Franchise Review - Massage Envy
By James Phillip on Mar 5, 2008 in Franchise
I know if you have a good location and clientele the massage business can be very profitable. On the other hand I have noticed around here that more have failed then succeeded although they were independently owned.
Massage Envy (name sums up what they do) at first glance seems to focus strictly on massages only. That could change from site to site but from what I read this seems to be the case. Now I really like that setup as too many places want to be a “spa” where you get everything from hair, nails to other treatments done. Separating that business off and making it strictly a massage business is a good thing. Also for someone that is seeking a franchise and may likely be a first time business owner you do not want the headache of managing a “Salon” as well.
There is not much open knowledge on the costs of this business other then a total startup in the area of $200k to $400k. This type of business is going to cost a bit more on the build out and floor plan which may require you to have a lofty chunk of capital sitting around to make this happen.
The liability of this franchise is low which is always a bonus.
The ease of running this business is also very attractive. There will not be a huge learning curve to get it off the ground.
Over all risk is moderate to high. I believe if you are not dead on when you select a location then your chances of failing are very high. Along with the risk of failing you have a large amount of money at risk since the startup cost are very high.
Closing this out I will say I do like this franchise. The risk is more then I usually want but when you jump on their homepage and their offering a $39 1 hour massage when places around here want $80-150 because it is trendy then I have to get a bit excited about this business. Top that with the focus on massage with the rest of the world on the “luxury spa” bandwagon and you are looking at a reasonable business investment.
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1 Comment(s)
By nonya on May 8, 2008 | Reply
Avoid! The introductory 50 minute massage session is $39. A 3, 6 or 12 month contract is $39 membership rate + $20 membership dues for a 55 minute massage and it is not 1 hour. Your credit card is charged automatically for $59 every month on your sign up date of the month until you cancel contract. To cancel contract you must provide a 30 day notice in writing. Should you not have a routine massage every month they will carry over a credit for you. However, should you cancel and not use your credits within the 30 day notice you lose them. They use hard sale aggressive forceful tactics to encourage their clients and members to leave a gratuity for their therapist. With tips the figure can climb to $65. The sales associate and therapist are paid hourly plus commission. They will use a placard tactic that solicits a 15% gratuity based on a non membership rate of $79 + 15% tip making the figure climb to $91. They ask if your session was okay and will shove this placard in front of you quoting this non member tip rate to get more money out of you. They will do this every time in front of other guest and EMBARRASS you to leave more (commission/tips). They do not quote the tip at member rate. Effective 6/1/08, “2 hour” massage will have an automatic 15% gratuity. Not sure if this is subject to member or non member rates. It’s also a 50/50 for a decent therapist that actually knows what their doing. The franchise should offer higher wages to their employees so perhaps the pursuit of commission won’t be what it’s all about. Customer service is not their strong suit. The best possible suggestion would be to pay as you go $90+ to the competitor and have a no hassle, no obligation, and no contract agreement and be done with it! Thumbs down to Massage Envy!