The Investment : Low Cost Franchise : Massage Therapy Franchise : Massage Franchise: MassageLuXe.com

In addition to being committed to your own business, you will also need sufficient capital and the appropriate level of financing to build, launch and operate a single-unit MassageLuXe® massage franchise. Your investment in a single unit MassageLuXe franchise is likely to range between $195,500 and $371,800 depending on a number of factors including the size of your location and specific market conditions.

The minimum financial requirements to open a MassageLuXe franchise in the United States are:

Single unit: Liquid Capital $90,000, Net Worth $300,000
Multiple units: Liquid Capital $200,000, Net Worth $500,000

The following information is excerpted from the 2010 MassageLuXe Franchise Disclosure Document.

Initial Franchise Fee

$38,000

Leasehold Improvements

$25,000

$111,000

Signs

$4,500

$6,500

Spa Equipment

$31,500

$59,500

Fixtures

$14,000

$16,000

Furniture and Décor

$17,500

$23,500

Initial Pre-Opening Inventory

$3,900

$9,500

Start-Up Marketing

$7,500

$10,000

Insurance

$3,000

$5,000

Pre-Paid Rent and Lease Deposits

$2,000

$8,000

Professional Fees

$2,500

$5,000

Training Expenses

$2,000

$3,000

Licenses/Bonds

$100

$1,000

Computer Hardware/Software

$15,000

$17,000

Security Systems

$3,000

Phone and Music Systems

$2,800

$4,500

Office Supplies and Other
Miscellaneous Expenses

$1,200

$2,300

Additional Funds - Three Months

$25,000

$50,000

Total

$195,500

$371,800

The chart above describes the estimated initial investment for a single unit Spa, whether it is a single Unit or a Unit under a Multi-Unit Development Agreement. The Initial Franchise Fee is non-refundable. Any refund of all of the other expenses or portion of these expenses are subject to the polices of the applicable supplier and may depend on whether delivery of the item(s) has been made. The foregoing expenses are merely estimates. You are encouraged to make an independent investigation and analysis of the potential expenses which may be incurred in order to start your Spa.

If you seek a rewarding, high-growth opportunity, click here and download our franchise kit for more info.

The initial franchise fee for the second Spa under a Multi-Unit Franchise Development agreement is $35,000 and the initial franchise fee for each additional unit is $30,000. If you enter into a Multi-Unit Development Agreement, you will also pay us a MUD Fee, as described in Item 5. If you are a Developer, we will not charge you an initial franchise fee under the Franchise Agreement for your Model Spa and you will only pay 50% of the then current initial franchise fee when you sign Franchise Agreements for additional Developer Spas in the ADA Territory.

Costs associated with the build-out for a Spa may vary greatly for newly constructed locations and existing locations requiring modification. We recommend 2,200 to 4,100 square feet for the operation of the Spa. The "estimated low" assumes a partial build-out allowance from the landlord. Leasehold improvement costs will also be affected by labor costs, local market conditions, local zoning ordinances, age of the location and other factors.

The amounts represent the estimated costs of both outdoor and indoor signage. The amounts exclude sales tax and shipping costs.

The low estimate reflects the recommended equipment for a Spa with a capacity for 6 massage therapy rooms. The high estimate reflects the recommended equipment for the Spa with capacity for 14 massage therapy rooms. These estimated expenses include the cost of 1 HydroLux water massage bed, massage tables, table warmers, towel and blanket warmers, therapy kits and other related equipment. The amount excludes sales tax and shipping costs.

Fixtures include the costs and installation of millwork (including retail fixtures, shelving, counters), lighting fixtures and bathroom fixtures. The amounts exclude sales tax and shipping costs.

The low estimate reflects the estimated cost of furnishing and decorating a Spa with 6 massage therapy rooms in accordance with our minimum standards. The high estimate reflects the estimated cost of furnishing and decorating a Spa with 14 massage therapy rooms beyond our minimum standards. The amount excludes sales tax and shipping costs.

These amounts represent estimated cost of an initial supply of massage lotions, related skincare products and supplies. The amounts exclude sales tax and shipping costs.

The low estimate reflects the minimum amount required to be spent for grand-opening marketing of your Spa. The high estimate reflects the cost of additional marketing efforts beyond the required grand-opening marketing that you may choose to do.

Your costs for insurance may vary depending on the insurer, the location of your Spa, the equipment and leasehold improvements and other factors. This is an estimate of your annual premium for your insurance that is described in the Franchise Agreement in Article 16.5 and Item 8.

Some landlords may require the pre-payment of rent, as well as the payment of a security deposit. The amounts will vary based on the market rental rates for your market. If you purchase real estate for the operation of your Spa, your real estate costs may increase significantly.

You may require the assistance of attorneys, accountants and other professional service providers in establishing your Spa. These amounts may vary depending on the extent of the services required.

These amounts represent the average costs of transportation, food and lodging for two to three people to attend initial training at our corporate office in Fenton, Missouri. These amounts do not include any salary or compensation you may have to pay these people during the time they are attending initial training.

This figure may vary greatly depending on the fees charged by local government agencies and bonding companies. A refund of the entire fee or portion of the fees paid for licenses/bonds is subject to the policies of the appropriate government agencies and bonding companies.

These estimated amounts are for the required POS System computer hardware and software, as well as shipping and installation. These amounts also include a cash drawer and an all-in-one printer. See Item 11.

We highly recommend that you install a security system at your Spa.

The Additional Funds reflects the additional capital you may need to cover expenses during the initial period of operation of your Spa other than items identified separately in the above table. These expenses include additional rent, payroll costs, benefits, additional inventory requirements, supplies, etc., but do not include the fees in Item 6 or an owner's draw or salary. You may experience negative cash flow during the initial months of operation at your Spa, which is common due to the type of business and need to develop a membership base.

Costs and expenses can vary depending on various factors like local real estate costs, cost of labor and supplies. We cannot guarantee that you will not have additional expenses starting the business. You costs will depend on how closely you follow the System, your management skill, experience and business acumen, local economic conditions, the acceptance by local consumers of our approved goods/services, prevailing wage rates, competition, etc. These figures were based on our affiliate's experience operating a Spa since 2008. There can be no assurance that the experience of a particular franchisee will correspond with the information presented above. You should review these figures carefully with a business advisor before making any decision to purchase the franchise.