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Elements Massage Franchise ProfileHealth & Beauty Franchises > Spas |
What Are the Initial Investment Requirements for an Elements Massage Franchise?
To open an Elements Massage franchise, you will need to prepare for an initial investment ranging from $470,684 to $694,274. This includes a franchise fee of $40,000, along with additional costs for equipment, leasehold improvements, and working capital. It is essential to have cash readily available between $430,684 and $654,274, and a minimum net worth of $500,000 to $1,000,000 to qualify for franchise ownership.
What Are the Financial Performance Metrics for Elements Massage?
The average annual revenue per unit for Elements Massage is approximately $894,425, with a median revenue of $862,798. Franchisees can expect a breakeven time of about 12 months and an investment payback period of around 16 months. However, revenues can vary significantly, with the lowest annual revenue recorded at $297,453 and the highest at $2,519,709. Understanding these metrics can help you gauge potential profitability before committing to the franchise.
What Are the Ongoing Fees Associated with an Elements Massage Franchise?
Franchisees are required to pay a royalty fee of 6% on gross sales, along with a marketing fee of 2%. These ongoing fees contribute to the overall operational costs and marketing efforts that support brand growth and visibility. Being aware of these fees is crucial for effective financial planning and ensuring sustainable profitability.
How Many Locations Does Elements Massage Operate?
As of 2023, Elements Massage operates a total of 245 locations, with 244 being franchised units and just 1 corporate unit. The franchise has shown stability in its unit count over the past few years, maintaining 246 units in 2022 and slightly decreasing to 244 in 2023. This consistency suggests a solid brand presence and potential for continued growth in the massage therapy market.
Elements Massage Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Elements Massage Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 247 | 247 | 245 |
| Net Change YoY | 0 | -2 | |
| Franchised Units | 245 | 246 | 244 |
| Net Change YoY | 1 | -2 | |
| Corporate Units | 2 | 1 | 1 |
| Net Change YoY | -1 | 0 |
Initial Investment
The Elements Massage franchise requires a total initial investment ranging from $470,684 to $694,274. This includes a franchise fee of $40,000 and cash requirements that fall between $430,684 and $654,274. Aspiring franchisees should prepare for these financial commitments to ensure a successful launch of their massage therapy business.
Revenue Potential
Franchise owners can expect an average annual revenue of approximately $894,425 per unit, with a median revenue of $862,798. The revenue can vary significantly, with the lowest annual revenue recorded at $297,453 and the highest reaching $2,519,709. This wide range highlights the potential for profitability, depending on location and management.
Ongoing Fees
Elements Massage charges a royalty fee of 6% on gross sales, along with a marketing fee of 2%. These ongoing fees are essential for maintaining brand standards and supporting marketing efforts, which can drive customer traffic to each franchise location.
Financial Requirements
To qualify for an Elements Massage franchise, candidates must have a net worth between $500,000 and $1,000,000. This financial threshold ensures that franchisees have the necessary resources to support their business and navigate initial operational costs effectively.
Breakeven and Payback
Franchisees can anticipate a breakeven period of approximately 12 months, with an investment payback period of about 16 months. These timelines provide a realistic expectation for new owners, allowing them to plan their financial strategies accordingly and focus on achieving profitability.
Franchise Growth
As of 2023, Elements Massage operates a total of 245 units, with 244 being franchised and 1 corporate-owned. The slight fluctuation in the number of franchised units over the past few years indicates a stable franchise system, suggesting consistent interest and investment in the brand.
Frequently Asked Questions
The initial investment for an Elements Massage franchise ranges from $470,684 to $694,274, which includes the franchise fee and other startup costs.