MassageLuXe Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$570,900 - $799,000
Total US Locations
92
Business Summary
MassageLuXe operates massage therapy spas that offer massages, facials, waxing, and skin care treatments, along with related products and merchandise. Each MassageLuXe spa operates using the brand's unique business format, which includes proprietary procedures, designs, and standards.
Corporate History
MassageLuXe International, LLC was formed in Missouri on July 13, 2007. The company began offering MassageLuXe franchises in February 2008. In September 2018, WIT Nutrition I, LLC acquired ownership of MassageLuXe International, LLC, and later changed its name to MLI Holdings LLC in 2024.
Financial Overview
Investment Range
$570,900 - $799,000
Franchise Fee (High)
$42,500
Royalty %
6%
Marketing %
3.5%
Equipment Costs (Low)
$421,800
Equipment Costs (High)
$584,200
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
MassageLuXe International, LLC's financial statements for the year ended December 31, 2024, show a member (deficit) equity of ($271,052), which reflects a significant negative equity position. The franchisor has also noted in its FDD's 'Special Risks to Consider About This Franchise' section that its financial condition, as reflected in its financial statements, calls into question its financial ability to provide services and support to franchisees.
Financing Details
MassageLuXe does not offer any direct or indirect financing to franchisees. The franchisor also does not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
92
Franchised Units
92
Corporate Units
0
Avg Square Footage
2,500
Franchising Since
2008
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
MassageLuXe International, LLC (MLI) is currently involved in three pending litigation cases. In the first case, Sapan Inamdar and Kendall Park ML, LLC sued MLI on May 24, 2024, alleging breach of contract, fraudulent inducement, and promissory estoppel. They claim MLI breached ongoing obligations and that a former manager promised the franchise agreement would never be terminated. MLI had previously notified them of a breach and its intent to terminate the agreement, which had expired in April 2021 but continued operating. The court granted a preliminary injunction in October 2024 to prevent the termination. Plaintiffs also sought to amend their petition in March 2025, alleging a violation of the New Jersey Franchise Practices Act for requiring a claims release for renewal. MLI plans to defend these claims. The second case was filed by MLI against Sapan Inamdar and SPI Investments LLC on February 2, 2025. MLI alleges breach of an Area Development Agreement (ADA) that it terminated in August 2022 due to the developer's failure to comply with mandatory development schedules. MLI seeks a declaratory judgment that the ADA was enforceable, breached, and properly terminated, along with monetary damages. The third case, filed by Sapan Inamdar and SPI Investments LLC against MLI on March 12, 2025, in New Jersey, also concerns the termination of the ADA. The developer claims MLI misrepresented the fungible nature of the asset and improperly terminated the agreement, alleging violations of the New Jersey Franchise Practices Act, negligent misrepresentation, breach of contract, and unjust enrichment. They seek monetary and punitive damages, attorneys' fees, and a declaration that the ADA is still in effect. MLI intends to vigorously defend against these claims.
Bankruptcy History
MassageLuXe has no bankruptcy history to disclose.
Agreement Terms
Initial Term
10 years
Renewal Conditions
To renew their franchise agreement, MassageLuXe franchisees must provide written notice between 6 and 12 months before the agreement expires. They are required to remodel their spa to meet MassageLuXe's then-current standards, pay a renewal fee equal to 25% of the initial franchise fee, and sign a general release of all claims against MassageLuXe and its affiliates. Franchisees must also sign a new franchise agreement, which may contain materially different terms.
Training & Support Program
Franchisor Assistance
Before opening, MassageLuXe assists with designating a protected territory, reviewing and consenting to the lease, and providing suggestions for the spa's layout and design. MassageLuXe also provides a list of approved suppliers and specifications for equipment and products, and offers construction support services, which incur a fee. Franchisees receive a license to use the proprietary POS system software, along with installation and setup services for a fee. MassageLuXe provides a 10-day initial training program for the franchisee or managing owner and up to two employees, and makes samples of advertising and marketing materials available. A MassageLuXe representative also spends 3 to 5 days on-site to assist with the grand opening. During operation, MassageLuXe offers general guidance and telephone consultation for operating problems, continues to make advertising materials available, and administers a Creative Services Advertising Fund to which franchisees contribute. Franchisees must use MassageLuXe's designated computer and POS systems, and may be required to attend annual conferences for a fee.
Initial Training Hours
80
Training Location
Chesterfield, MO
Ongoing Support
After opening, MassageLuXe provides ongoing support through general guidance and telephone consultations to assist with operating problems. The franchisor also makes samples of advertising and marketing materials available to franchisees. MassageLuXe may require franchisees or their trained employees to attend periodic refresher training courses, for which a fee may be charged, and may also hold annual conferences that franchisees are required to attend, incurring a conference fee and personal travel expenses.
Franchise Requirements
Ideal Candidate Profile
A MassageLuXe franchisee (or their designated managing owner) is expected to personally manage and operate their spa, dedicating their best efforts to its success. MassageLuXe seeks individuals who demonstrate good moral character, business ability, acumen, and financial capacity. For multi-unit developers, MassageLuXe looks for individuals with sufficient financial resources, experience, character, skill, aptitude, attitude, and business acumen to successfully operate multiple locations. The franchisor also considers a candidate's past performance and financial success of any existing spas during the evaluation process.
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
Territory Size Requirements
MassageLuXe typically defines a territory as an approximately 3-mile radius around the spa location. This radius may be adjusted, becoming larger in rural areas or smaller in densely populated metropolitan areas.
Staffing Notes
MassageLuXe does not require the franchisee to personally manage the spa day-to-day but recommends it. Franchisees can designate a managing owner, or hire a manager or supervisor, who must successfully complete MassageLuXe's initial training program and sign confidentiality and non-competition agreements. Franchisees are responsible for monitoring their designated managers' performance. All massage therapists and estheticians employed at a MassageLuXe spa must be duly licensed, in good standing with state regulatory bodies, and adequately insured. The initial training program accommodates the franchisee (or managing owner) and up to two additional employees.