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FRANCHISING


CG Funk


VP industry relations and product development, Massage Envy, US


M


assage Envy started franchis- ing in 2003, and continues to expand at an impressive rate in the US. We now have 750 loca-


tions offering massage therapy and facials and around 210 locations in the pipeline. The average size is 3,000sq ft (279sq m),


with 12-14 treatment rooms. A number of massages are offered, as well as Murad facials. We have a membership programme with monthly fees varying by region – between US$49-59 (¤37-44, £31-37). Members are entitled to a one-hour mas- sage a month and can receive additional massages at a 40-50 per cent discount. Early on, the franchising model was cho- sen to allow for faster expansion. The spa franchisee fee is US$45,000


(¤33,750, £28,200). Financial crite- ria include a minimum of US$500,000 (¤374,800, £313,450) net worth, US$150,000 (¤112,450, £94,050) liquid capital and a min- imum credit score of 680. Once a license has been granted, additional investment costs can range from US$340,000-560,000, (¤254,850-419,800, £213,150-351,050) which includes real estate, build out, equip- ment, supplies and working capital. Many support systems are offered, through corporate departments and regional develop-


www.spahandbook.com


Continued growth is due to having a solid business plan, effective support and training programmes, creative marketing... and structured auditing procedures


ers. Ongoing training relating to operations, marketing and therapist and service devel- opment are available via fi eld training and an internal learning management system. And all franchisees receive a week of franchise training at head offi ce before opening. We employ 17,000 massage therapists


and 2,000 aestheticians. In the early days, Massage Envy was met with apprehension – schools, therapists and associations didn’t understand our business model. Yet through continued focus and support of associations, conferences, research and media, we’ve now grown positive relationships nationally and locally in the massage and spa industries. A main focus with spa franchising is ensuring consistency with services and


Massage Envy was a trailblazer in bringing franchising and membership to the spa market


consumer experiences. Massage thera- pists and aestheticians may have their own unique way of providing massage and facial modalities which might be con- trary to internal policies, procedures and protocols. By developing inclusive train- ing programmes for therapists, as well as front offi ce staff, Massage Envy is able to provide consistent, high-quality services to its members and guests while maintaining brand standards on a large national scale. Massage Envy was a trailblazer in bring-


ing franchising and membership to the spa market. The company’s early success came from visionary leadership and passionate franchisees committed to the brand. The continued growth and expansion is due to having a solid business plan, effective support and training programmes, creative marketing, service and systems innovation and structured auditing procedures.


Funk has worked in the spa industry since 1992. Details: www.massageenvy.com


spa business handbook 2012 95


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