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Elements Massage Franchise Review (2021)

Written by: Patrick Findaro
Last Updated by Rocio Somoza: August 17, 2022
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Founded by a massage therapist in 2003, Elements Massage provides a variety of therapeutic massages. Different than the day-spa experience, they serve clients who value massage as a way to boost immunity, ease muscle aches, minimize stress, encourage sound sleep, and alleviate issues stemming from injuries, illnesses, or stress.

Contents

Elements Massage Franchise Background

An appealing aspect for the franchisee is the simple service-based business model that drives revenues in various ways. The core of their model is their “wellness program, ” allowing their clients to become members. Their members pay a monthly fee of typically $59 per month, which entitles them to one 55-minute massage session each month. This allows the clients to take advantage of a lower price point than non-members and gets them in the habit of regular massage sessions. For the Elements owners, this creates a recurring revenue stream that helps stabilize the business over time.

Their affordable membership model helps clients prioritize a service they already value so that self-care stays top of mind.

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Management Team

Elements Therapeutic Massage, Inc is a wholly owned franchise entity of WellBiz Brands, Inc. Elements Therapeutic Massage, Inc. owns Elements Massage™.

WellBiz Brands manages three separate franchise brands, one of them being Elements Massage. The company is led by an experienced management team that boasts many years of experience in the franchising industry.

Since Elements was founded in 2003, WellBiz Brands has been able to help Elements expand throughout the U.S. and now boasts over 200 studios.

Franchise & Health and Beauty Industry Analysis 

Franchise Strengths 

-Operationally simple, easy to learn.

-Recurrent revenue streams with the monthly membership fee structure.

-Strong franchise brand that is growing.

-Ability to have another full-time job while a manager runs the business.

Franchise Weaknesses

-Targets narrow demographic depending on the area where studio operates.

-Operates in a competitive environment with low barriers of entry.

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Health and Beauty Franchise Opportunities 

-Depending on the area, brand still has room to grow as more studios open.

-Massage and Spa industry is worth over $12bn and is expected to continue to grow in the coming years.

-More individuals are looking to take more care for themselves.

Threats in the Health and Beauty Franchise Market

-Many consumers see as “non-vital” good, and is thus is more prone to economic recessions

-Other massage competitors in the area.

How much is a Elements Massage Franchise?

Elements Massage Franchise cost ranges from $225,350 to $374,350 according to the 2019 FDD.

Item Estimated Amount (in USD) To Whom Payment is to Be Made
Low High
Initial Franchise Fee $39.900 $39.900 Franchisor
Real Property and Utility Security Deposits 3.000 7.500 Landlord and Utility Providors
Leasehold Improvements (net of landlord tenant allowances) 96.000 193.000 Landlord, approved suppliers, and contractors
Cabinetry and Millwork 7.000 15.000 Approved Supplier
Massage Equipment and Supplies 16.300 22.900 Approved Supplier
Furniture, Décor, and Other Equipment 12.400 20.600 Third party suppliers
Computer Hardware and Software 5.700 6.500 Franchisor and approved suppliers or other thrid party suppliers
Initial Training 1.350 4.050 Third party providors
Initial Marketing Spend Requirement 15.000 15.000 Franchisor, approved suppliers, or other thrid party suppliers
Signs 5.000 12.000 Approved Supplier
Business Licenses and Permits 100 1.000 Gov Agencies or other licensing authorities
Insurance 1.000 1.300 Approved Supplier
Misc Opening Costs 3.200 4.900 Suppliers
Additional Funds- 3 months 19.400 30.700 Landlord, utilities, providors, suppliers, and other operating expenses
TOTAL $225.350 $374.350
Elements Massage

How Much does a  Elements Massage Franchise make?

The below table is a representation of unaudited data submitted by franchisees that had studios open at least 12 months during 2015.

Category Average New Client Trials Per Month Number of Studios Number and Percentage that Met or Exceeded the Average Median New Cleint Trials Per Month
Bottom Third 119 14 6 (42.9%) 117
All Studios 171 41 20 (48.8%) 171
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Category Average Memership Conversion Rate Number of Studios Number and Percentage that Met or Exceeded the Average Median Membership Conversion Rate
All Studios 17,6% 41 17 (41.5%) 16,8%
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Top 10  Top Third Bottom Third Bottom 10 All Franchise Studios % That Met or Exceeded the Average
40,0% 35,1% 61,0% 50,0% 42,2% 42,2%
2018 Median Revenue $1.454.079 $922.501 $435.385 $258.826 $644.980
2018 Average Gross Profit Percentage 62,0% 63,2% 62,6% 61,1% 63,2%
# That Met or Exceeded the Average 40,0% 55,8% 63,6% 60,0% 54,3%
2018 Median Gross Profit Percentage 60,8% 64,0% 63,8% 63,5% 64,2%

Average Annual Revenue, Average Gross Profit Percentage, Average Number Of Gift Card Sold, Average Percent with a Hired Manager, and Average Number of Massage Rooms for Studios in the Franchise System open as of December 31, 2015, and open for at least 12 months as of January 1, 2015, and further describes the number and percentage that met or exceed the averages for each category (other than Percent of Studios with Hired Manager). As of December 31, 2015, there were 220 Studios in operation, and of that number, 160 were open for at least 12 months as of January 1, 2015.

Studios are categorized in the tables below based upon annual revenue. We do not verify the accuracy of the data submitted by our franchisees.         

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