Risk Score
Pending analysis
Investment Range
$194,750 - $419,850
Franchise Fee
$5,000
Total US Locations
78
Business Summary
Relax The Back Corporation offers franchises to operate retail stores that specialize in selling wellness and back-related equipment, furniture, and products. These stores operate under the trade name "RELAX THE BACK®" and aim to provide products approved by the franchisor.
Corporate History
Relax The Back Corporation was incorporated in Delaware on November 17, 2000. It began offering franchises for Relax The Back Stores in May 2001 and has owned and operated some Relax The Back Stores since November 2016. In addition to franchising, Relax The Back Corporation markets back and wellness products through a direct mail catalog and an e-commerce website. The company currently operates two corporate-owned Relax The Back Stores.
Financial Overview
Investment Range
$194,750 - $419,850
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$29,500
Royalty %
5%
Marketing %
4%
Equipment Costs (Low)
$39,830
Equipment Costs (High)
$149,800
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Relax The Back Corporation's financial statements received an unqualified opinion from independent auditors, indicating that they present fairly in all material respects. However, a significant financial note is the "Due from Parent Company" balance, which was over $5.3 million in 2023. Management of the Parent Company has stated they do not intend to repay these amounts, and thus, this balance is classified as an offset to stockholder's equity, significantly impacting Relax The Back Corporation's reported equity. Additionally, the marketing fund experienced losses in two of the last three fiscal years (2022 and 2021), and had a zero balance at the end of 2023 and 2022, after generating a net income in 2023.
Financing Details
Relax The Back Corporation does not offer any direct or indirect financing to franchisees, nor does it guarantee any notes, leases, or other obligations. Franchisees are responsible for arranging their own funding.
Performance Metrics
Total US Locations
78
Franchised Units
76
Corporate Units
2
Avg Square Footage
2,625
Franchising Since
2001
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Relax The Back Corporation has no litigation history to report.
Bankruptcy History
Relax The Back Corporation has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Relax The Back franchise, franchisees must have fully complied with all agreements and obligations throughout the prior term. They must maintain possession of their approved premises, or secure a new acceptable location, and ensure their store's operations and physical appearance are updated to meet current brand standards for new Relax The Back Stores. Franchisees need to provide written notice of their intent to renew at least 12 months before the agreement expires, cure any deficiencies identified by Relax The Back Corporation, and satisfy all monetary obligations. Additionally, they must sign Relax The Back Corporation's then-current franchise agreement and related documents, meet current training requirements, and execute a General Release of claims. A non-refundable renewal fee of $0 is required for a 10-year renewal term or $12,000 for a 5-year renewal term.
Training & Support Program
Franchisor Assistance
Relax The Back Corporation provides comprehensive assistance to its franchisees. Before a Relax The Back Store opens, the franchisor offers site evaluation information and reviews proposed locations, provides design and layout standards for the store, and approves real property leases. Relax The Back Corporation also furnishes information about required equipment, products, and approved suppliers, and provides initial training for the franchisee and their initial store manager. The franchisor advises on grand opening marketing programs and loans or provides electronic access to the operations manuals. Once the store is open, Relax The Back Corporation continues to provide guidance through manuals, written materials, refresher training, and telephonic or in-person consultations. The franchisor offers at least one annual, tuition-free training session at the store or virtually, and may conduct an annual business visit. Relax The Back Corporation also provides modifications to the manuals and discloses confidential information for store operation, and may specify minimum/maximum product pricing.
Initial Training Hours
130
Training Location
Corporate headquarters in Long Beach, CA or another RELAX THE BACK store we specify in writing (or virtually).
Ongoing Support
Relax The Back Corporation provides ongoing guidance for operating the Relax The Back Store through manuals, other written materials, refresher training programs, and telephonic or in-person consultations. Annually, Relax The Back Corporation offers a minimum of one tuition-free training session, either at the franchisee's store or virtually. An annual visit for general business purposes may also be conducted, which can be combined with a training session. The franchisor loans franchisees any updates or revisions to the operations manuals as they are developed. Additionally, if requested, franchisees and their managers will meet with Relax The Back Corporation representatives annually at the store or virtually to review operations and financial performance.
Franchise Requirements
Ideal Candidate Profile
Relax The Back Corporation seeks qualified individuals who are prepared to personally manage their Relax The Back Store on a full-time basis. Ideal candidates, or those seeking to become transferees, should demonstrate sufficient business experience and aptitude, possess adequate financial resources, and exhibit good moral character. Franchisees must successfully complete all required training programs. While focused on the Relax The Back business, the franchisor also expects candidates to have other valuable opportunities, skills, experience, education, and abilities outside of operating a Relax The Back Store.
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
Relax The Back Corporation defines territories based on geographic, market, population, and other factors, varying from franchise to franchise. Territories are frequently comprised of an area forming a 2 to 3 mile radius around the approved store site. Some territories may also be defined by political divisions such as a city, town, or state, or by map references. Additionally, a "Store Vicinity" is identified by specific zip codes.
Staffing Notes
Relax The Back Corporation requires that each Relax The Back Store be managed on a full-time basis by a person who has successfully completed all mandated training and meets the franchisor's current standards. Franchisees must keep Relax The Back Corporation informed of the identities of their managers and supervisors, who may be required to sign confidentiality and non-competition agreements. Franchisees are solely responsible for hiring, training, supervising, compensating, and potentially terminating all their store employees, including maintaining an ongoing training program that meets the franchisor's standards.