Risk Score
Pending analysis
Investment Range
$472,199 - $551,771
Franchise Fee
$34,500
Total US Locations
104
Business Summary
MASSAGE HEIGHTS, BODY + FACE operates retail locations known as "Retreats" that offer convenient, professional, and affordable therapeutic massage and skincare services to the general public. These services are primarily delivered through membership-based programs designed to promote a balanced and healthy lifestyle in a spa retreat environment. MASSAGE HEIGHTS, BODY + FACE also sells branded lotions, massage oils, facial products, and other items to enhance customers' general well-being.
Corporate History
Massage Heights Franchising, LLC, formerly known as Massage Heights Corporate, LLC, was formed as a Texas limited liability company on January 10, 2007. The company began offering Massage Heights Business franchises in the same year. From 2007 through 2019, it also offered area representative business franchise opportunities, though it no longer does so and has no operating area representative franchises. Massage Heights Franchising licenses its intellectual property and trademarks from its parent's affiliate, SWG IP, LLC, which has owned them since July 2005. Another affiliate, Summit Franchise Supply, LLC, has been the approved supplier for certain startup and product items since January 2007. Through its predecessor, Summit Franchise Supply, LLC offered membership-based massage franchises from February 2005 through January 2007.
Financial Overview
Investment Range
$472,199 - $551,771
Franchise Fee (Low)
$34,500
Franchise Fee (High)
$49,500
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$362,049
Equipment Costs (High)
$412,671
Working Capital
$45,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Massage Heights Franchising appears to be in a strong financial position, showing increasing net income over the past three years. The company reported a net income of $2,342,260 in 2023, up from $2,007,932 in 2022 and $148,203 in 2021. The financial statements indicate healthy working capital, with total current assets of $4,959,465 and total current liabilities of $2,875,718 as of December 31, 2023. The independent auditor issued an unqualified opinion, meaning the financial statements are presented fairly in all material respects, and did not raise any substantial doubt about the company's ability to continue as a going concern.
Financing Details
Massage Heights Franchising does not offer any direct or indirect financing options to its franchisees and does not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
104
Franchised Units
103
Corporate Units
1
Avg Square Footage
2,300
Franchising Since
2007
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
4
Litigation Summary
Massage Heights Franchising is currently involved in one pending lawsuit. This case, filed in November 2022, is against a former franchisee and its holding company for alleged breaches of their franchise agreements, including abandoning operations, failing to maintain insurance, not complying with operational standards, and unpaid royalties and fees. Massage Heights Franchising is seeking over $1,000,000 in this litigation. In the past, Massage Heights Franchising has been involved in three other actions. One was an arbitration demand filed in December 2019 by a Florida franchisee, alleging breach of contract, fraud, and misrepresentation. Massage Heights Franchising denied the claims and counterclaimed due to the franchisee closing the business early. The arbitrator found both parties breached the agreement, resulting in an award of $344,933.15 to the franchisee after offsets. Another case, filed in April 2020 by a Texas area representative, alleged breach of contract. This was settled by mutual agreement to terminate the Area Representative Agreement and reduce royalty payments for a period, after which the claims were dismissed. The third case was an arbitration demand filed in July 2018 by Massage Heights Franchising against an Iowa regional developer for failing to meet a development schedule. The arbitrator ruled the agreement was subject to renewal and awarded the developer $88,137.50 in fees and relief, offset by renewal fees.
Bankruptcy History
Massage Heights Franchising has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Massage Heights franchisees must provide written notice of their intent to renew between nine and twelve months before the current term expires. They must be in substantial compliance with their existing franchise agreement, sign the then-current franchise agreement (which may have different terms, including higher fees), and execute a general release of claims against Massage Heights Franchising. Franchisees are also required to provide proof of current licenses, permits, and insurance, pay a renewal fee of 25% of the then-current initial franchise fee (or $10,000 if franchises are not being offered for sale), upgrade their Retreat and technology systems to current standards, comply with the latest lease requirements, and adhere to all current Brand Standards Manual provisions. Massage Heights Franchising may also require the franchisee to relocate their Retreat to a "Class A" location if available in their territory.
Training & Support Program
Franchisor Assistance
Before opening, Massage Heights Franchising assists with territory designation, site selection guidelines, and lease authorization. It provides an initial training program at no charge for up to four people, including the franchisee/managing owner, Designated Retreat Director, and Lead Massage Therapist. This training covers the System, operational methods, advertising, sales techniques, and customer relations. Massage Heights Franchising also provides mandatory specifications for Retreat layouts, equipment, and products, grants access to the Brand Standards Manual, and manages the initial advertising program. A representative offers up to five days of on-site pre-opening and opening assistance. During operations, Massage Heights Franchising informs franchisees of mandatory specifications, standards, and procedures, offers advice based on reports or inspections, and provides information on new products, services, and training methods. Franchisees continue to use confidential materials and Marks. Optionally, Massage Heights Franchising may develop private label goods, modify the System, conduct periodic visits (for a fee if requested), administer the Brand Fund, hold system-wide conferences (with a fee), offer additional training (for a fee), develop referral programs, and provide monthly newsletters. Franchisees are required to attend periodic refresher training courses (approximately every three years) and annual conventions/business meetings.
Initial Training Hours
158
Training Location
Hybrid (San Antonio, Texas and online, with on-site at franchisee's Retreat)
Ongoing Support
Massage Heights Franchising provides ongoing support by informing franchisees of mandatory specifications, standards, and procedures for operations. It offers advice on Retreat operations based on reports or inspections and conducts research on new products, services, and business methods, providing updates to franchisees. Franchisees also continue to have access to confidential materials and Marks. Additionally, Massage Heights Franchising may offer optional support such as developing private label goods, modifying the System, and making periodic visits to Retreats (for which fees may apply if requested or determined necessary). It maintains and administers the Brand Fund for promotional programs and may hold system-wide conference calls, national, or regional conferences, and workshops. Franchisees are required to attend refresher training courses approximately every three years and annual conventions/business meetings (with associated fees). Additional training and assistance can be requested or mandated, often with a fee. Massage Heights Franchising may also develop referral programs and provide monthly newsletters.
Franchise Requirements
Ideal Candidate Profile
Massage Heights Franchising seeks individuals who are willing to personally participate in the operation of their business, or if an entity, designate an owner to do so. Franchisees must also appoint a qualified Designated Retreat Director and employ Lead Massage and Lead Skin Therapists. All owners and their spouses involved in the business's operation are required to attend the initial training program. When transferring a franchise, candidates must demonstrate sufficient business experience, sound personal and financial reputation, stability, and a willingness and ability to devote full-time efforts to the business. Franchisees must possess sufficient computer skills to operate required software, access email, and use the internet.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
non-exclusive
Territory Size Requirements
Massage Heights territories are generally defined as a 1.5-mile radius around the Retreat location. However, the size can be smaller or larger at the franchisor's sole discretion, based on factors such as population density, demographics, market trends, and traffic flows. The specific territory will be designated by a map or geographic description attached to the franchisee's agreement.
Staffing Notes
Massage Heights franchisees are solely responsible for hiring, training, directing, scheduling, and supervising their employees and independent contractors in the day-to-day operations of their business. Franchisees must always employ a Lead Massage Therapist to train other massage therapists and, within the first year of opening, a Lead Skin Therapist to train other skin therapists. The franchisor will not train the franchisee's employees or independent contractors. Franchisees retain sole authority and control over employment decisions, including hiring, firing, remuneration, and compliance with all workplace laws. Massage Heights Franchising requires franchisees to inform all employees and independent contractors that the franchisee is the sole employer and to post a notice clarifying this. Background checks for employees may also be required, with specific third-party service providers designated by the franchisor.