About Massage Heights Franchise
Massage Heights is a membership based massage therapy and wellness franchise that has been franchising since 2007, backed by SWG International, LLC.
The brand offers therapeutic massage, facials, and skincare services in upscale retreat style studios designed to promote relaxation and well being.
Massage Heights locations create a premium spa atmosphere at accessible membership pricing.
Massage Heights Franchise Cost & Fees
Minimum Investment
$452K
Average Investment
$492K
Maximum Investment
$532K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,500 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% of Gross Revenues (Brand Fund Contribution); The difference between the amount you spent on local advertising each month and your required minimum local advertisement expenditure (the greater of 3% of Gross Revenue or $2,500 per month) (Local Advertisement Payment) | National brand fund |
| Total Investment Range | $452,443 – $532,221 | Includes build-out, inventory, working capital |
The investment range of $452K–$532K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Revenue) and marketing fee (3% of Gross Revenues (Brand Fund Contribution); The difference between the amount you spent on local advertising each month and your required minimum local advertisement expenditure (the greater of 3% of Gross Revenue or $2,500 per month) (Local Advertisement Payment)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,500 | $49,500 |
| Retreat Development Package | $112,813 | $128,541 |
| Utility and Security Deposits | $3,500 | $6,500 |
| Leasehold Improvements and Professional Design Fees | $179,000 | $210,000 |
| Exterior Signage | $6,500 | $8,000 |
| Equipment | $3,050 | $6,100 |
| Technology System | $28,000 | $31,200 |
| Facial Services Expenses | $4,500 | $5,000 |
| Business Licenses and Permits | $150 | $2,100 |
| Professional Fees | $1,000 | $8,000 |
| Initial Training Expenses | $3,500 | $3,500 |
| Initial Advertising Program | $25,000 | $25,000 |
| Additional Funds- 3-months | $35,930 | $48,780 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $30,000 plus our expenses actually incurred related to our approving the transfer |
| Renewal Fee | 25% of the then-current Initial Franchise Fee or $10,000 if we are not then offering franchises for sale |
| Technology Fee | Currently $550 per month |
| Audit Fee | Cost of audit and inspection, any understated amounts, and any related accounting and legal expenses |
| Social Media and Website Management | Currently $450 per month |
| Unauthorized Advertising Fee | $500 per occurrence |
| Additional Persons Fee for Initial Training Program | $500 per person per day |
| Additional Training and Assistance Fees | $500 per person per day plus expenses, including travel, lodging and meals |
| Refresh Training | $500 per person per day plus expenses, including travel, lodging, and meals |
| Relocation Fee | Our costs up to $5,000 |
| Transfer Training Fee | $2,000 |
| Onsite Transfer Training Fee | Our then-current fee (currently $1,850 plus travel, lodging and meals for our representatives) |
| Insurance Placement | Our costs plus a 20% administrative fee |
| Indemnification | Will vary under circumstances |
| Legal Costs, Accounting Fees and Other Professional Fees | Will vary under circumstances |
| Late Payment Fee | $100 per occurrence |
| Interest | Lesser of 18% per annum or highest commercial contract interest rate allowed by law |
| Late Reporting Fee | $100 per occurrence and $100 per week |
| Insufficient Funds Fee | $100 per incident |
| Payment Service Fees | Up to 4% of total charge |
| Supplier and Product Evaluation Fee | Cost of inspection and test of sample (approximately $100 to $500 per test) |
| De-Identification | All amounts incurred by us related to de-identification |
| Management Fee | $200 per day plus expenses, including travel, lodging, and meals |
| Promotional Package Fee | Varies depending on merchandise |
| National Franchise Convention Fee | Varies each year (currently $250 per person per day) |
| Initial Training Extension Fee | $500 |
| Customer Issue Resolution | Reasonable costs we incur for responding to a customer complaint, which varies |
| Default Fee | $500 per incident |
| Liquidated Damages | Will vary under the circumstances |
| Broker Fees | Our actual cost of the brokerage commissions, finder’s fees, or similar charges |
| Rapid Response | Approximately $109 per month |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 58 hours classroom, 100 hours on-the-job |
| Classroom Training | 58 hours |
| On-the-Job Training | 100 hours |
| Training Location | San Antonio, Texas (headquarters), designated Retreats, or online platform. |
| Additional Training | Franchisee (or Managing Owner), Designated Retreat Director, and Lead Massage Therapist must complete pre-opening components of Initial Training Program. Lead Skin Therapist must be hired within the first year and complete position-specific training. Refresher training courses are required periodically (currently, approximately every three years). Additional attendees or replacement personnel may incur a $500 per person per day fee plus expenses. Annual conventions are mandatory with a fee and travel expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Generally a 1.5-mile radius around the Retreat |
| Description | A certain geographic area surrounding the Retreat that is generally an area equal to a 1.5-mile radius around your Retreat, but may be smaller or larger, in our sole discretion, depending on population density, demographics, market trends and traffic flows. Your Territory will be designated by a map and/or geographic description on an attachment to your Franchise Agreement. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | one renewal term of 10 years |
| Renewal Fee | 25% of the then-current Initial Franchise Fee or $10,000 if we are not then offering franchises for sale |
| Renewal Conditions | You must provide written notice of intent to renew 9-12 months prior to expiration, be in substantial compliance with the current agreement, sign our then-current franchise agreement (which may have materially different terms), sign a general release, provide proof of current licenses/permits/insurance, pay the renewal fee, and upgrade/relocate the Retreat to current standards. |
| Transfer Fee | $30,000 plus our expenses actually incurred related to our approving the transfer |
| Transfer Conditions | Proposed transfer must be at least one year after opening, franchisee must be in full compliance and pay all outstanding debts. Transferee must have adequate financial resources, meet franchisor criteria, and complete the training program. Transferee must sign a new franchise agreement (which may have different terms) and other ancillary documents. Franchisee must execute a general release. Transferee must agree to upgrade, remodel, and refurbish the Retreat to current standards. Franchisee must reimburse franchisor for transfer-related costs. |
| Termination for Cause | Franchisor can terminate for various reasons including: fraudulent/unethical conduct, unauthorized disclosure of confidential information, voluntary abandonment of business for 5 consecutive days, insolvency/bankruptcy, material judgments unsatisfied for 30 days, felony conviction or crime involving moral turpitude by key personnel, submission of fraudulent/misleading information, late reports on two or more occasions, failure to maintain operating standards, misuse of Marks, unauthorized transfers, understatement of Gross Revenue by >2% on two or more occasions, failure to submit required reports, selling unauthorized products/services, contesting Marks ownership, corporate dissolution without consent, failure to complete training, three or more default notices, Anti-Terrorism Law violations, failure to cure health/safety violations within 3 days, failure to diligently pursue opening, unauthorized relocation, failure to comply with Misconduct Prevention Policy, failure to obtain prior written approval, failure to notify of changes to member-facing forms, default under lease/other material agreement, failure to follow membership/reciprocal benefits standards. |
| Non-Compete Period | During the term of the Franchise and for two years after termination/expiration/transfer. |
| Non-Compete Details | During the term, franchisee, owners, immediate family, Designated Retreat Directors, officers, managers, members, and partners cannot carry on or be engaged in a 'Competitive Business'. After termination/expiration/transfer, the same individuals cannot manage, operate, finance, control, participate in, or have any direct/indirect interest in a 'Competitive Business' for two years in: (1) the Territory or any other franchisee’s territory; (2) within 15 miles of the Territory or any other franchisee's territory; or (3) within 15 miles of any Franchisor or Affiliate-owned MH Business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You must personally participate in the operation of your MH Business, or if you are an entity, a designated 'Managing Owner' must personally participate. A 'Designated Retreat Director' must be appointed as the operating manager. A 'Lead Massage Therapist' must be employed at all times to train other massage therapists. A 'Lead Skin Therapist' must be hired within the first year to train other skin therapists. Owners with >5% ownership and their spouses must sign an Owners Agreement. Designated Retreat Directors, officers, directors, managers, or owners with <=5% ownership must sign a System Protection Agreement. All employees/independent contractors with access to confidential information must sign a confidentiality agreement. |
| Required Suppliers | Franchisees must purchase a 'Retreat Development Package' of startup items from Summit. Summit is the only approved supplier for this package and initial/ongoing equipment and supply purchases. Franchisees must also use designated suppliers for scenting machines, overhead music, on-hold music, sound masking equipment, IT-related computer and network hardware, and construction management, architect, site visit, space plans/layout and design services. |
| Supply Restrictions | Franchisees must operate their MH Business according to the franchisor's System and specifications, purchasing or leasing all goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, and real estate from franchisor designees, approved suppliers, or the franchisor/affiliates. Deviations require prior written consent. Franchisor provides a list of approved suppliers in the Brand Standards Manual and can approve new suppliers upon request and evaluation. |
| Franchisor Revenue from Suppliers | During our last fiscal year, ended December 31, 2021, our revenue from required purchases by franchisees was $727,467, representing approximately 8.1% of our total revenue of $8,947,459. Summit's revenue from required purchases by franchisees was $1,498,704. Some suppliers paid a rebate totaling $200, less than 1/100th of a percent of total revenue. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or other obligation. |
Massage Heights Franchise Earnings — Item 19
Average Revenue
$1.5M
Median Revenue
$1.4M
Revenue Range
$1.1M – $2.6M
Sample Size
104 units
Past financial performance does not guarantee future results. Individual results will vary.
Massage Heights Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Massage Heights System Growth
Total Units
108
Franchised
105
Company-Owned
3
Massage Heights currently operates 105 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 2 | 9 | 121 |
| 2020 | 4 | 17 | 108 |
| 2021 | 1 | 4 | 105 |
Transfers: 22 | Closures: 30
State Registrations
Registered in 13 states: California, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Revenue
$8.9M
Net Income
$148K
Total Assets
$4.3M
Audited by BDO USA, LLP for year ending December 31.
Massage Heights Franchise — FAQ
The total investment to open a Massage Heights franchise ranges from $452,443 to $532,221, per their Franchise Disclosure Document. This includes the initial franchise fee of $49,500. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Massage Heights charges a royalty fee of 6% of Gross Revenue of gross sales, plus a 3% of Gross Revenues (Brand Fund Contribution); The difference between the amount you spent on local advertising each month and your required minimum local advertisement expenditure (the greater of 3% of Gross Revenue or $2,500 per month) (Local Advertisement Payment) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Massage Heights Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Massage Heights to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Massage Heights franchise owners report average revenue of $1.5M and median revenue of $1.4M. This is based on a sample of 104 units. Past performance does not guarantee future results.
Massage Heights has been franchising since 2007. The FDD shows an investment range of $452,443-$532,221, a 6% of Gross Revenue royalty, and includes an Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $49,500 and the total investment ranges from $452,443 to $532,221 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Massage Heights and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Massage Heights or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com