In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Massage Heights franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Massage Heights franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Massage Heights outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Massage Heights franchise opportunity

Section V – Presentation and analysis of Massage Heights’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, highest, and lowest gross revenue for the top 10, top 50%, bottom 50%, bottom 10, and all 100 franchised Massage Heights retreats that were open and in continuous operation for 12 months or longer as of December 31, 2023

• 2023 average, median, highest, and lowest number of prospects for the top 10, top 50%, bottom 50%, bottom 10, and all 100 franchised Massage Heights retreats that were open and in continuous operation for 12 months or longer as of December 31, 2023

• 2023 average, median, highest, and lowest number of annual service units for the top 10, top 50%, bottom 50%, bottom 10, and all 100 franchised Massage Heights retreats that were open and in continuous operation for 12 months or longer as of December 31, 2023

• 2023 average, median, highest, and lowest membership base for the top 10, top 50%, bottom 50%, bottom 10, and all 100 franchised Massage Heights retreats that were open and in continuous operation for 12 months or longer as of December 31, 2023

• 2023 average, median, highest, and lowest monthly retention rate for the 100 franchised Massage Heights retreats that were open and in continuous operation for 12 months or longer as of December 31, 2023

Section VI – Key ratios, comparables, computations, and analyses for the Massage Heights franchise opportunity (exclusive content for Platinum subscribers)

Section I – Massage Heights Franchise Costs

• Initial Franchise Fee:  $49,500
• Retreat Development Package:  $58,540 to $62,621
• Utility and Security Deposits:  $3,500 to $6,500
• Leasehold Improvements and Professional Design Fees:  $256,000 to $286,000
• Exterior Signage:  $8,250 to $11,000
• Equipment:  $3,300 to $6,400
• Technology System:  $33,786 to $40,339
• Software Setup Fee:  $500
• Facial Services Expenses:  $2,173 to $6,311
• Business Licenses and Permits:  $150 to $2,100
• Professional Fees:  $1,000 to $8,000
• Initial Training Expenses:  $3,500
• Initial Advertising Program:  $15,000
• Additional Funds – 3 Months:  $37,000 to $54,000
• Total Estimated Massage Heights Franchise Costs:  $472,199 to $551,771

Section II – Massage Heights’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $34,500 to $49,500
• Royalty:  6% of Gross Revenue
• Brand Fund Contribution:  3% of Gross Revenue
• Social Media and Website Management:  $350 per month
• Local and Regional Advertising Cooperatives:  established by cooperative members
• Local Advertisement Payment:  the greater of 3% of Gross Revenue or $2,000 per month

Section III – Number of Franchised and Company-Owned Massage Heights Outlets

Franchised

2021

• Outlets at the Start of the Year:  109
• Outlets at the End of the Year:  106
• Net Change:  -3

2022

• Outlets at the Start of the Year:  106
• Outlets at the End of the Year:  102
• Net Change:  -4

2023

• Outlets at the Start of the Year:  102
• Outlets at the End of the Year:  103
• Net Change:  +1

Company-Owned

2021

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  3
• Net Change:  -1

2022

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

2023

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  1
• Net Change:  -2

Section IV – News Updates on the Massage Heights Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Massage Heights Franchise (Item 19, 2024 FDD)

• As of December 31, 2023, there were 103 franchised Massage Heights Businesses and 1 company-owned Massage Heights Business in operation in the United States.

• Of the 103 franchised Massage Heights Businesses: (a) 100 were open and in continuous operation for 12 months or longer as of December 31, 2023 (“Franchised Retreats”), (b) 2 of the 103 businesses converted from company-owned to franchisee-owned in the 2023 calendar year (these businesses are included in the “Franchised Retreats”), and (c) 3 of the 103 Massage Heights Businesses first opened for business in the 2023 calendar year (the “New Retreats”).

• The New Retreats were excluded from the performance information presented in this Item 19.

• This Item 19 presents certain historical data as provided to Massage Heights by the Franchised Retreats through sales records and reports. Massage Heights has not audited this information, nor independently verified this information.

• For purposes of this Item 19 disclosure, Massage Heights divided the Franchised Retreats into four categories (Parts 1 to 4): Top 10 Retreats (10 Franchised Retreats); Top 50 Retreats (50 Franchised Retreats); Bottom 50 Retreats (50 Franchised Retreats), Bottom 10 Retreats (10 Franchised Retreats), and all locations (100 Franchised Retreats).

• Parts 1 to 4 display results for the Franchised Retreats, broken down into these five categories. Part 1 shows the average Gross Revenue for the Franchised Retreats; Part 2 shows the average number of Prospects for the Franchised Retreats; Part 3 shows the average Annual Service Units for the Franchised Retreats; Part 4 shows the average Member Base for the Franchised Retreats; and Part 5 shows the average monthly Member Retention for the 100 Franchised Retreats.

Part 1 – Gross Revenue for Franchised Retreats Open as of January 1, 2023

All Retreats

• Number of Retreats:  100
• 2023 Average Revenue:  $1,039,409
• Number and Percentage That Met or Exceeded Average:  40 / 40%
• 2023 Highest Revenue:  $2,938,639
• 2023 Median Revenue:  $947,687
• 2023 Lowest Revenue:  $305,995

Top 10

• Number of Retreats:  10
• 2023 Average Revenue:  $2,172,272
• Number and Percentage That Met or Exceeded Average:  4 / 40%
• 2023 Highest Revenue:  $2,938,639
• 2023 Median Revenue:  $2,078,788
• 2023 Lowest Revenue:  $1,618,660

Top 50%

• Number of Retreats:  50
• 2023 Average Revenue:  $1,394,761
• Number and Percentage That Met or Exceeded Average:  18 / 36%
• 2023 Highest Revenue:  $2,938,639
• 2023 Median Revenue:  $1,219,648
• 2023 Lowest Revenue:  $949,479

Bottom 50%

• Number of Retreats:  50
• 2023 Average Revenue:  $684,787
• Number and Percentage That Met or Exceeded Average:  26 / 52%
• 2023 Highest Revenue:  $945,896
• 2023 Median Revenue:  $731,445
• 2023 Lowest Revenue:  $305,995

Bottom 10

• Number of Retreats:  10
• 2023 Average Revenue:  $441,071
• Number and Percentage That Met or Exceeded Average:  6 / 60%
• 2023 Highest Revenue:  $524,563
• 2023 Median Revenue:  $460,489
• 2023 Lowest Revenue:  $305,995

Part 2 – Number of Prospects for Franchised Retreats Open as of January 1, 2023

All Retreats

• Number of Retreats:  100
• 2023 Average Prospects:  1,831
• Number and Percentage That Met or Exceeded Average:  45 / 45%
• 2023 Highest Prospects:  4,462
• 2023 Median Prospects:  1,728
• 2023 Lowest Prospects:  462

Top 10

• Number of Retreats:  10
• 2023 Average Prospects:  3,469
• Number and Percentage That Met or Exceeded Average:  4 / 40%
• 2023 Highest Prospects:  4,462
• 2023 Median Prospects:  3,160
• 2023 Lowest Prospects:  2,809

Top 50%

• Number of Retreats:  50
• 2023 Average Prospects:  2,412
• Number and Percentage That Met or Exceeded Average:  20 / 40%
• 2023 Highest Prospects:  4,462
• 2023 Median Prospects:  2,225
• 2023 Lowest Prospects:  1,736

Bottom 50%

• Number of Retreats:  50
• 2023 Average Prospects:  1,249
• Number and Percentage That Met or Exceeded Average:  29 / 58%
• 2023 Highest Prospects:  1,721
• 2023 Median Prospects:  1,336
• 2023 Lowest Prospects:  462

Bottom 10

• Number of Retreats:  10
• 2023 Average Prospects:  710
• Number and Percentage That Met or Exceeded Average:  5 / 50%
• 2023 Highest Prospects:  918
• 2023 Median Prospects:  710
• 2023 Lowest Prospects:  462

Part 3 – Number of Annual Service Units for Franchised Retreats Open as of January 1, 2023

All Retreats

• Number of Retreats:  100
• 2023 Average Services:  11,772
• Number and Percentage That Met or Exceeded Average:  39 / 39%
• 2023 Highest Services:  29,193
• 2023 Median Services:  10,489
• 2023 Lowest Services:  4,462

Top 10

• Number of Retreats:  10
• 2023 Average Services:  23,590
• Number and Percentage That Met or Exceeded Average:  5 / 50%
• 2023 Highest Services:  29,193
• 2023 Median Services:  22,743
• 2023 Lowest Services:  18,332

Top 50%

• Number of Retreats:  50
• 2023 Average Services:  15,521
• Number and Percentage That Met or Exceeded Average:  20 / 40%
• 2023 Highest Services:  29,193
• 2023 Median Services:  14,047
• 2023 Lowest Services:  10,497

Bottom 50%

• Number of Retreats:  50
• 2023 Average Services:  7,965
• Number and Percentage That Met or Exceeded Average:  26 / 52%
• 2023 Highest Services:  10,482
• 2023 Median Services:  8,402
• 2023 Lowest Services:  4,462

Bottom 10

• Number of Retreats:  10
• 2023 Average Services:  5,434
• Number and Percentage That Met or Exceeded Average:  6 / 60%
• 2023 Highest Services:  6,067
• 2023 Median Services:  5,543
• 2023 Lowest Services:  4,462

Part 4 – Membership Base for Franchised Retreats Open as of January 1, 2023

All Retreats

• Number of Retreats:  100
• 2023 Average Member Base:  824
• Number and Percentage That Met or Exceeded Average:  37 / 37%
• 2023 Highest Member Base:  2,236
• 2023 Median Member Base:  730
• 2023 Lowest Member Base:  212

Top 10

• Number of Retreats:  10
• 2023 Average Member Base:  1,778
• Number and Percentage That Met or Exceeded Average:  4 / 40%
• 2023 Highest Member Base:  2,236
• 2023 Median Member Base:  1,707
• 2023 Lowest Member Base:  1,393

Top 50%

• Number of Retreats:  50
• 2023 Average Member Base:  1,123
• Number and Percentage That Met or Exceeded Average:  17 / 34%
• 2023 Highest Member Base:  2,236
• 2023 Median Member Base:  982
• 2023 Lowest Member Base:  744

Bottom 50%

• Number of Retreats:  50
• 2023 Average Member Base:  526
• Number and Percentage That Met or Exceeded Average:  29 / 58%
• 2023 Highest Member Base:  717
• 2023 Median Member Base:  555
• 2023 Lowest Member Base:  212

Bottom 10

• Number of Retreats:  10
• 2023 Average Member Base:  301
• Number and Percentage That Met or Exceeded Average:  6 / 60%
• 2023 Highest Member Base:  382
• 2023 Median Member Base:  315
• 2023 Lowest Member Base:  212

Part 5 – Membership Retention for Franchised Retreats Open as of January 1, 2023

All Retreats

• Number of Retreats:  100
• 2023 Monthly Average Retention: 94.6%
• Number and Percentage That Met or Exceeded Average:  59 / 59%
• 2023 Highest Retreat Retention:  97.4%
• 2023 Median Retreat Retention:  94.8%
• 2023 Lowest Retreat Retention:  91.3%

• “Gross Revenue” means the total selling price of all services and products sold at or from or through the Franchised Retreats, whether or not sold or performed at or from the Franchised Retreat, including the full redemption value of any gift certificate or coupon sold for use at a Franchised Retreat (fees retained by or paid to third-party sellers of such gift certificates or coupons are not excluded from this calculation), and including all proceeds from any business interruption insurance and all income, revenue, and consideration of every other kind and nature related to the Franchised Retreat operation, whether for cash or credit and regardless of collection in the case of credit.

• “Prospects” is defined as a non-member coming into the Franchised Retreat to receive a service.

• “Membership Base” is defined as the total number of individual members who paid a monthly membership fee or paid the membership fee in-full.

• “Services” is defined as the total number of one hour of services provided.

• The financial performance representation disclosed in this Item 19 does not contain any information about any operating costs or expenses that must be deducted from the Gross Revenue figures to obtain a net income or profit. Operating costs and expenses may vary substantially.

• Some outlets have sold this amount. Your individual results may differ. There is no assurance you’ll sell as much.

Section VI – Massage Heights Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️