expenses	$3,000	$5,000
Licenses/Bonds	$100	$500
Computer Hardware and Software	$14,000	$14,000
Security Systems	$2,100	$2,100
Office Supplies and Other Miscellaneous Expenses	$5,000	$5,000
Shipping	$4,000	$8,000
Additional Funds – 3 months	$25,000	$50,000
ESTIMATED TOTAL	$570,900	$799,000

 
Other Fees

Type of Fee	Amount
Royalty	Franchisees will pay: (a) 5% of gross revenue through the first 12 months following the initial opening of the spa; and then (b) 6% of gross revenue thereafter.
Refresher Training and Additional Guidance	Currently, $400 per day per trainer.
Regional Ad Fee	2.5% of gross revenue.
National Ad Fee	1% of gross revenue.
Start-Up Marketing	A minimum of $15,000 during the 30 day period prior to opening and during the 30 day period after opening.
POS System Software Fees and Technology Services Fee	For each spa: Currently, initial fee of $500 and an ongoing fee of $150 per week.
Phone and Email	Actual costs.
Analytics Platform	The costs and expenses (currently $50 per month).
On-Line Continuing Education Programs	$100 - $500 per therapist per training program.
Alternative Supplier or Product Approval Fee	$500 plus reasonable fee based on franchisor’s 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	50% of the then current initial franchise fee. If the franchisor assists in finding the transferee, franchisees will pay an additional 10% of the purchase price.
Transfer Deposit	$5,000
Renewal Fee	25% of the then current initial franchise fee.
Relocation Fee	25% of the then current initial franchise fee.
Annual Conference Fee	The then-current conference fee (currently $600 to $1,000 per attendee).
Customer Assistance Fee	All costs, actual and administrative, incurred in providing assistance to the franchisee’s customers.
Costs and Attorneys’ Fees	Actual costs.
Taxes	Actual costs.
Liquidated Damages (General)	$1,000 per day and/or per incident.
Liquidated Damages (Tail Insurance)	$1,000 per day.
Early Termination Fee	$50,000 plus actual costs.
Dispute Resolution Fee	$50,000 plus actual costs.

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