Elements Massage logo

Elements Massage Franchise

Audited Financials
WellnessEst. 2006Denver, CO
www.elementsfranchise.com

Risk Score

Pending analysis

Investment Range

$515,789 - $729,603

Franchise Fee

$15,000

Total US Locations

240

Business Summary

Elements Massage offers franchises for studios that provide various therapeutic massage services, certain skincare services, and related products to the general public. These studios operate under the "Elements Massage" brand and utilize a unique business system. They also offer a membership program where clients pay a monthly fee for discounted massage or skincare sessions and other benefits.

Corporate History

Elements Therapeutic Massage, LLC was incorporated in Delaware on August 4, 2006, as Elements Therapeutic Massage, Inc. It later converted to a Delaware limited liability company on October 9, 2015. Elements Massage has been offering franchises for studios since 2006, with the exception of a previous area director program from 2006-2008 and 2013-2017. The company is part of a larger corporate family, WellBiz Brands, Inc., which also oversees other franchise systems like Amazing Lash Studio, Drybar, Fitness Together, and Radiant Waxing.

Financial Overview

Investment Range

$515,789 - $729,603

Franchise Fee (Low)

$15,000

Franchise Fee (High)

$40,000

Royalty %

6%

Marketing %

2%

Equipment Costs (Low)

$364,500

Equipment Costs (High)

$505,600

Working Capital

$77,275

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Elements Therapeutic Massage, LLC's financial condition has been identified as raising questions about its ability to provide services and support to franchisees, as noted in the FDD's special risks section, despite an unqualified audit opinion from its independent public accountants. The company relies on its parent, WBZ Investment LLC, for operational funds. Elements Therapeutic Massage, LLC is jointly and severally liable for a significant debt from its parent, totaling $21,679,865 as of December 31, 2024, without holding specific recourse or collateral rights for potential payments exceeding its agreed-upon portion. The parent's outstanding debt agreement was amended in June 2024 to extend its maturity to March 2027, and a $10,000,000 principal payment was made. The parent was in compliance with all financial covenants as of December 31, 2024 and 2023.

Financing Details

Elements Therapeutic Massage, LLC does not offer any direct or indirect financing to franchisees. The company also does not guarantee any franchisee's notes, leases, or other obligations.

Performance Metrics

Total US Locations

240

Franchised Units

239

Corporate Units

1

Avg Square Footage

1,950

Franchising Since

2006

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their franchise agreement, Elements Massage franchisees must provide written notice of their intent to acquire a successor franchise. They must not be in default of their existing agreement and must sign the then-current version of the Elements Massage franchise agreement, which may have terms and conditions significantly different from their original agreement. Franchisees are also required to sign a general release of claims, pay a successor franchise fee, and update or remodel their studio to meet the brand's current standards.

Training & Support Program

Franchisor Assistance

Elements Massage provides comprehensive assistance to its franchisees, starting with pre-opening support. This includes reviewing proposed sites for compliance and providing mandatory specifications for studio development, including design, layout, and equipment. Franchisees receive access to the Operations Manual and mandatory initial training, which covers various aspects of running the business. An on-site operations team may also be sent for new studios to offer initial support and guidance. After opening, Elements Massage offers ongoing assistance through general guidance based on franchisee reports and inspections. The company administers a Brand Marketing Fund for national, regional, and local marketing programs, and franchisees receive annual unaudited statements of its contributions and disbursements. There is also a Local Marketing Spend Requirement, including a fixed Local Advertising Fee and a percentage of gross receipts to be spent on local advertising. Franchisees must comply with advertising standards and participate in additional marketing programs like loyalty programs and prize promotions. Technology support includes providing a required Computer System for sales and scheduling, website and email hosting, and help desk assistance, for which a monthly Technology Fee is charged. Franchisees are required to attend annual franchise owner conferences and may be required to complete other training courses and regional meetings. General guidance is also provided on facility appearance, client-service procedures, quality control, equipment maintenance, inventory management, supplier relations, advertising strategies, and administrative reporting.

Initial Training Hours

62

Training Location

Elements Massage provides initial training virtually, at a certified Franchisee Training Studio, or at its Support Center in Colorado. Training may also require experiencing massage or skincare services at another Elements Massage studio location.

Ongoing Support

After opening, Elements Massage franchisees receive general guidance on studio operations, facility appearance, client-service procedures, quality control, equipment maintenance, inventory management, supplier relations, advertising strategies, and administrative, accounting, and reporting practices. This guidance is provided through the Operations Manual, virtual meetings, telephonic conversations, and consultations at the corporate offices. Franchisees are required to attend annual franchise owner conferences and may also be required to participate in regional meetings, various in-person or electronic training courses, trade shows, ongoing education, or certification programs. Elements Massage also provides ongoing technology services, including website and email hosting and help desk support, for which a monthly Technology Fee is charged.

Franchise Requirements

Ideal Candidate Profile

Elements Massage seeks an Operating Partner who holds at least a 25% ownership and voting interest in the franchise. This individual must be approved by Elements Massage and is generally expected to supervise the studio full-time, dedicating their best efforts to promote and enhance the business. If the Operating Partner does not supervise full-time, a full-time Designated Manager, who has completed the Elements Massage training program, must be appointed to oversee day-to-day operations.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

retail

Owner Participation

Supervisory

Territory Type

Protected

Staff Count

6

Territory Size Requirements

Elements Massage franchisees are granted a Protected Area, which is typically a circular geographic area with a 1.5-mile radius centered at the studio's front door. In densely populated urban areas, this Protected Area may be defined by political subdivisions, streets, or ZIP codes, and could be the lesser of a 1.5-mile radius or a radius reflecting a 50,000-person population density. The specific boundaries are determined on a case-by-case basis considering factors like population, traffic, proximity to retail and residential areas, and other site-specific data.

Staffing Notes

Elements Massage requires that before opening a studio, franchisees hire at least five full-time massage therapists. Additionally, they must hire either one full-time esthetician or two part-time estheticians. Franchisees are solely responsible for all employment decisions, including recruiting, hiring, training, and compensation, and must comply with all federal, state, and local employment laws. All employees are required to pass an internal training program to the franchisee's satisfaction before providing services. Elements Massage reserves the right to approve training content and require specific mandatory training for certain job positions, including for massage therapists and estheticians, to ensure compliance with System Standards. This also includes performing background checks for all employees as specified in the Operations Manual and ensuring all massage therapists and estheticians are properly licensed and insured if required by local jurisdiction.